|
|
Enron Mail |
A short summary published today about the legal situation. =20
Growing Legal Problems for Energy Rationing Program The legal battle provoked by the government =01,s energy rationing program intensified Thursday with a S?o Paulo judge throwing out the program =01,s penalties. Thursday night,a judge in the city of Mar?lia,S?o Paulo issued an injunctio= n suspending all of the penalties contained in the program for households or= =20 firms that exceed quota levels for electricity consumption.The injunction was in response to a challenge of the penalties filed by a federal prosecutor and = is applicable to the entire country. The judge ruled that higher energy charges and the threat of a=20 momentarycutoff of electricity for persons or companies that exceed their= =20 quotas were unconstitutional. Also on Thursday several Supreme Court justices stated that they have no doubts that a controversial decree issued by the government Wednesday is unconstitutional.The decree states that measures taken to combat the energy crisis do not have to respect Brazil =01,s consumer protection code.Accordi= ng to=20 the justices,who declined to be identified,the decree violates three articles o= f=20 the constitution. In S?o Paulo,the number of suits challenging the government program reached seven in the federal district court while in Rio a total of four=20 suits had been filed by the end of Thursday. Thus far the government =01,s only response to the program =01,s legal prob= lems has been to mobilize federal attorneys to overturn any injunctions issued b= y=20 lower court judges.At some point,however,the government will also have to deal wi= th the damage to its image caused by the unpopular aspects of the program. In related developments Thursday: =01=07the head of the energy crisis management team Pedro Parente said that= the government would consider a proposal defended by some electricity utilities= to declare every Monday a holiday.Parente said his team would analyze the economic impact of such a measure which would be only be adopted if the=20 current rationing program fails to produce the needed 20%cut in electricity=20 consumption. =01=07 the government created a special group of energy experts to prepare = the details of a program of rolling blackouts similar to what has been applied = in=20 the American state of California,also suffering from an energy crisis.Thus far blackouts have been ruled out in Brazil and would only be adopted if=20 absolutely necessary. =01=07the water level of reservoirs for hydroelectric plants is continuing = to=20 decline. According to figures for May 23,the average level in the southeast and=20 central- west regions was 29.5%,down from 32%on May 1,a reduction of 7.5%.In the northeast,the average level fell from 32.6%to 28.5%over this same period,a reduction of 12.6%.Thus far the decline in consumption is not keeping pace= =20 with the reduction of generating capacity.For the week May 17-23,consumption in the southeast and central-west regions fell 4.6%and in the northeast the=20 decline was 5.4%. =01=07the Brazilian Association of Shopping Centers (Abrasce)proposed to me= et its consumption quota by reducing the shopping period by two hours a day.Ma= lls would open an hour later than at present and close an hour earlier. =01=07the government is expected to announce today the energy quotas for specific business sectors.Each sector will be required to reduce its=20 consumption by between 15%and 25%.
|