ENERGY - Brazil calls for more cuts

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BBC Monday, 3 September, 2001, 13:09 GMT 14:09 UK Brazil calls for more energy cuts

Th energy cuts have led to candlelit protests Brazilians could face more energy rationing measures after efforts to reduce consumption faltered in August.

President Fernando Henrique Cardoso has warned consumers not to drop their guard if blackouts are to be avoided.

Brazil began rationing energy consumption in June after drought in many areas meant the country's hydro-electric production slumped, creating the worst energy crisis in decades.

The government called for 20% savings, a target which was met in the first two months.

Dry month ahead

In August, consumption crept up again, leaving only 15% of energy savings.

. Speaking to the nation in a televised address on Saturday, President Cardoso warned that September was one of the driest months of the year.

He said the government would do all it could to avoid rolling blackouts of the kind that have affected California in the United States

"We are all fighting for the same goal: to erase the word 'blackout' from our lives and replace it with the rational use of energy," the president said.

The rationing has most affected the populous regions around Rio de Janeiro and Sao Paulo.

Mixed reactions

The government's emergency plan to force reduction with a mixture of incentives and penalties has had mixed reactions.

One of the most controversial measures is that which orders energy companies to cut off power supplies for periods of three or even six days to households or industries which exceed the new reduced quotas.

The problem is that these quotas are based on the average consumption during three months of last year, even if they were atypical.

For consumers' associations, this punitive measure goes against the energy companies' obligation to supply an essential service.

More than 90% of Brazil's energy comes from hydroelectric plants, although the government is now hoping to introduce 49 thermo-electric power stations using natural gas imported from Bolivia.

-- Anonymous, September 03, 2001


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