The growing increase in subsidies and their direct impact on consumers’ energy bills remains the biggest challenge for the sector.

The reduction of resources and the allocation of revenues to the Energy Development Account (CDE) are the questions for the new management of the board of the National Electric Energy Agency (Aneel).

In the inauguration speech as the agency’s new director-general, Sandoval Feitosa highlighted that, if there is no reduction of the subsidies, new revenues will be needed to subsidize the account, which may come from the bonus of new grants or from the negotiation of Annex C of Itaipu.

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Source: Senado Federal; Sandoval Feitosa

Feitosa also joined in with the three ministers present at his inauguration, for the reopening of public tenders for the autarchy, which has a 25% lag in the staff. The Minister of Mines and Energy, Adolfo Sachsida, was one of those present and said he supported the strengthening of the agency and the construction of legal frameworks that bring legal certainty to the sector.

As we said at the beginning, the discussion about the end of subsidies and especially about the discount on electrical wire, remains on the agenda of Aneel and the government.

For the wire discount, this really seems to be the end for the plants that will compete in the new energy auctions. The regulatory agency highlighted at the last meeting, which approved the A-5 notice, that if there is a change in the original grant from the municipality to the one registered with the Energy Research Company (EPE) by decision of the entrepreneur, the benefit will not be granted.

Now, changing the subject to electricity auctions, Absolar filed a public civil action so that the A-6 auction would not go ahead without the inclusion of the solar source. However, the MME canceled the event on the same day as the event, due to lack of demand from distributors.

And in the STJ, Minister Humberto Martins suspended the effects of two decisions that required the Union to pay an additional R$ 720 million to Âmbar Uruguaiana Energia, responsible for UTE Uruguaiana, for the delivery of energy in November and December 2021.