Brazil's federal audit court (TCU) has ruled in favor of continuing the privatization process of state-run power provider Eletrobras, with six votes against one.

More judges still have to vote, but the majority of the judges have voted in favor of the privatization.

The next step will be for the company's shares to be put up for sale. The government intends to start a capitalization tender for Eletrobras in June.

One of the court's ministers questioned the company for setting aside an extra R9bn ($1.75bn) as impairments, which could have been passed on to shareholders. The possible impairments were related to a power loan used in the Itaipu hydroelectric plant project, including its transmission system, and Eletrobras charges to the regulatory agency Aneel for other generation activities.

By Rebecca Gompertz