Deindexation – A cure that can be worse than the disease ?

OPINION

Continuing the analysis begun in the previous issue on proposals to reduce the price of electricity in Brazil, this month we evaluate a proposal that has been recently raised by some government officials: to alter, or even to eliminate, the indexation of energy supply contracts.

REGULATIONS

The subjects analyzed in this issue are: (i) Concept of fimaximum effortfl according to ANEEL; (ii) Replacement Amount: the saga continues; (iii) Approved a law that allows Eletrobras to operate in distribution; and (iv) Novelties in the bidding for transmission concessions.

ENVIRONMENTAL

In this section we analyze the complex issue of communication with Indian communities near generation and transmission projects, illustrated by the recent forced seizure of Norte Energia technicians.

SUPPLY

This section presents an overview of electricity supply in Brazil, through the structural balances of energy and peak developed by PSR. We analyze such factors as: delays in new power plants, transmission constraints and uncertainties in future generation.