Termination of contract with thermal plants can reduce electricity bill by 4.5%

Proposal from the MME (Ministry of Mines and Energy) will avoid payment of up to R$ 39 billion
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31-10-22-canal-solar-Rescisão de contrato com térmicas pode reduzir conta de luz em 4,5%
Brazilians' electricity bill could see a reduction of 4.5%. Photo: Freepik

O MME (Ministry of Mines and Energy) opened, last Thursday (27), the Public Consultation No. 139/2022, Looking to termination of PCS contracts (Simplified Competitive Procedure).

According to the Authority, the proposal seeks reduce costs with electricity generation, respecting PCS rules and preserving electricity supply.

“Such a measure maintains the legal and regulatory security sector and will benefit consumers, avoiding payment of up to R$ 39 billion It is reducing by up to 4.5% tariffs across the country for the next three years”, highlighted the MME in a note.

Solar energy guarantees savings of R$ 600 thousand in up to 30 years

The draft ordinance presented in the consultation authorizes ANEEL (National Electric Energy Agency) to terminate, free of charge, for the parties the Reserve Energy Contracts of the plants that came into operation within the period defined in the contracts and that are in compliance with their obligations.

According to the Ministry's proposal, non-compliant generators that agree to the amicable termination will have 30 days, after the publication of the directive ordinance, to present the Amicable Resolution Acceptance Term to ANEEL.

In the document submitted for public consultation, the MME highlighted that the friendly resolution does not apply to generators that failed to comply with contractual obligations.

Therefore, it is expected that plants that did not come into operation within the agreed deadlines will have their contracts terminated due to non-payment, with the resulting fine penalties being charged, in accordance with the rules established in the Reserve Energy Contracts.

The amicable termination, as well as the reduction in contracted generation, had already been requested by some generators from ANEEL and the MME. Furthermore, the TCU (Federal Audit Court) has highlighted the need to analyze alternatives to reduce PCS costs, including contractual termination.

The guidelines and conditions for the termination of contracts signed as a result of the PCS, carried out in October last year, will be available for public consultation until November 28th.

Picture of Mateus Badra
Matthew Badra
Journalist graduated from PUC-Campinas. He worked as a producer, reporter and presenter on TV Bandeirantes and Metro Jornal. Has been following the Brazilian electricity sector since 2020.
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