The Energy Regulation and Markets Review - Stikeman Elliott

Brazil
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The Monitoring Committee of the Electric Sector (‘the CMSE’) was approved
by Law No. 10,848/2004 and created by Decree No. 5,175/2004. Its main
responsibility is to monitor the continuity and security of the electricity, natural
gas, oil and oil derivatives supply throughout the country. The CMSE also
indentifies any risks to the energy supply and develops proposals for adjustments,
solutions and recommendations to predict or resolve risk situations.
The National Electric Power System Operator (‘the ONS’) is a non-profit private
entity created by Law No. 9,648/1998 and is the manager of the national
interconnected transmission system (‘the SIN’). The ONS is formed by all the
agents connected to the basic grid. 6 The principal functions of the ONS are:
• planning and programming the operation and centralised dispatch of
power generation, envisaging the optimal operation of the SIN;
• the supervision and coordination of the operation centres of the electrical
systems;
• the preparation and presentation to the MME of studies relating to the
expansion and reinforcement of transmission systems; and
• the preparation and presentation of new rules for the operation of the basic
grid for the approval of ANEEL.
The Energy Research Company (‘the EPE’) is a public company that conducts
studies and research to provide technical support for presenting long-term power
planning in Brazil. The EPE also identifies and determines potential energy
resources that should be developed in Brazil. Further, the EPE has an important
role in the preparation of power auctions conducted by ANEEL for the sale of
energy to distribution companies, technically qualifying the projects that may
participate in auctions.
The Electric Power Commercialisation Chamber (‘the CCEE’) is a non-profit
private entity regulated and supervised by ANEEL. The CCEE was created by
the agents of the Brazilian electric power market, as provided for in Law No.
10,848/2004. It is responsible for registering and processing the volume of all the
contracted energy in the power market. Short-term power transactions are also
financially settled at the CCEE. Long-term power agreements are also registered
with the CCEE but are financially settled directly by the parties. The CCEE is
also responsible for the calculation of the clearance price of the difference in
the contracted volumes in the short-term market, as well as being responsible
for conducting auctions for the sale of energy to distribution companies in the
regulated market.
ii Regulated activities
All activities in the BPS require corresponding authorisations from the granting
authorities. The operation of electric power services and facilities usually occurs by way
6 The basic grid contains substations and transmission lines at a voltage equal to or higher than
230kV, which connect the four regions of the country, except for the isolated system, located in
the northern region of Brazil.
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