LEGAL PRIORITY OF PUBLIC WATER SUPPLY AND ELECTRICITY GENERATION

Abstract

The article approaches the coexistence of two types of administrative authorizations. The first one concerns the use of water for electricity generation purposes and its expedition involves multiple federal entities. The second one grants to its beneficiary the right to explore water supply services and its expedition might also involve states and counties. In the case studied, the authorization for electricity generation preceded the authorization for water supply, causing a problem of legal transition for constituted rights due to new regulatory demands. These demands raise doubts about the stability and revocability of rights previously constituted by administrative acts or contracts. Brazil´s legal order sets water supply as a priority and allows an indemnification for losses endured by the beneficiary of the older authorization. Nevertheless, the article concludes that a norm that ensures a general obligation of establishing a proper transition regime in cases of new regulatory demands would be convenient.