Aug 5 Brazil’s two largest energy companies, Eletrobras and Petrobras , settled a quarrel on Wednesday worth billions of dollars in late payments for fuel supplies, the government said.
Brazil’s Energy Ministry said Centrais Eletricas Brasileiras SA, as Eletrobras is known, will pay Petrobras a bill that at one point late last year was estimated at around 8.6 billion reais ($2.47 billion) related to the supply of fuels for several thermal power plants over some years.
The government, which controls both power company Eletrobras and oil company Petrobras, did not provide an updated figure for the current size of the debt, saying only that it will be paid in 36 monthly installments adjusted by the country’s reference Selic rate, currently at 14.25 percent per year.
The deal is a major step taken by the government to address huge debts created during Brazil’s worst energy crisis in 15 years, as expensive thermal power plants were used nonstop for at least two years to guarantee supplies while a severe drought cut hydro plants’ reservoirs.
Brazil Energy Insight 
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