Free Energy Market Glossary
ACL — Free Contracting Environment
The market segment in which electricity purchase and sale transactions are carried out, subject to freely negotiated bilateral contracts, in accordance with specific marketing rules and procedures. (Decree No. 5,163, of 7/30/2004) [ANEEL]
ACR — Regulated Contracting Environment
ANEEL — National Electric Energy Agency.
A special regime agency linked to the MME, created in December 1996. The agency regulates and monitors the activities of generation, transmission, distribution and marketing of energy. It also mediates conflicts between consumers and market agents and among the agents themselves; grants, permits and authorizes energy installations and services; approves tariff adjustments; ensures the universalization and adequate quality of the services provided, and encourages investment and competition among the agents in the sector.
CCEE — Electric Energy Trading Chamber
A non-profit legal entity under private law, which operates under authorization from the Granting Authority and regulation and supervision by ANEEL, according to this Convention, with the purpose of facilitating the purchase and sale of electric energy operations between CCEE Agents, restricted to the National Interconnected System – SIN, whose creation was authorized under the terms of art. 4 of Law 10.848, of March 15, 2004, and Decree 5.177, of August 12, 2004.
Contracted Demand
Demand for active power to be mandatorily and continuously made available by the concessionaire, at the point of delivery, according to the value and period of validity set out in the supply contract and which must be paid in full, whether or not used during the billing period, expressed in kilowatts (kW).
Demand Measure
Greater demand for active power, verified by measurement, integrated in the interval of 15 (fifteen) minutes during the billing period, expressed in kilowatts (kW).
Overtaking Demand
Portion of measured demand that exceeds the value of contracted demand, expressed in kilowatts (kW).
ENA – Natural Affluent Energy
Amount of water received by a hydroelectric plant that can be transformed into energy.
Reactive Electrical Energy
Electrical energy that circulates continuously between the different electric and magnetic fields of an alternating current system, without producing work, expressed in kilovolt-ampere-reactive-hour (kvarh).
Active Electrical Energy
Electrical energy that can be converted into another form of energy, expressed in kilowatt-hours (kWh).
Financial Guarantee
Means by which compliance with obligations within the scope of Financial Settlement is ensured.
Payment and receipt process for amounts determined as debits and credits, respectively, resulting from the accounting carried out by the Electric Energy Trading Chamber – CCEE.
Unit of measurement of voltage, with a value equal to 1,000 Volts.
KiloWatt (kW)
Unit of measurement of power, with a value equal to 1,000 Watts.
Megawatthour (MWh)
Measurement of energy, equivalent to 1,000 kWh.
Captive Energy Market or Regulated Energy Market
Market where the consumer negotiates their energy supply directly with the local distributor, with rates regulated by ANEEL.
Free Energy Market
Market where the consumer negotiates his energy supply directly with a generator or energy trader and receives this input through the local distributor’s networks.
Ministry of Mines and Energy
Direct administration body of the Federal Government, responsible for establishing the policies of the Brazilian electricity sector and the guidelines for regulating the resulting activities.
Average MW
Measurement of energy, equivalent to the consumption of the month or year, in megawatthours, divided by the number of hours in the month or year.
National Electric System Operator (ONS)
Non-profit association that plans, operates and controls transmission generation in the National Interconnected System (SIN).
Price Settlement of Differences (PLD)
Energy generation price of the most expensive plant that is being dispatched each hour, calculated by CCEE, using software that minimizes the generation cost in the short, medium and long term.
Independent Electric Power Producer
Legal entities authorized to generate electrical energy for the purpose of total or partial commercialization, at their own risk and expense
National Interconnected System (SIN)
Set of generating plants, transmission lines and distribution lines, used to supply electricity consumers in the national territory, with the exception of so-called isolated systems.
TUSD — Tariff for the use of electricity distribution systems
Tariff established by ANEEL, intended for payment for the use of the distribution system at a given connection point to the system, formed by specific components, whose conceptualization and respective readjustment and review criteria are defined in Normative Resolution No. 166, of November 1, 2005. (ANEEL Normative Resolution No. 205, of 12/22/2005) [ANEEL]