What is happening in the northeast region?

OPINION

In this issue we analyze the reasons for the fast emptying of the reservoirs on São Francisco River. In particular, strong evidence is shown that there has been a structural reduction in the region's flows, and that unduly restrictive operation with respect to minimum flow also plays an important role. PSR suggests that it would be possible to reach a win-win situation, with greater flexibility in operation to meet the needs of multiple uses of the river.

REGULATIONS

This section discusses the following topics: (1) A-3 auction and meeting demand; (2) trading rules for 2014; and (3) expansions in plants under the quota regime.

JURIDICAL

In light of recent events with great potential impact for the sector, associated with abuse of the right to strike and vandalism, this section provides an analysis of the legal treatment of "excludentes de responsabilidade" in the electricity sector, and its key role in limiting risks to the entrepreneur.

ENVIRONMENTAL

This month's theme is the recurrent concern with the delay in Belo Monte plant construction. PSR identifies a more marked delay in social-environmental works required by environmental licensing, and analyzes the main causes and consequences of this difficulty.

SUPPLY

This section presents an updated overview of electric energy supply in Brazil, through structural balances of energy (with and without friction factors) and of peak, developed by PSR.