Termination of contract with thermal plants can reduce electricity bill by 4,5%

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 e reducing by up to 4,5% tariffs across the country for the next three years”, highlighted the MME in a note.

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The draft ordinance presented in the consultation authorizes the ANEEL (National Electric Energy Agency) to terminate, without charge to the parties, the Reserve Energy Contracts of the plants that entered into operation within the term defined in the contracts and that are in compliance with their obligations.

According to the Ministry's proposal, generators in good standing who agree to an amicable termination will have 30 days, after the publication of the guidelines ordinance, to submit to the ANEEL the Amicable Resolution Acceptance Term.

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 consequent collection of fine penalties, in accordance with the rules established in the Reserve Energy Contracts.

The amicable termination, as well as the reduction of contracted generation, had already been requested by some generators ANEEL and the MME. In addition, the TCU (Federal Court of Auditors) has pointed out the need to analyze alternatives to reduce PCS costs, including contract 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.