Energy Newsletter | No 3 – October 2022

New ANP Resolution regulates fuel stock and movement records at service stations

On September 08, 2022, the National Agency of Petroleum, Natural Gas and Biofuels (“ANP”) established, through ANP Resolution No. 884/2022 published in the Official Gazette, the Livro de Movimentação de Combustíveis (in English, the Fuel Handling Log Book, or “LMC”), which will serve as a document to provide evidence of the storage and sale of automotive fuels by the service station retailer.

The Resolution updated Ordinance No. 26/1992 of the former National Department of Fuels (DNC) and established the criteria for filling in the relevant information, as well as for the storage and transportation of fuels. According to the ANP, the revision aimed to adapt the standard to the most modern practices used by the market and to new technologies. As such, the LMC can be issued electronically and printed out only when necessary.

The following information must be included in the LMC:

1. fuel purchase transactions and the respective tax documentation;
2. fuel sale transactions, with sales volume divided by each fuel pump/nozzle;
3. inventory;
4. Other transactions involving the entry and exit of fuels, as well as the respective tax documentation; and
5. purchase and sale prices of fuels traded.

Click here to access the full content of ANP Resolution No. 884/2022

Resolution that adjusts fuel quality standards published

On September 21, 2022, the ANP published ANP Resolution No. 885/2022, which amended ANP Resolutions No. 9/2007; No. 19/2015; No. 807/2020; and No. 828/2020, to include requirements for quality control corresponding to the direct sale of hydrated fuel ethanol and C gasoline by Retail Reseller Transporter (“TRR”).

According to the ANP, the aim is to extend the rules on fuel quality control to the economic agents involved in the direct sale of ethanol, – carried out by suppliers to retailers (service stations) and TRRs –, as well as in the commercialization of hydrated ethanol and C gasoline by TRRs.

Access here ANP Resolution No. 885/2022.

Resolution on quality control of biomethane from landfills and WWTPs is approved

On September 22, 2022, the Collegiate Board of the ANP approved the amendment of ANP Resolution No. 685/2017, which addresses the requirements and rules for approval of the quality control of biomethane from landfills and waste water treatment plants (“WWTPs”).

Among others aspects, the amendment aims to facilitate compliance by biomethane producers with the methodology for analysis of halides, which are compounds that are harmful to health and can even damage energy production equipment, vehicle engines and, therefore, need to be removed during the biomethane production process.

The new Resolution also exempted the contracting of laboratories accredited by the Brazilian National Institute of Metrology Standardization and Industrial Quality (INMETRO) to carry out halogen analysis. 

Access here ANP Resolution No. 886/2022

Approved resolution establishing deadlines for regulated agents to submit information to the ANP 

Published on October 06, 2022 in the Federal Official Gazette of Brazil, ANP Resolution No. 888/2022 sets new deadlines for economic agents within the oil and gas sector to submit data and information to the ANP.

Below is a brief summary of the agents impacted by the new ANP Resolution No. 888/2022, which are subject to the submission deadlines:

All agents regulated by the following acts:

• • • ANP Ordinance No. 297, of December 18, 2001:

Trading agents and importers of A and Premium A gasoline, B, D and maritime diesel oil, biodiesel and Diesel/Biodiesel mixtures, liquefied petroleum gas, 1A, 2A, 1B and 2B fuels, CAP and ADP asphalt products, petroleum naphtha, aviation kerosene, vehicular, industrial, domestic and commercial natural gas;

• • • ANP Resolution No. 3, of January 19, 2011:

Solvent market suppliers;

• • • ANP Resolution No. 8, of February 09, 2011:

Resolution that implemented Quality Control Programs for Fuel (PMQC), Lubricants (PMQL) and Additives (PMQA). Impacts all agents involved in the process from production to transportation and sale of these fuels;

• • • ANP Resolution No. 729, of May 11, 2018:

“I – agents authorized to operate petroleum and liquid fuels terminals;

II – petroleum and liquid fuel carriers;

III – collectors, rerefiners, importers of lubricating oil (crude or finished) and lubricating oil producers (crude or finished);

IV – distributors of petroleum derivatives, natural gas derivatives, shale derivatives and other fuels;

V – export company;

VI – trading company and ethanol operator;

VII – importers and exporters;

VIII – biofuels producers, including producers’ cooperative;

IX – alternative fuels producers;

X – producers of petroleum derivatives, natural gas derivatives or shale derivatives;

XI – freight companies authorized to operate transport pipelines;

XII – Retail Freight Companies (TRR); and

XIII – Inland Navigation Retail Freight Companies (TRRNI). Sole paragraph.

Agents who carry out activities related to the transportation of natural gas provided for in Article 177 of the Brazilian Constitution are waived from the obligation to submit information”;

• • • ANP Resolution No. 828, of September 01, 2020:

Production agents and economic agents that operate with a) biodiesel; b) biomethane; c) ethanol fuel (anhydrous and hydrated ethanol); d) liquefied petroleum gas (LPG); e) natural gas; f) automotive gasoline A and C; g) aviation gasoline; h) fuel oil; i) maritime fuel oil; (j) diesel oil A, B and BX A B30; k) maritime diesel oil DMA and DMB; l) aviation kerosene; m) green diesel; n) imported fuels related to ANP Resolution No. 680 of June 05, 2017; and

• • • ANP Resolution No. 857, of October 28, 2021:

Producers, distributors and suppliers of biodiesel.

Deadline to submit data and information following ANP notice:

• • • Ten days to submit data and information provided for in ANP Ordinance No. 297, of 2001;
    • 15 days to submit data and information provided for in ANP Resolution No. 3, of 2011;
    • For data and information provided for in ANP Resolution No. 8, of 2011:
      a) 15 days to submit data from July 2022;
      b) 20 days to submit data from August 2022; and
      c) 25 days to submit data from September 2022;

• • • for the information of handling carried out by regulated agents mentioned in article 1 of ANP Resolution No. 729, of 2018:
      a) 15 days to submit handling data from July 2022;
      b) 20 days to submit handling data from August 2022; and
      c) 25 days to submit handling data from September 2022.

• • • 15 days to submit data and information required in ANP Resolution No. 828, of 2020; and
    • 15 days for the sending of data and information regarding the biodiesel supply contract, provided for in article 3 of ANP Resolution No. 857/2021.

Access here ANP Resolution No. 888/2022

Resolution that regulates activities of acquisition, processing and reprocessing of data, development of studies and access to technical data approved

ANP Resolution No. 889/2022, published in the Federal Official Gazette of Brazil on October 10, 2022, regulates the activities of acquisition, processing, reprocessing and study of technical data on the exploration, development and production of oil and natural gas in Brazilian sedimentary basins.

The new regulation revised ANP Resolution No. 757/2018, in order to simplify rules and incorporate certain demands of the sector, in order to adjust it to new technologies and new bid notices, to ensure the maintenance of the technical data archives and foster wider publicizing of data and information on Brazilian sedimentary basins. In addition, the new resolution provides for inspection and adjusting practices in regard to confidentiality terms.

Key changes:

• inclusion of the definition of reprocessed data;
• permission for individuals and legal entities to share public data that they access;
• extension of non-exclusive data confidentiality terms (from 10 to 15 years), and exclusive data (from 5 to 10 years);
• adoption of a differentiated confidentiality term (30 years) for non-exclusive data acquired within areas of interest of the Federal Government;
• establishment of Annual Activity Plan (PAA), to be submitted to the ANP by data acquisition companies (EADs) authorized to carry out technical data acquisition.

Access here ANP Resolution No. 889/2022

ANP repeals regulatory acts in order to update the regulatory framework of the ANP

Approved on October 24, 2022, ANP Resolution No. 891/2022 repeals regulatory acts, for the purpose of rationalizing the regulatory framework of the ANP, in accordance with Decree No. 10,139, of November 28, 2019. The new Resolution entered into force on October 03, 2022.

In accordance with the Resolution, the following acts are repealed:

• CNP/DIFIS Ordinance No. 395/1982:
• ANP Resolution No. 1, of January 09, 2004:
• ANP Resolution No. 3/2004
• ANP Resolution No. 2, of January 24, 2007:
• ANP Resolution No. 14, of April 18, 2007;
• ANP Resolution No. 20, of June 27, 2007;
• ANP Resolution No. 34, of November 01, 2007;
• ANP Resolution No. 45, of December 11, 2007;
• ANP Resolution No. 8, of March 25, 2008;
• ANP Resolution No. 21, of July 10, 2008;
• ANP Resolution No. 28, of September 22, 2009;
• ANP Resolution No. 35, of November 06, 2009;
• ANP Resolution No. 63, of December 07, 2011;
• ANP Resolution No. 3/2013;
• ANP Resolution No. 29, of July 31, 2013;
• ANP Resolution No. 27, of May 08, 2014;
• ANP Resolution No. 39, of July 30, 2014;
• ANP Resolution No. 44, of August 20, 2014;
• ANP Ordinance No. 263, of August 1, 2016;
• ANP Ordinance No. 374, of November 4, 2016;
• ANP Resolution No. 668, of February 15, 2017;
• ANP Resolution No. 704, of September 29, 2017;
• ANP Resolution No. 812, of March 23, 2020;
• ANP Resolution No. 814, of April 20, 2020;
• ANP Resolution No. 818, of May 21, 2020;
• ANP Resolution No. 819, of June 05, 2020;
• ANP Resolution No. 823, of July 08, 2020;
• ANP Resolution No. 824, of August 13, 2020;
• ANP Resolution No. 827, of September 01, 2020;
• ANP Resolution No. 831, of October 07, 2020;
• ANP Resolution No. 835, of December 18, 2020;
• ANP Resolution No. 849, of July 14, 2021;
• Article 47 of ANP Resolution No. 58, of October 17, 2014; and
• Article 35 of ANP Resolution No. 859, of December 06, 2021.

Click here to access ANP Resolution No. 891/2022.

RELEVANT DECISIONS

Open Acreage (“OPC”): ANP updates Tender Protocol and the contract models

On September 01, 2022, the Collegiate Board of the ANP approved the update of the Tender Protocol and the draft concession contracts for the Open Acreage Concession (OPC). The document amendments will be subject to 45 days of public consultation and discussion in a public hearing.

As part of the ANP’s ongoing project to improve the OPC, the amendments aim to make the bidding more attractive by adapting it to developments in the oil and natural gas sector.

Among the main improvements, we highlight:

1. New milestone for opening of new OPC cycles: It is now possible to open a cycle immediately after the public session is held (until then, it was necessary for one cycle to be approved before the next one could be started);
2. Commitments of the contractor: greater clarity about the rates to be paid to landowners;
3. Access to technical data: Adaptation of the Tender Protocol’s text to the new rule, which made access to technical data required by the Program for the Revitalization of Onshore Oil and Gas Exploration and Production Activities (REATE) and by the Program for the Revitalization and Production Incentives of Marine Fields (PROMAR) free of charge, regardless of the payment of a participation fee;
4. Offer Guarantees: greater clarity in the text that deals with the requirement that the submission of the OPC must be followed by a declaration from the sectors of interest; definitions as to the initial validity of the guarantee; provision for a digital signature and a method of forwarding the guarantees using an ICP-Brasil certificate; and
5. Simplified qualification: possibility of using the qualification previously obtained by the bidder in bidding rounds or in the process of assignment of concession contracts.

For further information, click here

Open Acreage (“OPC”): ANP ratifies results of the 3rd Cycle

On September 22, 2022, the Collegiate Board of the ANP approved the Complementary Judgment Report, which mentions the result of the 3rd Cycle of the Open Acreage Offering, held on March 13, 2022.

At the time, the results of 18 blocks were ratified, all of which were awarded to Origem Energia S.A.

On August 19, 2022, in addition to these 18 blocks, the Collegiate Board of the ANP had already approved the partial results related to the other 40 blocks Especially in regard to Block ES-T-399, located in the Espírito Santo Basin, the winning bidder was disqualified for not submitting the documents defined as required.

UPCOMING PUBLIC CONSULTATIONS AND HEARINGS

Below is the list of public consultations published by the ANP whose contribution periods are still open:

OPPORTUNITIES 

UPSTREAM OPPORTUNITIES

Petrobras announces the sale of interest in Potiguar Basin blocks

On September 08, 2022, Petrobras published a statement on the extension of the deadlines for the expression of interest in participating in the opportunity related to the sale of 40% of its participation in the (i) exploratory concessions BM-POT-17, in which the Discovery Assessment Plan for the Pitu well is being carried out (Blocks POT-M-853 and POT-M-855), and (ii) in the concession POT-M-762_R15 (Block POT-M-762), located in deep waters in the Potiguar Basin – Equatorial Margin – off the coast of Rio Grande do Norte.

According to the statement, interested potential buyers could express their interest by September 14, 2022 and submit the required documents to participate in the process by September 16, 2022.

Petrobras also announced, on September 20, 2022, the beginning of the binding phase related to the opportunity. Following the announcement, eligible buyers would receive the Process Letter containing detailed instructions on the process, including guidance for due diligence and submission of binding proposals.

Petrobras currently holds 100% interest in these concessions and will continue as operator after the sale.

For further information, click here.

Public bidding opportunities with Petrobras

Below are the main contracting opportunities made available by Petrobras to date, through the Petronect platform (click here to access):

** Please note that the deadlines in the table above are constantly changing, so they correspond to deadlines disclosed at the time of publication of this newsletter.

OTHER TOPICS

Waterway terminals: ANP workshop clarifies questions about the new Resolution

On September 02, 2022, the ANP held the online workshop “Implementation of ANP Resolution No. 881”, with the purpose of clarifying questions about the implementation and practical application of the provisions of ANP Resolution No. 881/2022.

The Resolution, which entered into effect on October 1, 2022, establishes criteria for the use of existing waterway terminals, or those to be built, for the movement of oil, oil derivatives, natural gas derivatives, and biofuels.

To access the workshop, click here.

For further information, click here.

ANP launches Dynamic Dashboard on the Resolution that regulates waterway terminals

On September 14, 2022, ANP published the Dynamic Application Dashboard for ANP Resolution No. 881/2022, which entered into force on September 01, 2022.

The Resolution deals with the definitions of criteria for the use of existing waterway terminals or to be built, for the movement of oil, oil derivatives, natural gas derivatives and biofuels.

In turn, the Dashboard aims to gather and clarify the questions sent by the operators of waterway terminals, as well as by the shippers (users of the services provided by the operators) and third parties interested in moving products at these terminals.

To access the Dashboard, click here.

For further information, click here.

Local Content: ANP opens public consultation on a study related to the accreditation activity of certifiers

On September 22, 2022, the ANP approved a public consultation on the report of the Regulatory Impact Assessment (RIA), whose purpose is to improve the application of ANP Resolution No. 869/2022.

The Resolution provides for the requirements and procedures for accreditation by the ANP of certification bodies for local content of goods and services.

The ANP has identified opportunities for improvement in regard to the provisions of the Resolution on the scope and simplification of general requirements and procedures related to:

1. concurrent accreditation at Inmetro for certification bodies;
2. registration of local content certificates and cancellation of accreditation;
3. application of sanctions for non-compliance with the requirements;
4. review and consolidation of forms and guidelines complementary to the Resolution; and
5. Audits and supervisory activities of the ANP.

In order to improve the resolutions already in force, the ANP has initiated an RIA, prior and formal procedure, which is supported by Decree No. 10,411/2020, and whose purpose is to gather the largest amount of data possible on a particular topic regulated by the ANP, in order to assess the possible impacts of the available alternatives of action to achieve the intended objectives.

The purpose of the RIA is to guide and subsidize decision making and contribute to making regulation more effective and efficient. Based on the studies carried out so far, the ANP has prepared an RIA report, which is now undergoing public consultation. The purpose of this public consultation is to authorize the participation of the market and society in the in the gathering of information and to receive contributions for the carrying out of these studies.

Following the public consultation phase, the ANP will evaluate the contributions and draft a new version of the RIA report, which will be submitted to the Collegiate Board of the ANP. Such a report will establish the proposed regulatory action to be taken to achieve the intended objectives. If the decision is to amend ANP Resolution No. 869/2022, the subsequent draft will then undergo public consultation and hearing.

For further information, click here.

ANP extends deadline to meet contracting target for the supply of biodiesel by producers to liquid fuel distributors in the 6th bimester of 2022

On October 24, 2022, the Collegiate Board of the ANP approved the extension until November 03 of the deadline for biodiesel producers to register the statements of marketing contracts entered into with liquid fuel distributors.

In order to meet the contracting targets under ANP Resolution No. 857, of October 28, 2021, producers had 15 days to register the contract statements and provide supporting information, from the publication of the notice regarding the restart of target control activities, on October 19, 2022.

The fulfillment of the contracting target will be verified by the ANP until November 10, 2022 and can be accessed on its website. The procedures set by the Notice from October 19, 2022 will be maintained.

IBP publishes best practices booklet for Oil and Gas companies and RDI technology partners

In order to identify the main challenges in Research, Development and Innovation Projects (RDI), the Brazilian Petroleum and Gas Institute (“IBP”) published a booklet aimed at publicizing more effective and less bureaucratic procedures. Among the representatives of the project are companies such as TotalEnergies, Shell, Chevron, Petrorio, among others.

In its chapter 4, the project categorizes good practices into topics, in order to guide the reader on how to act regarding recent discussions on good conduct. For instance, the first topic, “Human resources”, addresses data protection in the face of proof of expenses by professionals involved in projects. In addition, the booklet brings several guidelines on how to establish a culture of good practices.

In this regard, the booklet aims to be a “living document”, which will be updated frequently, in keeping with the voluminous investments, and in accordance with RDI clauses and their implications among relationship managers and oil technology partners.

To check the booklet, click here.

IBP: The importance of 5G for the oil industry

The guide recently released by the IBP seeks to introduce 5G as a technological innovation capable of positively impacting the sector, bringing data that highlight the still deficient digital maturity of the Oil and Gas industry compared to others and how this innovation can help achieve goals.

The document also exemplifies the application of 5G oil and gas-related activities, such as field maintenance, data acquisition and video monitoring, as well as presenting technology as an instrument capable of improving operational excellence, by allowing real-time performance management. In addition, the publication also foresees potential impacts to upstream and downstream following the adoption of 5G connectivity.

The guide lists a series of graphic data and press media texts with the purpose of providing the reader with an insight to the benefits of implementing 5G and with information on coverage, opportunities and the need for regulation.

Read the guide in full by clicking here.

ANP discusses proposals for changes in the notice and the contract models of the Open Acreage Concession

On October 25, 2022, the ANP held Public Hearing No. 21/2022, which discussed the updating of the draft notice and the contract models for Open Acreage contracts under the Concession regime.

The new version of the notice includes a total of 1096 exploration blocks. 59 blocks sold in the 3rd Round of the Open Acreage Concession were excluded and 87 blocks remaining from the 17th Bidding Round were included. The 1096 blocks are located throughout 17 sedimentary basins, 471 of which are onshore and 625 are offshore.

The new notice also (i) introduces the concept of simplified certification, (ii) extends the maximum period of completion of a round from 90 to 120 days, and (iii) includes the possibility of opening a new round, immediately after the closure of the public session of an ongoing round, without need to wait for its approval.

To access the event recording, click here.

ANP announces the possibility of firm contracts for transportation in long ducts

As announced by the ANP on October 27, 2022, the deadline to request firm transportation capacity for long transport pipelines operated by Transpetro runs until January 01, 2023.

According to the Regulatory Agency, the contracts currently in force between Transpetro and its clients expire on June 30, 2023.

The ANP stressed that in order for the requests of interested parties to be contemplated in the proposal for allocation of capacity of each pipeline, they must be submitted to Transpetro within the deadline mentioned above. Transpetro must prepare an allocation proposal to be announced by January 17, 2023, as provided for in ANP Resolution No. 35/2012.

For further information, click here.

HIGHLIGHTS

São Paulo opens PPP for migration to the free market 

On September 07, 2022, the Municipal Government of São Paulo published Public Consultation No. 11/2022, which aims to obtain contributions from civil society for documents of a future Public-Private Partnership (“PPP”) for contracting a private partner.

Such partner will be responsible for the migration, management, and supply of electricity within the Free Contracting Market (“ACL”) of consumer units of the Direct Administration of the Municipality of São Paulo, for 35 years (thirty-five years), as follows:

Font: Prefeitura de São Paulo

REPRESENTATION of the Government before the CCEE, the ONS, ANEEL, the distributor, etc.

MIGRATION of consumer units to the ACL

SMF adjustments to Income Measurement System

PLANT acquire land, install, operate and maintain self-production plant

SUPPLY ensure energy supply to consumer units

Source: Municipal Government of São Paulo

In summary, the project aims to supply electricity to more than 200 consumer units of the Direct Administration of the Municipality of São Paulo and save an average of BRL 12 million to the public treasury. As a result, the municipality will no longer receive energy through distributors (upon payment of invoices) and will become an agent of the Electric Energy Trading Chamber (“CCEE”), in addition to being entitled to select the energy provider.

The Public Consultation remained open until October 13 and on October 06, a Public Hearing on the topic took place.

This measure is an innovation within the industry. Recently, ANEEL also decided on the possibility of Government bodies migrating to the ACL, by consenting, through an Administrative Request drafted by the Secretariat of Infrastructure and Environment of the State of São Paulo, that the CCEE consider the state secretariats as a single Corporate Tax Number (CNPJ) for migration to the ACL.

Read in full – Public Consultation

Read in full – ANEEL Decision

MME cancels energy auctions

On September 13, 2022, the Ministry of Mines and Energy (“MME”) published Normative Ordinance No. 48/2022, which canceled the following energy auctions:

• New Energy Auction “A-6”/2022, which would have been held on September 16;
• Auction for Supply to Isolated Systems, which would be held in October; and
• Auction for Capacity Reserve Contracting will be held in November.

The cancellation of the A-6 New Energy Auction was addressed in our August newsletter .

 The Auction for Supply to Isolated Systems will not be held due to the Energy Research Company (“EPE”) founding that the energy supply deficits do not require new supply solutions.

The Auction for Capacity Reserve Contracting was canceled considering the intention of the MME, EPE, and the Brazilian National Electric System Operator (“ONS”) to develop a project aimed at stimulating the competition of primary energy sources, to improve the quantification of the power requirement of the National Interconnected System (“SIN”), to be attended by the auction.

In addition, the new auction schedule for the years of 2023 and 2024 is expected to be published by the end of 2022.

Read in full – Normative Ordinance

Read in full – Article on the topic

MME publishes Ordinance on the opening of the free market to high-voltage consumers

On September 28, 2022, the MME published Normative Ordinance No. 50/GM/MME/2022, which authorized consumers of Group A (high voltage) to join the free market, from January 2024 onwards.

According to the MME, “about 106 thousand new consumer units will be able to migrate to the free market.”

According to the rules of the Ordinance, consumers with charges that exceed 500 kW can join the CCEE individually.  Consumers whose charge amounts to less than 500 kW must be represented by a retail agent.

The opening of the market will allow any consumer belonging to Group A to opt for negotiating freely the energy necessary for their consumption, according to the products that suit their consumption profile, times of greater energy demand, etc.

The measure resulted from Public Consultation No. 131/2022, which obtained contributions from 60 market agents.

Additionally, the MME has already stated that the next step is the full opening of the market and will soon open a public consultation on the opening of the market to low-voltage consumers.

Read in full – Ordinance 

Read in full – Article

OTHER TOPICS

Ordinance No. 6,776/2022 approves Internal Regulation of Procurement Management Committee 

On September 12, 2022, ANEEL Ordinance No. 6,776/2022 was published, which creates ANEEL’s Procurement Management Committee (CGC) and approves its respective Internal Regulation.

Among the tasks of the Committee are “proposing and establishing the schedule for the drafting of the Annual Procurement Plan”, “proposing the publication of normative acts related to bids and contracts”, and “proposing mechanisms for monitoring the performance of contracting management”, among others.

Read in full

ANEEL amends rule on criteria and conditions for Demand Response Program

On September 12, 2022, ANEEL Normative Resolution No. 1,040/2022 was published, amending Normative Resolution No. 1,030/2022, which provides for the criteria and conditions of the Demand Response Program.

The Demand Response Program consists, under the terms of the Normative Resolution itself, in the “reduction of the consumption of previously qualified consumers, as an additional resource for service to the National Interconnected System – SIN, provided that it is accepted by the National Electric System Operator – ONS, in order to obtain more advantageous results, both regarding the reliability of the electricity system and sliding-scale tariffs on the final consumers. ”

The changes brought by ANEEL Normative Resolution No. 1,040/2022 transform the Demand Response Program from a “pilot project” into a permanent and structural solution, as an additional resource of the SIN.

In addition to transforming the program into a resource of the SIN, ANEEL Normative Resolution No. 1,040/2022 brought several other changes, among which we highlight:

• Consumers modeled according to retail agents, as well as other CCEE consumers and consumer charge aggregators, will be eligible to join the program.
• As an additional resource for the operation of the system, ONS can set Demand Response products with a triggering warning for the following day.
• The ONS can have, subject to specific authorization from ANEEL, additional Demand Response products within an experimental regulatory environment.
• The topic will be the subject of a Regulatory Impact Assessment( “ARR”) after 2 years of validity.

Read in full

MME will regulate framing of Distributed Generation Projects within Reidi and as priorities for the issuance of “incentive debentures”

The provision allowed the framing of Distributed Generation projects as energy generation infrastructure projects, for purposes of framing within the Special Incentive Regime for Infrastructure Development (“Reidi”), as well as consider them as priority for the purpose of issuing incentive debentures.

According to the MME, ordinances will be published to establish requirements, necessary information, and procedures regarding the topic, in addition to methods of auditing and monitoring the projects. In his words , “subsequent to the update of these ordinances, it will be possible to present the requirements to frame distributed generation projects within Reidi and approve them as a priority for the purpose of issuing incentive debentures.”

Read in full

ANEEL approves rule allowing intensification of the locational signal for calculation of transmission and distribution tariffs

On September 20, 2022, ANEEL published Normative Rule No. 1,041/2022, which approves new versions of Subsections 7.4 and 9.4 of the Tariff Regulation Proceedings (“PRORET”), which are applicable to public electricity transmission services.

Such change results from Public Consultation No. 39/2021, which aimed to improve the regulation related to Tariffs on the Usage of Transition Systems (TUST) and Tariffs on the Usage of Distribution Systems for generation plants connected in 88kV and 138kV (TUSDg) and addressing the regulatory problem of “intensification of locational signal”.

The purpose of the locational signal is to signal the entry of new users so that they can implement their projects, in order to ensure that the status of charge, generation, and signaling are compatible with that of the cost and, as a result, incur greater costs for those who use the system most.

Read in full

ANEEL lists competences of the Executive Secretariat of Auctions 

On September 22, 2022, ANEEL published Normative Resolution No. 1,043/2022, which amends ANEEL’s Internal Regulation, approved by MME Ordinance No. 349/1997.

The amendment aims to detail the competences of the Executive Secretariat of Auctions:

1. draft notices and their respective annexes and forward them for deliberation of ANEEL’s Board of Directors;
2. analyze contributions to the notice and respective annexes, submitted within the scope of public hearings and consultations;
3. manage and execute the proposal guarantees offered in sectoral auctions held by ANEEL; and
4. apply bidding penalties to bidders or contractors.

In addition, ANEEL Superintendencies will also be competent, according to their respective specialties, to assist the Executive Secretariat of Auctions in the drafting of competence was delegated so that, according to their specialties, ANEEL Superintendents assist the Executive Secretariat of Auctions in the elaboration of notices’ annexes.

Read in full

ANEEL changes rules on the provision of Electricity Transmission Systems 

On September 27, 2022, ANEEL Normative Resolution No. 1,042/2022 was published, which adds provisions to the following Normative Resolutions:

• 950/2021, which provides for the rules on monitoring and auditing plans for the universalization of electricity distribution services; and
• 1,000/2021, which provides for the rules on the Rules of Electricity Transmission Systems.

The additional provisions aim to regulate the Single Register for Social Programs of the Federal Government and establish guidelines and rules on Customer Service, provided for in Decrees No. 11,016/2022 and No. 11,034/2022.

Read in full

Linhão Manaus-Boa Vista: judicial agreement executed; CNPE recognizes strategic interest

On September 22, 2022, a judicial agreement was ratified before the Federal Regional Court – 1st Region (“TRF-1”), to settle public-interest civil actions related to environmental licensing for the construction of the Manaus-Boa Vista transmission line (“Linhão Manaus-Boa Vista”).

According to a news report published by the MME, “the project will result in cost reduction for consumers throughout Brazil, the increase in the certainty of service provided to Boa Vista and the reduction in the use of fossil fuels. ”

On September 27, 2022, because of the judicial agreement and the authorization to continue the works related to the “Linhão”, the Brazilian National Council for Energy Policy (“CNPE” published Resolution No. 07/2022, which recognizes the interconnection of the Roraima Electricity System to the National Interconnected System as a beneficial strategy for Brazil. The Resolution also addresses factors that hindered the progress of the project, such as the public-interest civil action on the topic and the difficulty to comply with provisions related to the Basic Environmental Plan of the Indigenous Component PBA-CI.

The 715 km of transmission lines in the state of Roraima and Amazonas are expected to be concluded within the period of 36 months.

Read in full – Article on the judicial agreement

Read in full – CNPE Resolution

MME changes the competence of the Secretariat of Planning and Energy Development of the Ministry of Mines and Energy

On October 05, 2022, MME Ordinance No. 692/2022 was published, which aims to designate competences to the Secretariat of Planning and Energy Development of the Ministry of Mines and Energy.

Among the tasks of the Secretariat are:

“approve the framing of infrastructure works project for electricity generation, cogeneration, transmission and distribution within the Special Incentive Regime for Infrastructure Development – REIDI”;

“authorize import and export of electricity”;

“grant concessions and authorizations for electricity generation”;

“grant extension of concession terms and authorizations for the generation, transmission and distribution of electricity”;

“establish guaranteed power output of generation projects.”

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MME publishes the 2022 Electricity Transmission Concession Plan

On October 11, 2022, Ordinance No. 1,723/SPE/MME was published, which opened for Public Consultation the Electricity Transmission Concession Plan (POTEE).

The listed concessionaires must verify whether the expansions, improvements and reinforcements described are aligned with the facilities under their responsibility and adequate for comprehension, detailing and budgeting of the projects.

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ANEEL approves result of A-5 New Energy Auction

On October 14, 2022, the A-5 New Energy Auction was held, which drew investments of approximately BRL 2.954 billion.

557.499 megawatts (MW) of power were contracted, whose supply is set to initiate from January 01, 2027. The average discount of the negotiations was valued at 26.38%, resulting in savings of BRL 2.357 billion on electricity tariffs to end consumers.

Find the auction results table below:

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WHAT’S COMING UP

	December, 2022 – New Energy Auctions A-1 and A-2 Notice: Published on October 25, 2022 More information here
	December, 2022 – Transmission Auction No. 2/2022 Notice: ANEEL (to be published) More information here