Brazil: Energy - Relevant News - October 2013

The Federal Government approved the energy expansion plan for the next 10 years - PDE 202 ("Plano Decenal de Expansão de Energia"), whichis the government plan for the expansion of the energy system in the next 10 years. The PDE was developed by Empresa de Pesquisa Energética - EPE (a governmental entity for energy researches).

Relevant News

Launch of a Power Innovation Plan

The Brazilian Development Bank - BNDES (Banco Econômico de Desenvolvimento Econômico e Social) and FINEP (Financiadora de Estudos e Projetos, a governmental fund for project finance) executed a cooperation agreement to launch a plan for innovation on the energy sector called Plano de Ação Conjunta Inova Energia. Three billion Reais shall be invested in the development of innovation projects. The areas that may apply for such plan are smart grids, power transmission on long-distance and high voltage, alternative sources power generation and hybrid vehicle and vehicle energy efficiency.

Service Quality Ranking for Power Distributors

ANEEL disclosed the raking of the quality of the services provided by distributors in 2012. The ranking is based on the comparison between the DEC and FEC amounts. DEC (Duração Equivalente de Interrupção por Unidadade Consumidora) indicates the number of hours that, on average, a consumer is not supplied by power during a period, generally a month or the year. FEC amount (Frequência Equivalente de Interrupção por Consumidora) indicates the average frequency on which a consumer unit has not been supplied by power. Click here to see the ranking.

Relevant Decisions

ANEEL Decides to Maintain Registered Monthly Allocation

ANEEL's Executive Committee decided, on 03/26/2013, to maintain the monthly allocation of the physical guarantees registered by generators for January and February, 2013. As a result of such decision, the spot market liquidation procedures referring to such months, which were suspended by ANEEL, shall be resumed. The suspension had been requested by companies that were exposed to atypical market conditions created by a regulatory gap. According to ANEEL's decision, its technical area shall, in the next 60 days, analyze whether any improvements of the liquidation rules are necessary. Any changes shall be applicable in 2014.

ANEEL Approves Changes to ONS

ANEEL's Executive Committee approved changes to the Accounting Manual of Operador Nacional do Sistema Elétrico - ONS (Brazilian electric system operation). By virtue of such changes, ONS must specify ledger accounts in the record of fines imposed by ANEEL, as well as specify the reasons of such penalties.

ANEEL Approves DEC and FEC Applicable to Permission Holders

ANEEL's Executive Committee approved the DEC and FEC amounts that permission holders shall comply with in 2013. DEC (Duração Equivalente de Interrupção por Unidadade Consumidora) indicates the number of hours that, on average, a consumer is not supplied by power during a period, generally a month or the year. FEC amount (Frequência Equivalente de Interrupção por Consumidora) indicates the average frequency on which a consumer unit has not been supplied by power. This shall be the first year on which permission holders are required to meet such limitations established by ANEEL. Click here to see the limitations established to each permission holder.

ANEEL Ratified the Enforcement of Guarantees

ANEEL ratified the decision to enforce the performance guarantees related to the authorizations granted to 5 thermoelectric power plants (TPP) of the same group. ANEEL revoked the authorizations of all such TPPs as a result of their delay in the implementation schedules. The full transcript of such decision has not been disclosed yet.

Legislation and Regulation

PDE 2021

By means of Administrative Rule No. 107/2013, the Ministry of Mines and Energy (MME) approved PDE 2021. PDE is the government plan for the expansion of the energy system in the next 10 years, and was developed by Empresa de Pesquisa Enegética - EPE (a governmental entity for energy researches). According to PDE 2021, an annual average growth of 5.1% is expected for renewable sources, which shall represent 45% of the Brazilian energy matrix. This growth is expected regardless of the projected increase on the natural gas participation, as a result of the Pre Salt projects (from 11% in 2012 to 15.5% in 2021). The installed capacity in the National Interconnected System (SIN) is expected to have a 56% increase until 2021 (from 116.5 GW to 182.4 GW). The wind source shall remain in the top sources, with 16GW as a forecast of installed capacity. Brazil is expected to have a 31.7 GW increase on hydroelectric generation and the transmission lines are expected to have a 47.7 thousand km expansion.

MP No. 605/2013 is Extended for 60 days

The Interim Measure (MP) No. 605/2013 was extended for 60 days and shall be applicable until 05/21/2013; during such term the Congress shall decide whether it shall be converted in a permanent law or not. MP No. 605/2013 amended Law No. 10,438/2002, and authorized the use of the Conta de Desenvolvimento Energético - CDE (an account created for the development of energy matters) to offset the discounts applicable to the power tariffs and to the tariffs for the use of distribution systems. Click here to see the full text of MP No. 605/2013.

Public Consultation

Power Distribution to Rural Areas

ANEEL is conducting Public Hearing No. 19/2013 to obtain information for the proposal of amendments to Normative Resolution No. 488/2012 and Normative Resolution No. 414/2010, contemplating the conditions to universalize power distribution to rural areas. The deadline for contributions is 04/12/2013. Click here for further information.

Energy Sector Database

ANEEL is conducting Public Consultation No. 03/2013 to obtain information for the proposal of a normative resolution regulating the conditions and procedures applicable to database positive and negative enrollments within the power sector. The deadline for contributions is 04/10/2013. Click here for further information.

Authorization of Tests and Commercial Operation

ANEEL is conducting Public Hearing No. 28/2013 to obtain information to review ANEEL Normative Resolution No. 433/2003, which regulates the criteria and procedures for the authorization of tests and commercial operation of power generation projects. The deadline for contributions is 05/13/2013.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions