The End of Brazil's Drought Is a Problem for Sao Paulo's Biggest Power Company
- Eletropaulo said Feb. 24 its leverage ratio rose to 3.47 times
- Moody's downgraded the power company's ratings a day later
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The end of Brazil’s worst drought in eight decades is poised to translate into lower electricity bills for residents. But it may spell trouble for Eletropaulo Metropolitana SA, the biggest power company in Sao Paulo.
Last month, the government said it’s removing a surcharge for the use of thermal power that it imposed when hydroelectric dams weren’t capable of fully supplying the country with water. The move may reduce the cost of power by as much as 6.5 percent, according to a report in Exame website.