This excerpt taken from the EOC 20-F filed Mar 16, 2006.
Brazils concessions regulations were replaced by two statutes enacted in 1995: Law No. 8,987 of February 13, 1995 (the Concessions Law) and Law No. 9,074 of July 7, 1995 (the Power Sector Law). The Concessions Law and the Power Sector Law gave rise to substantial changes in both the regulations for public service concessions and the rule for renewal and approval of concessions. The objectives of these laws with respect to the electricity sector laws include the injection of competition into what had been a government monopoly, the infusion of private capital into the sector, the creation of incentives to complete projects on which work was suspended or delayed due to financial difficulties, and the laying of the groundwork for privatizations in the sector.