The delicate line of energy trading: ANEEL and future prospects in GD

A ANEEL (National Electric Energy Agency) launched the TS 18/2023 (Subsidy Grant 18/2023) with a clear objective of assessing the need to implement regulatory commands that ensure the correct application of art. 28 of Law No. 14.300/2022.

This effort by the Agency aims to eliminate inappropriate practices in the SCEE (Electrical Energy Compensation System), especially those related to energy trading that disregard current regulations.

The period for contributions extends from November 03, 2023 to January 31, 2024, marking a critical window for the sector.

In this article we will explain the reasons that caused this investigation of ANEEL and what are the possible changes that may occur in shared distributed generation business models.

Normative evolution and the Legal Framework

Since Normative Resolution No. 482 of 2012, which established the SCEE, until the recent Law No. 14.300/2022 and the subsequent Normative Resolution No. 1.059/2023, the legal framework for distributed micro and minigeneration has evolved significantly.

These changes aim to facilitate the compensation of energy generated by small plants and promote the inclusion of new generation methods, such as shared generation and multiple consumer units.

Law No. 14.300/2022 emphasizes that distributed micro and minigeneration must be understood as energy production for own consumption, expressly prohibiting the sale of credits and surplus energy.

However, the ANEEL identified that some business models may be using loopholes to carry out disguised marketing, offering energy at prices lower than those regulated and burdening the distribution system as a whole.

Crucial issues and the regulatory limit

The establishment of TS 18/2023 took place from the Technical Note 101/2023-STD-ANEEL, where experts from ANEEL presented doubts about the form of energy supply through current models in shared generation, via consortiums, cooperatives and associations.

A ANEEL proposes a series of questions in TS 18/2023, seeking to better understand market practices and collect data that help formulate more effective regulations.

We highlight four questions that indicate the intentions of ANEEL:

• Which existing situations in the market can be classified as energy sales in the SCEE?
• What elements can characterize or give evidence of commercialization?
• Can the method of charging for participation in shared generation be related to the distributors' regulated tariffs?
• What would be the necessary conditions for the distributor to prove possession/ownership of the micro or mini-generation plant distributed by those benefiting from remote generation?

The questions range from identifying marketing practices in the SCEE to the ownership and possession conditions of distributed generation plants. However, some of these issues may touch on the right to free enterprise, constitutionally guaranteed to entrepreneurs in the sector.

Between regulation and innovation

The ANEEL This is commendable, but caution is needed to avoid stifling innovation and business models that comply with the law. How can we regulate distributed energy generation without stifling the innovation and entrepreneurship that drive the sector?

The Agency must recognize its limits and ensure that any new regulation does not restrict rights already guaranteed by Law 14.300/2023. There are numerous companies in the sector operating since 2015 without any more direct guidance from the Agency on business models.

Even companies related to some distributors operate in the market offering discounts to consumers on their energy tariffs. It is impossible to imagine this market without considering a relationship between charging consumer participation and regulated tariffs.

Effective regulation must be a fine balance, weighing the public interest against market freedom. On the one hand, ANEEL has a duty to protect consumers and ensure equity in access to energy resources. On the other hand, it must avoid creating barriers that impede the development of innovative and sustainable solutions.

The challenge of ANEEL

A ANEEL faces the challenge of balancing the need for regulation with respect for market freedom. Taking subsidies is an important step towards understanding the nuances of the sector and proposing solutions that not only protect the consumer and the distribution system, but also promote fairness and efficiency in the energy market.

The criticism is that, although necessary, the analysis of ANEEL must be meticulous and careful not to overstep the limits of its authority and harm the dynamics of a constantly evolving sector.

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