en.Wedoany.com Reported - The Brazilian National Electric Energy Agency (ANEEL) has published the bidding documents for the A-1, A-2, and A-3 existing energy auctions, aimed at tendering the electricity supply needs of distribution companies for 2027, 2028, and 2029. The agency has also adjusted the auction schedule and proposed changes to contract rules to reduce the risk of default by energy sellers.

These auctions are held annually, allowing distribution companies to adjust their contract portfolios by purchasing electricity from existing power plants or traders. The main change proposed by the rapporteur and director, Agnes da Costa, lies in altering how the energy delivery submarket is determined. Currently, this choice is made by the seller, while ANEEL's proposal is to transfer this decision-making power to the buyer.

This change aims to reduce risks associated with "price decoupling" between submarkets of the National Interconnected System (Sistema Interligado Nacional, SIN). The SIN is divided into four submarkets: North, Northeast, South, and Southeast/Midwest. In most cases, energy prices are the same across the four submarkets, but significant differences can occur under specific circumstances. Since sellers are currently responsible for choosing the delivery location, they also bear the corresponding price fluctuation risk.

For example, if a distribution company purchases electricity at BRL 100/MWh and the seller chooses to deliver it in the Northeast submarket, and the price in that region rises to BRL 110/MWh at settlement, the seller must cover the difference. The severity of price decoupling can affect the seller's ability to fulfill the contract. According to Agnes da Costa, price decoupling between submarkets caused distribution companies losses of approximately BRL 495 million in 2025 alone. She cited the case of Gold Energia, a company currently under judicial reorganization that failed to honor contracts signed in previous such auctions.

Another proposal from ANEEL is to increase the financial guarantee requirements for participating in the auctions. Currently, sellers must provide a guarantee equivalent to three months of contract revenue; ANEEL plans to raise this to an amount equivalent to one year of revenue. The rationale is that when a seller defaults, distribution companies are typically unable to rebuild their contracts within three months, exposing them to short-term market costs.

These changes will be discussed through a public consultation, with comments due by August 24, 2026. The A-1, A-2, and A-3 auctions are scheduled for November 13 and will be held sequentially.