Sidney Simonaggio

The significant increase in the response time of distributors to respond to complaints about power outages in Brazil is a topic that deserves attention. In 2024, we will surpass the mark of 5 million complaints related to power outages, with the average response time exceeding eight hours, much higher than the six recorded in 2015. This setback demands an in-depth analysis to understand its causes and identify solutions. In my experience in the sector, I observe factors internal and external to electricity distributors that contribute to increased response times. Externally, it appears that storms have become increasingly severe in terms of intensity. Furthermore, cities have been increasingly covered in trees without, it seems, there being adequate control of this vegetation. Finally, traffic in large urban centers makes it very difficult for emergency response teams to reach incident locations. Internally, there is the obsolescence of the electrical network or its inadequacy to the surrounding environment, resulting from construction standards that are ineffective for the present day. Furthermore, labor shortages, resulting from distributors reducing technical teams to control costs, have seriously compromised the ability to respond to emergencies, especially during periods of high demand, such as storms or other extreme weather events. Regulatory challenges The existing framework requires that regulation keep pace with existing transformations and direct the performance of electricity companies towards the desired solution. Basically, there are two variables to control this situation: the structural response, reducing the number of occurrences, and the recovery response, ensuring that occurrences, once they exist, can be resolved in the shortest possible time. Therefore, regulation should be such that it encourages the investments necessary to adapt the electricity grid to current external conditions. An economic and tariff-based solution must be sought for solutions such as burying the electrical grid, large-scale replacement of existing networks with more robust construction standards, intensive network automation, etc. With regard to network maintenance solutions and the availability of teams for emergency services, there must be a recalibration of the productivity gain mechanisms currently in place in the tariff process. In fact, there is no debate that rates should be as low as possible, but on the other hand, they should reflect the real need to meet the desired quality standards. The current reality is that there is more cost pressure on network operation and maintenance activities and this conflicts with the aim of having increasingly lower tariffs. The balance between these two forces is what must be sought and constitutes the regulatory challenge of our day. For consumers, the impacts are immediate and tangible. Long periods without electricity compromise perishable foods, interrupt the functioning of essential equipment and hinder remote work, which is increasingly common. This feeling of abandonment undermines confidence in the sector and generates tension between consumers and suppliers. For distributors, the consequences are also severe. History of poor service can result in million-dollar fines imposed byANEEL

Sidney Simonaggio

Published articles

Analysis of the increase in response time of energy distributors