SAO PAULO, June 6 Brazil's spot market energy
rates for next week plunged on expectations for more rainfall
and lower consumption during the soccer World Cup this month,
the country's electricity clearing house CCEE said on Friday.
The drop in energy prices is a relief for the government of
President Dilma Rousseff, which has spent billions of dollars to
help energy distributors struggling with higher costs.
A severe drought that reduced reservoirs for hydroelectric
plants in the country's southeastern region brought spot energy
prices to record highs earlier this year.
The government plans to hand out an extra 4 billion reais
($1.8 billion) to help distributors this year. It also
negotiated with banks to help set up an 11.2 billion reais loan
The administration is considering reopening negotiations to
increase the loan, officials said this week.
Electricity clearing house CCEE said the spot prices fell
in some cases up to 62 percent from last week in some regions of
The average rate for the country's southeast, northeast and
north regions fell to 318.60 reais a megawatt hour from 577.39
reais, the CCEE said.
Partial holidays at cities that will host World Cup games
will drag down energy consumption by local factories and
industries, the clearing house said. Twelve Brazilian cities
will host the month-long tournament that starts on June 12.
(Reporting by Anna Flavia Rochas; Writing by Alonso Soto)