Free Energy Market

It is the consumer who buys energy from the distributor that serves his geographical area, paying the regulated tariff.

It is the consumer whose demand is greater than or equal to 500 kW and who purchases electrical energy from encouraged source generation ventures.

Consumers considered as free may purchase energy from any generator or supplier, freely negotiating price conditions, amount of energy, flexibilities and contract duration. Being a free consumer is the alternative to the local distribution concessionaire's supply and an opportunity to reduce the cost of electric energy. It is also important to note that contracting energy in the free environment, which should be done with a reliable supplier to avoid future problems, enables the entrepreneur to be more predictable in energy costs, because prices pre-established in long-term contracts generate greater security as to expectations for the economic and financial results of companies.

In addition to contracting the purchase of electricity, at prices freely negotiated with the supplier, and the use of the distribution or transmission system, with the local concessionaire, the free consumer must adapt his/her measurement system to the ONS/CCEE standard, be an agent of the Chamber of Energy Sales (CCEE), where he/she must pay a monthly fee that varies with his/her electricity consumption, and provide financial guarantees. It should be noted that, as a captive, the consumer only manages the demand contract. Being a free customer, besides the contract for the use of the distribution or transmission system, it is also necessary to manage the energy contract.

The price of electricity varies according to the balance between supply and demand. Immediately after the energy rationing, the price in the free market was significantly lower than the captive, because the supply was higher than the demand. As consumption resumed at the levels prior to rationing, consequently reducing the surplus in supply, prices rose. Recently, due to the international financial crisis, prices on the free market have been reduced again as consumption has shrunk. It is important for the free consumer to accompany the growth of the electricity market and the expansion of the generation park. In view of the current crisis, it may happen that the expected growth in supply will not be feasible due to the difficulties for investors to obtain financing. There are doubts as to what will be most affected: whether demand or supply.

Law No. 9,427 of December 26, 1996 established the National Electrical Energy Agency (ANEEL), whose purpose is to regulate and supervise the production, transmission, distribution and sale of electrical energy, in accordance with the policies and guidelines of the federal government

The Public Hearing is an instrument to support ANEEL's decision making process, which precedes the expedition of the normative acts of the board, which may deliberate, when approving the holding of a Public Hearing, that it has Live Session - In Person or only by Documentary Exchange. The Public Hearing, with Live Session - In Person or only by Documentary Exchange, has the following purposes: (i) to collect subsidies and information for ANEEL's decision-making process, (ii) to provide agents and consumers with the possibility of forwarding their claims, opinions and suggestions, (iii) to identify, in the broadest possible manner, all aspects relevant to the matter that is the object of the public hearing and (iv) to publicize ANEEL's regulatory action. The Public Consultation is an administrative tool, delegated by the Agency's board of directors to the superintendents of ANEEL, to support the activities of the organizational units in the conduct of regulatory processes or in the implementation of their specific duties. As well as the Public Hearing, the Public Consultation may be held through Documentary Exchange or, also, have a Live Session - In Person, for the expression of live voice of interested parties, and has the purposes of (i) collect subsidies and information from economic agents of the electricity sector, consumers and other stakeholders in society, in order to identify and improve the aspects relevant to the matter in question and (ii) assess, in a broad and democratic way, their acts with those involved and / or interested in the issue. The form of participation in a Public Consultation, whether only through Documentary Exchange or with a Live Session - In Person, is identical to that of a Public Hearing. All documentation, object of the Public Hearings and Consultations of ANEEL, is available for consultation on the Internet at http://www.aneel.gov.br, on the icon "Hearings/Consultations/Forum". The participation in Public Hearings and Consultations of ANEEL for the presentation of contributions will be open to all interested parties, within the period defined in the notice published on the Official Federal Gazette (DOU). The deadline for the submission of contributions is defined in a notice published in the DOU.

Consumers, like any stakeholder in society, can influence the regulation of the electricity sector through ANEEL Hearings and Public Consultations, or through senators and congressmen, when dealing with laws concerning the electricity sector.

Is the consumer whose demand is greater than or equal to 2,000 KW and who can choose to purchase all or part of its supply of energy from an encouraged source, conventional or from the distributor, although it is only served by the distributor.