Industrial energy consumers turn to Aneel against emergency thermal plants

Abrace, an association that brings together industrial consumers of electricity, filed an appeal with the regulatory agency Aneel this Monday (8) asking for the contractual termination of thermoelectric power plants contracted on an emergency last year that did not come into operation in due time.

The entity’s appeal is associated with the case of Âmbar’s thermal plants, the energy arm of the J&F group, but Abrace defends the termination of contracts for all 11 projects that won the emergency auction held by the Brazilian government amid the 2021 water crisis and which did not start operations until August 1st.

Under the terms of the contract, the projects were supposed to start supplying energy in May, and, if there was a delay, they would be subject to a fine and contract termination as of August.

Of the 17 plants contracted, only six met the contractual deadlines. They are supplying more expensive energy at a time of greater relief to the electrical system, after the recovery of hydroelectric reservoirs, which led to a series of requests for the decontracting of these projects.

In the case of Âmbar, the company acquired four projects that won the auction last year –Edlux X, EPP II, EPP IV and Rio de Janeiro I– and asked Aneel to fulfill these contracts using the energy generated by the Cuiabá thermoelectric plant, already existing, which would go against the rules of the emergency auction.

Aneel’s board ended up authorizing the exchange, as long as the four new plants started operating by August 1st – which did not happen, according to Aneel and the Electric Energy Commercialization Chamber (CCEE).

The decision in favor of Âmbar was heavily criticized by entities in the electricity sector, which interpreted it as a benefit to the company, in addition to having contradicted the opinions of the Attorney General’s Office and the agency’s technical areas.

The director-rapporteur of the case, Efrain da Cruz, claimed at the time that the new conditions proposed would be advantageous to consumers, and that the public interest of the case would allow flexibility of the rules of the public notice of the emergency auction.

In appeal to Aneel, Abrace defends the immediate suspension of the authorization given to Âmbar, under penalty of the agency “exacerbated and unacceptable prestige regulatory activism”, failing to comply with explicit guidelines of the Ministry of Mines and Energy.

The entity also said that it would send a letter to the Ministry arguing that the ministry should take administrative measures on the case.

The Minister of Mines and Energy, Adolfo Sachsida, has publicly positioned himself for the termination of contracts for delayed thermal plants.

“The contract is fulfilled for better or for worse… Isn’t it working? For me, this contract is broken, it is the position I have, I have already alerted the regulatory agency… My position is solid and I will not change”, Sachsida said in an interview with Jovem Pan last week.

Ámbar did not immediately respond to a request for comment.