BRAZIL Law and Practice Contributed by: Débora Yanasse, Bruno Salzano and Luisa Tortolano Barreto, Tauil & Chequer Advogados in association with Mayer Brown
• hydro and nuclear power generation companies, whether holders of concessions or authorisations. In accordance with the guidelines of the Conces- sions Law, ANEEL Normative Resolution No 948/2021 (Module III) establishes that the potential purchaser must submit evidence to ANEEL with respect to its financial and technical capacity; legal, tax and regula- tory compliance; and commitment to comply with the terms and conditions of the concession, permission or authorisation. The change of control of oil, coal, gas, biogas, bio- mass, wind and solar power generation companies is usually not subject to prior approval by ANEEL. Nev- ertheless, the purchaser has an obligation to inform ANEEL about the change of control within 30 days after implementation of the transaction, upon the The central authority that oversees and administers the technical aspects of the electricity supply and the development of transmission facilities to ensure the reliability of the electricity system and the adequacy of supply to satisfy the demand is the ONS, which is a non-profit private entity comprised of generation, transmission, distribution, importation and exporta- tion companies and free customers. The primary role of the ONS is to co-ordinate and regulate the generation and transmission operations in the SIN, subject to ANEEL’s regulation and supervi- sion. The main responsibilities of the ONS include, among others: competent corporate registration. 1.5 Central Planning Authorities • operational planning for the generation industry; • organising the use of the SIN and international interconnections; • ensuring that industry participants have access to the transmission network in a non-discriminatory manner; • proposing plans to the MME for extensions of the SIN; and
• formulating regulations regarding the operation of the transmission system, subject to ANEEL’s approval. The MME is responsible for planning the expansion of the electricity system, with the support of the EPE and ONS, and it determines directives by which ANEEL conducts generation and transmission auctions. The market operator that oversees and manages the electricity trade is the CCEE, which is also a non-profit private organisation comprised of generators, distrib- utors, traders and consumers. The CCEE is responsible for comparing the actual measurements of electrical energy consumption and generation with the agent’s respective agreements for the purchase and sale of energy, and for calculating the settlement price difference ( Preço de Liquidação de Diferenças or PLD). Other of the CCEE’s main responsibilities include: • collecting measurement data for generation and consumption; • registering PPAs; • conducting regulated auctions for the supply of power distributors or for back-up reasons; • conducting competitive procedures for the sale of energy surplus by power distributors; and • managing sectoral funds. 1.6 Recent Changes in Law or Regulation There have been several material changes in the laws and regulations of the power industry over the past few years. Foreign Exchange Law The Foreign Exchange Law (Law No 14,286/2021, which came into effect on 30 December 2022) revoked Decree-Law No 857/1969 and expressly authorised the contractual parties to stipulate the foreign cur- rency indexation in agreements (eg, PPAs) entered into between exporters and holders of concessions, permissions, authorisations or lessees in infrastruc- ture sectors (eg, power companies).
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