In the month of September 2023, the Short-Term Market (MCP) of the Brazilian electricity sector achieved significant financial movement, totaling R$ 1.3 billion, according to data released by Electricity Trading Chamber (CCEE). This figure is part of the recorded amount of R$ 2.39 billion in the financial settlement carried out in the period.
CCEE identified that, within this amount, approximately R$ 1 billion is retained due to injunctions that prevent the payment of hydrological risk (GSF) within the scope of the free contracting environment. This retention reflects the legal complexity that permeates some transactions in the electricity sector, directly impacting the completion of payments.
Installments relating to commitments, including those related to the payment of subsidies after the renegotiation of the GSF, now represent a significant portion, totaling R$ 49.3 million. It is important to note that, despite the negotiations and agreements established, effective default reached approximately R$ 39.0 million, corresponding to approximately 2% of the total accounted for.
Agents who have current court decisions, exempting them from the default rate resulting from the GSF injunctions, presented a compliance rate close to 94.4%. On the other hand, those supported by decisions that determine proportional payment recorded lower compliance, standing at around 31.5%.
Creditors without injunctions faced challenges, receiving approximately 24.9% of their credits. This scenario highlights the disparity between agents in the electricity sector in relation to payment, highlighting the importance of structural and regulatory solutions to promote greater stability in financial transactions in the short-term market.
In terms of consolidated data, of the accounted amount of R$ 2.39 billion, the non-renegotiated GSF represented 41.7%, while the MCP contributed 58.3%. In the settlement process, R$ 1.30 billion was actually paid, corresponding to 93.7% of the total. However, an unpaid amount of R$ 88.3 million remains, equivalent to 6.3% of the total amount accounted for.
These numbers reflect the challenging dynamics of the Brazilian electricity sector, where the search for balance and security in transactions continues to be a central objective for the authorities and agents involved.
Inside MCP
The Short Term Market (MCP) in the electricity sector is a type of financial transactions that involves the purchase and sale of electricity to meet immediate demands. Unlike the Long-Term Market, where contracts have a longer duration, the MCP operates at shorter intervals, allowing for more agile adaptation to variations in consumption and conditions of the electrical system.
In the MCP, negotiation is carried out by market agents, such as generators, distributors, traders and free consumers. This dynamic allows for greater flexibility in transactions, as supply and demand conditions can undergo significant variations over time. Short-term contracts provide the opportunity to adjust the amount of energy transacted according to immediate needs, resulting in a faster response to market fluctuations.
Financial settlement in the MCP is a crucial process, involving the calculation and payment of the differences between the energy actually consumed or generated and the contracted energy. The Electricity Trading Chamber (CCEE) plays a fundamental role in this scenario, acting as an intermediary and ensuring the security and transparency of transactions.
However, the MCP is not without its challenges. Issues such as default, legal disputes and volatility in energy prices are some of the challenges that impact this market. The significant movement in values, as evidenced in September 2023, highlights the complexity and importance of this segment for the efficient functioning of the Brazilian electricity sector.
In summary, the Short-Term Market represents a fundamental part of the electricity sector, providing agility and adaptability to the dynamic conditions of energy supply and demand in the country.
