Madrona News Regulatory – Energy sector 73rd Issue
03.19.2021 – The Ministry of Mines and Energy opened, via Regulation No. 499/2021, the Public Consultation No. 004/2020, to receive contributions related to the guidelines for the preparation of technical reports for the bidding of new installations of the basic network. Contributions may be forwarded by interested parties to the Ministry of Mines and Energy until 05/03/2021 via the Public Consultations Portal.
Comment: The Public Consultation was opened after the determination of the Federal Accounting Court (Opinion No. 523/2018) and will be a relevant opportunity for interested agents to contribute to the improvement of technical subsidies for future Transmission Auctions.
03.22.2021 – Decree No. 10.653/2021 formalized the qualification of new electric power projects, within the scope of the Investment Partnership Program of the Presidency of the Republic – PPI. By the decree, the 1st Electric Power Transmission Auction of 2021, the 2nd Electric Power Transmission Auction of 2021 and the Auction for Supply to Isolated Systems of 2021 were qualified.
Comment: The auction for supplying isolated systems aims to contract supply solutions for 23 locations not yet connected to the National Interconnected System (SIN). Regarding the transmission auctions, 524 km of transmission lines will be granted in the states of Acre, Mato Grosso, Tocantins, Rondônia, Rio de Janeiro and São Paulo and 866 km of transmission lines in the states of Paraná, Bahia and Pernambuco.
03.23.2021 – Constrained-off events – understood by ANEEL as those in which there is a reduction in energy production by wind power plants resulting from ONS command – had their procedures and criteria for calculation and payment regulated through Normative Resolution No. 927/2021.
Comment: At the extraordinary meeting of 03/22/2021, ANEEL’s Executive Board defined that for the events that occurred until September/2021, within the scope of the ACR, the procedures defined in the analysis of specific cases will be applied. For the events starting in October 2021, the provisions of the new Resolution, which provides for compensation with resources from the System Service Charge, will apply.
03.26.2021 – Companhia Energética de Minas Gerais (CEMIG) informed, in Relevant Information available on the company’s investor relations page, that it is in the process of evaluating the divestment of its equity in the share capital of Transmissora Aliança de Energia Elétrica S.A. (TAESA).
Comment: CEMIG’s Executive Board is evaluating the possibilities for a possible divestment, and any decision should be submitted to the Company’s Board of Directors. This is a relevant move for the market, given that TAESA has a stake in several transmission concessions.
04.01.2021 – Normative Resolution No. 928/2021 established new measures for the preservation of electric power distribution, in view of the scenario caused by the COVID-19 pandemic.
Comment: The regulation was issued due to the worsening of the pandemic in Brazil, and includes measures such as prohibiting the suspension of supply due to default for certain consumer units such as low-income residential subclasses and where there are people with limited autonomy equipment vital to the preservation of life, among others. The Resolution also determines that the distributors adopt measures such as the preparation of a specific contingency plan for the supply of medical and hospital units, and identification and registration of consumer units where there are users of equipment with limited autonomy.
Decree No. 10,665/2021 changed the regulation on the sale of electric power generated by the Itaipu binational hydroelectric power plant (Decree No. 4,550/2002).
Comment: With the new regulation, the payment of the distributors to Eletrobrás, from the transfer of the contracted power from Itaipu, may be deferred by ANEEL to one or more distributors that make the request. In addition, if there is a positive balance in the Itaipu Electric Power Trading account, ANEEL will have the autonomy to determine the periodicity of the transfer to the energy bills of residential and rural consumers with monthly consumption below 350kWh.