Energy sector needs regulation ensuring project financing and returns

    electric sector

  • Yes
  • Yes
  • Yes


Neoenergia's CEO Mario Ruiz-Tagle said, during an APINE event, that digitalization and electrification of the economy depend on the distribution network expansion, which is the sector “backbone".

Brasília, September 25, 2019 - Neoenergia's CEO Mario Ruiz-Tagle assesses that the creation of regulating instruments for the energy sector is required, capable of ensuring the proper financing for the whole sector.

Ruiz-Tagle highlighted that there is a need for attracting investors' interest and convince them on the profitability of those projects that will ensure the expansion of Brazilian electric system. “Market success and growth will involve securing proper resources to build projects that will meet the increase in demand", said Neoenergia's CEO, during a presentation in the 19th National Meeting of APINE Members with guests, held in Brasília.

Due to this, said the executive, there is a need for a regulation ensuring stability, transparency and proper returns. Along with CEOs from other companies in the sector, Ruiz-Tagle highlighted that the regulated market will “still exist for a longer time" and that distribution segment is experiencing a transformation period, with free market expansion - whose consumption limits will be gradually lowered in the next few years.

In Ruiz-Tagle's opinion, the whole world is undergoing a digitalization process, where the electrification of the economy has a key role. To this end, he said, the investment in distribution networks and digitalization is required - a process that will expand this energy demand.

“Networks is the backbone of this ongoing digital transformation and all sector changes. We need to secure investments to expand and digitalize the distribution network", said Ruiz-Tagle.

In Neoenergia's CEO opinion, a proper regulation also ensures energy at competitive cost - desired by all consumers, regulators, agents and investors.​

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