The president named Pedro Parente as the Energy  Czar yesterday to coordinate 
the rationing crisis and develop short and medium term solutions for the 
sector. Rumors are that the Aneel directors will be replaced.  Mauro Arce, 
Sao Paulo state energy secretary will also be on the coordination team with 
the Mines and Energy minister.  We have very strong personal relationships 
with both Parente and Arce and I have been invited to participate as one of 
the private sector repesentatives.  We are scheduling a call with your 
assistants for an update.  

See attached:
Official Admits Government Underestimated Energy Crisis
Government officials Thursday opted to create a special interministerial 
group to
address Brazil,s current energy crisis.
Cabinet head Pedro Parente, who will coordinate the group, made the 
announce-ment
and also admitted that the situation is more serious than originally thought. 
His
comment seemed addressed at strongly worded criticisms by business leaders who
have charged that the government failed to act in time to deal with the 
crisis.
The head of the infrastructure department of the S?o Paulo State Federation of
Industries (Fiesp), Pio Gavazzi, warned that industry could not support an 
energy cut
of over 6%. Any reduction above this level would have "catastrophic results," 
Gavazzi
said.
Fiesp research and statistics director Clarice Messer added that the 
rationing would
stop the expansion of jobs in S?o Paul industry, which began last year. 
According to
Messer, 13,000 new jobs would not be created in the second semester as a 
result of
the energy cuts.