* Rate cuts to cost Eletrobras $4.3 billion/year
* Restructuring plan to be released at earnings event
RIO DE JANEIRO, March 27 Eletrobras
plans to announce a restructuring aimed at bringing the
Brazilian state-led utility's plans in line with
government-imposed cuts in power rates, a source with direct
knowledge of the subject told Reuters on Wednesday.
The company will announce the restructuring during a press
conference on Thursday, the source said. The press conference
was scheduled to discuss fourth quarter and full-year 2012
financial results of Eletrobras, which is formally known as
Centrais Eletricas Brasileiras.
The restructuring plan is on the agenda of a Wednesday board
meeting, Eletrobras Chief Executive Officer Jose da Costa
Carvalho Neto said earlier in the day.
Eletrobras will lose an estimated 8.7 billion reais ($4.3
billion) in annual revenue as a result of a government plan that
renewed expiring hydroelectric dam rights in exchange for a
reduction in rates.
Without the renewals, the hydroelectric dam rights, known as
concessions, would have been taken over by the government and
auctioned to the highest bidder.
One possibility under consideration is for Eletrobras to
sell money-losing electricity distribution utilities that the
federal government made the company take on in recent years.