Brazil's National Electric Energy Agency (ANEEL) approved on Tuesday, October 6, at an Ordinary Public Meeting of its Board of Directors, the new regulation defining the procedure for mandatory generation outages at power plants, a topic addressed in Public Consultation No. 45/2019 . This decision concludes a debate that began seven years ago, with broad participation from the sector, including contributions throughout three consultation phases.
The approved regulations objectively organize how these cuts in the functioning of the system should occur .
The new model, with regard to supply cuts resulting from excess energy supply, establishes guidelines for the actions of the National System Operator (ONS). In general, the regulations prioritize cuts that generate the greatest cost relief for the system, organize the order of priority among the different generation sources, and restrict situations that could increase tariffs.
The generation cuts will be distributed among the different energy sources and implemented gradually . The share of the hydroelectric component associated with turbine-generated residual energy (TRE) will be introduced gradually over four years, through scaling up to levels of 25%, 50%, 75%, and 100% of the share projected in the final model.
In the case of self-generation of energy , as a general rule, a supply cut will only affect the generation that exceeds local consumption. In exceptional situations related to safety or reliability, the ONS (National System Operator) may also affect the portion consumed locally, based on objective and auditable criteria.
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With regard to coal, the regulations will cover the obligations arising from legally established public policies.
Physical disconnections for electrical reasons will continue to be carried out by the ONS (National System Operator) where they are most effective, but the impact will be distributed among eligible agents.
The trial period will serve to simulate the effects of the regulations before their full implementation. This period will begin 180 days after the publication of the resolution and will last for 12 months. The final application of the regulation will take place 18 months after its publication.
The proposal maintains a permanent independent audit of ONS event reports. Governance will be strengthened through the disclosure of data and parameters, regular reports from the ONS and the CCEE, and the monthly publication of simulation period results.
ANEEL will be responsible for promoting the adaptation of Normative Resolution No. 1,017 to include analysis of requests to challenge reclassifications according to materiality criteria and economic impacts.
In summary, the new regulations seek to reconcile the security of the system, a more balanced distribution of the impacts of the cuts, and the gradual adaptation of agents to the new rules.
