TCU freezes R$ 5 billion in energy royalties for North and Northeast

The Brazilian Federal Court of Accounts (TCU) has ordered the freezing of R$ 5.026 billion collected through the Use of Public Assets (UBP) mechanism. This decision, issued by Minister Antonio Anastasia, suspends the transfer of these funds to energy distributors.

The funds, which are a form of royalty paid by hydroelectric plants, were intended to reduce electricity bills in regions covered by the Superintendency for the Development of the Amazon (Sudam) and the Superintendency for the Development of the Northeast (Sudene). For example, in Amapá, these resources helped lower an initial 19% price adjustment to 3.54%.

The TCU's technical audit found that payments made between May and July were sent directly to the Energy Development Account (CDE) rather than through the National Treasury's Single Account or being recorded in the General Union Budget. This practice was flagged as a violation of budgetary and fiscal norms. The freeze will remain in effect until a final judgment is reached or until it is proven that the resources have been properly integrated into the Annual Budget Law (LOA).