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Plinio Mário Nastari

President of Datagro

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Governance exists, but it needs to work

The Brazilian presidential regime has four councils, most of them with an advisory role to the President of the Republic: Council of the Republic, National Defense Council, Economic, Social and Sustainable Development Council, and National Energy Policy Council.

The Council of the Republic was created to deliberate on federal intervention, state of defense, state of siege and issues relevant to the stability of democratic institutions. Created by Law 8041 of 1990, it is directed by the President of the Republic and composed of the Vice-President of the Republic, the Presidents of the Chamber and the Senate, the leaders of the majority and minority in the Chamber and the Senate, the Minister of Justice and six citizens Brazilians over 35 years of age.

The National Defense Council is an advisory body to the President on matters of national security, foreign policy and defensive strategy. It was created on November 29, 1927, by President Washington Luís, and is responsible for advising the President in the event of declaring war or establishing peace, decreeing a state of defense, state of siege or federal intervention. It is also responsible for proposing the criteria and conditions for the use of areas essential to the national security of the territory, giving an opinion on their effective use, especially on borders and issues related to the preservation and exploitation of natural resources of any kind, as well as such as, studying, proposing and monitoring the development of the necessary measures to guarantee national independence and the defense of the democratic State.

The Council for Economic, Social and Sustainable Development is a collegiate body composed of representatives of civil society, initially created in 2003 and recreated by Provisional Measure 1154, of January 1, 2023. It is a direct advisory body to the President in all areas of action of the Executive Branch, in the formulation of policies and guidelines aimed at the economic, social and sustainable development of the Country.

And, finally, the National Energy Policy Council, chaired by the Minister of State for Mines and Energy, and composed of fifteen other State ministers, the president of the Energy Planning Company, and representatives of civil society and academia. It is an advisory body to the President for the formulation of policies and guidelines in the area of energy.

The Republic and National Defense Councils are convened sporadically, although they are of fundamental importance. The Development Council has the function of establishing a formal channel of communication and collection of suggestions, guidance and debate with civil society. But it is at the National Energy Policy Council that the conditions for the synergistic, safe and economically viable development of energy supply in the country are defined, considered the fundamental basis of development.

The duties and responsibilities of the National Energy Policy Council are enormous and the composition of the board is a reflection of its importance. Its role is to establish the conditions so that the action and investments of public and private agents related to different areas of energy are oriented towards achieving the desired energy planning, increasing energy-environmental efficiency, conservation, equity, and synergistic integration of different energy sources, whether of fossil or renewable origin.

Taking as general guidance article 174 of the 1988 Federal Constitution, which establishes that “as a normative agent and regulator of economic activity, the State will exercise, in accordance with the law, the functions of inspection, incentive and planning, this being decisive for the sector public and indicative for the private sector”, the general orientation of the action of the National Energy Policy Council must always be to guide, in an indicative manner for the private sector and decisively for the public sector, through appropriate legislation and regulation, actions consistent with the general objectives of energy planning. But this must be done without confusing regulation with intervention.

This is a basic condition for the action of the National Energy Policy Council , as an advisory and guiding body, and it is important that it is consistent with public policies in the areas of national, economic, social, industrial, agricultural, regional development, and environmental security. In order for it to be effective in the long term, and bring economic efficiency, it is also crucial that this action is developed with legal certainty and longevity, avoiding frequent changes that bring uncertainty or doubts regarding the intended objectives.

Understanding and taking advantage of synergies between different energy sources, taking advantage of the specific attributes of each source, is also essential to ensure that opportunities are not wasted.

And, finally, its function must be to promote constant innovation and scientific development, with open dialogue with the whole of society.

These are difficult tasks to accomplish, and it is exactly for this reason that, when they are not observed, we lose opportunities for development, for having tariffs and free prices defined in a more competitive and efficient way, guaranteeing permanent supply and reducing costs for the consumer. which must be the ultimate goals of energy policy.

All of this also remembers that the guidelines issued by the National Energy Policy Council are suggestions to the President of the Republic, who may or may not accept them.

It is exactly for these reasons that we have the clear perception that governance exists, but unfortunately it does not always work.