Meddling with the price: damned if you do and damned if you don't

OPINION

In this issue we examine ANEEL's proposal to change the price ceiling of short-term energy in terms of its consistency with the long-term goals of the sectorial model.

REGULATIONS

In this section we comment on: (1) the new reference rates for unavailability of hydro plants; (2) the two decisions on the auction of São Luiz do Tapajós; (3) the rules for review of physical guarantees of centrally dispatched thermal plants; (4) "another" rule to review the physical guarantees of biomass plants; and (5) the A-1 auction of 2014.

ENVIRONMENTAL

The topic of this section is the need to have a prior environmental license for transmission, using as an example the controversy about the "big line" of Madeira River.

JURIDICAL

This section analyzes the recent proposal to simplify the calculation of the physical guarantee of PCHs and shows that there are others measures included that can have a negative impact for investors.

SUPPLY

This section features: (i) structural balance of energy; (ii) delays in construction of new supply for the horizon 2014-2018; and (iii) delay meter - monitoring the historical record of delays.