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Itaipu bonus reduces electricity bill in August

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Marco Três newsroom · edited by Annie Grellmann

Transfer should generate deflation in IPCA for the month

The bonus from the Itaipu Hydroelectric Plant will be passed on in electricity bills in August, reducing the value of the light bill. The effect should push the country's official inflation index down, according to the Brazilian Institute of Geography and Statistics (IBGE).

Itaipu bonus reduces electricity bill in August
Foto: Cmasi / Wikimedia · CC BY-SA 4.0

In July, the increase in electricity tariffs was the main factor that pushed the National Index of Prices to the Consumer Broad (IPCA) upward, despite falling food and fuel prices. The index closed at 0.07% for the month.

With the inclusion of the Itaipu bonus in electricity bills, the trend is expected to reverse. According to the IBGE research manager, the transfer should generate deflation — a negative pressure — on the official inflation index. However, the impact will be temporary in nature.

The reduction caused by the bonus should appear first in the inflation preview (IPCA-15) and then in the consolidated IPCA for August, whose release is scheduled for September. In the following months, the trend is toward normalization in tariff prices.

Source: RRMAIS

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Frequently asked questions

When will the Itaipu bonus appear on the electricity bill?
The bonus will be reflected in electricity bills in August.
How long will the bonus effect last?
The impact will be temporary. In the following months, tariff prices are expected to normalize.
What was the IPCA in July?
The IPCA closed at 0.07% in July, driven mainly by the electricity tariff increase.

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