The Electric Energy Trading Chamber - CCEE received confirmation from the National Bank for Economic and Social Development - BNDES that the estimated total cost of financing the so-called COVID Account was reduced to CDI + 3.79%. The amount comprises the interest rate equivalent to CDI + 2.8% plus structuring fees, 2.5% of the contracted amount.

With the adherence to 50 of the 53 distributors operating in the country, the loan amount was fixed at R $ 14.8 billion. Receiving the information marks yet another advance in the process of contracting the financial operation, which aims to mitigate the impacts of the new coronavirus pandemic for the electricity sector.

As stipulated in the regulation of the COVID Account, the loans will have a grace period until July 2021, and will mature in December 2025. The composition of the contributions will still be defined, but public banks will be responsible for 29% of the offer and private banks for 71 %.

As next steps, the Commercialization Chamber will await ANEEL's order that approves the global value of the operation and the draft contracts by the financial institutions involved in the initiative, as well as its subsequent signature. Then, it will be able to register the contractual instruments and, after the disbursement is released, it intends to start the transfers to the distributors by the end of July.

The COVID Account 

Through Decree 10.350 / 20, the Federal Government established the creation of the so-called COVID Account to receive funds from a financial operation that aims to mitigate the cash problems experienced by distribution companies in the midst of the new coronavirus pandemic. The amounts, which will be managed by CCEE, will help offset the drop in revenues and anticipate the distributors' revenues, impacted by the reduction in energy consumption during the period.

For the consumer, the measure allows for a postponement and payment in up to five years of tariff impacts that, otherwise, would be felt immediately. The solution has as premises both the financial balance of the sector and the attributes of low tariffs.