Brazil will renew concessions for electric utilities beyond the 2015-2020 period with a view to reduce uncertainty over investments and mergers in the sector.

Under the new plan, energy generators will be able to renew their contracts while agreeing to decrease electricity tariffs, according to Brazil’s Folha de S. Paulo newspaper.

Part of the electricity tariffs in Brazil goes directly to generators to make up for their investments in power plants.

The renewal is expected to benefit three state-run utilities – Cesp, Cemig and Copel that would have had to return majority of their assets to the federal government, but for the decision to extend concessions.