This paper analyzes the reforms that took place in the Brazilian electrical sector during Fernando Henrique Cardoso's government. Firstly, it presents a summary of the organization, functioning and difficulties encountered by the sector prior to his inauguration. It describes the main governmental proposals and the criticisms and alternatives to the chosen model. It shows how the option for a rapid and profound reform of the electricity system, based on liberal experiences in other countries caused great disruption on coordination and planning. This situation was worsened by the governmental economic policy, especially by its monetary exchange policy and by the restriction on investments of the state owned companies. This resulted in a rationing of energy, a heavy rate increase for consumers and a legacy of indebted electrical companies depending on public money.
Energy management policy; Reform of the electrical energy system; Electrical energy planning; FHC government
