Market Structures and Institutions Granting of concessions and authorizations September 22nd, 2003 Brasília CIGRÉ Workshop Isaac Pinto Averbuch Director of ANEEL
Market Structures and Institutions
Granting of concessions and authorizations
Market Structures and Institutions
Granting of concessions and authorizations
September 22nd, 2003Brasília
September 22nd, 2003Brasília
CIGRÉ WorkshopCIGRÉ Workshop
Isaac Pinto AverbuchDirector of ANEEL
Isaac Pinto AverbuchDirector of ANEEL
Granting of concessions and authorizationsGranting of concessions and authorizations
I. T e G process
II. Outcomes
III. ANEEL’s actions
I. T e G process
II. Outcomes
III. ANEEL’s actions
TransmissionGrant management TransmissionGrant management
CND approvesCND approves
PlanningPlanning
ExpansionExpansionReinforcementsReinforcementsImprovementsImprovements
Determinative ProgramDeterminative Programfor Transmissionfor Transmission
ModalityModalityRequirements for the ParticipationRequirements for the Participation
ProceedingsProceedingsJudgment Criteria and Maximum PricesJudgment Criteria and Maximum Prices
OperationOperation
Plan for the exPlan for the expanpansionsionand reinforcementsand reinforcements
Program forProgram forGrantsGrants
Program for theProgram for theEnterprisesEnterprises
ANEEL authorizes andANEEL authorizes andEstablishes RevenueEstablishes Revenue
BidBidGranting of the Concession Granting of the Concession
by the President of theby the President of theRepublicRepublic
Concession contractConcession contractwith ANEELwith ANEEL
TransmissionBidding process
Year 1Year 1 Year 2Year 2 Year 3Year 3
ProclamationProclamation
Commercial Commercial operationoperation
Document Document elaboration elaboration for the TCUfor the TCU
Document Document elaboration for elaboration for
the CND the CND
Concession Concession GrantGrantinging Decree Decree
Concession Contract Concession Contract SignatureSignature
FeasibFeasibiillitity y studies CCPEstudies CCPE
Constitution of the Constitution of the SPESPE
BidBid
Transmission - OutcomesAuctions (1998/2002)Transmission - OutcomesAuctions (1998/2002)
AuctionsAuctions SuccessesSuccesses FailuresFailures InvestmentsInvestments TotalTotal BenefitsBenefits
LTs 27 1* R$ 5 billions8.017
km
Saved Costs**
~750 km
* TL Ouro Preto - Vitória (authorized to FURNAS)
** For 230 kV lines (or 430 km for 500 kV lines)
* TL Ouro Preto - Vitória (authorized to FURNAS)
** For 230 kV lines (or 430 km for 500 kV lines)
ANEELANEEL
Transmission Line Basic Network Annual Increase
3.077,10
861,20
2.436,802.047,00
648,20
3.102,90
1.149,70
2.079,85
20,30
706,94622,86
109,40
915,50
623,30
5.816,92
0
1000
2000
3000
4000
5000
6000
7000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003* 2004*
Year (* Forecast for operation entry)
Tra
nsm
issi
on
Lin
e I
ncre
ase
(km
)
Transmission Line Basic Network Annual Increase
3.077,10
861,20
2.436,802.047,00
648,20
3.102,90
1.149,70
2.079,85
20,30
706,94622,86
109,40
915,50
623,30
5.816,92
0
1000
2000
3000
4000
5000
6000
7000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003* 2004*
Year (* Forecast for operation entry)
Tra
nsm
issi
on
Lin
e I
ncre
ase
(km
)Transmission - Outcomes
Basic Network (Annual Increase)
Transmission - Outcomes
Basic Network (Annual Increase)
• Enterprises : 36
– on schedule: 24 (~ 67%)
• 22 normal e 2 advanced
• 16 “concession” e 8 “authorization”
– delayed: 12 (~ 33%)
• 3 “concession” e 9 “authorization”
• Enterprises : 36
– on schedule: 24 (~ 67%)
• 22 normal e 2 advanced
• 16 “concession” e 8 “authorization”
– delayed: 12 (~ 33%)
• 3 “concession” e 9 “authorization”
Transmission – Basic network EnterprisesTransmission – Basic network Enterprises
Transmission – Granting processTransmission – Granting process
• Clear rules (investor’s confidence)• Improvements in the bid’s proclamation • The winner is who offers the “lowest tariff”
(final consumers are the beneficiaries) • Elimination or minimization of risks out of the
business environment• Bid’s Proclamation previously approved by the
Federal Audit Court (TCU)• Auditing follows a chronogram• Ongoing dialog with investors, consumers and
society
• Clear rules (investor’s confidence)• Improvements in the bid’s proclamation • The winner is who offers the “lowest tariff”
(final consumers are the beneficiaries) • Elimination or minimization of risks out of the
business environment• Bid’s Proclamation previously approved by the
Federal Audit Court (TCU)• Auditing follows a chronogram• Ongoing dialog with investors, consumers and
society
Generation – Granting Management ProcessGeneration – Granting Management Process
Environmental Reference Term (X-ray)
Commercial Operation
PL
IL OLRenewalRenewal
Environmental licenses
PL: Previous License IL: Installation License OL: Operation License
BIDBIDPotential Grant Potential Grant
Concession ContractConcession Contract
INVENTORY FEASIBILITY BASICPROJECT
EXECUTIVE
PROJECT/
CONSTRUCTION
OPERATION
Study hand out(Data Room ANEEL)
Technical NoteTCU
Proclamation
Pre-qualificationDocument
Pre-qualificationJudgment Publication
AUCTION
Grant
ConcessionContract
ContractWarranty
ProposalWarranty
DaysDays
60 30 50 15 20 1 90 30
Stated period: 296 days
~10 months
GenerationBidding ProcessGenerationBidding Process
Annual Generation Increase(1990 – 2002)Annual Generation Increase(1990 – 2002)
1.1061.106
4.6384.638
2.3272.327
2.8282.828
4.2624.262
2.5062.506
2.9292.929
1.4071.4071.2181.2181.1731.1739089081.0911.091925925
00
500500
1.0001.000
1.5001.500
2.0002.000
2.5002.500
3.0003.000
3.5003.500
4.0004.000
4.5004.500
5.0005.000
19901990 19911991 19921992 19931993 19941994 19951995 19961996 19971997 19981998 19991999 20002000 20012001 20022002
ANEEL(dec/1997)
ANEEL(dec/1997)
Po
we
r (M
W)
Po
we
r (M
W)
Average 90/94: 1.063 MWAverage 90/94: 1.063 MW Average 95/99: 2.119 MWAverage 95/99: 2.119 MW Average 00/02: 3.795 MWAverage 00/02: 3.795 MW
Ca
pac
ity
(M
W)
Ca
pac
ity
(M
W)
3.664,3 2.267,6 1.715,0
2.131,2 4.401,44.075,9
3.697,4
2.741,3
5.426,0
1.920,8
350,2
2.741,32.741,3
5.762,65.762,6
8.172,08.172,0
9.986,59.986,5
12.203,112.203,1
1.0001.000
3.0003.000
5.0005.000
7.0007.000
9.0009.000
11.00011.000
13.00013.000
15.00015.000
20032003 20042004 20062006 20072007
Heavy constraints (24,5%)Heavy constraints (24,5%) Constraints (43,9%) Constraints (43,9%)
No constraints (31,6%)No constraints (31,6%)
4.645,9
Data updated on 15/8/03 (not including the 2.049 MW from the emergency thermals)Data updated on 15/8/03 (not including the 2.049 MW from the emergency thermals)
1.828,5
Generation EnterprisesGeneration Enterprises
2005
Expected outcomes by Consumers, Investors and SocietyExpected outcomes by Consumers, Investors and Society
Consumers e SocietyConsumers e Society InvestorsInvestors BothBoth
• Guarantee Consumer’s Rights
• Fair tariffs
• Improvement in the quality and supply of service
• Efficiency
• Protection of the environment
• Technological development
• Decentralized performance
• Clear and steady rules
• Adequate remuneration
• Regulation and concession contract compliance
• Balance
• Isonomic treatment
• Accountability – Institutional Control
• Transparency
• Impartiality
• Agile and efficient management
• Confidence
• Participation in the regulatory process
• Ongoing dialog
• Identification of the regulator as an institution that satisfies the public interest
• Fulfill expectations of consumers, investors and the society
• Improve participation mechanisms for consumers and transparency
• Reduce asymmetry of information
• Disseminate the regulation culture
• Achieve autonomy
• Contribute to the clear delimitation of boundaries amid the Agency, the Government and the Market
• Skilled and adequately paid in-house staff
• Broaden decentralization
• Harmonically and complementary external controls
• Identification of the regulator as an institution that satisfies the public interest
• Fulfill expectations of consumers, investors and the society
• Improve participation mechanisms for consumers and transparency
• Reduce asymmetry of information
• Disseminate the regulation culture
• Achieve autonomy
• Contribute to the clear delimitation of boundaries amid the Agency, the Government and the Market
• Skilled and adequately paid in-house staff
• Broaden decentralization
• Harmonically and complementary external controls
ConclusionsRegulator's challengesConclusionsRegulator's challenges
IBAMA
STATES
MUNICIPALITIES
ANA
STATES
COMMITTEES
ENVIRONMENT WATER
ANEEL
MME
AGENCIES
POWERPOWER
SOIL
USE
DI
R.
PLAN
FFEEDDEERRAALL
SSTTAATTEE
MMUUNNIICCIIPPIIAALL
NGO
GROUPS
PUBLIC PUBLIC ATTORNEYATTORNEY
MUNICIPALITIES OTHERS
ANEEL’s recent actionsANEEL’s recent actions
ENTERPRISE
www.aneel.gov.br
Telephone: 0800-61-2010
Fax: (61) 426-5705
www.aneel.gov.br
Telephone: 0800-61-2010
Fax: (61) 426-5705