A ANEEL The Brazilian National Electric Energy Agency (Agência Nacional de Energia Elétrica - CCEE) is expected to open a public consultation this week to discuss new regulations that create the PSM (Market Monitoring Sanctioning Process), a mechanism that will allow the CCEE to investigate and apply sanctions to agents who adopt practices considered harmful to the functioning of the Free Energy Market.
The proposal was developed based on the experience gained during the shadow period of Prudential Monitoring, implemented to track the financial exposure and risks assumed by the agents.
The goal is to strengthen the security of negotiations, increase transparency, and reduce systemic risks in an environment that is expected to gain even more relevance with the gradual opening of the energy market. The public consultation will be open between June 18 and August 3, 2026.
The proposal establishes that CCEE (Brazilian Chamber of Electric Energy Commercialization) may investigate and sanction conduct related to the artificial creation of demand, supply or price, price manipulation, and withholding of information.
However, situations considered more serious, such as fraudulent operations or practices that represent a serious or imminent risk to the market, should be reported as a priority to... ANEEL.
The model proposed by CCEE was inspired by the structure of the financial market, especially the division of responsibilities that exists between the Market Supervision – BSM and the CVM (Securities and Exchange Commission).
The idea is to create a similar arrangement in the electricity sector, where CCEE acts in the supervision and monitoring of the market, while the ANEEL It retains its regulatory and supervisory powers.
According to the original proposal from CCEE, the infractions that could be classified as such include: creating artificial conditions of supply, demand, and price; price manipulation; fraudulent operation; omission or inconsistency of information requested by the Chamber; and actions that generate serious or imminent risk to the market.
Fines could reach R$ 50 million.
The text outlines a tiered system of penalties based on the severity of the infraction. Possible sanctions include warnings, monetary fines, temporary restrictions on the use of CCEE systems, and even the agent's removal from the Chamber.
In the case of fines, the maximum amount may reach the greater of three criteria: R$ 50 million; twice the value of the irregular transaction; or three times the economic benefit obtained or the loss avoided by the irregular practice.
The proposal also establishes aggravating factors, such as recidivism, repeated practice of the infraction, damage to the market's image, and risk to the solvency of counterparties. Mitigating factors include confession of the irregularity, spontaneous regularization, and a clean record.
Furthermore, the regulation provides for daily fines for non-compliance with CCEE's determinations. These fines can reach up to R$ 100 per day in cases of disobedience to precautionary measures aimed at halting practices that pose a risk to the market.
Divergences between ANEEL and CCEE
Despite agreeing on the need to create a sanctioning process, technical areas of ANEEL They proposed significant changes to the model originally presented by CCEE.
One of the main points of divergence involves the classification of certain infractions. The Agency's technicians consider concepts such as "fraudulent operation" and "actions that cause serious and imminent risk to the market" to be excessively broad and generic, arguing that CCEE should act in identifying these situations, but that the definitive characterization and eventual penalization should occur under the purview of the [CCEE]. ANEEL.
Another proposed change is the removal of the CCEE's ability to prevent agents from participating in auctions. According to the technical area, this power should remain exclusively with the... ANEEL.
CCEE proposed two types of procedural rites: an ordinary one, lasting up to 80 business days, and a summary one, lasting up to 20 business days. However, the technical area of ANEEL It advocates for the adoption of a single procedural rite, with a deadline of up to 25 working days for a decision, extendable for an equal period with justification.
According to experts, the simplification would reduce administrative costs, increase the speed of processes, and prevent additional expenses from being passed on to energy consumers.
Another topic that is expected to generate contributions during the public consultation is the use of consensual instruments, such as Commitment Agreements and Regularization Agreements. CCEE defends the maintenance of these mechanisms, understanding that they can allow for the rapid correction of inappropriate behaviors and prevent risks from materializing.
The technical area of ANEEL It argues that similar experiences have not yielded satisfactory results in the past and that these instruments would create more administrative bodies, increasing costs and regulatory complexity.
Impact on market opening
The proposal comes at a time of expansion in the free energy market and preparation for increased competition as foreseen in recent legislation. According to the ANEELThe creation of a specific sanctioning process for market monitoring will require adjustments to Normative Resolution No. 846/2019, which deals with the application of penalties in the electricity sector.
According to the Agency's assessment, the measure seeks to fill an existing regulatory gap and give effect to CCEE's authority to monitor behaviors that may compromise the integrity of negotiations, market liquidity, and the financial security of market participants.
Through this public consultation, traders, generators, free consumers, and other participants in the sector will be able to submit suggestions regarding the structure of infractions, the dosage of penalties, procedural steps, and the limits of action of CCEE and [the relevant authority]. ANEEL in the new market monitoring model.
all the content of Canal Solar is protected by copyright law, and partial or total reproduction of this site in any medium is expressly prohibited. If you are interested in collaborating or reusing part of our material, please contact us by email: redacao@canalsolar.com.br.
