Issue 69 • September 2012

MP 579: Godzilla meets the electricity sector?

OPINION

In this section we analyze some of the controversial provisions of Provisional Measure (MP) 579, such as: inclusion of ﬁextendable" hydro plants; allocation of generation benefits only in the ACR; full depreciation of transmission assets prior to 2000; and others.

REGULATIONS

We analyze in this section the following themes related to MP 579: (i) planned reduction of charges; (ii) questions raised by contracting by availability; (iii) possible additional difficulties for distribution utilities; and (iv) lack of incentives for hydrological analysis. Furthermore, we discuss the following regulations not related to the MP: (v) bilateral renegotiation of CCEARs; and (vi) public hearing on collateral for the CCEE short-term market.

JURIDICAL

Advocacia Waltenberg analyzes the recent MP No. 577/2012, which regulates the intervention and the extinction of electricity public service concessions, making a historical review of the relevant legislation and its background, while pointing out controversial aspects of the new regulation.

ENVIRONMENTAL

We show in this section that the blemish of ﬁchainsaw loversﬂ, assigned by some environmental organizations to hydro power companies in their treatment of reservoirs, is unfair.

SUPPLY

This section presents an overview of electricity supply in Brazil, through the structural balances of energy and peak developed by PSR.

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Electronically published since 2006, the PSR Energy Report is a monthly newsletter developed by PSR, whose main objective is to present a comprehensive and current analysis of regulatory, legal issues, water resources and environment and supply of the electricity sector in Brazil.