In accordance with data collected by Census 2000 of the Brazilian Institute of Geography and Statistics (IBGE), there were in Brazil more than 2 million rural residences without access to electric power, which represented more than 10 million Brazilian citizens not serviced by this public service. Aggravating even more this situation of exclusion, it was estimated that approximately 90% of these families had an income less than three minimum wages, living mainly in places of low Human Development Index (HDI).
Beyond the great number of domiciles to be serviced, the lesser population density of the rural areas where they were situated would demand the installation of a great quantity of equipments and materials. This would demand a bigger effort of the concessionaires and licensees of distribution of electric power and the cooperatives of rural electrification, with investments only possible in the long term and with significant impact in the tax paid by consumers.
Therefore, the federal government developed a program of rural electrification to intensify the service rhythm, anticipating the universalization of electric power service, and mitigate the fee impact of these works, with allocation of subsidized and financed resources. Thus, on November 11, 2003, the National Program of Universalization of Access and Use of Electric Power (Luz para Todos Program) was established by Decree No. 4,873.
The necessary resources to the development of the Luz para Todos Program come from the federal government by way of subvention through the Energy Development Account (CDE), and by way of financing through the Global Reserve of Reversion (RGR) or Caixa Econômica Federal bank, in addition to resources from the state governments involved and executor agents.
Initially, the service to domiciles identified by IBGE up to the year 2008 was provided for. However, during the execution of the program, the involved agents have identified a bigger number of families not serviced with electric power, living in distant areas. This fact lead to changes in theLuz para Todos Program, with the publication of Decrees no. 6,442, as of 04/25/2008, no. 7,324, as of 10/05/2010, no. 7,520, as of 07/08/2011, no. 7,656, as of 12/23/2011, and no. 8,387, as of 12/30/2014, which resulted in the extension of the program up to 2018 and the magnification of its objectives.
At the end of 2013, the Rural Electrification Program completed 10 years and reached 15 million people benefited. In this same year, then the general-secretary of ONU, Ban Ki-moon, praised the conquests of the program and affirmed that the Brazilian initiative is an example to be followed by other nations.