energy situation

The president named Pedro Parente as the Energy Czar yesterday to coordina=
te=20
the rationing crisis and develop short and medium term solutions for the=20
sector. Rumors are that the Aneel directors will be replaced. Mauro Arce,=
=20
Sao Paulo state energy secretary will also be on the coordination team with=
=20
the Mines and Energy minister. We have very strong personal relationships=
=20
with both Parente and Arce and I have been invited to participate as one of=
=20
the private sector repesentatives. We are scheduling a call with your=20
assistants for an update. =20

See attached:
Official Admits Government Underestimated Energy Crisis
Government officials Thursday opted to create a special interministerial=20
group to
address Brazil=01,s current energy crisis.
Cabinet head Pedro Parente, who will coordinate the group, made the=20
announce-ment
and also admitted that the situation is more serious than originally though=
t.=20
His
comment seemed addressed at strongly worded criticisms by business leaders =
who
have charged that the government failed to act in time to deal with the=20
crisis.
The head of the infrastructure department of the S?o Paulo State Federation=
of
Industries (Fiesp), Pio Gavazzi, warned that industry could not support an=
=20
energy cut
of over 6%. Any reduction above this level would have "catastrophic results=
,"=20
Gavazzi
said.
Fiesp research and statistics director Clarice Messer added that the=20
rationing would
stop the expansion of jobs in S?o Paul industry, which began last year.=20
According to
Messer, 13,000 new jobs would not be created in the second semester as a=20
result of
the energy cuts.