The Federal Court of the Federal District suspended the Capacity Reserve Auction (LRCAP 2025), scheduled to take place on June 27.
The preliminary decision – signed last Tuesday (01) by the judge of the 17th Federal Court of the Judicial Section of the DF, Diego Câmara – responds to an action brought by the consumer defense association Proteste, which questions the legality and impacts of the initiative for consumers.
According to Proteste, the system used in contracting the capacity reserve was not properly discussed with society and may bring additional costs without adequate technical justification. The system was defined in Ordinance No. 100, of February 07, 2025.
Proteste argues that at the time of the first capacity auction, held in 2021, the system was duly debated with society in a Public Consultation.
“[…] I GRANT the request for preliminary injunction to suspend the effects of Ordinance 100/2025 of the Ministry of Mines and Energy, ordering the defendant to proceed, as soon as possible, to carry out a public consultation regarding the new system established, including the change related to the method of calculating the bid price, with subsequent re-edition of the specific regulation, as necessary”, decided the judge.
The Ministry of Mines and Energy has not yet made an official statement on the decision. The electricity sector is closely following developments in the case, as the decision on the auction could have repercussions on the country's energy security.
According to Pedro Dante, a lawyer specializing in energy and a partner at the firm Lefosse Advogados, this type of decision in the first instance may be suspended by the MME due to the greater benefit of the event, which is the contracting of power. “The natural path is for the MME to seek to suspend the judicial decision due to the auction date having already been announced and all preparatory acts already carried out,” he explained.
The second capacity reserve auction in Brazil's history has been under discussion since March 2024. The event aims to contract power from thermoelectric and hydroelectric plants, with delivery deadlines between 2025 and 2030. The competition is considered important due to the need to serve the electricity sector during periods of highest load demand.
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