Decree favors bidding for energy transmission concessions at the end of their validity

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President Jair Bolsonaro issued this Thursday (29) a decree that regulates alternatives for electricity transmission concessions that are expiring, establishing a new bidding process as a general rule, to the detriment of contractual extensions.

According to the government, by prioritizing new bids for these projects, economic efficiency and low tariffs were sought.

“The price of the service will result from a competitive process, based on the criterion of the lowest amount of annual revenue, to the benefit of all users of the system”, said the Ministry of Mines and Energy, in a note.

Several electricity transmission concessions will expire in 2025, mainly in 2030 onwards.

Expiring transmission concessions may be tendered together with new investments foreseen by the sectoral planning, which increases the attractiveness of the bidding and gains for users of the transmission network, added the folder.

The extension of the concessions will be an alternative when the bidding is not feasible or results in harm to the public interest. In this case, the contractual extension must be substantiated by Aneel (National Electric Energy Agency), after carrying out a specific public consultation.

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