Analysis of the impact of COVID-19 pandemic on the Brazilian distribution electricity market based on a socioeconomic regulatory model

ABSTRACT

This paper evaluates the impact of the COVID-19 pandemic on the Brazilian distribution electricity market by applying a socioeconomic regulatory model called Optimized Tariff Model. The model quantifies the impact of the pandemic on the consumer’s quality of life and also on the economic performance of power distribution companies. Results indicate that both consumers and power distribution companies have been significantly affected in Brazil, especially companies that did not have access to the public policy proposed by the government, as they exhibited economic losses of more than 1 (GR$) in total. After analyzing the impact of the new coronavirus and the actions of the government in this context, an alternative mitigation measure (public policy) is proposed based on the Optimized Tariff Model and its feasibility examined. The alternative mitigation measure is also compared to the public policy proposed by the government and proved to be advantageous in some respects such as making bank loans unnecessary.