Distributors seek to share costs of extra power volume in A-6 auction

Distributors want expenses for the extra volume of electricity contracted at the next energy auction on October 17 to be apportioned among all users in Brazil, including “free” consumers (unregulated market). The Brazilian Association of Electric Energy Distributors (Abradee) will submit the request to the Ministry of Mines and Energy. Abradee says the proposed model is likely to have an impact on rates for residential and small commercial consumers, just as the government and the power industry regulator Aneel discuss ways of cutting rates and making them more transparent. The auction slated for October 17 will be of the A-6 type, for generation capacity from projects slated to come online in 2025.

Source: Valor Econômico