The Brazilian Electricity Regulatory Agency (ANEEL) submitted to public consultation a proposal to amend the conditions of the Surplus Selling Mechanism (MVE, in the Portuguese acronym), as a means to mitigate the effect of defaulting purchasing agents within the mechanism.
The Brazilian Electricity Regulatory Agency (ANEEL), through Public Consultation n. 46/2021, submitted to public contributions a collection of regulatory improvements to the Surplus Selling Mechanism (MVE, in the Portuguese acronym), designed to mitigate the effect of defaulting purchasing agents within the mechanism. MVE rules consolidated by Normative Resolution n. 904/2020 (reported in the 19th edition of the Regulatory Report).
The MVE is a commercialization mechanism through which distributors can sell excess energy – the amount of energy initially contracted within the Regulated Contracting Environment (ACR, in the Portuguese acronym), but later evaluated as excess – within the Free Contracting Environment (ACL, in the Portuguese acronym), where purchasing agents (consumers, traders, generators, and self-producers) can acquire that excess energy. As presented in ANEEL’s regulatory impact analysis, the average default rate within the mechanism was 2.04% in the 2019-2020 period, reaching 8.88% in July 2019.
The agency seeks to improve legal security and predictability by amending the MVE conditions, provided in the aforementioned normative resolution. The regulatory proposal submitted to public consultation presents additional conditions for purchasing agents that (i) participate in MVE and (ii) conclude energy purchase agreements. The conditions include the provision of financial assets as guarantees for interested purchasing agents taking part in the mechanism.
Contributions can be submitted to this e-mail address until September 10. The draft resolution, technical note, regulatory impact analysis, instructions for participation, and more information can be found at ANEEL’s website.
