Cemig CEO Highlights Brazil's Low Energy Costs Amid High Tariffs at Eloos Event

Reynaldo Passanezi, CEO of Cemig, stated that Brazil has cheap energy but high tariffs due to disguised subsidies. He suggested that without these subsidies, electricity rates could be a third lower, estimating an average price of R$ 150 could drop to R$ 100. He emphasized the need for increased investment in energy infrastructure, noting Brazil's average investment of R$ 40 billion is significantly lower than that of China and the U.S. Passanezi expressed Cemig's readiness for new investments, particularly in technology.

Published Mar 24, 2026

Reynaldo Passanezi, CEO of Cemig, remarked that Brazil has low energy costs but high tariffs due to 'impostos disfarçados de subsídios'. He indicated that electricity rates could be reduced by a third without such subsidies, estimating current averages at R$ 150.

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He highlighted inadequate investments in the energy sector, stating Brazil invests R$ 40 billion compared to higher amounts in China and the U.S. Passanezi affirmed Cemig's preparedness for new investments, especially in technology, inviting data centers to establish operations in Minas.