Eletrobras won't need capital increase this year or next, but maybe later

|By:, SA News Editor

Top Brazilian power company Eletrobras (EBR) won't run out of money this year or next but may need more capital further down the line, CEO Jose Costa tells WSJ.

Prices for the power EBR sells dropped dramatically in 2012 when it renewed its concession contracts for another 30 years; as a result, EBR reported a loss of 6.3B Brazilian reais last year, raising doubts about its ability to carry out its plan to spend ~60B reais over the next four years without fresh capital.

Power rationing won't be needed, Costa says, but price increases need to take effect immediately so they have an impact on consumption.