The Federal Court of the Federal District overturned this Wednesday (10) the injunction that suspended the LRCAP (Capacity Reserve Auction) held by the Federal Government in March of this year.
With this decision, the validity of tender that contracted approximately 19 GW of power, mostly originating from thermal power plants.
The decision was handed down by Judge Manoel Pedro Martins de Castro Filho, who determined that there was no risk of harm to public funds in maintaining the auction results. Therefore, the contracts should be definitively approved in the coming days.
The decision ends, at least for now, a legal dispute that began earlier in the week and cast doubt on the continuation of the largest power auction ever held in the country.
Understand the sequence of events.
On Monday (8), the The Federal Court of Ceará granted an injunction suspending the approval of the auction contracts. following a lawsuit filed by entities in the electricity sector.
In the ruling, the judge pointed to potential tariff impacts on consumers and determined that the case should be analyzed by the Federal Court of the Federal District.
Despite the injunction, the ANEEL (National Electric Energy Agency) decided on Tuesday (9) to approve the remaining results of the contest, ignoring the decision of the Ceará court.
ANEEL Ignores court injunction and approves LRCAP thermal power plant auctions.
The Agency understood that there was no legal impediment to continuing the process. This understanding was based on opinions from the AGU (Attorney General's Office) and the Federal Prosecutor's Office. ANEEL.
On Wednesday (10), the Federal District Court confirmed this same understanding and upheld the validity of the contest, overturning the effects of the injunction granted in Ceará.
Auction secured contracts for 19 GW of power.
The LRCAP auction held in March of this year contracted approximately 19 GW of power, the majority of which consists of thermal power plants fueled by natural gas, coal, and petroleum derivatives, with operation scheduled to begin between 2027 and 2031.
The auction has been the subject of questioning from industry entities, consumers, and regulatory bodies due to the expected impacts on electricity tariffs.
Estimates suggest that the contracts could add billions of reais per year to the costs of the electricity system. Some studies indicate increases of up to 10% in residential bills and up to 20% for business consumers, with more significant effects starting in 2029.
Members of Parliament urge urgent action to block LRCAP contract for 19 GW of fossil fuels.
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