Amazonas Energia, a major power distributor in the state of Amazonas, is on the brink of collapse due to crippling debt. With over 1 million people relying on its services, the company is facing an existential crisis that could lead to a complete shutdown if drastic measures are not taken.
On May 26, Amazonas Energia’s annual tariff hike is scheduled to take effect, potentially dealing a fatal blow to the already struggling operator. In a document obtained by The Brazilian Report, the company outlines its dire financial situation, citing missed performance targets and billions in debts.
Fearing the consequences of the tariff increase, Amazonas Energia has appealed to the National Electric Energy Agency (Aneel) to suspend the hike. The company argues that the higher tariffs could jeopardize its operations and lead to the loss of essential benefits provided by the government to maintain financial stability in the utility sector.