Madrona News Regulatory – Energy sector 74th Issue

04.05.2021 – Administrative Order No. 939/2021 ratified the payment terms and the amounts of the monthly quotas of CDE COVID ACCOUNT, payable by distribution concessionaires and permission holders.

Comment: Charges are determined from distributors according to the amount requested in the Term of Acceptance sent by the distributors in July 2020, containing the required amounts and estimated assets for the period.

04.07.2021 – Public Consultation No. 014/2021 was published, which aims to obtain comments and suggestions for the improvement of the RAP Revision of the electric power transmission concession contracts related to the bidding projects with a revision date in July 2021. Contributions may be sent until May 24, 2020 via the electronic address or a digital filing on the ANEEL website.

Comment: In Public Consultation No. 014/2021, contributions regarding the applied methodology and information obtained from the processing carried out by SGT for the preparation of spreadsheets may be presented.

04.08.2021 – By means of Normative Regulation No. 05/2021, the Ministry of Mines and Energy (MME) extended the term of the directives of MME Regulation No. 504/2018 until 04.30.2022. The regulation authorizes the inclusion of fixed costs to the Variable Unit Cost (CVU) for the generation of power from operationally available thermoelectric power plants . Therefore, they must meet the following requirements: they must not have a current marketing contract and must have availability representation in the planning horizon as of May 2021, considering the Monthly Operation Program (MOP) of January 2021, or not represented in said MOP.

Comment: The extension of the provisions of MME Regulation No. 504/2018 was made in order to increase the energy supply in the subsystems of the National Interconnected System (SIN), mainly in view of the unfavorable hydro meteorological conditions and low storage in the hydroelectric power plant reservoirs.

04.08.2021 – Decree No. 10.670/2021 qualified Centrais Elétricas Brasileiras S.A. – Eletrobras within the scope of the Investment Partnership Program of the Presidency of the Republic.

Comment: The project is in the process of obtaining studies necessary for the structuring of privatization by BNDES.

04.13.2021 – Normative Resolution No. 930/2021 was published by ANEEL, changing Normative Resolution No. 895/2020, which established the methodology for calculating the compensation to the holders of hydroelectric plants participating in the Energy Reallocation Mechanism – MRE.

Comment: The change made by the new resolution defines that the physical guarantee of the plant will be considered as non-renegotiated energy for the entire period prior to the effectiveness of the Hydrological Risk Renegotiation Term. However, the Electric Power Inspection Infrastructure Secretariat (SeinfraElétrica), a technical area of the Federal Accounting Court (TCU), presented a complaint that was accepted by Minister Benjamin Zymler. According to SeinfraElétrica, the content of Normative Resolution No. 930/2021 is at odds with the provisions of art. 2-B of Law 13,203/2015, included by Law 14,052/2020 and that ANEEL would not have followed the appropriate procedural rite for issuing the normative resolution.

04.16.2021 – In a Notice to the Market, Eletrobrás informed that the term of Provisional Presidential Decree No. 1,031/2021, which deals with the conditions for the privatization of Eletrobrás, was extended for a period of 60 days.

Comment: With the extension, Congress will have until June 22, 2021 to pass the PPD, subject to subsequent approval by the Presidency of the Republic.

04.23.2021 – ANEEL initiated Public Consultation No. 018/2021 to obtain comments and suggestions and additional information for the improvement of the proposals of Normative Resolutions that deal with the consolidation of normative acts related to the topic “Rights and duties of the user of the public service of electric power distribution ”and“ Transfer of Public Lighting Assets ”, as well as for the Regulatory Impact Analysis Report – RIA. Contributions will be received until June 22, 2021, sent to the electronic address or via ANEEL’s digital filing.

Comment: The main objective of the consolidation of the normative acts is to bring greater clarity and precision to the regulation, including eliminating possible contradictions between the consolidated acts.For this reason, Public Consultation No. 018/2021 will discuss only textual changes and changes of merit with low impact expressly addressed and justified.

04.27.2020 – Provisional Presidential Decree No. 1010/2020 was converted into Law No. 14,146/2021 to guarantee exemption from electric power tariffs for consumers affected by the blackout that occurred in 2020.

Comment: In addition to the exemption from the tariff up to R$ 80,000,000.00, the law authorizes the holder of expansion of an energy generation undertaking to request the extension of the granting period in case the government, when defining the minimum percentage of power to be destined to the regulated market, stop allocating a portion of physical guarantee to the reduction of losses and the mitigation of hydrological risk.

04.27.2021 – The modification of Modules 4 and 6 of the Electric Powwer Distribution Procedures in the National Electric System (PRODIST) was approved with the purpose of improving the rules on work safety and security of the electric power distribution facilities.

Comment: The new rules will come into force as of 2022 so that power distributors can adapt to the new provisions defined by ANEEL.

04.28.2021 – Public Consultation No. 019/2021 was published, with the aim of obtaining comments and suggestions for the improvement of the Auction Notice proposal No. 2/2021-ANEEL, intended to engage public service concessions for the transmission of electric power, with facilities located in the states of Bahia, Minas Gerais, Paraná and São Paulo. Until June 14, 2020, ANEEL will receive contributions sent to the electronic address or via a digital filing on the ANEEL website.

Comment: Auction No. 2/2021-ANEEL may also cover developments to increase reliability in serving the Macapá region, in Amapá. However, for the probable lot involving Amapá, a new public consultation will be carried out, with a reduced contribution period, to deal exclusively with the draft of the concession contract and the technical characteristics of the facilities in Amapá.

04.30.2021 – The guidelines for the Auction for the Purchase of Electric Power from New Generation Projects, known as the New Energy Auction “A-5”, of 2021, were defined.

Comment: The auction, which focuses on hydroelectric, wind, solar, biomass thermoelectric projects, national coal, natural gas and energy recovery from urban solid waste, is expected to take place in September 2021. The convenience of Auction A-6, previously scheduled to occur on the same day as Auction A-1, is being reevaluated by MME, in view of the planning of the Capacity Reserve Auction.