Opening of the Free Market and the need for effective competition between agents

Traders have been facing difficulties in migrating consumers to the ACL
Opening of the Free Market and the need for effective competition between agents
Three large retailers occupied 46% to 70% of the retail market at the beginning of this year

With collaboration from Yasmin Pelegrini

At the beginning of this year, the free energy market was opened to all medium and high voltage consumers (Group A). 

Although this new scenario provides an increase in competition between agents, a characteristic of the ACL (Free Trading Environment), and, consequently, an increase in the efficiency and quality of services and products, favoring the balance between agents, the movement also brings to light new concerns related to competitive aspects between agents. Thus, there is a need to improve the legal and regulatory framework and more effective monitoring of ANEEL (National Electric Energy Agency).

This is due to the substantial difference between the new agents that are migrating to the free market (retail traders and smaller consumers) compared to those that have been in the ACL for longer and already know how the environment works (large energy consumers who have greater knowledge of the sector).

According to data provided by ABRACEEL (Brazilian Association of Energy Traders), traders have been facing difficulties in migrating consumers to the ACL. 

Also according to the ANEEL, some distributors have been failing to comply with the deadlines for modeling retail consumers, as provided for in the Marketing Procedures and, automatically, also the deadline for the migration of these consumers.

In addition to this, there is a high economic concentration of retail traders from the same economic group as distributors in the distributor's own concession area.

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The opinions and information expressed are the sole responsibility of the author and do not necessarily represent the official position of the author. Canal Solar.

Photo by Pedro Dante
Pedro Dante
Partner in the energy area at Lefosse Advogados. President of the Regulation Studies Committee of the Brazilian Institute for the Study of Energy Law. Coordinator of the Energy and Arbitration Committee of the Business Arbitration Chamber. Arbitrator at the Chamber of Measurement and Arbitration of Western Bahia. Effective member of the OAB/SP Energy Law Commission. Lawyer specializing in regulatory matters related to the electricity sector with over 19 years of experience in the sector.

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