Regulation of Network Industries in Brazil
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2022
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This special issue examines recent developments in Brazil’s network industries, including the natural gas, water and sanitation, electricity, and roads sectors. In the gas sector, despite reforms since the 1990s, Petrobras still dominates the value chain, and market liberalization faces challenges due to fragmented federal and state competencies. In water and sanitation, only two of the 26 state-owned companies analyzed meet sustainability and corporate governance criteria; the 2020 reform aims to expand coverage by 2033, requiring the coexistence of public and private capital. In the electricity sector, reforms have increased access to electricity to over 99.8% of the population, with renewable energy expansion, but current regulation lags behind technological advances. In roads, São Paulo has implemented innovative concession models emphasizing transparency, tariff adjustments, and risk-sharing. The articles highlight trends of liberalization, shared responsibilities, and regulatory challenges in Brazil’s network industries.