Economy

CCEE will propose changes in the formation of energy prices until June 2022

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In the first half of 2022, the CCEE (Electric Energy Trading Chamber) plans to present proposals for changes in the formation of electricity prices in the short-term market, the PLD, with the objective of starting to correct distortions observed between prices and the reality of the operation of the electrical system.

The idea is for this set of measures to be debated within the Permanent Commission for the Analysis of Methodologies and Computational Programs in the Electricity Sector (Cpamp) and in public consultation until July 31, so that it can come into effect from 2023.

According to the chairman of the board of CCEE, Rui Altieri, the measures under study are short-term and will not fully solve the PLD problem.

Even during the water crisis, the price of energy came to operate at relatively low levels in the short-term market, increasing the bill of charges to consumers.

This generated a billionaire cost for consumers, captive and free, via ESS (System Service Charges), according to a study by Anace (National Association of Energy Consumers).

Altieri recalled that some changes have already been approved this year and will be incorporated into the PMO (Monthly Energy Operation Program) of January 2022.

According to him, updating the minimum operative volume of the reservoirs in the computational models will tend to increase risk aversion and, consequently, the PLD.

“It doesn’t solve the problem at all, but it does.”

According to the executive, definitive solutions for the PLD, such as an eventual migration to an offer pricing model, will require in-depth studies and will only be reached in the medium term.

Dispatch cost for energy security totals BRL 24.3 billion in 2021

Dispatch costs for energy security soared this year and reached R$ 24.3 billion, with the water crisis leading to greater activations of thermoelectric plants and energy imports, pointed out the CCEE.

For the consumer, this expense is equivalent to a charge in the amount of R$39 per megawatt-hour (MWh).

The costs were high, but necessary to ensure that the country did not face rationing or load cuts, in Altieri’s assessment.

“The month of November ended with 26% of storage in an equivalent reservoir. All this effort (dispatch) added 20 percentage points of storage. Imagine if we started the wet period with 6%, it wouldn’t be like the ONS (National Operator of the Electric System ) operate this system,” said the executive, in a conversation with journalists.

According to Altieri, structural solutions to reduce the operating cost of the Brazilian electrical system are one of CCEE’s “homework” for the next year.​

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electricityelectricity billenergyENERGY CRISIShydroelectricMinistry of Mines and Energysheettariff flagwater crisis

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