The "Old Energy" Transition Phase – MME 117/2013

This April, as a result of Law 1.2783/2013 (MP579/2012), the Ministry of Mines and Energy (MME) issued Ordinance 117/2013, regulating the provision of electricity generation through hydroelectric plants which have not had their concessions extended, in order to ensure continuity of service.

This is the solution which the Federal Government has found to the problem that has ensued due to a number of generation concessionaires opting to return part of their assets, considering the new rules applicable to "old energy" concessions (i.e. those plants in operation before 1995), in particular with regard to the new remuneration system for the concession, which will no longer obey the forces of the free market (i.e. with prices set at energy auctions, following the rules of the new market model adopted in 2004) but will be established by the National Electrical Energy Agency (ANEEL), through fees calculated on each plant's operational costs.