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CCEE imposes restrictions on contract registration for four trading companies.

The list includes the companies Pontoon, Pierp, Electra Varejista, and Continental.

CCEE imposes restrictions on contract registration for four trading companies.

Photo: Magnificent

The board of directors of CCEE (Chamber of Electric Energy Commercialization) has placed four trading companies under balanced operation, a mechanism that imposes restrictions on the registration of energy purchase and sale contracts. The companies on the list are Pontoon, Pierp, Electra Varejista, and Continental.

With this measure, trading companies are prevented from freely registering new contracts in the Financial Accounting and Settlement System. Transactions can only be registered after analysis and validation by CCEE (Brazilian Chamber of Electric Energy Commercialization), with prior verification of the agents' energy balance, in order to avoid negative financial exposures.

The four companies join other trading firms already operating in a balanced system. These include Mercuria Energia, Trinity Energia, Tradener, IBS Comercializadora, Electra Energia, Terra Energy, Gama Comercializadora, and Diferencial Energia.

Balanced operation is a preventive measure foreseen in CCEE regulations and aims to preserve market security by reducing risks associated with negative exposures and potential defaults.

The free energy market is going through one of the most delicate phases in its recent history. In recent months, several companies have resorted to judicial reorganization as a way to preserve their operations in the face of the worsening financial crisis affecting part of the sector.

According to assessments by affected trading companies, the crisis is related to regulatory changes implemented in recent years, which have altered the dynamics of price formation and risk management. Among the factors cited are the adoption of hourly PLD (Price of Energy in the Spot Market), the implementation of the Newave Hybrid system, and changes in the risk aversion parameters used in computational models.

According to this view, mechanisms that previously allowed for financial offsets between positive and negative positions have begun to function differently, reducing the economic predictability of operations and increasing the exposure of some agents.

A survey released by CNN Brazil indicates that the main energy trading companies affected by the crisis have accumulated approximately R$ 8,6 billion in debt to generators, consumers, financial institutions, and other agents in the electricity sector.

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Wagner Freire
About the Author
Wagner Freire

Wagner Freire is a journalist graduated from FMU. He worked as a reporter for Jornal da Energia, Canal Energy and Agência Estado. Covering the electricity sector since 2011. Has experience in covering events such as energy auctions, conventions, lectures, fairs, congresses and seminars.

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