Public Innovation Policy Evaluation: Brazilian Electricity Tariff Paid by Consumers

Abstract

The objective of this study was to evaluate the impact of the SEB public policy of innovation on the average supply tariff (AST) from its implementation in the year 2000 until 2020, considering the tariff moderation foreseen in the RD&I of the SEB, which is aligned with SDG 7 of Agenda 2030. The methodological procedures included (a) a sample consisting of 40% of the market (seven of the one hundred and eleven electricity distributors) of the market (in consumers and billing); (b) a before and after real tariff model (1994–2020) applied through ordinary least squares (OLS) estimation; (c) calculation of the real AST of the sample using the present value (PV) method, updated based on the IPCA as an indexer; (d) calculation of the result of Model 4 before and after and the AST in PV to verify the impact of the SEB’s RD&I public policy on the AST. The results showed that the creation of the innovation contribution (ContribInova) impacted the AST value by 60.95% in terms of real increase. Three electricity purchasing power (EPP) indicators and the electricity purchasing power index (EPPi) were developed and calculated to track the evolution of the AST to help guide the tariff moderation of the SEB and the Brazilian commitment to Agenda 2030 to ensure access to energy services at affordable prices by 2030.