Energy Newsletter No. 10 – February 2022

HIGHLIGHTS          NEWS         PUBLIC CONSULTATIONS AND FORUMS         WHAT’S COMING UP…

Check out our Energy Newsletter, which gathers information on the main administrative, normative and legal texts related to the regulation of the electricity sector in Brazil, for the month of February.

We are available to help you with any questions and hear your ideas and suggestions on how we can improve even more.
Enjoy reading!

Demarest Energy and Natural Resources Team


HIGHLIGHTS

ANEEL publishes normative resolution defining the structure of tariff regulation procedures (PRORET)

On February 1, 2022, Normative Resolution No. 1,003, was published to define the structure of PRORET, consolidating the regulation of tariff processes for concessionaires and licensees of public services of distribution, transmission, and generation of electricity.

Among its provisions is the grouping of concession areas served by electricity distributors with common corporate control through the unification of their respective contractual terms and upon request from concessionaires and evaluation by ANEEL.

This Resolution also established the procedures for implementation of the Market Information Monitoring System for Economic Regulation (SAMP), which replaces the Standardized Market Monitoring (AMP).

Read in full

TCU Ministers decide, in an extraordinary plenary session, for the continuity Eletrobras privatization

On February 15, in an extraordinary plenary session, a majority of ministers of the Federal Audit Court (TCU) decided to follow the vote of the case rapporteur, minister Aroldo Cedraz, in favor of continuing the process of privatization of Eletrobras.

Among other determinations, the Ministry of Mines and Energy (MME) must evaluate other price references for the sale of energy in new concession contracts. In addition, it was determined that, within 30 days from the acknowledgment of the judgment, studies that assess the economic and financial impacts that may be caused to consumers must be carried out and widely publicized.

Read in full

As a result, on February 22, Eletrobras’s shareholders met in an Extraordinary General Meeting to approve the company’s capitalization.

Read in full

NEWS

ANEEL publishes a resolution to ratify the charge of tariffs to the consumer units of Group B

Brazil’s National Electric Energy Agency (ANEEL) published Resolution No. 3,009 on February 01, 2022, which republishes the tariffs applicable to consumer units of Group B for concessionaires of the public energy distribution service. These tariffs will become valid as of January 06, 2022, to replace the tariffs introduced by Ratifying Resolution No. 2,887, of June 22, 2021. In addition, the rule ratifies the additional amount to be passed on by the Chamber of Electric Energy Commercialization (CCEE) to the distributors listed in the period from January 2022 to the reference month of the next tariff process.

Read in full

ANEEL publishes normative resolution on institutional registration

Resolution No. 1,004, of February 08, 2022, provides for ANEEL’s Institutional Registry (CDA) and Electronic Notification. The Institutional Register will contain registration information of individuals or legal entities that are of interest to ANEEL, and registration can be carried out by filling in the form available on the ANEEL Portal on the internet. ANEEL may require, at any time, additional information in the Institutional Register. Enrolment will result in joining the electronic notification system, meaning that all Agency notifications will be made electronically.

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Rio Grande do Sul state government announces amendment to the event schedule of the CEEE-G auction

Through the State Department for the Environment (“SEMA”), the schedule of auction No. 01/2021 concerning the privatization process of the State Electricity Generation Company (“CEEE-G”) was changed. The re-publication of the notice included the buyer’s obligation to complete the process and register CEEE-G as a publicly-held company with the Securities and Exchange Commission (CVM), extending the dates for delivery of proposals to March 18, 2022, and the bidding procedures to March 23, 2022, starting at 2pm.

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Publication of a decree amending the provisions on procedures to be observed by companies controlled directly or indirectly by the government

On February 10, 2022, Decree No. 10,960 was published, amending Decree No. 1,091/1994, which provides for procedures to be observed by companies directly or indirectly controlled by the Federal Government. The Decree determines that in the privatization process of Centrais Elétricas Brasileiras SA (Eletrobras), especially in relation to the increase in the capital stock of Eletrobras Termonuclear SA (Eletronuclear), the provisions of art. 3 of Decree No. 1,091, of 1994 are no longer applicable. Such provisions established that at the shareholders’ meetings, the National Treasury Attorney and representatives of entities directly controlled by the government must comply with the terms of the instruction and vote issued by the Ministry of Finance. Thus, those involved in this process will no longer depend on the decision of a general shareholders’ meeting to resolve on the total or partial sale of shares in its capital stock or in its subsidiaries; opening of its capital, increase of its share capital; on the spin-off, merger or incorporation of companies, etc.

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ANEEL publishes order authorizing CCEE to transfer the values of the incentive program for the voluntary reduction of energy consumption

The Director-General of ANEEL published decision No. 397, of February 08, 2022, which authorizes the CCEE to transfer values of the Incentive Program to the Voluntary Reduction of Electricity Consumption, dealt with in Resolution No. 2, of August 31, 2021, of the Chamber of Exceptional Rules for Hydrogenetic Management (CREG). The decision further exempts the amounts linked to the Incentive Program from the apportionment of the short-term market default (MCP); and, finally, defines that the apportionment of the Program’s costs among the agents of the CCEE must be carried out following the rule applied to the Charge for Energy Security.

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ANEEL publishes ordinance approving value chain

ANEEL’s Director-General publishes Ordinance No. 6,724, of February 14, 2022, approving ANEEL’s Value Chain, which presents its principles as an Agency and its functions.  

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ANEEL publishes normative resolution amending rules for power transmission services in the national electrical system – transmission rules

On February 15, 2022, Normative Resolution No. 1,005 was published, which introduces Module 6, called “Coordination and Control of the Operation”, into the Rules for Power Transmission Services in the National Grid, established by Normative Resolution No. 905/2020.

Module 6 establishes the guidelines and procedures for:

  • coordination and control of the operation of transmission facilities carried out by the National Electric System Operator (ONS);
  • contract administration and financial accounting mechanisms;
  • requirements and criteria; and
  • the definition of indicators and required data.

Read in full

ANEEL issues rules that approve general procedures for the management program of its superintendences

ANEEL has published ordinances approving the General Procedures of the Management Program in the Superintendencies of: Bidding and Control of Contracts and Agreements; Oversight of Generation Services; Concessions, Permissions and Authorizations for Transmission and Distribution; Generation Concessions and Authorizations; Technical Information Management; Oversight of Electricity Services (SFE); Administrative Mediation, Sectorial Ombudsman and Public Participation (SMA); Regulation of Transmission Services.

Read in full – Ordinances no. 6716/2022; 6717/2022; 6718/2022; 6719/2022; 6720/2022; 6721/2022; 6722/2022; 6723/2022; 6725/2022; 6726/2022; 6727/2022; 6728/2022; 6729/2022; 6730/2022; 6731/2022.

EPE publishes technical notes on blue, gray and turquoise hydrogen

On February 23, 2022, the Energy Research Company (EPE) published Technical Notes EPE/DPG/SPG/01/2022 and EPE/DPG/SPG/02/2022, about studies on blue, gray and turquoise hydrogen. This initiative is aligned with the National Hydrogen Program (PNH2) published last year by the MME, and   guidelines are related to energy planning and international cooperation, among others.

Read in full

CONSULTATIONS AND PUBLIC HEARINGS

SUBMISSION OF CONTRIBUTIONS (ANEEL) SUBJECT MATTER CONTRIBUTION TERM
No 002/2022 Obtaining additional contributions for reviewing the Regulatory Remuneration Base of power distributors From February 2, 2022, to April 4, 2022
No 003/2022 Obtaining contributions on the proposed amendment to the Commercialization Rule. From February 22, 2022, to March 8, 2022

 

PUBLIC HEARING (ANEEL) SUBJECT MATTER SESSION
No 001/2022 Obtaining contributions to improve the proposal referring to the Periodic Tariff Review of Companhia Sul Sergipana de Eletricidade – Sulgipe; and definition of the corresponding limits of the continuity indicators for Equivalent Interruption Duration per Consumer Unit (DEC) and Equivalent Interruption Frequency per Consumer Unit (FEC), for the period from 2023 to 2027. March 3, 2022

 

PUBLIC CONSULTATIONS (ANEEL) SUBJECT MATTER CONTRIBUTION TERM
No 075/2020 The term for submitting contributions to the 2nd phase of the consultation to obtain contributions for the Regulatory Impact Analysis (AIR), which aims to improve the process of Financial Settlement of Charges for the Use of the Transmission System, has been extended. From December 15, 2021, to March 23, 2022
No 073/2021 Obtaining contributions for the AIR and the proposal for improvements to regulations regarding sharing of infrastructure between the electricity distribution and telecommunications sectors. From December 16, 2021, to March 16, 2022
No 083/2021 Obtaining contributions for improvement of the Regulatory Impact Analysis Report and the draft resolution with the proposed revision of Normative Resolution No. 697/2015. From December 16, 2021, to March 16, 2022
No 001/2022 Obtaining contributions for the consolidation draft that deals with the topic “Procedure and grant requirements – Hydraulic potentials”. From January 27, 2022, to March 14, 2022
No 003/2022 Obtaining contributions to improve the draft of the Public Notice and respective Annexes of the Generation Auction No. 3/2022-ANEEL From February 10, 2022, to March 28, 2022
No 005/2022 Obtaining contributions on the 4th Annual Plan for Application of Resources of the National Power Conservation Program (4th PAR Procel). From February 17, 2022, to March 8, 2022
No 006/2022 Obtaining contributions for improvement of the consolidation draft that deals with the topic “Procedure and grant requirements – wind, photovoltaic and thermoelectric sources”. From February 24, 2022, to April 11, 2022

 

PUBLIC CONSULTATIONS (MME) SUBJECT MATTER CONTRIBUTION TERM
No 120/2022 Public consultation seeking to improve general guidelines used to carry out Auctions for Isolated Systems. From February 1, 2022, to March 18, 2022
No 121/2022 Public consultation on the proposal of the Methodology Working Group, which deals with the topic: PAR(p) – A Hydrological Representation Model and the Assessment of Parameterization of Risk Aversion (CVaR) From February 10, 2022, to March 11, 2022

WHAT’S COMING UP… 

 

March 23, 2022 – Auction of CEEE-G
Notice: State Department for the Environment (information here)

More information here
May 2022 – New Energy Auction A-4
Notice: ANEEL (to be published)

More information here
June 2022 – Transmission Auction No. 1/2022 (forecast according to CP 071/2021)
Consisting of 13 lots in the states of Minas Gerais, São Paulo, Espírito Santo, Amapá, Bahia, Pará, Rondônia, Mato Grosso, Pará, Santa Catarina, Mato Grosso do Sul, Amazonas and Acre.

Notice: ANEEL (to be published)
More information here
August 2022 – New Energy Auction A-5 e A-6
Notice: ANEEL (to be published)

More information here
September 2022 – Auction for Contracting Capacity Reserve, in the form of reserve energy and according to Law No. 14.182/2021
Notice: ANEEL (to be published)

More information here
October 2022 – Auction to Supply for Isolated Systems
Notice: ANEEL (to be published)

More information here
November 2022 – Auction for Contracting Reserve Capacity in the form of power
Notice: ANEEL (to be published)

More information here
December 2022 – Existing Energy Auction “A-1” e “A-2”
Notice: ANEEL (to be published)

More information here

 

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This material is for informational purposes only, and should not be used for decision-making purposes. Specific legal advice may be provided by one of our lawyers.