The Ministry of Mines and Energy today informed Eletrobras that it will propose to the Council of the Federal Government's Investment Partnerships Program (PPI) the reduction of the Union's participation in the company's capital, with its consequent democratization on the Stock Exchange, Example of what has already been done with Embraer and Vale.

The measure will bring greater competitiveness and agility to the company to manage its operations, without the ties imposed on the state. This move will allow Eletrobrás to implement the corporate governance requirements demanded in the Novo Mercado, equating all shareholders - public and private - with total transparency in its management.

The decision of the Ministry was adopted after a thorough diagnosis of the company's ongoing recovery process.

Despite all the effort being developed by the current management, the debts and burdens of the past have increased and require a change of route not to jeopardize the future of the company.

The problems stem from inefficiencies accumulated in the last 15 years, which have impacted society by around a quarter of a trillion reais, and have contributed to the use of public resources that could be invested in safety, education and health.

There is no room for raising tariffs or increasing sector charges. It is no longer possible to transfer the problems to the population. The exit is in seeking funds in the capital market attracting new investors and new members. The government will remain a shareholder, receiving dividends over time. The company will start to make a profit and not loss, which will benefit States and Municipalities with the increase in tax collection. The Union will maintain veto power in the company's management, ensuring that strategic decisions in the industry are preserved, such as the CDE's sectoral costs and the financing of São Francisco River revitalization projects. The new Eletrobrás follows a model of success adopted in several countries, such as Portugal, France and Italy, that have transformed their state-owned electric power into large corporations that operate throughout the world and maintain their national identity.