Brazil's electricity regulator Aneel will hold a public consultation to examine the methodology behind fuel costs (CVUs) for thermal plants without regulated contracts and those outside of the government's priority thermal program.
Regulated contracts have their own clauses to define the thermal plants' CVU. Usually, when plants bid to obtain such contracts, they also define a CVU value for their operation. As for plants included in the government's priority thermal program in the 2000's with a current electricity sales contract, the CVU readjustment is standardized through a mines and ministry ordinance. But some thermal plants choose different paths, which have no specific method to define the CVU, and that has lead Aneel to take the issue to public consultation.
Petrobras told Aneel that it might lose as much as R70mn/d ($13.9mn/d) when operating its merchant plants under the current rules. The state-controlled company also pointed out that a lack of methodology for these plants artificially reduces CVU values and can lead to problems in electricity planning.
A change in methodology could allow for a more flexible thermal generation in Brazil, making it easier for consumers to buy natural gas in the spot market or via short-term contracts, in a coupled operation with the gas sector, an idea that has been commended by market participants.
The public consultation will receive contributions from 11 August-26 September via email.
