The privatization of a company is a continuous process that requires deep patience and strategic guidance, says Ivan Monteiro, CEO of Eletrobras (), because contracts signed before privatization are not extinguished with the new legal configuration of the company, which means that privatization “will occur over time”.
“The day after privatization, [você tem] At your table, 300 legacy contracts. And these contracts were not privatized. They are contracts that have been signed by the company, have to wait for their maturity, ”he explained.“ I am very pleased with the shareholders we have today, because they are patient shareholders, ”he said.
Monteiro’s statement was given during a panel that debated the Brazilian infrastructure sector, in an event promoted by Itaú BBA on Monday (29).
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Privatization boosted Eletrobras to a new management era, according to Monteiro, with a primordial focus on operational efficiency. According to the CEO, for the first time the company focused on customer orientation. The company, which previously did not deal directly with the end consumer, now needs to turn to it due to the opening of the power market.
This paradigm shift, according to the CEO, was fundamental to the company’s sustainability and competitiveness, which manifested itself in multiplying investments, from a level of about $ 2 billion to $ 2.5 billion to about $ 10 billion this year.
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These investments are mainly directed to the improvement of equipment reliability and availability, ensuring that Eletrobras, responsible for 40% of the transmission and 22% of Brazil’s generation, remains a pillar of national energy security. “If we make a mistake, someone is out of power,” said Monteiro.
Agreements to solve liabilities
In addition, the new management has been dedicated to solving liabilities, such as the “compulsory loan”, which represented $ 24 billion in the balance sheet and was reduced to $ 12 billion.
This reduction was achieved through a change in legal advice, prioritizing agreements rather than prolonged disputes, according to Monteiro.
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Eletrobras has also been actively engaged in the discussion of the regulatory framework of the electricity sector, which needs to adapt to the growing participation of renewable energy and distributed generation, seeking management that prioritizes equipment reliability and climate predictability.
