RIO DE JANEIRO Brazil's energy crisis is even worse than anticipated, AFP quoted the government as saying Friday, and rationing set to start in June could force a 35 percent cut in electricity consumption, crippling the economy.

A simulation done by the government-owned power company made public Friday confirmed that it is "inevitable that there will be energy shortages from May to November" without immediate measures to reduce electricity consumption.

The study stressed that conservation measures should be implemented as soon as possible and that rationing to force a 35 percent cut in consumption is conceivable, although the government is currently planning to reduce consumption by only 20 percent.

A closed-door meeting with President Fernando Henrique Cardoso and his cabinet members ended with a statement from the newly appointed head of an energy task force -- Cardoso's Chief of Staff, Pedro Parente -- that the government "never knew the problem could attain such proportions."

But Central Bank President Arminio Fraga said predictions of drastic rationing were premature and the actual cuts in consumption would depend on how consumers react to the crisis.

The energy rationing could have a devastating impact on Cardoso's hopes to achieve a four percent growth rate in the country's economy, according to business leaders.