The rules of Renegotiation of the hydrological risk of electricity generation, applicable to hydroelectrical generators that participate in the Energy Reallocation Mechanism (ERM/MRE, in the Portuguese acronym), were amended by Law n. 14.052/2020, providing compensation on outflow restrictions. Furthermore, the Brazilian National Electric Energy Agency (ANEEL) submitted to public consultation a resolution proposal to enforce the dispositions of the new law.



The rules of Renegotiation of the hydrological risk of electricity generation, applicable to hydroelectrical generators that participate in the Energy Reallocation Mechanism (ERM/MRE, in the Portuguese acronym), were amended by Law n. 14.052/2020, providing compensation on outflow restrictions. Furthermore, the Brazilian National Electric Energy Agency (ANEEL) submitted to public consultation a resolution proposal to enforce the dispositions of the new law.

Law n. 14.052/2020 amended Law 13.203/2015, which provided the Renegotiation of the hydrological risk of electricity generation, applicable to hydroelectrical generators that partake in the Energy Reallocation Mechanism (ERM/MRE, in the Portuguese acronym).The law enacted a compensation mechanism applicable to specific hydroelectrical energy generation conditions.

It is the responsibility of the Brazilian Electricity Regulatory Agency (ANEEL) to estimate and provide compensation for potential energy generation losses caused by outflow restrictions, considering the short-term market price. The law fully clarifies its object, methods and parameters for estimation.

Furthermore, ANEEL launched Public Consultation n. 56/2020, for a period of 30 days, in order to collect public opinion on a draft resolution on the regulatory enforcement of the dispositions of the new law.

Information on participation procedures, technical details and the draft resolution can be found here (in Portuguese). Contributions can be sent to this e-mail address until October 23.