MME publishes Ordinance for the progressive reduction of the demand for contracting power in the free market.

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On December 16, 2019 Ordinance No. 465 was published by the Ministry of Mines and Energy (“MME”), amending Ordinance MME No. 514/2018 and regulating Article 15, §3 of Law 9,074/1995, with the objective of reducing demand limits for access to the power free market by consumers.

The free market access, which previously required consumers demand 3,000 kW or more, had already been reduced, through Ordinance 514/2018, to load equal to or greater than 2,500 kW from July 1st, 2019, and for a demand of 2,000 kW or more from January 1 st ,2020.

In this context of opening access to the free market, Ordinance No. 465/2019 proposes further demand reductions for consumers wishing to migrate to such free market, namely:

(i)                 From January 1 st, 2021: demand equal to or greater than 1,500 kW;

(ii)               From January 1 st, 2022: demand equal to or greater than 1,000 kW; and

(iii)               From January 1 st, 2023: demand equal to or greater than 500 kW.

In addition to reducing the demand limits for free market access, Ordinance No. 465/2019 also provides that by January 31, 2022, the National Electric Energy Agency – ANEEL and the Electric Energy Trading Chamber – CCEE shall submit a study on the necessary regulatory measures to enable the free market to be opened to consumers with loads below 500kW, whether they are individuals or legal entities.

For further information about the contents of this newsletter, please contact:

Rosi Costa Barros
(11) 3707-8370

William de Figueiredo Lins Junior
(11) 3707-8370

Thais de Araujo Rato Tarelho
(11) 3707-8370

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