Three normative resolutions from the Brazilian Electricity Regulatory Agency (ANEEL) updated rules for hydroelectrical generators that participate in the Energy Reallocation Mechanism (MRE, in the Portuguese acronym). They seek to improve the legal security of mechanisms related to the renegotiation of hydrological risk and physical grants.
Normative Resolution n. 895/2020 from the Brazilian Electricity Regulatory Agency (ANEEL) established new criteria for the renegotiation of hydrological risk, in accordance with newly sanctioned Law n. 14.052/2020 (as reported by the 16th Edition of the Regulatory Report from September 2020). They also result from Public Consultation n. 56/2020, which received 151 contributions.
The updated renegotiation of the hydrological risk mechanism provides compensation for potential energy generation losses caused by outflow restrictions, applicable to hydroelectrical generations that participate in the Energy Reallocation Mechanism (MRE, in the Portuguese acronym), in accordance with the aforementioned law.
Hydroelectrical generators can request compensation, considering the short-term market price, and estimations calculated under a chain process that involves the National System Operator (ONS), the Brazilian Energy Research Company (EPE), the National Energy Trade Chamber (CCEE) and ANEEL, detailed in the resolution.
The updated mechanism, with retroactive effects as of 2012, aims to facilitate operations, provide due compensation, improve legal security and predictability. It also contributes to new investments.
ANEEL Normative Resolutions n. 898/2020 and n. 899/2020 amended Normative Resolutions n. 817/2018 and n. 584/2013 on the seasonal adjustments of the physical grants mechanism, applicable to hydroelectrical generations that participate in the MRE. They result from Public Consultation n. 45/2020 (as reported by the 15th Edition of the Regulatory Report from August 2020).
The resolutions established a unified criterion of seasonality of MRE physical grants, based on average monthly generation. A transition process for adopting the new criterion by operating hydroelectric generators was also defined, scheduled until the end of 2026. Alternatively, the new rules will be implemented as of 2022, pending complementary regulations by the CCEE on rules of commercialization.
