Free Market
The new power sector model that defines the sale of electricity is conducted in two market environments, the Regulated Contracting Environment - ACR and Free Contracting Environment - ACL.
Hiring in the ACR is formalized through bilateral contracts regulated agreements between agents and sales personnel (suppliers, generators, independent producers or compounders) and buyers (distributors) who participate in auctions for buying and selling electricity.
In the ACL for a free negotiation between agents Generators, Traders, Free Consumers, Importers and Exporters of energy, and the agreements of purchase and sale of energy are agreed upon through bilateral contracts.
Generation agents, are dealers of public Generation, Independent Power Producers or mixers, as well as Traders may sell electric energy in both environments, while maintaining the competitive nature of generation, and all contracts, whether or the ACR ACL, are recorded in the CCEE and form the basis for accounting and settlement of differences in short-term market.
From: www.ccee.org.br
The regulatory milestone for the free market for energy in Brazil occurred in July 7th, 1995 with the publication of Law nº 9.074. This law gave consumers the right to contract their energy supply from independent suppliers, if their needs are equal to or greater than 10 MW and the voltage is equal to or greater than 69 KV.
In 1996, the Electric Power National Agency (ANEEL) was created which also helped to support the free market for energy in Brazil. Another law, Law nº 9.648, May 1998, helped to establish within the Brazilian free market, the Wholesale Market for Electric Power (MAE) as well as the status of special consumer.
Even after this ten year period of free market growth, there are still goals to be met, such as: competitive participation of suppliers who bid for new and existing energies; freedom for consumers to sell contractual energy surpluses; participation in setting prices and implementing electrical energy certificates.
Publication of Law nº 9.648, dated May 26th, created the Wholesale Market for Electric Power (MAE), the National Power System Operator (ONS), and the status of special consumer. It enables the ANEEL to authorize sales and purchases of energy by an agent;
Enactment of decree nº 2.655, dated July 2nd, regulated Law nº 9.648/98, and defined the rules for the MAE and the ONS;
Aneel publishes Resolution No. 265, on August 13, establishing rules for trade in electricity.
ANEEL published Resolution nº 281, dated October 1st, which established general conditions for accessing the system for transmission and distribution.
Carbocloro/SP, October 22nd, celebrated its first contract between consumer and a distribution company (COPEL and assisted intervention from Tradener/PR).
April, ANEEL intervened in the MAE; May, government published the MP nº 2.147; the Chamber of Electrical Energy Commercialization (CCEE) created; guidelines established to programs to face the electrical energy crisis.
Publication of Decree nº 4.562, dated December 31st; regarding relationship between supplier and consumer Group A.
Publication of Resolution nº 102, March 1st , which ultimately established the Electrical Sector General Agreement.
December 30th, first series of commensuration and settlement of MAE, regarding the period between September 2000 and September 2003; the calculated amount was R$ 2.9 billion; the conditional settlement was of R$ 1.4 billion; the settled amount was R$ 856.2 million (57,54%); the defaulted amount was R$ 631,9 million (42,46%).
July 3rd, second series of commensuration and settlement of MAE took place; the conditional settlement was R$ 1,2 billion; the settled amount was R$ 1 billion (88,40%); the defaulted amount was R$ 141 million (11,60%).
Law nº 10.762, dated November 11th, extended the discount to the TUSD and TUST, regarding the commercialization of incentivized energy to hydro-electric projects, with a load equal to or less than 10 MW.
Law nº 10.847, dated March 15th, was published and created the Energy Research Company (EPE);as well as Law nº 10.848 which established the Chamber of Electrical Energy Commercialization (CCEE) , a new sector model, thus establishing the Power Sector Monitoring Committee (CMSE) and creating an environment of regulated and free contractual agreements (ACR and ACL), and eliminating the MAE.
Decree nº 5.163, dated July 30th, was published, which regulated Law nº 10.848 (2004), regarding the commercialization of electrical energy.
ANEEL approved the alteration of Resolution nº 77/2004, which assured exemption of payment by the TUSD and TUST to projects of wind power, of biomass, small hydro electrical plants qualified as solar or co-generated, with a load less than 30 MV and with operations started up to December 31st, 2002.
December 21st, ANEEL published the Resolution nº 247, which established the conditions for electrical energy commercialization of incentivized sources for consumers with a load equal to or greater than 500 KW.
June 15th, Law nº 11.488 was published, which extended a discount of 50% in the TUSD and TUST for projects of wind power, of biomass, of small central hydro electrical plants, solar or co-generated, with load up to 30 MW. This law has also corroborated the possibility of commercialization of electrical energy of incentivized sources for special consumers or a group of special consumers whose load is equal to or greater than 500KW.
Approved, by ANEEL, the first contracts between an agent and consumers of incentivized sources. The business, which exceeded R$ 16 million, had Electra Energy, Mangotex, Isofilme Indústria e Comércio de Plásticos and Meincol Distribuidora de Aços involved.
Source: www.grupocanalenergia.com.br
