Brazil's Eletrobras should 'dispose of distribution arm'

Eletrobras, Brazil's state-run utility holding group, should hand its power distributors over to the private sector, according to Ricardo Correa, an energy analyst at brokerage Ativa Corretora.
In a recent interview with BNamericas, Correa said the company had shown it was not capable of managing them properly.
"A recent blackout in the northeastern region of the country was due to the lack of investment in local distributors, for example," he told the publication.
The Brazilian firm has plans to invest 10bn reais ($6.2bn) annually through 2015, BNamericas said, citing a spokesperson for the group.
Of the total earmarked for 2011, 3.98bn reais will go to generation, 2.65bn reais to transmission, 897m reais to distribution and 626m reais to other areas.
Correa said Eletrobras had the capacity to make such investments but questioned whether the investment would be a good one.
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