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Brazil delays vote on law seen as key for Eletrobras divestiture

By Maria Carolina Marcello

BRASILIA, Sept 5 (Reuters) - Brazil's Senate will only vote on a law seen as important to making the privatization of a state energy distribution company viable after congressional elections in October, lawmakers said on Wednesday, which will delay the auction.

State utility Centrais Eletricas Brasileiras SA, known as Eletrobras, was set to auction its distribution unit in the interior state of Amazonas on Sept. 26, before elections are held on Oct. 7.

But on Wednesday, Senate President Eunicio Oliveira and Senator Fernando Bezerra Coelho, a key figure in the privatization, said the Senate would not deliberate on the matter until Oct. 9.

Representatives for Bezerra Coelho said that legislators had decided to avoid debate on controversial topics in the weeks leading up to the election.

(Reporting by Maria Carolina Marcello; Additional reporting by Luciano Costa in Sao Paulo; Writing by Gram Slattery Editing by Susan Thomas)