Four new Provisional Measures were published yesterday in the Federal Official Gazette

MP 948 addresses consumer relations, characterized as hypotheses of unforeseeable circumstances or force majeure, which do not give rise to moral damages, nor the application of fines or other penalties.

Four MP’s were published in the Federal Official Gazette yesterday, 08/04/2020, providing for the opening of extraordinary credit (MP’s 947 and 949), temporary emergency measures for the electricity sector (MP 950) and rules for the tourism sector and events during the state of public calamity (MP 948).

It is important to clarify that the Joint Act of the Tables of the Chamber of Deputies and the Federal Senate No. 1/2020, published on 04/01/2020, instituted a simplified procedure for the processing of provisional measures issued during the public calamity, so that the period of 120 days, in which the provisional measure should be approved or expressly rejected in order not to lose its validity, has been reduced. Thus, the analysis by the Chamber of Deputies must be completed on the 9th day of the MP’s term, the approved matter is forwarded to the Federal Senate which will make its assessment until the 14th day of term and any changes will be examined by the Chamber within 2 working days.

Provisional Measures 947 and 949 deal with the opening of extraordinary credit, an additional type of credit provided for in the third paragraph of article 162 of the Constitution, which is admitted only “to meet unpredictable and urgent expenses, such as those arising from war, internal commotion or public calamity” , which is authorized and opened through a provisional measure (art. 62, § 1, I, “d”, CF / 88).

The first opens in favor of the Ministry of Health an extraordinary credit in the amount of R $ 2.6 billion for “facing the public health emergency of international importance due to the Coronavirus”, while MP 949 opens extraordinary credit in the amount R $ 900 million to the Ministry of Mines and Energy, for the purpose of transferring resources to the Energy Development Account (CDE), created by Law No. 10,438 / 2002, in order to stimulate the energy development of States, promote universality of the electric energy service in the country, guarantee resources to meet economic subsidies aimed at low tariffs for low-income residential subclasses, among other objectives.

Provisional Measure No. 950, also related to the electricity sector, expanded the discount linked to the Electricity Social Tariff for consumers in the low-income residential subclass, which will be equivalent to 100% “for the lower portion of electricity consumption or equal to 220 kWh / month ”for three months (April 1 to June 30); included among the objectives of the CDE “to provide resources, exclusively through a tariff charge, and to allow the amortization of financial operations”, authorizing the Federal Government to allocate resources up to the limit and with the objective set out in MP 949; provided that the Federal Executive Branch may establish conditions and requirements for structuring financial operations, providing and collecting funds, mechanisms organized to ensure the sustainability of this economic sector, reducing the impacts resulting from default and reduction in consumption.

MP 948 addresses consumer relations, characterized as hypotheses of unforeseeable circumstances or force majeure, which do not give rise to moral damages, nor the application of fines or other penalties, involving cancellation of services, reservations and events (including shows and shows), establishing deadlines which will be counted from the date of the closure of the state of public calamity.

In these circumstances, service providers or a business company will not be obliged to refund the amounts paid by consumers, provided that they ensure, without additional cost, fee or fine, rescheduling, respecting seasonality, amounts originally contracted and a term of 12 months; providing credit for use or discount when purchasing other services, reservations and events, which can be used by consumers in up to 12 months; or other agreement to be formalized with the consumer; emphasizing that the impossibility of this adjustment entails the duty of restitution, updated by the IPCA-E, in 12 months.

In addition, Provisional Measure No. 948 provided that artists hired until 4/8/2020 and impacted by cancellations, as well as professionals hired to hold events, will not need to reimburse the fees for services or fees, as long as the event is rescheduled on 12 months, and there is a duty to refund the amount, updated by the IPCA-E, also in 12 months, when these artists and professionals do not provide the contracted services.

By: Wilson Sales Belchior