Our consultant Luiz Felipe Monteiro Seixas spoke to the BNamericas website about the request made by federal MP Danilo Forte for the National Electric Energy Agency (Aneel) to launch an administrative inquiry into possible irregularities in the second capacity reserve auction (LRCAP) and to consider its annulment.
Held in March this year, the auction was the largest in the history of the Brazilian energy sector, resulting in the contracting of around 20 GW of power, including thermal and hydroelectric capacity.
The MP’s request is based on a report drawn up by the Chamber of Deputies’ Mines and Energy Committee (CME), which identified “anomalies” in the design and execution of the tender process.
The report highlights that weaknesses and inconsistencies in the auction methodology had already been flagged by the Federal Court of Accounts (TCU).
Luiz told the website that the TCU tends to be cautious before intervening in energy sector auctions, precisely because of the systemic effects of a suspension.
‘What I imagine might happen, initially, is that the Court will order the Ministry of Mines and Energy and ANEEL to carry out investigations so that they can present the documentation supporting the price review. The outcome of this process will determine whether or not there are grounds for a more severe measure,’ he said.