Ecobreves – BRAZIL: Indirect Energy Consumption Is Double Household Electricity Bill

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RIO DE JANEIRO, Jul 30 2012 (IPS) - The monthly light bill paid by Brazilians represents only 32 percent of what they actually spend on electricity. All of the rest is paid for through the goods and services they consume, according to the Economic Research Institute Foundation at the University of São Paulo. Public services like transportation account for 15 percent of the average citizen’s expenditure on electricity, while products and private sector services represent 53 percent.

The indirect consumption of companies is much greater. In construction, for every dollar spent on direct electricity consumption, the energy-related cost of the materials used is almost 47 times greater.

“A large part of this amount results from the high rate of taxation. The total exemption of taxes on energy would inject a total of 181 billion reais (89 billion dollars) into the national economy in ten years," researcher Fernando Garcia de Freitas told Tierramérica.