Novas Regras e a Busca de Estabilidade no Mercado Livre Treinamento do SINERCOM Novas Regras e a Busca de Estabilidade no Mercado Livre Seminário – 5 Anos do Novo Modelo do Setor Elétrico Brasileiro Antônio Carlos Fraga Machado Presidente do Conselho de Administração 24 de março de 2009 Contabilização e Pré-Faturamento

Treinamento do SINERCOM Agenda Evolução da CCEE Panorama do ACR Panorama do ACL Considerações Finais 2 Contabilização e Pré-Faturamento

Breve Histórico da CCEE e do Novo Modelo Treinamento do SINERCOM Breve Histórico da CCEE e do Novo Modelo Implantação do Novo modelo setorial Criação da Câmara de Comercialização de Energia Elétrica (CCEE) que substitui o MAE Regulamentação da Comercialização de Energia Elétrica Mercado em fase Em julho de 2004 ocorre a 1ª adesão de um Consumidor Livre Realização do 1º Leilão de Energia de Empreendimentos Existentes Primeiros contratos entre comercializadores e consumidores especiais Desenvolvimento de nova metodologia para o cálculo de garantias financeiras Realização do 1º Leilão de Energia de Reserva Implantação de projeto de desenvolvimento de um novo SCL Regulamentação da comercialização de energia de fontes incentivadas 2004 2006 2008 2003 2005 2007 Amplos debates entre o Governo Federal, representado pelo MME, e os Agentes do setor para implantação do novo modelo Realização do 1º Leilão de Energia Alternativa A CCEE passa a centralizar a liquidação financeira das cessões do Mecanismo de Compensação de Sobras e Déficits (MCSD) Leilão de Energia da Usina de Santo Antônio, marco na exploração do potencial hidrelétrico da Amazônia A CCEE consolida sua expertise na realização de leilões de energia Em dezembro ocorre o 1º Leilão de Energia de Novos Empreendimentos, marco do novo modelo do setor elétrico brasileiro 3 Contabilização e Pré-Faturamento

Treinamento do SINERCOM Contratação em dois Ambientes Vendedores Geradores de Serviço Público, Produtores Independentes, Comercializadores e Autoprodutores Ambiente de Contratação Regulada (ACR) Distribuidores (Consumidores Cativos) Ambiente de Contratação Livre (ACL) Consumidores Livres, Comercializadores Contratos resultantes de leilões Contratos livremente negociados 4 Contabilização e Pré-Faturamento

Modelo de Comercialização utilizado no Brasil Aspectos Gerais Os contratos registrados na CCEE são puramente financeiros, o SIN se responsabiliza pela entrega física O registro dos Contratos Bilaterais pode ocorrer “ex-post” à verificação da medição Exigência de contratação de 100% da demanda Exigência de comprovação de Lastro de Venda Vendedores e consumidores estão sujeito à penalidade por falta de lastro e insuficiência de contratação apurados ao longo de 12 meses The Brazilian electricity regulatory model has been restructured with the aim to promote competition and attract investments to the sector, following the example of the most important economies in the world. The first reform started in 1995, with the aim to replaced the previous system by a new system of free price formation, competition and separation of generation, transmission, distribution and commercialization activities.   In 1995, The Law 8,987, known as the Concessions Law, implemented the Constitutional requirement for bidding of all new public service concessions; After, the Law 9,074 introduce the regulatory model, establishing the creation of the free consumer figure which has the right to choose their suppliers, and the progressive increasing of its actuation. Besides this, the model created the Independent Power Producer, increased the action field of self-producers and adopted the free access to the distribution and transmission grid. After the publishing of these acts, the privatization process of the distribution companies began. In 1996, the Ministry of Mines and Energy (MME) contracted international consulters to study and to propose the Restructuring Project of the Brazilian Electric Sector – RESEB jointly with the Brazilian technicians. The RESEB’s basic aims were the introduction of competition in generation and retailing activities, build an efficient regulation to transmission and distribution activities and attraction private capital to new investments. The creation of an environment for commercialization based on transparent and not discriminatory rules to work with the existing agents was also the goal of RESEB. The Law 9,427 creates the National Electric Power Agency (ANEEL) as an independent regulatory entity for the sector and regulates concessions for electric energy public services. In December 1997, the basic documents of RESEB were concluded and culminate in the promulgation of Law 9,648 which completed the main legal framework of the first restructuring phase for the Brazilian Electricity Sector.  The Law 9,648 published in 1998, created the National Power System Operator (ONS), established the Wholesale Electric Energy Market (MAE), and created, among other providences, the trader, new agent role that could operate in the electricity industry just buying and selling energy, without needing any facility such as generation plant. The exercise of commercialization activities, including importation and exportation of electric energy depends on the authorization from ANEEL. ONS was created to allow open access to the transmission grid. In this sense all users contracted with ONS the regulated conditions to use the grid. ONS is also responsible to coordinate activities in the interconnected systems comprising the power generation and transmission control. MAE was created as an environment to undertake all the electricity purchase and sale transactions in the interconnected electricity systems. In 2002, the market rules were approved. Initially, ANEEL decided not to impose the working rules for this market unilaterally, transferring to the MAE participants the task of preparing them, in accordance with the guidelines consolidated in the “Basic Document” debated during RESEB. MAE started operating in September 2000 but conflicts of interest among Agents shutdown the market three months later From June 2001 to February 2002 the Brazilian Electricity System faced a supply crisis due to the scarce rains and delays in investments in the system expansion. The level of water in the reservoirs unexpected decreased in relation to historical levels. Such crisis had extremely negative political consequences, with much criticism on the part of the society, which ended up generating dispute about the design itself of the restructuring of the electricity sector proposed to Brazil. For this reason, the federal government established the Chamber of Management of the Electricity Crisis (GCE), with the aim to overcome the supply problems and explaining its causes, proposing urgent solutions. GCE operated in two fronts: in the short-term, to manage the rationing, and in the medium-term, to revise the restructuring model of the Brazilian electric sector. A program for 20% reduction of demand was imposed to all classes of consumers. Besides the rationing, GCE proposed a revitalization of the model (called here as Counter reform) and created the Committee of Revitalization of the Electric Sector in order to correct the dysfunctions and propose corrections for the sector model. The extensive agenda of the Committee of Revitalization enumerated 33 measures. One of these measure was the normalization of the functioning of the MAE MAE was thus reorganised, under special legal status and with a specific management regime through Law 10,433/2002. By it MAE became a private not-for-profit entity, subject to ANEEL authorisation, regulation and monitoring. Despite the reforms made, MAE only started partial settlement in January 2003, as even after the changes made by Law 10,438 there remained a few conflicts and disputes among agents. although many defects in the model have been corrected, it was not possible to guarantee that such measures reach the designed goals… Such factors brought out the need to revise the institutional model of the Brazilian electricity sector which, despite having gone through a process of “revitalization”, was object for reformulation by new government in 2003-2004. The Law 10,848 defined all the basis of the commercialization in the market. This law was detailed by the Decree 5.163. The Decree 5177 created the Chamber of Electric Energy commercialization (CCEE) that replaced MAE. The Decree 5,175 created the Power Sector Monitoring Committee (CMSE) that monitors services conditions for purposes of ensuring continuous energy supply. The Decree 5,184 created the Energy Research Company (EPE) is a new entity created to elaborate the energy sector long term planning in coordination with the Ministry of Mines and Energy (MME). 5 5

A CCEE A Câmara de Comercialização de Energia Elétrica (CCEE) é uma pessoa jurídica de direito privado, sem fins lucrativos, sob regulação e fiscalização da ANEEL, tendo como principais atribuições: Implantar e divulgar regras e procedimentos de comercialização Administrar o Ambiente de Contratação Regulada (ACR) e o Ambiente de Contratação Livre (ACL) Manter o registro dos dados de energia gerada e consumida pelos Agentes da CCEE Manter o registro dos contratos firmados entre os Agentes da CCEE Contabilizar e liquidar as transações realizadas no mercado de curto prazo Realizar Leilões de Energia sob delegação da ANEEL 6

Agentes da CCEE - Evolução The Brazilian electricity regulatory model has been restructured with the aim to promote competition and attract investments to the sector, following the example of the most important economies in the world. The first reform started in 1995, with the aim to replaced the previous system by a new system of free price formation, competition and separation of generation, transmission, distribution and commercialization activities.   In 1995, The Law 8,987, known as the Concessions Law, implemented the Constitutional requirement for bidding of all new public service concessions; After, the Law 9,074 introduce the regulatory model, establishing the creation of the free consumer figure which has the right to choose their suppliers, and the progressive increasing of its actuation. Besides this, the model created the Independent Power Producer, increased the action field of self-producers and adopted the free access to the distribution and transmission grid. After the publishing of these acts, the privatization process of the distribution companies began. In 1996, the Ministry of Mines and Energy (MME) contracted international consulters to study and to propose the Restructuring Project of the Brazilian Electric Sector – RESEB jointly with the Brazilian technicians. The RESEB’s basic aims were the introduction of competition in generation and retailing activities, build an efficient regulation to transmission and distribution activities and attraction private capital to new investments. The creation of an environment for commercialization based on transparent and not discriminatory rules to work with the existing agents was also the goal of RESEB. The Law 9,427 creates the National Electric Power Agency (ANEEL) as an independent regulatory entity for the sector and regulates concessions for electric energy public services. In December 1997, the basic documents of RESEB were concluded and culminate in the promulgation of Law 9,648 which completed the main legal framework of the first restructuring phase for the Brazilian Electricity Sector.  The Law 9,648 published in 1998, created the National Power System Operator (ONS), established the Wholesale Electric Energy Market (MAE), and created, among other providences, the trader, new agent role that could operate in the electricity industry just buying and selling energy, without needing any facility such as generation plant. The exercise of commercialization activities, including importation and exportation of electric energy depends on the authorization from ANEEL. ONS was created to allow open access to the transmission grid. In this sense all users contracted with ONS the regulated conditions to use the grid. ONS is also responsible to coordinate activities in the interconnected systems comprising the power generation and transmission control. MAE was created as an environment to undertake all the electricity purchase and sale transactions in the interconnected electricity systems. In 2002, the market rules were approved. Initially, ANEEL decided not to impose the working rules for this market unilaterally, transferring to the MAE participants the task of preparing them, in accordance with the guidelines consolidated in the “Basic Document” debated during RESEB. MAE started operating in September 2000 but conflicts of interest among Agents shutdown the market three months later From June 2001 to February 2002 the Brazilian Electricity System faced a supply crisis due to the scarce rains and delays in investments in the system expansion. The level of water in the reservoirs unexpected decreased in relation to historical levels. Such crisis had extremely negative political consequences, with much criticism on the part of the society, which ended up generating dispute about the design itself of the restructuring of the electricity sector proposed to Brazil. For this reason, the federal government established the Chamber of Management of the Electricity Crisis (GCE), with the aim to overcome the supply problems and explaining its causes, proposing urgent solutions. GCE operated in two fronts: in the short-term, to manage the rationing, and in the medium-term, to revise the restructuring model of the Brazilian electric sector. A program for 20% reduction of demand was imposed to all classes of consumers. Besides the rationing, GCE proposed a revitalization of the model (called here as Counter reform) and created the Committee of Revitalization of the Electric Sector in order to correct the dysfunctions and propose corrections for the sector model. The extensive agenda of the Committee of Revitalization enumerated 33 measures. One of these measure was the normalization of the functioning of the MAE MAE was thus reorganised, under special legal status and with a specific management regime through Law 10,433/2002. By it MAE became a private not-for-profit entity, subject to ANEEL authorisation, regulation and monitoring. Despite the reforms made, MAE only started partial settlement in January 2003, as even after the changes made by Law 10,438 there remained a few conflicts and disputes among agents. although many defects in the model have been corrected, it was not possible to guarantee that such measures reach the designed goals… Such factors brought out the need to revise the institutional model of the Brazilian electricity sector which, despite having gone through a process of “revitalization”, was object for reformulation by new government in 2003-2004. The Law 10,848 defined all the basis of the commercialization in the market. This law was detailed by the Decree 5.163. The Decree 5177 created the Chamber of Electric Energy commercialization (CCEE) that replaced MAE. The Decree 5,175 created the Power Sector Monitoring Committee (CMSE) that monitors services conditions for purposes of ensuring continuous energy supply. The Decree 5,184 created the Energy Research Company (EPE) is a new entity created to elaborate the energy sector long term planning in coordination with the Ministry of Mines and Energy (MME). 7 7 Fonte: CCEE

Consumidores Livres na CCEE - Evolução The Brazilian electricity regulatory model has been restructured with the aim to promote competition and attract investments to the sector, following the example of the most important economies in the world. The first reform started in 1995, with the aim to replaced the previous system by a new system of free price formation, competition and separation of generation, transmission, distribution and commercialization activities.   In 1995, The Law 8,987, known as the Concessions Law, implemented the Constitutional requirement for bidding of all new public service concessions; After, the Law 9,074 introduce the regulatory model, establishing the creation of the free consumer figure which has the right to choose their suppliers, and the progressive increasing of its actuation. Besides this, the model created the Independent Power Producer, increased the action field of self-producers and adopted the free access to the distribution and transmission grid. After the publishing of these acts, the privatization process of the distribution companies began. In 1996, the Ministry of Mines and Energy (MME) contracted international consulters to study and to propose the Restructuring Project of the Brazilian Electric Sector – RESEB jointly with the Brazilian technicians. The RESEB’s basic aims were the introduction of competition in generation and retailing activities, build an efficient regulation to transmission and distribution activities and attraction private capital to new investments. The creation of an environment for commercialization based on transparent and not discriminatory rules to work with the existing agents was also the goal of RESEB. The Law 9,427 creates the National Electric Power Agency (ANEEL) as an independent regulatory entity for the sector and regulates concessions for electric energy public services. In December 1997, the basic documents of RESEB were concluded and culminate in the promulgation of Law 9,648 which completed the main legal framework of the first restructuring phase for the Brazilian Electricity Sector.  The Law 9,648 published in 1998, created the National Power System Operator (ONS), established the Wholesale Electric Energy Market (MAE), and created, among other providences, the trader, new agent role that could operate in the electricity industry just buying and selling energy, without needing any facility such as generation plant. The exercise of commercialization activities, including importation and exportation of electric energy depends on the authorization from ANEEL. ONS was created to allow open access to the transmission grid. In this sense all users contracted with ONS the regulated conditions to use the grid. ONS is also responsible to coordinate activities in the interconnected systems comprising the power generation and transmission control. MAE was created as an environment to undertake all the electricity purchase and sale transactions in the interconnected electricity systems. In 2002, the market rules were approved. Initially, ANEEL decided not to impose the working rules for this market unilaterally, transferring to the MAE participants the task of preparing them, in accordance with the guidelines consolidated in the “Basic Document” debated during RESEB. MAE started operating in September 2000 but conflicts of interest among Agents shutdown the market three months later From June 2001 to February 2002 the Brazilian Electricity System faced a supply crisis due to the scarce rains and delays in investments in the system expansion. The level of water in the reservoirs unexpected decreased in relation to historical levels. Such crisis had extremely negative political consequences, with much criticism on the part of the society, which ended up generating dispute about the design itself of the restructuring of the electricity sector proposed to Brazil. For this reason, the federal government established the Chamber of Management of the Electricity Crisis (GCE), with the aim to overcome the supply problems and explaining its causes, proposing urgent solutions. GCE operated in two fronts: in the short-term, to manage the rationing, and in the medium-term, to revise the restructuring model of the Brazilian electric sector. A program for 20% reduction of demand was imposed to all classes of consumers. Besides the rationing, GCE proposed a revitalization of the model (called here as Counter reform) and created the Committee of Revitalization of the Electric Sector in order to correct the dysfunctions and propose corrections for the sector model. The extensive agenda of the Committee of Revitalization enumerated 33 measures. One of these measure was the normalization of the functioning of the MAE MAE was thus reorganised, under special legal status and with a specific management regime through Law 10,433/2002. By it MAE became a private not-for-profit entity, subject to ANEEL authorisation, regulation and monitoring. Despite the reforms made, MAE only started partial settlement in January 2003, as even after the changes made by Law 10,438 there remained a few conflicts and disputes among agents. although many defects in the model have been corrected, it was not possible to guarantee that such measures reach the designed goals… Such factors brought out the need to revise the institutional model of the Brazilian electricity sector which, despite having gone through a process of “revitalization”, was object for reformulation by new government in 2003-2004. The Law 10,848 defined all the basis of the commercialization in the market. This law was detailed by the Decree 5.163. The Decree 5177 created the Chamber of Electric Energy commercialization (CCEE) that replaced MAE. The Decree 5,175 created the Power Sector Monitoring Committee (CMSE) that monitors services conditions for purposes of ensuring continuous energy supply. The Decree 5,184 created the Energy Research Company (EPE) is a new entity created to elaborate the energy sector long term planning in coordination with the Ministry of Mines and Energy (MME). 8 8 Fonte: CCEE

Liquidação do Mercado de Curto Prazo - Evolução The Brazilian electricity regulatory model has been restructured with the aim to promote competition and attract investments to the sector, following the example of the most important economies in the world. The first reform started in 1995, with the aim to replaced the previous system by a new system of free price formation, competition and separation of generation, transmission, distribution and commercialization activities.   In 1995, The Law 8,987, known as the Concessions Law, implemented the Constitutional requirement for bidding of all new public service concessions; After, the Law 9,074 introduce the regulatory model, establishing the creation of the free consumer figure which has the right to choose their suppliers, and the progressive increasing of its actuation. Besides this, the model created the Independent Power Producer, increased the action field of self-producers and adopted the free access to the distribution and transmission grid. After the publishing of these acts, the privatization process of the distribution companies began. In 1996, the Ministry of Mines and Energy (MME) contracted international consulters to study and to propose the Restructuring Project of the Brazilian Electric Sector – RESEB jointly with the Brazilian technicians. The RESEB’s basic aims were the introduction of competition in generation and retailing activities, build an efficient regulation to transmission and distribution activities and attraction private capital to new investments. The creation of an environment for commercialization based on transparent and not discriminatory rules to work with the existing agents was also the goal of RESEB. The Law 9,427 creates the National Electric Power Agency (ANEEL) as an independent regulatory entity for the sector and regulates concessions for electric energy public services. In December 1997, the basic documents of RESEB were concluded and culminate in the promulgation of Law 9,648 which completed the main legal framework of the first restructuring phase for the Brazilian Electricity Sector.  The Law 9,648 published in 1998, created the National Power System Operator (ONS), established the Wholesale Electric Energy Market (MAE), and created, among other providences, the trader, new agent role that could operate in the electricity industry just buying and selling energy, without needing any facility such as generation plant. The exercise of commercialization activities, including importation and exportation of electric energy depends on the authorization from ANEEL. ONS was created to allow open access to the transmission grid. In this sense all users contracted with ONS the regulated conditions to use the grid. ONS is also responsible to coordinate activities in the interconnected systems comprising the power generation and transmission control. MAE was created as an environment to undertake all the electricity purchase and sale transactions in the interconnected electricity systems. In 2002, the market rules were approved. Initially, ANEEL decided not to impose the working rules for this market unilaterally, transferring to the MAE participants the task of preparing them, in accordance with the guidelines consolidated in the “Basic Document” debated during RESEB. MAE started operating in September 2000 but conflicts of interest among Agents shutdown the market three months later From June 2001 to February 2002 the Brazilian Electricity System faced a supply crisis due to the scarce rains and delays in investments in the system expansion. The level of water in the reservoirs unexpected decreased in relation to historical levels. Such crisis had extremely negative political consequences, with much criticism on the part of the society, which ended up generating dispute about the design itself of the restructuring of the electricity sector proposed to Brazil. For this reason, the federal government established the Chamber of Management of the Electricity Crisis (GCE), with the aim to overcome the supply problems and explaining its causes, proposing urgent solutions. GCE operated in two fronts: in the short-term, to manage the rationing, and in the medium-term, to revise the restructuring model of the Brazilian electric sector. A program for 20% reduction of demand was imposed to all classes of consumers. Besides the rationing, GCE proposed a revitalization of the model (called here as Counter reform) and created the Committee of Revitalization of the Electric Sector in order to correct the dysfunctions and propose corrections for the sector model. The extensive agenda of the Committee of Revitalization enumerated 33 measures. One of these measure was the normalization of the functioning of the MAE MAE was thus reorganised, under special legal status and with a specific management regime through Law 10,433/2002. By it MAE became a private not-for-profit entity, subject to ANEEL authorisation, regulation and monitoring. Despite the reforms made, MAE only started partial settlement in January 2003, as even after the changes made by Law 10,438 there remained a few conflicts and disputes among agents. although many defects in the model have been corrected, it was not possible to guarantee that such measures reach the designed goals… Such factors brought out the need to revise the institutional model of the Brazilian electricity sector which, despite having gone through a process of “revitalization”, was object for reformulation by new government in 2003-2004. The Law 10,848 defined all the basis of the commercialization in the market. This law was detailed by the Decree 5.163. The Decree 5177 created the Chamber of Electric Energy commercialization (CCEE) that replaced MAE. The Decree 5,175 created the Power Sector Monitoring Committee (CMSE) that monitors services conditions for purposes of ensuring continuous energy supply. The Decree 5,184 created the Energy Research Company (EPE) is a new entity created to elaborate the energy sector long term planning in coordination with the Ministry of Mines and Energy (MME). 9 9 Fonte: CCEE

Liquidação do Mercado de Curto Prazo - Evolução The Brazilian electricity regulatory model has been restructured with the aim to promote competition and attract investments to the sector, following the example of the most important economies in the world. The first reform started in 1995, with the aim to replaced the previous system by a new system of free price formation, competition and separation of generation, transmission, distribution and commercialization activities.   In 1995, The Law 8,987, known as the Concessions Law, implemented the Constitutional requirement for bidding of all new public service concessions; After, the Law 9,074 introduce the regulatory model, establishing the creation of the free consumer figure which has the right to choose their suppliers, and the progressive increasing of its actuation. Besides this, the model created the Independent Power Producer, increased the action field of self-producers and adopted the free access to the distribution and transmission grid. After the publishing of these acts, the privatization process of the distribution companies began. In 1996, the Ministry of Mines and Energy (MME) contracted international consulters to study and to propose the Restructuring Project of the Brazilian Electric Sector – RESEB jointly with the Brazilian technicians. The RESEB’s basic aims were the introduction of competition in generation and retailing activities, build an efficient regulation to transmission and distribution activities and attraction private capital to new investments. The creation of an environment for commercialization based on transparent and not discriminatory rules to work with the existing agents was also the goal of RESEB. The Law 9,427 creates the National Electric Power Agency (ANEEL) as an independent regulatory entity for the sector and regulates concessions for electric energy public services. In December 1997, the basic documents of RESEB were concluded and culminate in the promulgation of Law 9,648 which completed the main legal framework of the first restructuring phase for the Brazilian Electricity Sector.  The Law 9,648 published in 1998, created the National Power System Operator (ONS), established the Wholesale Electric Energy Market (MAE), and created, among other providences, the trader, new agent role that could operate in the electricity industry just buying and selling energy, without needing any facility such as generation plant. The exercise of commercialization activities, including importation and exportation of electric energy depends on the authorization from ANEEL. ONS was created to allow open access to the transmission grid. In this sense all users contracted with ONS the regulated conditions to use the grid. ONS is also responsible to coordinate activities in the interconnected systems comprising the power generation and transmission control. MAE was created as an environment to undertake all the electricity purchase and sale transactions in the interconnected electricity systems. In 2002, the market rules were approved. Initially, ANEEL decided not to impose the working rules for this market unilaterally, transferring to the MAE participants the task of preparing them, in accordance with the guidelines consolidated in the “Basic Document” debated during RESEB. MAE started operating in September 2000 but conflicts of interest among Agents shutdown the market three months later From June 2001 to February 2002 the Brazilian Electricity System faced a supply crisis due to the scarce rains and delays in investments in the system expansion. The level of water in the reservoirs unexpected decreased in relation to historical levels. Such crisis had extremely negative political consequences, with much criticism on the part of the society, which ended up generating dispute about the design itself of the restructuring of the electricity sector proposed to Brazil. For this reason, the federal government established the Chamber of Management of the Electricity Crisis (GCE), with the aim to overcome the supply problems and explaining its causes, proposing urgent solutions. GCE operated in two fronts: in the short-term, to manage the rationing, and in the medium-term, to revise the restructuring model of the Brazilian electric sector. A program for 20% reduction of demand was imposed to all classes of consumers. Besides the rationing, GCE proposed a revitalization of the model (called here as Counter reform) and created the Committee of Revitalization of the Electric Sector in order to correct the dysfunctions and propose corrections for the sector model. The extensive agenda of the Committee of Revitalization enumerated 33 measures. One of these measure was the normalization of the functioning of the MAE MAE was thus reorganised, under special legal status and with a specific management regime through Law 10,433/2002. By it MAE became a private not-for-profit entity, subject to ANEEL authorisation, regulation and monitoring. Despite the reforms made, MAE only started partial settlement in January 2003, as even after the changes made by Law 10,438 there remained a few conflicts and disputes among agents. although many defects in the model have been corrected, it was not possible to guarantee that such measures reach the designed goals… Such factors brought out the need to revise the institutional model of the Brazilian electricity sector which, despite having gone through a process of “revitalization”, was object for reformulation by new government in 2003-2004. The Law 10,848 defined all the basis of the commercialization in the market. This law was detailed by the Decree 5.163. The Decree 5177 created the Chamber of Electric Energy commercialization (CCEE) that replaced MAE. The Decree 5,175 created the Power Sector Monitoring Committee (CMSE) that monitors services conditions for purposes of ensuring continuous energy supply. The Decree 5,184 created the Energy Research Company (EPE) is a new entity created to elaborate the energy sector long term planning in coordination with the Ministry of Mines and Energy (MME). 10 10 Fonte: CCEE

PLD - Evolução 11 11 Fonte: CCEE The Brazilian electricity regulatory model has been restructured with the aim to promote competition and attract investments to the sector, following the example of the most important economies in the world. The first reform started in 1995, with the aim to replaced the previous system by a new system of free price formation, competition and separation of generation, transmission, distribution and commercialization activities.   In 1995, The Law 8,987, known as the Concessions Law, implemented the Constitutional requirement for bidding of all new public service concessions; After, the Law 9,074 introduce the regulatory model, establishing the creation of the free consumer figure which has the right to choose their suppliers, and the progressive increasing of its actuation. Besides this, the model created the Independent Power Producer, increased the action field of self-producers and adopted the free access to the distribution and transmission grid. After the publishing of these acts, the privatization process of the distribution companies began. In 1996, the Ministry of Mines and Energy (MME) contracted international consulters to study and to propose the Restructuring Project of the Brazilian Electric Sector – RESEB jointly with the Brazilian technicians. The RESEB’s basic aims were the introduction of competition in generation and retailing activities, build an efficient regulation to transmission and distribution activities and attraction private capital to new investments. The creation of an environment for commercialization based on transparent and not discriminatory rules to work with the existing agents was also the goal of RESEB. The Law 9,427 creates the National Electric Power Agency (ANEEL) as an independent regulatory entity for the sector and regulates concessions for electric energy public services. In December 1997, the basic documents of RESEB were concluded and culminate in the promulgation of Law 9,648 which completed the main legal framework of the first restructuring phase for the Brazilian Electricity Sector.  The Law 9,648 published in 1998, created the National Power System Operator (ONS), established the Wholesale Electric Energy Market (MAE), and created, among other providences, the trader, new agent role that could operate in the electricity industry just buying and selling energy, without needing any facility such as generation plant. The exercise of commercialization activities, including importation and exportation of electric energy depends on the authorization from ANEEL. ONS was created to allow open access to the transmission grid. In this sense all users contracted with ONS the regulated conditions to use the grid. ONS is also responsible to coordinate activities in the interconnected systems comprising the power generation and transmission control. MAE was created as an environment to undertake all the electricity purchase and sale transactions in the interconnected electricity systems. In 2002, the market rules were approved. Initially, ANEEL decided not to impose the working rules for this market unilaterally, transferring to the MAE participants the task of preparing them, in accordance with the guidelines consolidated in the “Basic Document” debated during RESEB. MAE started operating in September 2000 but conflicts of interest among Agents shutdown the market three months later From June 2001 to February 2002 the Brazilian Electricity System faced a supply crisis due to the scarce rains and delays in investments in the system expansion. The level of water in the reservoirs unexpected decreased in relation to historical levels. Such crisis had extremely negative political consequences, with much criticism on the part of the society, which ended up generating dispute about the design itself of the restructuring of the electricity sector proposed to Brazil. For this reason, the federal government established the Chamber of Management of the Electricity Crisis (GCE), with the aim to overcome the supply problems and explaining its causes, proposing urgent solutions. GCE operated in two fronts: in the short-term, to manage the rationing, and in the medium-term, to revise the restructuring model of the Brazilian electric sector. A program for 20% reduction of demand was imposed to all classes of consumers. Besides the rationing, GCE proposed a revitalization of the model (called here as Counter reform) and created the Committee of Revitalization of the Electric Sector in order to correct the dysfunctions and propose corrections for the sector model. The extensive agenda of the Committee of Revitalization enumerated 33 measures. One of these measure was the normalization of the functioning of the MAE MAE was thus reorganised, under special legal status and with a specific management regime through Law 10,433/2002. By it MAE became a private not-for-profit entity, subject to ANEEL authorisation, regulation and monitoring. Despite the reforms made, MAE only started partial settlement in January 2003, as even after the changes made by Law 10,438 there remained a few conflicts and disputes among agents. although many defects in the model have been corrected, it was not possible to guarantee that such measures reach the designed goals… Such factors brought out the need to revise the institutional model of the Brazilian electricity sector which, despite having gone through a process of “revitalization”, was object for reformulation by new government in 2003-2004. The Law 10,848 defined all the basis of the commercialization in the market. This law was detailed by the Decree 5.163. The Decree 5177 created the Chamber of Electric Energy commercialization (CCEE) that replaced MAE. The Decree 5,175 created the Power Sector Monitoring Committee (CMSE) that monitors services conditions for purposes of ensuring continuous energy supply. The Decree 5,184 created the Energy Research Company (EPE) is a new entity created to elaborate the energy sector long term planning in coordination with the Ministry of Mines and Energy (MME). 11 11 Fonte: CCEE

Liquidação da Cessão do MCSD - Evolução The Brazilian electricity regulatory model has been restructured with the aim to promote competition and attract investments to the sector, following the example of the most important economies in the world. The first reform started in 1995, with the aim to replaced the previous system by a new system of free price formation, competition and separation of generation, transmission, distribution and commercialization activities.   In 1995, The Law 8,987, known as the Concessions Law, implemented the Constitutional requirement for bidding of all new public service concessions; After, the Law 9,074 introduce the regulatory model, establishing the creation of the free consumer figure which has the right to choose their suppliers, and the progressive increasing of its actuation. Besides this, the model created the Independent Power Producer, increased the action field of self-producers and adopted the free access to the distribution and transmission grid. After the publishing of these acts, the privatization process of the distribution companies began. In 1996, the Ministry of Mines and Energy (MME) contracted international consulters to study and to propose the Restructuring Project of the Brazilian Electric Sector – RESEB jointly with the Brazilian technicians. The RESEB’s basic aims were the introduction of competition in generation and retailing activities, build an efficient regulation to transmission and distribution activities and attraction private capital to new investments. The creation of an environment for commercialization based on transparent and not discriminatory rules to work with the existing agents was also the goal of RESEB. The Law 9,427 creates the National Electric Power Agency (ANEEL) as an independent regulatory entity for the sector and regulates concessions for electric energy public services. In December 1997, the basic documents of RESEB were concluded and culminate in the promulgation of Law 9,648 which completed the main legal framework of the first restructuring phase for the Brazilian Electricity Sector.  The Law 9,648 published in 1998, created the National Power System Operator (ONS), established the Wholesale Electric Energy Market (MAE), and created, among other providences, the trader, new agent role that could operate in the electricity industry just buying and selling energy, without needing any facility such as generation plant. The exercise of commercialization activities, including importation and exportation of electric energy depends on the authorization from ANEEL. ONS was created to allow open access to the transmission grid. In this sense all users contracted with ONS the regulated conditions to use the grid. ONS is also responsible to coordinate activities in the interconnected systems comprising the power generation and transmission control. MAE was created as an environment to undertake all the electricity purchase and sale transactions in the interconnected electricity systems. In 2002, the market rules were approved. Initially, ANEEL decided not to impose the working rules for this market unilaterally, transferring to the MAE participants the task of preparing them, in accordance with the guidelines consolidated in the “Basic Document” debated during RESEB. MAE started operating in September 2000 but conflicts of interest among Agents shutdown the market three months later From June 2001 to February 2002 the Brazilian Electricity System faced a supply crisis due to the scarce rains and delays in investments in the system expansion. The level of water in the reservoirs unexpected decreased in relation to historical levels. Such crisis had extremely negative political consequences, with much criticism on the part of the society, which ended up generating dispute about the design itself of the restructuring of the electricity sector proposed to Brazil. For this reason, the federal government established the Chamber of Management of the Electricity Crisis (GCE), with the aim to overcome the supply problems and explaining its causes, proposing urgent solutions. GCE operated in two fronts: in the short-term, to manage the rationing, and in the medium-term, to revise the restructuring model of the Brazilian electric sector. A program for 20% reduction of demand was imposed to all classes of consumers. Besides the rationing, GCE proposed a revitalization of the model (called here as Counter reform) and created the Committee of Revitalization of the Electric Sector in order to correct the dysfunctions and propose corrections for the sector model. The extensive agenda of the Committee of Revitalization enumerated 33 measures. One of these measure was the normalization of the functioning of the MAE MAE was thus reorganised, under special legal status and with a specific management regime through Law 10,433/2002. By it MAE became a private not-for-profit entity, subject to ANEEL authorisation, regulation and monitoring. Despite the reforms made, MAE only started partial settlement in January 2003, as even after the changes made by Law 10,438 there remained a few conflicts and disputes among agents. although many defects in the model have been corrected, it was not possible to guarantee that such measures reach the designed goals… Such factors brought out the need to revise the institutional model of the Brazilian electricity sector which, despite having gone through a process of “revitalization”, was object for reformulation by new government in 2003-2004. The Law 10,848 defined all the basis of the commercialization in the market. This law was detailed by the Decree 5.163. The Decree 5177 created the Chamber of Electric Energy commercialization (CCEE) that replaced MAE. The Decree 5,175 created the Power Sector Monitoring Committee (CMSE) that monitors services conditions for purposes of ensuring continuous energy supply. The Decree 5,184 created the Energy Research Company (EPE) is a new entity created to elaborate the energy sector long term planning in coordination with the Ministry of Mines and Energy (MME). 12 12 Fonte: CCEE

Consumo Registrado na CCEE - Evolução The Brazilian electricity regulatory model has been restructured with the aim to promote competition and attract investments to the sector, following the example of the most important economies in the world. The first reform started in 1995, with the aim to replaced the previous system by a new system of free price formation, competition and separation of generation, transmission, distribution and commercialization activities.   In 1995, The Law 8,987, known as the Concessions Law, implemented the Constitutional requirement for bidding of all new public service concessions; After, the Law 9,074 introduce the regulatory model, establishing the creation of the free consumer figure which has the right to choose their suppliers, and the progressive increasing of its actuation. Besides this, the model created the Independent Power Producer, increased the action field of self-producers and adopted the free access to the distribution and transmission grid. After the publishing of these acts, the privatization process of the distribution companies began. In 1996, the Ministry of Mines and Energy (MME) contracted international consulters to study and to propose the Restructuring Project of the Brazilian Electric Sector – RESEB jointly with the Brazilian technicians. The RESEB’s basic aims were the introduction of competition in generation and retailing activities, build an efficient regulation to transmission and distribution activities and attraction private capital to new investments. The creation of an environment for commercialization based on transparent and not discriminatory rules to work with the existing agents was also the goal of RESEB. The Law 9,427 creates the National Electric Power Agency (ANEEL) as an independent regulatory entity for the sector and regulates concessions for electric energy public services. In December 1997, the basic documents of RESEB were concluded and culminate in the promulgation of Law 9,648 which completed the main legal framework of the first restructuring phase for the Brazilian Electricity Sector.  The Law 9,648 published in 1998, created the National Power System Operator (ONS), established the Wholesale Electric Energy Market (MAE), and created, among other providences, the trader, new agent role that could operate in the electricity industry just buying and selling energy, without needing any facility such as generation plant. The exercise of commercialization activities, including importation and exportation of electric energy depends on the authorization from ANEEL. ONS was created to allow open access to the transmission grid. In this sense all users contracted with ONS the regulated conditions to use the grid. ONS is also responsible to coordinate activities in the interconnected systems comprising the power generation and transmission control. MAE was created as an environment to undertake all the electricity purchase and sale transactions in the interconnected electricity systems. In 2002, the market rules were approved. Initially, ANEEL decided not to impose the working rules for this market unilaterally, transferring to the MAE participants the task of preparing them, in accordance with the guidelines consolidated in the “Basic Document” debated during RESEB. MAE started operating in September 2000 but conflicts of interest among Agents shutdown the market three months later From June 2001 to February 2002 the Brazilian Electricity System faced a supply crisis due to the scarce rains and delays in investments in the system expansion. The level of water in the reservoirs unexpected decreased in relation to historical levels. Such crisis had extremely negative political consequences, with much criticism on the part of the society, which ended up generating dispute about the design itself of the restructuring of the electricity sector proposed to Brazil. For this reason, the federal government established the Chamber of Management of the Electricity Crisis (GCE), with the aim to overcome the supply problems and explaining its causes, proposing urgent solutions. GCE operated in two fronts: in the short-term, to manage the rationing, and in the medium-term, to revise the restructuring model of the Brazilian electric sector. A program for 20% reduction of demand was imposed to all classes of consumers. Besides the rationing, GCE proposed a revitalization of the model (called here as Counter reform) and created the Committee of Revitalization of the Electric Sector in order to correct the dysfunctions and propose corrections for the sector model. The extensive agenda of the Committee of Revitalization enumerated 33 measures. One of these measure was the normalization of the functioning of the MAE MAE was thus reorganised, under special legal status and with a specific management regime through Law 10,433/2002. By it MAE became a private not-for-profit entity, subject to ANEEL authorisation, regulation and monitoring. Despite the reforms made, MAE only started partial settlement in January 2003, as even after the changes made by Law 10,438 there remained a few conflicts and disputes among agents. although many defects in the model have been corrected, it was not possible to guarantee that such measures reach the designed goals… Such factors brought out the need to revise the institutional model of the Brazilian electricity sector which, despite having gone through a process of “revitalization”, was object for reformulation by new government in 2003-2004. The Law 10,848 defined all the basis of the commercialization in the market. This law was detailed by the Decree 5.163. The Decree 5177 created the Chamber of Electric Energy commercialization (CCEE) that replaced MAE. The Decree 5,175 created the Power Sector Monitoring Committee (CMSE) that monitors services conditions for purposes of ensuring continuous energy supply. The Decree 5,184 created the Energy Research Company (EPE) is a new entity created to elaborate the energy sector long term planning in coordination with the Ministry of Mines and Energy (MME). 13 13 Fonte: CCEE

Consumo Registrado na CCEE - Evolução The Brazilian electricity regulatory model has been restructured with the aim to promote competition and attract investments to the sector, following the example of the most important economies in the world. The first reform started in 1995, with the aim to replaced the previous system by a new system of free price formation, competition and separation of generation, transmission, distribution and commercialization activities.   In 1995, The Law 8,987, known as the Concessions Law, implemented the Constitutional requirement for bidding of all new public service concessions; After, the Law 9,074 introduce the regulatory model, establishing the creation of the free consumer figure which has the right to choose their suppliers, and the progressive increasing of its actuation. Besides this, the model created the Independent Power Producer, increased the action field of self-producers and adopted the free access to the distribution and transmission grid. After the publishing of these acts, the privatization process of the distribution companies began. In 1996, the Ministry of Mines and Energy (MME) contracted international consulters to study and to propose the Restructuring Project of the Brazilian Electric Sector – RESEB jointly with the Brazilian technicians. The RESEB’s basic aims were the introduction of competition in generation and retailing activities, build an efficient regulation to transmission and distribution activities and attraction private capital to new investments. The creation of an environment for commercialization based on transparent and not discriminatory rules to work with the existing agents was also the goal of RESEB. The Law 9,427 creates the National Electric Power Agency (ANEEL) as an independent regulatory entity for the sector and regulates concessions for electric energy public services. In December 1997, the basic documents of RESEB were concluded and culminate in the promulgation of Law 9,648 which completed the main legal framework of the first restructuring phase for the Brazilian Electricity Sector.  The Law 9,648 published in 1998, created the National Power System Operator (ONS), established the Wholesale Electric Energy Market (MAE), and created, among other providences, the trader, new agent role that could operate in the electricity industry just buying and selling energy, without needing any facility such as generation plant. The exercise of commercialization activities, including importation and exportation of electric energy depends on the authorization from ANEEL. ONS was created to allow open access to the transmission grid. In this sense all users contracted with ONS the regulated conditions to use the grid. ONS is also responsible to coordinate activities in the interconnected systems comprising the power generation and transmission control. MAE was created as an environment to undertake all the electricity purchase and sale transactions in the interconnected electricity systems. In 2002, the market rules were approved. Initially, ANEEL decided not to impose the working rules for this market unilaterally, transferring to the MAE participants the task of preparing them, in accordance with the guidelines consolidated in the “Basic Document” debated during RESEB. MAE started operating in September 2000 but conflicts of interest among Agents shutdown the market three months later From June 2001 to February 2002 the Brazilian Electricity System faced a supply crisis due to the scarce rains and delays in investments in the system expansion. The level of water in the reservoirs unexpected decreased in relation to historical levels. Such crisis had extremely negative political consequences, with much criticism on the part of the society, which ended up generating dispute about the design itself of the restructuring of the electricity sector proposed to Brazil. For this reason, the federal government established the Chamber of Management of the Electricity Crisis (GCE), with the aim to overcome the supply problems and explaining its causes, proposing urgent solutions. GCE operated in two fronts: in the short-term, to manage the rationing, and in the medium-term, to revise the restructuring model of the Brazilian electric sector. A program for 20% reduction of demand was imposed to all classes of consumers. Besides the rationing, GCE proposed a revitalization of the model (called here as Counter reform) and created the Committee of Revitalization of the Electric Sector in order to correct the dysfunctions and propose corrections for the sector model. The extensive agenda of the Committee of Revitalization enumerated 33 measures. One of these measure was the normalization of the functioning of the MAE MAE was thus reorganised, under special legal status and with a specific management regime through Law 10,433/2002. By it MAE became a private not-for-profit entity, subject to ANEEL authorisation, regulation and monitoring. Despite the reforms made, MAE only started partial settlement in January 2003, as even after the changes made by Law 10,438 there remained a few conflicts and disputes among agents. although many defects in the model have been corrected, it was not possible to guarantee that such measures reach the designed goals… Such factors brought out the need to revise the institutional model of the Brazilian electricity sector which, despite having gone through a process of “revitalization”, was object for reformulation by new government in 2003-2004. The Law 10,848 defined all the basis of the commercialization in the market. This law was detailed by the Decree 5.163. The Decree 5177 created the Chamber of Electric Energy commercialization (CCEE) that replaced MAE. The Decree 5,175 created the Power Sector Monitoring Committee (CMSE) that monitors services conditions for purposes of ensuring continuous energy supply. The Decree 5,184 created the Energy Research Company (EPE) is a new entity created to elaborate the energy sector long term planning in coordination with the Ministry of Mines and Energy (MME). 14 14 Fonte: CCEE

Geração Registrada na CCEE - Evolução The Brazilian electricity regulatory model has been restructured with the aim to promote competition and attract investments to the sector, following the example of the most important economies in the world. The first reform started in 1995, with the aim to replaced the previous system by a new system of free price formation, competition and separation of generation, transmission, distribution and commercialization activities.   In 1995, The Law 8,987, known as the Concessions Law, implemented the Constitutional requirement for bidding of all new public service concessions; After, the Law 9,074 introduce the regulatory model, establishing the creation of the free consumer figure which has the right to choose their suppliers, and the progressive increasing of its actuation. Besides this, the model created the Independent Power Producer, increased the action field of self-producers and adopted the free access to the distribution and transmission grid. After the publishing of these acts, the privatization process of the distribution companies began. In 1996, the Ministry of Mines and Energy (MME) contracted international consulters to study and to propose the Restructuring Project of the Brazilian Electric Sector – RESEB jointly with the Brazilian technicians. The RESEB’s basic aims were the introduction of competition in generation and retailing activities, build an efficient regulation to transmission and distribution activities and attraction private capital to new investments. The creation of an environment for commercialization based on transparent and not discriminatory rules to work with the existing agents was also the goal of RESEB. The Law 9,427 creates the National Electric Power Agency (ANEEL) as an independent regulatory entity for the sector and regulates concessions for electric energy public services. In December 1997, the basic documents of RESEB were concluded and culminate in the promulgation of Law 9,648 which completed the main legal framework of the first restructuring phase for the Brazilian Electricity Sector.  The Law 9,648 published in 1998, created the National Power System Operator (ONS), established the Wholesale Electric Energy Market (MAE), and created, among other providences, the trader, new agent role that could operate in the electricity industry just buying and selling energy, without needing any facility such as generation plant. The exercise of commercialization activities, including importation and exportation of electric energy depends on the authorization from ANEEL. ONS was created to allow open access to the transmission grid. In this sense all users contracted with ONS the regulated conditions to use the grid. ONS is also responsible to coordinate activities in the interconnected systems comprising the power generation and transmission control. MAE was created as an environment to undertake all the electricity purchase and sale transactions in the interconnected electricity systems. In 2002, the market rules were approved. Initially, ANEEL decided not to impose the working rules for this market unilaterally, transferring to the MAE participants the task of preparing them, in accordance with the guidelines consolidated in the “Basic Document” debated during RESEB. MAE started operating in September 2000 but conflicts of interest among Agents shutdown the market three months later From June 2001 to February 2002 the Brazilian Electricity System faced a supply crisis due to the scarce rains and delays in investments in the system expansion. The level of water in the reservoirs unexpected decreased in relation to historical levels. Such crisis had extremely negative political consequences, with much criticism on the part of the society, which ended up generating dispute about the design itself of the restructuring of the electricity sector proposed to Brazil. For this reason, the federal government established the Chamber of Management of the Electricity Crisis (GCE), with the aim to overcome the supply problems and explaining its causes, proposing urgent solutions. GCE operated in two fronts: in the short-term, to manage the rationing, and in the medium-term, to revise the restructuring model of the Brazilian electric sector. A program for 20% reduction of demand was imposed to all classes of consumers. Besides the rationing, GCE proposed a revitalization of the model (called here as Counter reform) and created the Committee of Revitalization of the Electric Sector in order to correct the dysfunctions and propose corrections for the sector model. The extensive agenda of the Committee of Revitalization enumerated 33 measures. One of these measure was the normalization of the functioning of the MAE MAE was thus reorganised, under special legal status and with a specific management regime through Law 10,433/2002. By it MAE became a private not-for-profit entity, subject to ANEEL authorisation, regulation and monitoring. Despite the reforms made, MAE only started partial settlement in January 2003, as even after the changes made by Law 10,438 there remained a few conflicts and disputes among agents. although many defects in the model have been corrected, it was not possible to guarantee that such measures reach the designed goals… Such factors brought out the need to revise the institutional model of the Brazilian electricity sector which, despite having gone through a process of “revitalization”, was object for reformulation by new government in 2003-2004. The Law 10,848 defined all the basis of the commercialization in the market. This law was detailed by the Decree 5.163. The Decree 5177 created the Chamber of Electric Energy commercialization (CCEE) that replaced MAE. The Decree 5,175 created the Power Sector Monitoring Committee (CMSE) that monitors services conditions for purposes of ensuring continuous energy supply. The Decree 5,184 created the Energy Research Company (EPE) is a new entity created to elaborate the energy sector long term planning in coordination with the Ministry of Mines and Energy (MME). 15 15 Fonte: CCEE

Geração Registrada na CCEE - Evolução The Brazilian electricity regulatory model has been restructured with the aim to promote competition and attract investments to the sector, following the example of the most important economies in the world. The first reform started in 1995, with the aim to replaced the previous system by a new system of free price formation, competition and separation of generation, transmission, distribution and commercialization activities.   In 1995, The Law 8,987, known as the Concessions Law, implemented the Constitutional requirement for bidding of all new public service concessions; After, the Law 9,074 introduce the regulatory model, establishing the creation of the free consumer figure which has the right to choose their suppliers, and the progressive increasing of its actuation. Besides this, the model created the Independent Power Producer, increased the action field of self-producers and adopted the free access to the distribution and transmission grid. After the publishing of these acts, the privatization process of the distribution companies began. In 1996, the Ministry of Mines and Energy (MME) contracted international consulters to study and to propose the Restructuring Project of the Brazilian Electric Sector – RESEB jointly with the Brazilian technicians. The RESEB’s basic aims were the introduction of competition in generation and retailing activities, build an efficient regulation to transmission and distribution activities and attraction private capital to new investments. The creation of an environment for commercialization based on transparent and not discriminatory rules to work with the existing agents was also the goal of RESEB. The Law 9,427 creates the National Electric Power Agency (ANEEL) as an independent regulatory entity for the sector and regulates concessions for electric energy public services. In December 1997, the basic documents of RESEB were concluded and culminate in the promulgation of Law 9,648 which completed the main legal framework of the first restructuring phase for the Brazilian Electricity Sector.  The Law 9,648 published in 1998, created the National Power System Operator (ONS), established the Wholesale Electric Energy Market (MAE), and created, among other providences, the trader, new agent role that could operate in the electricity industry just buying and selling energy, without needing any facility such as generation plant. The exercise of commercialization activities, including importation and exportation of electric energy depends on the authorization from ANEEL. ONS was created to allow open access to the transmission grid. In this sense all users contracted with ONS the regulated conditions to use the grid. ONS is also responsible to coordinate activities in the interconnected systems comprising the power generation and transmission control. MAE was created as an environment to undertake all the electricity purchase and sale transactions in the interconnected electricity systems. In 2002, the market rules were approved. Initially, ANEEL decided not to impose the working rules for this market unilaterally, transferring to the MAE participants the task of preparing them, in accordance with the guidelines consolidated in the “Basic Document” debated during RESEB. MAE started operating in September 2000 but conflicts of interest among Agents shutdown the market three months later From June 2001 to February 2002 the Brazilian Electricity System faced a supply crisis due to the scarce rains and delays in investments in the system expansion. The level of water in the reservoirs unexpected decreased in relation to historical levels. Such crisis had extremely negative political consequences, with much criticism on the part of the society, which ended up generating dispute about the design itself of the restructuring of the electricity sector proposed to Brazil. For this reason, the federal government established the Chamber of Management of the Electricity Crisis (GCE), with the aim to overcome the supply problems and explaining its causes, proposing urgent solutions. GCE operated in two fronts: in the short-term, to manage the rationing, and in the medium-term, to revise the restructuring model of the Brazilian electric sector. A program for 20% reduction of demand was imposed to all classes of consumers. Besides the rationing, GCE proposed a revitalization of the model (called here as Counter reform) and created the Committee of Revitalization of the Electric Sector in order to correct the dysfunctions and propose corrections for the sector model. The extensive agenda of the Committee of Revitalization enumerated 33 measures. One of these measure was the normalization of the functioning of the MAE MAE was thus reorganised, under special legal status and with a specific management regime through Law 10,433/2002. By it MAE became a private not-for-profit entity, subject to ANEEL authorisation, regulation and monitoring. Despite the reforms made, MAE only started partial settlement in January 2003, as even after the changes made by Law 10,438 there remained a few conflicts and disputes among agents. although many defects in the model have been corrected, it was not possible to guarantee that such measures reach the designed goals… Such factors brought out the need to revise the institutional model of the Brazilian electricity sector which, despite having gone through a process of “revitalization”, was object for reformulation by new government in 2003-2004. The Law 10,848 defined all the basis of the commercialization in the market. This law was detailed by the Decree 5.163. The Decree 5177 created the Chamber of Electric Energy commercialization (CCEE) that replaced MAE. The Decree 5,175 created the Power Sector Monitoring Committee (CMSE) that monitors services conditions for purposes of ensuring continuous energy supply. The Decree 5,184 created the Energy Research Company (EPE) is a new entity created to elaborate the energy sector long term planning in coordination with the Ministry of Mines and Energy (MME). 16 16 Fonte: CCEE

Geração Registrada na CCEE - Evolução The Brazilian electricity regulatory model has been restructured with the aim to promote competition and attract investments to the sector, following the example of the most important economies in the world. The first reform started in 1995, with the aim to replaced the previous system by a new system of free price formation, competition and separation of generation, transmission, distribution and commercialization activities.   In 1995, The Law 8,987, known as the Concessions Law, implemented the Constitutional requirement for bidding of all new public service concessions; After, the Law 9,074 introduce the regulatory model, establishing the creation of the free consumer figure which has the right to choose their suppliers, and the progressive increasing of its actuation. Besides this, the model created the Independent Power Producer, increased the action field of self-producers and adopted the free access to the distribution and transmission grid. After the publishing of these acts, the privatization process of the distribution companies began. In 1996, the Ministry of Mines and Energy (MME) contracted international consulters to study and to propose the Restructuring Project of the Brazilian Electric Sector – RESEB jointly with the Brazilian technicians. The RESEB’s basic aims were the introduction of competition in generation and retailing activities, build an efficient regulation to transmission and distribution activities and attraction private capital to new investments. The creation of an environment for commercialization based on transparent and not discriminatory rules to work with the existing agents was also the goal of RESEB. The Law 9,427 creates the National Electric Power Agency (ANEEL) as an independent regulatory entity for the sector and regulates concessions for electric energy public services. In December 1997, the basic documents of RESEB were concluded and culminate in the promulgation of Law 9,648 which completed the main legal framework of the first restructuring phase for the Brazilian Electricity Sector.  The Law 9,648 published in 1998, created the National Power System Operator (ONS), established the Wholesale Electric Energy Market (MAE), and created, among other providences, the trader, new agent role that could operate in the electricity industry just buying and selling energy, without needing any facility such as generation plant. The exercise of commercialization activities, including importation and exportation of electric energy depends on the authorization from ANEEL. ONS was created to allow open access to the transmission grid. In this sense all users contracted with ONS the regulated conditions to use the grid. ONS is also responsible to coordinate activities in the interconnected systems comprising the power generation and transmission control. MAE was created as an environment to undertake all the electricity purchase and sale transactions in the interconnected electricity systems. In 2002, the market rules were approved. Initially, ANEEL decided not to impose the working rules for this market unilaterally, transferring to the MAE participants the task of preparing them, in accordance with the guidelines consolidated in the “Basic Document” debated during RESEB. MAE started operating in September 2000 but conflicts of interest among Agents shutdown the market three months later From June 2001 to February 2002 the Brazilian Electricity System faced a supply crisis due to the scarce rains and delays in investments in the system expansion. The level of water in the reservoirs unexpected decreased in relation to historical levels. Such crisis had extremely negative political consequences, with much criticism on the part of the society, which ended up generating dispute about the design itself of the restructuring of the electricity sector proposed to Brazil. For this reason, the federal government established the Chamber of Management of the Electricity Crisis (GCE), with the aim to overcome the supply problems and explaining its causes, proposing urgent solutions. GCE operated in two fronts: in the short-term, to manage the rationing, and in the medium-term, to revise the restructuring model of the Brazilian electric sector. A program for 20% reduction of demand was imposed to all classes of consumers. Besides the rationing, GCE proposed a revitalization of the model (called here as Counter reform) and created the Committee of Revitalization of the Electric Sector in order to correct the dysfunctions and propose corrections for the sector model. The extensive agenda of the Committee of Revitalization enumerated 33 measures. One of these measure was the normalization of the functioning of the MAE MAE was thus reorganised, under special legal status and with a specific management regime through Law 10,433/2002. By it MAE became a private not-for-profit entity, subject to ANEEL authorisation, regulation and monitoring. Despite the reforms made, MAE only started partial settlement in January 2003, as even after the changes made by Law 10,438 there remained a few conflicts and disputes among agents. although many defects in the model have been corrected, it was not possible to guarantee that such measures reach the designed goals… Such factors brought out the need to revise the institutional model of the Brazilian electricity sector which, despite having gone through a process of “revitalization”, was object for reformulation by new government in 2003-2004. The Law 10,848 defined all the basis of the commercialization in the market. This law was detailed by the Decree 5.163. The Decree 5177 created the Chamber of Electric Energy commercialization (CCEE) that replaced MAE. The Decree 5,175 created the Power Sector Monitoring Committee (CMSE) that monitors services conditions for purposes of ensuring continuous energy supply. The Decree 5,184 created the Energy Research Company (EPE) is a new entity created to elaborate the energy sector long term planning in coordination with the Ministry of Mines and Energy (MME). 17 17 Fonte: CCEE

Treinamento do SINERCOM CCEE A CCEE HOJE: Mercado em fase Alta credibilidade Estabilidade Alta adimplência Transparência Diálogo com os Agentes Expertise de mercado Segurança nas operações Tecnologia de ponta SCL – Sistema de Contabilização e Liquidação SCDE – Sistema de Coleta de Dados de Energia Leilões via Internet Referência para Mercados Internacionais 18 Contabilização e Pré-Faturamento

Agentes da CCEE - Hoje Agentes da CCEE Fonte CCEE - dados de dezembro/2008

Treinamento do SINERCOM Agenda Evolução da CCEE Panorama do ACR Panorama do ACL Considerações Finais 20 Contabilização e Pré-Faturamento

Treinamento do SINERCOM Resumo dos Resultados dos Leilões de Empreendimentos Existentes Valores atualizados pelo IPCA até fevereiro de 2009 21 Fonte: CCEE Contabilização e Pré-Faturamento

Treinamento do SINERCOM Resumo dos Resultados dos Leilões de Novos Empreendimentos, de Fontes Alternativas e de Energia de Reserva Valores atualizados pelo IPCA até fevereiro de 2009 22 Fonte: CCEE Contabilização e Pré-Faturamento

Treinamento do SINERCOM Resumo dos Resultados dos Leilões de Ajuste Valores atualizados pelo IPCA até fevereiro de 2009 23 Fonte: CCEE Contabilização e Pré-Faturamento

Montantes Negociados e Preços Médios dos Leilões Valores atualizados pelo IPCA até fevereiro de 2009 24 Fonte: CCEE

Total Negociado nos Leilões do Novo Modelo Valores atualizados pelo IPCA até fevereiro de 2009 25 Fonte: CCEE

Total Negociado nos Leilões de Ajuste do Novo Modelo Treinamento do SINERCOM Total Negociado nos Leilões de Ajuste do Novo Modelo Valores atualizados pelo IPCA até fevereiro de 2009 26 Fonte: CCEE Contabilização e Pré-Faturamento

Montantes de Energia Negociados nos Leilões de Novos Empreendimentos 27 Fonte: CCEE

Panorama Atual do ACR Aspectos de Contratação do ACR Mercado Maduro de Contratação Futura Segurança de suprimento Contratos de longo prazo para atender até 103% da demanda projetada das distribuidoras, sinalizando de 3 a 5 anos de antecedência do início de suprimento. Incentivo via repasse à tarifa e mitigação dos riscos de penalidade Garantia de Financiabilidade Obrigatoriedade de contratação a longo prazo Contratos Regulados (CCEARs) de longo prazo – 15 (T) e 30 (H) anos para energia nova CCEARs com características de recebíveis 28 28

Treinamento do SINERCOM Agenda Evolução da CCEE Panorama do ACR Panorama do ACL Considerações Finais 29 Contabilização e Pré-Faturamento

Evolução do Mercado Livre 23,23% da energia do SIN foi comercializada no Mercado Livre em dezembro de 2008 Considerou-se no consumo do mercado livre: Consumidor Livre (CL), Autoprodutor (APE), Eletrointensivos (CHESF, FURNAS e ELETRONORTE) Participação do Mercado Livre no SIN 30 Fonte: CCEE - dados até dezembro/2008

Consumo de Energia Elétrica no SIN Treinamento do SINERCOM Consumo de Energia Elétrica no SIN 31 Fonte: CCEE - dados de dezembro/2008 Contabilização e Pré-Faturamento

Panorama Atual do ACL 32 32 Fonte: CCEE - dados até dezembro/2008

Treinamento do SINERCOM Panorama Atual do ACL Aspectos de Contratação do ACL Obrigatoriedade de contratação de 100% da demanda ao longo dos últimos 12 meses (mas não em contratos de longo prazo), com possibilidade de penalização pela insuficiência de contratação Variáveis macroeconômicas dificultam a previsibilidade da demanda e a decorrente contratação de longo prazo (situação não previstas de redução/aumento da produção) Prazos muito longos de contratação podem “amarrar” o Consumidor Livre”, que necessita de flexibilidade para suas decisões de produção O Consumidor Livre não pode atuar como vendedor - obrigatoriedade de liquidação sobras contratuais no MCP Retorno volta ao mercado cativo: aviso com 5 anos de antecedência ou a critério da distribuidora Financiabilidade: Prazo de contratação de curto e médio prazo e necessidade de robustez dos contratos (mecanismo de garantia para os bancos) 33 33 Contabilização e Pré-Faturamento

Treinamento do SINERCOM Agenda Evolução da CCEE Panorama do ACR Panorama do ACL Considerações Finais 34 Contabilização e Pré-Faturamento

Considerações Finais Os leilões de energia elétrica se mostraram elementos eficazes para proporcionar a expansão do sistema elétrico brasileiro Desafios futuros: Realizar o 1º Leilão exclusivo para fonte eólicas Criar ferramentas que possibilitem ao mercado livre atuação mais ativa na expansão do setor elétrico brasileiro Viabilizar novos empreendimentos hidrelétricos, principalmente na região amazônica Estudar alternativas para a formação do preço do mercado de curto prazo, atualmente determinado a partir de modelos computacionais 35

Treinamento do SINERCOM Canais de Comunicação com a CCEE Telefone – 0800-10-00-08 Fax – 55-11-3175-6636 Email: atendimento@ccee.org.br Site: www.ccee.org.br 36 Contabilização e Pré-Faturamento