FAQ
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What is the share symbol? Where are ENGIE Brasil Energia’s shares traded?
ENGIE Brasil Energia's ordinary shares are traded on the B3 – Brasil, Bolsa, Balcão, in the Novo Mercado segment, the highest level of corporate governance, under the EGIE3 symbol. In addition, the Company has Level 1 American Depositary Receipts (ADRs) trading on the United States over-the-counter (OTC) market under the EGIEY symbol, where each ADR corresponds to one common share. -
How can I track ENGIE Brasil Energia’s share price?
The share prices can be monitored in the Investors area of ENGIE Brasil’s website, or also by accessing the B3 site itself. -
How and where does ENGIE Brasil Energia disclose corporate information?
All material facts, earnings announcements and other communications to the market are disclosed simultaneously on the CVM, B3, and the Company's Investors area websites and subsequently sent by e-mail to those registered to receive this information. To register, click here. The complete financial statements are published in the newspapers Diário Oficial do Estado de Santa Catarina and Jornal Notícias do Dia (SC). Quarterly financial statements, press releases, presentations, material facts and notices to shareholders are available from the Investors area of the ENGIE site. Other information on the Company can also be obtained from the B3 and Comissão de Valores Mobiliários (Brazilian Securities and Exchange Comission). -
How can I contact the Investor Relations Area?
INVESTORS RELATIONS- Address: Rua Paschoal Apóstolo Pítsica, nº 5064 5º andar Agronômica Florianópolis - SC - CEP 88025-255
- Telephone: (55) (48) 3221-7225
- Fax: (55) (48) 3221-7253
- E-mail: ri.brenergia@engie.com
IR TEAM
- Eduardo Antonio Gori Sattamini - Chief Executive and Investor Relations Officer;
- Rafael J. Caron Bósio - Investor Relations Manager;
- Tatiana Wittmann - Investor Relations Analyst;
- Ivani T. Angeli - Investor Relations Analyst;
- Caio Miralles - Investor Relations Analyst;
- Adriana Edina De David Wagner - Investor Relations Analyst.
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Who is responsible for the shareholder services and where is this service provided?
DEPOSITARY BANK - BRAZIL ENGIE Brasil Energia’s shareholder services are provided by Banco Itaú S.A., through a Shareholder Call Center on telephone (11) 3003 9285 (capital cities and metropolitan regions) or 0800 720 9285 (other locations) on working days from 9:00 am to 6:00 pm or at Banco Itaú branches. Check out your stockholding position on ENGIE Brasil Energia’s shares on the Internet The principal information for controlling your investments are available on the Internet: stockholding position, movement statement, notification of payments, income statement and subscription bulletin. An account holder with Itaú: the access can be done through www.itau.com.br. Access your account and seek for Investimentos menu searching for "Ações Escrituradas" Not an account holder with Itaú: the inquiry can be done through the Itaú Corretora website, www.itaucorretora.com.br. Access "Não correntista" and choose “Quero me cadastrar”. Follow the steps, and after finish, the information will be available.Depositary Bank – United States
The Bank of New York 101 Barclay Street, 22 Floor New York, NY 10286 Tel.: (1) (212) 815-2293
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What are the rights of the shares of ENGIE Brasil Energia?
Each common share grants the respective holder the right to one vote at the ordinary and extraordinary general meetings. In accordance with Novo Mercado Regulations, ENGIE Brasil Energia´s capital stock is represented exclusively by common shares. In the case of the winding up of the Company, holders of the common shares have the right to receive their capital, proportional to the shares held by each one, following compliance with all corporate obligations. The holders of the common shares have the right to participate in increases in ENGIE Brasil Energia´s capital stock proportional to the shares held by each one of them. Other than in specific situations pursuant to Brazilian Corporate Law, these preemptive rights to the subscription of common shares may be excluded or have the term for exercising the rights reduced. Tag Along - common shares enjoy the right to be included in a public offering for the acquisition of shares as a result of the sale of the Company's control under the same conditions pertaining to the selling controlling shareholder, thus assuring minority shareholders equal treatment to that extended to the selling controlling shareholder. The shares shall guarantee their holders the right to receive in full the dividends that may be distributed by ENGIE Brasil Energia -
How to invest in shares?
Contact must be made with a stockbroker in order to invest in shares. The brokers and other financial intermediaries have professionals who focus on analysis of the market, sectors and companies. They will be able to provide the information you are seeking to help decide whether or not to make the investment. The list of accredited stockbrokers operating in Brazil is available on the B3 website. However, before actively looking for a broker, it is suggested that you study the subject. A source of such study is the B3 site. You can also trade shares on the Internet. For this purpose, you must be a customer of a B3 broker that operates the Home Broker system, allowing the trading of shares via Internet.
Glossary
Affluent Natural Energy (ENA)
Energy that is obtained when the natural flow of an affluent (run-of-river) is turbinated in plants located downstream.
Agreement for Use of the Transmission System (CUST)
The Agreement for Use of the Transmission System (CUST) is signed between the parties (either consumer or generator) interested in connecting to the transmission system and the transmitter. The agreement establishes the terms and conditions for use of the transmission system as well as the Amount for Transmission System Usage (MUST).
Ancillary Services
Services ancillary to the generation of energy necessary for the maintenance of the safety and quality of the electric energy system.
Annual Allowed Revenue (RAP)
The Annual Allowed Revenue (RAP) corresponds to the remuneration of the electric energy transmitters for rendering the public utility service of transmission. Amounts are calculated by Aneel under the transmitters’ Tariff Revision Processes. The RAP is subject to discounts due to downtime of the assets as defined in the Variable Parcel (PV).
Annual Generation Revenue (RAG)
Amount in Reais per year (R$/year) to which the concessionaire will be entitled for making available the physical guarantee of energy and hydropower plant capacity under a quota system, composed of Generation Assets Management Cost (GAG) and the portion of the Grant Bonus Return resulting from the auction (RBO), in addition to charges and taxes, including charges for connection and use of the transmission or distribution systems of the concessionaire's responsibility.
Annual Reference Value
The weighted average cost of acquiring electricity from new enterprises in Aneel's auctions for the Regulated Contracting Environment, with a minimum of 5 and 3 years in advance, calculated for all the Distributors in Brazil.
Areas of Permanent Preservation (APPs)
Areas of Permanent Preservation are protected areas, covered or not by native vegetation, with the environmental function of preserving water resources, landscape, geological stability and biodiversity, facilitating gene flow of fauna and flora, land protection and ensuring the well-being of human populations, as established by Law 12.651, of May 25, 2012.
Assured Energy
The Assured Energy is the Physical Guarantee of the hydroelectric plant, which constitutes its contracting limit. Assured Energy of a hydroelectric plant is the fraction allocated to it from the overall Assured Energy of the system. The allocation of Assured Energy and its revisions are defined by the Mining and Energy Ministry (MME), based on methodology employed by the National Electric System Operator (ONS)/MME, according to Decrees 5,163/2004 and 2,655/ 1998. The term Assured Energy is used in relation to the maximum amount of energy that can be used for commercialization, both by thermoelectric plants and by hydroelectric plants. Therefore, it is similar to the concept of Physical Guarantee.
Basic Grid
Installations belonging to the Interconnected System identified according to rules and conditions established by Aneel.
Bilateral Contracts
Power purchase and sale agreements freely negotiated between Generators and Distributors for delivery as from 2003, when the energy contracted through Initial Contracts began to be reduced by 25% per year, in accordance with Law 10.848 / 2004, known as Law of the Electric Sector, in addition to the agreements entered into between Generators and Free Consumers as well as Generators and Distributors.
Biomass
Organic sources used to produce energy to be converted into electricity, fuel or heat. Examples of biomass used in generating electricity are: sugarcane bagasse, rice husks and timber waste, among others.
Boiler
Static equipment for steam generation. The boiler is basically divided into two environments: one is formed by a network of tubes or coils where the demineralized water that turns into steam circulates; the other is the region where the fuel is burned and the hot gases from that combustion circulate. A boiler can burn various types of fuels such as coal, diesel oil, heavy oil, natural gas, wood, rice husks, sugarcane bagasse, etc. In a thermoelectric plant, the steam produced in the boiler is transferred to the turbine for generating electric energy.
Booking and Financial Settlement Process
The Booking and Financial Settlement Process is the set of operations with financial transfers among the CCEE’s agents. This involves verifying the commercialization of energy among the CCEE’s agents and the payment of credits and debits in the Short-Term Market.
Brazilian Institute of the Environment and Renewable Natural Resources (Ibama)
Federal autarchy linked to the Environment Ministry (MMA), responsible for the execution of Brazilian policy for the environment and development of activities for the preservation and conservation of the natural heritage, having control and oversight of the use of the natural resources. Ibama grants environmental licenses for operations within its authority including those with respect to electric energy generation, transmission, and distribution.
Captive Consumer
The consumer who purchases energy from the distributor supplying the consumer’s geographical area.
Certified Emission Reduction (RCE)
Unit of reduction of greenhouse effect gases, generated and certified in accordance with the provisions of the Kyoto Protocol for the Clean Development Mechanism (CDM).
Chamber for Managing the Energy Crisis (CGE)
The CGE created by the Federal Government to manage the electric energy crisis of 2001.
CO2e
An internationally accepted measure for representing on a standardized basis greenhouse gas emissions (GHG) relative to emissions of carbon dioxide (CO2). May be shown in the form of multiples such as Kg CO2e (kilograms of CO2e) or t CO2e (tons of CO2e).
Commercial Operation
The commercial operation is the operational situation whereby a generator unit is classified as available to the system for meeting its commitments. The unit is required to conclude a test operation with a declaration issued by the National Electric Energy System Operator (ONS) testifying to compliance with Grid Procedures for commercial operations.
Commercialization
Commercialization of energy takes place both in the Regulated Contracting Environment (ACR) through official auctions, and also in the Free Contracting Environment (ACL) through bilateral agreements between traders and generators or agreements between traders with free consumers and other traders. ACL agreements are of a more personalized nature, customized to the specific needs of the client, with prices freely negotiated between the parties.
Concession
In the electricity sector, concession is the delegation through the authorizing power for rendering a public utility service or the use of public property through tender bids. The companies must give evidence of their capacity to perform the service in question for their own account and risk in accordance with contractual obligations. In the case of electricity distribution and transmission, concession by public tender is the rendering of a public utility service remunerated via tariff. In the case of hydropower generation, the concession involves the use of public property, the agent acquiring the right to harness the hydropower potential for a consideration.
Concession Agreements
Concession agreements are signed between National Electric Energy Agency (Aneel) and electric energy Generation, Transmission or Distribution companies and establish rules on service tariffs, regularity, continuity, safety, and quality together with penalties where irregularities are found.
Differences Settlement Price (PLD)
The Differences Settlement Price is the price in the Short-Term Market for either surpluses or deficits of the contractual values and the measured consumption or generation value. The PLD is calculated daily every hour for the following day by the CCEE.
Distribution
Is the activity of distributing energy, the regulation of which is the responsibility of National Electric Energy Agency (Aneel) and, just as with transmission, must grant free access to all market agents.
Distribution Company
A corporate entity with a concession for the exploration of the public utility services of distribution of electric energy.
Electric Energy Market
The Electric Energy Market was instituted in Brazil for conducting energy commercialization transactions. It is structured through energy agreements which set out quantity and power purchasing prices and the settlement of surpluses and deficits of the differences between contractual values and effective values registered in the Short-Term Market. The Electric Energy Market is managed by the CCEE, market agents being required to be members of the CCEE and adhere to the Energy Commercialization Rules and Procedures.
Electric Energy Services Supervision Fee (TFSEE)
The Electric Energy Services Supervision Fee (TFSEE) was created in 1996 with the purpose of being the main source of revenue for covering Aneel’s management and operational expenses.
Electric Power Sector Monitoring Committee (CMSE)
Agency created under the aegis of the Brazilian Mining and Energy Ministry (MME), under its direct coordination, with the purpose of monitoring and evaluating the continuity and security of the electricity supply across Brazil. Its main duties include: monitoring the development of the generation, transmission, distribution, trading, importing and exporting of electric energy; evaluating supply and service conditions; conducting periodical integrated analysis of security of supply and service; identifying difficulties and obstacles that affect supply regularity and security and expansion of the sector, and elaborating proposals for adjustments and preventive actions for eventual restoration of security in the electrical energy supply and service.
Electric Power Trade Board (CCEE)
Enacted by Law 10,848/04 and established by Decree 5,177/04, it assimilated the Wholesale Electric Energy Market's (MAE) functions and its organizational and operational structures. Some of its main duties are: the calculation of spot prices (PLD), used to value the transactions carried out in the short-term market; the recording of the amounts of electric energy traded; the financial settlement of the values resulting from the purchase and sale of electric energy transacted in the short-term market, and the holding of auctions for purchase and sale of energy in the Regulated Contracting Environment (ACR), on behlf of the National Electric Energy Agency (Aneel).
Electric Power Trade Board Agents
Electric Power Trade Board (CCEE) agents consist of Generators, Distributors, Free Consumers, Special Consumers and Traders registered with the CCEE for conducting the buying and selling of energy in the Free Contracting Environment or the Regulated Contracting Environment. Agents must adhere to the CCEE’s Commercialization Rules and Procedures.
Electrostatic precipitator
Electromechanical equipment used to retain particulate material found in gases. In the case of thermoelectric plants, the electrostatic precipitator retains ash resulting from the burning of coal or fuel oil mixed with gases arising from burning. This equipment is indispensable for the control of emissions of particulate material, thus preserving the environment. The equipment consists of a filter that retains the ash through the creation of an electrostatic field produced in its interior. By passing through this electric field, the ash ionizes and is retained in metallic plates impeding its passage through the smoke stack.
Energy Development Account (CDE)
Enacted by Law 10,438, of April 26, 2002, as CCC's successor in what concerns the subsidizing of thermoelectric generation plant fuel costs that use domestic mineral coal. It was created to support the development of energy production, the production of energy from alternative energy sources and the universalization of energy services throughout the country.
Energy Efficiency
Energy efficiency initiatives aim to obtain the same quantity of electric energy using fewer natural resources, which is to say, obtaining the same product with less input. Among the principal measures of energy efficiency adopted in the electricity sector are the Procel and Conpet seals which classify the levels of electric energy efficiency and fuel consumption, respectively.
Energy Optimization Tariff (TEO)
The Energy Optimization Tariff (TEO) is used to establish the value of secondary energy reallocation of members of the Energy Reallocation Mechanism (MRE). It is comprised of incremental operating and maintenance costs estimated for the additional generation of the hydroelectric plants.
Energy Reallocation Mechanism (MRE)
Has the function of allocating hydrological risk among the generators, each one being assured payment for the amount of its assured and contracted energy while the MRE members together are potentialy able to comply with the MRE's levels of guaranteed energy under the Mechanism.
Energy Research Office (EPE)
Enacted by Law 10,847/04 and established by Decree 5,184/04, EPE is linked to the Mining and Energy Ministry (MME), with its purpose to provide services in the studies and research area supporting electric power sector planning. Its main functions include carrying out studies and forecasts on the Brazilian energy matrix and on the integrated planning of energy resources, studies for the planning of short, medium and long term energy generation and transmission, preparing analyses of plants' technical-economic and social-environmental feasibility, as well as obtaining the preliminary environmental license for hydropower harnessing and electricity transmission projects.
Environment Foundation (Fatma)
Environmental protection agency pertaining to the state of Santa Catarina. With its head offices in Florianópolis, its mission is to guarantee the preservation of the natural resources of the state of Santa Catarina.
Equivalent Fee for Forced Downtime (TEIF)
The Equivalent Fee for Forced Downtime (TEIF) quantifies the percentage time estimated by the generator agent of forced stoppages due to breakages in the generator unit, lack of fuel, faults or emergency shutdowns under conditions classified as being unscheduled.
Equivalent Fee for Scheduled Downtime (TEIP)
Equivalent Fee for Scheduled Downtime (TEIP) quantifies the percentage time estimated by the generator agent for scheduled stoppages and programmed interventions (for conducting maintenance for example), when approved by the ONS.
Existing Energy
Existing Energy is the contracting of energy from existing generation operations. More specifically, Existing Energy operations are classified as those which are not New Energy operations.
Financial Compensation for Use of Water Resources (CFURH)
Represents a fee paid by the hydropower plants covering the harnessing of water resources for generating electric energy.
Free Consumer or Free Client
The Free Consumer is the agent of the CCEE that operates in the Free Contracting Environment of the Energy Market for their purchases of energy to meet market demand. The Free Consumer chooses from which company to purchase the electric energy, the purchase being made via bilateral negotiations directly with generators or through the intermediation of traders. As agents of the CCEE, free consumers must adhere to the Energy Commercialization Rules and Procedures. The minimum requirements in 2022 for eligibility for migration to the free market are those consumers which have a minimum demand of at least 1,000 kW, or those where demand is between 500 kW and 1,000 kW with energy supplied from incentivized sources (from small hydroelectric power, wind, biomass, or solar plants).
Free Contracting Environment (ACL) or Free Market
Market segment in which agents conduct purchase and sale operations of electric energy through bilateral agreements freely negotiated between the parties, contingent on satisfying the minimum requirements for migration from the Regulated Contracting Environment (ACR) to the Free Contracting Environment.
Generation
An activity open to competition, where all generators are guaranteed free access to the transportation systems (transmission and distribution) and may freely commercialize energy both for the distributor and commercialization companies as well as to free consumers.
Generation Assets Management (GAG)
Share of the Annual Generation Revenue (RAG) related to the regulatory costs of operation, maintenance, administration, compensation and amortization, as well as investments in improvements of the hydroelectric plant.
Generation Scaling Factor (GSF)
Corresponds to the ratio between what the hydropower plants have generated against what they should have generated. Ratio reflecting the total amount of hydroelectric energy effectively produced by all MRE participants against the latter’s respective assured energy. A GSF of less than 1 means that production of hydroelectric generation will be less than the allocated guaranteed energy and as such, the hydroelectric energy companies are exposed to the short term market.
Generator
Rotation equipment responsible for converting mechanic energy from the turbine rotation into electric energy. The electric generator is also composed of a moving part, comprised of the shaft and a set of coils or mobile winding, and of a stationary part, comprised of a set of coils or winding attached to the generator's casing. The mechanical energy originating from the turbine is used to turn the rotor, which induces a tension in the winding terminals which, by means of transformers and transmission lines, are connected to the charges or electric energy consumers, allowing the electric current circulation.
Generator Unit
The plants have their installed capacity divided into generator units. Itaipu HPP for example has 20 generator units, each one with an installed capacity of 715 MW.
Generators
Concessionaires or companies authorized to use the public good for generation of energy or provision of public utility services for generation of energy.
Gigawatt (GW)
Unit equivalent to one billion watts.
Gigawatt-hour (GWh)
Unit equivalent to one gigawatt of electric energy supplied or requested per hour, or one billion of watts-hour.
Global Reversal Reserve (RGR)
Instituted by Law 5,655 of May 20, 1971, with the purpose of providing funds for the payment of eventual indemnities to companies in the Brazilian electricity sector in given instances of revocation or expropriation of the respective concessions. In recent years, RGR has been used principally to finance generation and distribution projects.
Grid Procedures
Grid Procedures are a set of rules proposed by the ONS and approved by Aneel, the objective of which is the coordination and control of the generation and transmission activities of the National Interconnected System (SIN).
Hydrological risk
Risk caused by the lack of rainfall and shortage of water in the reservoirs in several regions, causing a gradual reduction in hydropower generation: a situation in which the plants are required to buy energy in the short-term market to make up the smaller production due to lack of water. This energy is acquired in the market based on the Differences Settlement Price (PLD), generally at higher costs than those contracted. This spawned a lengthy legal dispute. From 2015, many traders filed injunctions to avoid paying amounts practised in the short-term energy market.
Independent Producer
Corporate entity or associated companies which receive a concession or authorization from the government to produce electricity for commercialization.
Industrial Consumers
Industries served by electricity energy suppliers in their capacity as Free Consumers.
Installed Capacity
The maximum amount of electricity that can be delivered by a generating unit, or in the set of generating units of a plant. The installed capacity is generally expressed in MW and is defined under standard conditions of temperature, pressure and relative humidity.
ISO 14001
International Standard for Environmental Management Systems for ensuring compatibility between environmental management and prevention of pollution with the socio-economic growth of the companies. Periodically, the certified company analyzes and evaluates its environmental management system, seeking to identify opportunities for improvement and ways of implementing them. The Brazilian version of this standard is the ABNT NBR ISO 14001:2004.
ISO 9001
International standard with the objective of improving internal corporate procedures. Its focus lies in the continuous improvement of products and services. The Brazilian version of this standard is the ABNT NBR ISO 9001:2000.
Isolated System
The Isolated Systems are found in 212 isolated locations not connected to the National Interconnected System. The majority of the isolated communities are located in the North region in the states of Rondônia, Acre, Amazonas, Roraima, Amapá and Pará. The operational planning of the Isolated Systems is the responsibility of the ONS.
Kilowatt or Quilowatt (KW)
Unit equivalent to one thousand watts.
Kilovolt or Quilovolt (KV)
Unit equivalent to one thousand volts.
Kilowatt-hour or Quilowatt-hour (KWh)
Unit equivalent to one kilowatt of electric energy supplied or requested per hour, or one thousand watts-hour.
Kyoto Protocol
International agreement effective February 2005 that seeks to limit the world emissions of gases that contribute to the greenhouse gas effect, in turn contributing to the reduction in global warming and consequently stabilizing climate change.
Long-Term Agreement
An agreement with a validity equal or more than 6 (six) months.
Marginal Cost of Expansion (CME)
The Marginal Cost of Expansion quantifies the estimated cost of meeting additional demand by the Brazilian electricity system. This parameter is calculated by the Energy Research Office (EPE) which is used to evaluate studies for planning the expansion of electricity generation. The CME is also one of the criteria used in the calculation of the Physical Guarantee of generator plants.
Marginal Cost of Operation (CMO)
The Marginal Cost of Operation quantifies the estimated cost for meeting increased load using the existing generation system. It is a parameter calculated by the National System Operator, being the result of the dispatch process of the generator plants in order of economic merit.
Megawatt (MW)
Unit equivalent to one million watts.
Megawatt-hour (MWh)
Unit equivalent to one megawatt of electric energy supplied or requested per hour, or one million watts-hour.
Minimum Requirements for Migration
These established the levels of demand (in kW) for migration between the Regulated Market (ACR) and the Free Market (ACL). The migration levels were set out in MME Ordinances 514/2018 and 465/2019, reducing the minimum loads required to: 2.5 MW from July 2019; 2.0 MW from January 2020; 1.5 MW from January 2021; 1.0 MW from January 2022; and 0.5 MW from January 2023.
Mining and Energy Ministry (MME)
Federal Government body responsible for conducting the country's energy policies. Its main duties include formulating and implementing policies for the energy sector, according to the guidelines established by the National Energy Policy Council (CNPE). The MME is responsible for establishing the planning for the domestic energy sector, monitoring the safety of the Brazilian electric power sector supply and defining preventive actions to restore the security of supply in case of conjunctural imbalances between energy supply and demand.
National Electric Energy Agency (Aneel)
The National Electric Energy Agency (Aneel) is an autarchy set up with its own regulations under the aegis of the Ministry of Mines and Energy and enacted by Law 9.427/1996 and Decree 2.335/1997 to regulate the Brazilian electricity sector. Aneel controls and supervises the activities of generation, transmission, distribution, and commercialization of electricity and has technical independence. Among other activities, it establishes the methodologies underlying the tariff adjustments of all concession agreements of the electric energy distribution agents, these processes being known as periodic Tariff Revisions and Tariff Readjustments.
National Energy Policy Council (CNPE)
Advisory interministrial agency to the President of the Republic's Office, and whose main duties are to formulate energy policies and guidelines and ensure the supply of energy to the most remote areas or those with difficult access. It is also responsible for periodically revising the energetic matrices applied to the several different regions of the country, establishing guidelines for specific programs, such as those for use of natural gas, alcohol, other biomass, coal, and thermonuclear energy, in addition to establishing guidelines for import and export of petroleum and natural gas.
National Interconnected System (SIN)
The National Interconnected System (SIN) is the combination of installations responsible for interconnecting energy supply electrically in Brazil. The SIN comprises four subsystems: South, Southeast/Central-West, Northeast and North. Interconnection of the SIN’s subsystems ensures better usage of water resources backing the hydropower plants as well as other generation resources, also allowing the transfer of electric energy between regions.
National System Operator (ONS)
Is a not-for-profits private law entity responsible for the coordination and control of the operation of the electrical energy generation and transmission installations, part of the National Interconnected System (SIN), under the inspection and regulation of the National Electric Energy Agency (Aneel).
New and Old Energy
New Energy is the energy produced by newly built plants whose investments have not yet been amortized and which, for this reason, is more expensive than the Old Energy. Old Energy is the energy produced by state hydroelectric plants whose investments have already been partially or totally amortized. Because of this, the price of energy produced by these plants is lower than that of newly built plants that have not yet recovered their investment.
Operational Grid
The basic network in conjunction with the complementary grid and integrated power plants over which the ONS has coordination, supervision and control of National Interconnected System (SIN) operations.
Peak Energy
This is electric energy supplied at peak consumption hours between 3:00 and 7:00 p.m.
Physical Guarantee
The Physical Guarantee of a generation undertaking, defined by the Mining and Energy Ministry (MME) and included in a concession agreement or authorization, corresponding to the maximum amount of energy that can be used for trading by means of agreements, pursuant to the provisions in Decree 5,163/04.
Physical Guarantee Reduction Mechanism (MRGF)
Used for realizing the adjustment to the Energy Reallocation Mechanism for cases where the Verified Uptime Index (IDv) of the plant is less than the Reference Uptime Index (ID). The mechanism reduces the Physical Guarantee of the plant for the purposes of booking the energy produced allocated to the plant. This has the effect of reducing its revenue but not its contractual supply obligations. Also known as the MRA (Assured Energy Reduction Mechanism).
Plant
Is an installation for the production of electric energy. Production may be from the harnessing of hydropower of the rivers (Hydroelectric Power Plants - HPP), solar radiation (Photovoltaic Solar Plant - UFV), burning of fossil or biomass fuel (Thermoelectric Power Plant - TPP), and wind power (Wind Plant - EOL)
Program for Incentive to the Alternative Sources of Electric Energy (PROINFA)
Enacted by Law 10,438/2002, coordenated by the Mining and Energy Ministry (MME), with the objective of increasing the share of electricity produced by Autonomous Independent Producer projects from wind, biomass and small hydroelectric power plants (SHPP), part of the National Interconnected Electric System.
Public Hearing (AP)
Instrument used by Aneel for dialog and debate among agents representing the electric sector and society. On the agenda of Public Hearings are matters at an advanced stage of discussion, the Contribution and Public Consultation phases having already been concluded. Matters for discussion at the APs adhere to Aneel’s regulatory agenda, established annually for the following two years.
Regulated Contracting Environment (ACR) or Regulated Market
Segment of the market in which the purchase and sale of electricity between selling and distribution agents takes place through auctions organized by the government and within the scope of which, electricity generators compete to supply energy at the lowest price (reverse auction) to distributors with the aim of promoting tariff modicity.
Regulated Energy Auction
The Energy Auction is the tendering medium established for distributors to purchase their electric power requirements. Energy auction guidelines are initially established by the Mining and Energy Ministry and subsequently specified in the regulatory norms and the invitation to bid in the auction as set out by Aneel. The energy commercialization auctions are organized by the CCEE while the transmission auctions are operationalized by B3 (formerly Bovespa).
Regulatory Impact Analysis (AIR)
The regulatory impact analysis (AIR) is the process established by Aneel to improve the quality of decision adopted by the regulatory agency. The objective of an AIR is to evaluate the effects of a proposed regulation, studying its potential benefits and risks, including the evaluation of alternatives for reaching the indicated objective.
Scheduled Stoppage
The stoppage of equipment or generation units permitted under preventive maintenance plans made by the agent responsible for their operation. Each and every item of mechanical or electrical equipment requires maintenance, ensuring an optimal operational condition.
Secondary Energy
Secondary Energy is energy reallocated among the hydroelectric plants, members of the Energy Reallocation Mechanism (MRE) where the Adjustment Factor of the MRE is higher than one. In this case, the hydropower plants, members of the MRE, generating above their physical guarantee, reallocate their energy surplus (secondary energy) to plants which participate in the MRE, generating less than their physical guarantee. This reallocated energy is priced at the Optimization Energy Tariff (TEO).
Self-Producer
Is a natural or corporate entity or consortium of companies producing electric energy for their own use either individually or in consortium.
Short Term Agreement
An agreement with a validity of less than 6 (six) months.
Short Term Market (Spot Market)
Segment of the market for the purchase and sale of energy where energy left over from bilateral contracts and /or not contracted bilaterally, is negotiated.
Small Hydroelectric Power Plants (PCHs)
Plants with installed capacity between 1 MW and 30 MW that meet the requirements proposed at Aneel Resolution 652, of December 9, 2003.
Solar Energy
Energy produced through the use of sunlight. There are two uses: thermal and photovoltaic. In thermal utilization, sunlight is only used as a heat source for heating systems. In photovoltaic, sunlight is transformed into electrical energy.
State Environmental Protection Foundation (Fepam)
The agency is responsible for environmental licensing in the state of Rio Grande do Sul, under the aegis of the State Environmental Secretariat. It is one of the executive agencies in the State Environmental Protection System, the objective of which is the integrated action of the state environmental agencies.
Submarket
The Energy Submarkets are divisions of the National Interconnected System for the purpose of the commercialization of energy by the CCEE. The divisions for each submarket are defined on the basis of the main physical restrictions on electric energy transmission, different values of Differences Settlement Price being calculated for each submarket of which there are four: South, Southeast/Central-West, Northeast and North.
Tariff for the Use of the Distribution Grid (TUSD)
Tariff paid by users (Generators and Free Consumers) to Distributors for the use of their distribution grid (voltage less than 230kV).
Tariff for Use of the Transmission System (TUST)
Payable by users (Generators and Free Consumers) to the Transmission Companies for the use of the transmission grid (tension more than 230Kv).
Tariff Readjustment
An event whereby the tariff for the preceding year is restated by the incorporation of two factors: inflation in the previous 12 months (as measured by the IPCA or IGP-M as per concession agreement) and sharing gains in productivity with the consumer, productivity being expressed by the Factor X component: Factor X as calculated by Aneel for the preceding Periodic Tariff Revision.
Thermoelectric Power Plants
Thermoelectric power plants are characterized by the production of electric energy from thermal energy. Fuels mostly used to directly or indirectly drive generators of thermoelectric plants are oil products (diesel, fuel oil and asphalt residues), coal, natural gas and nuclear fuels. In co-generation processes (technology designed to achieve greater thermoelectric efficiency) the use of so-called ecological or biomass (such as sugar cane bagasse, rice husks, wood waste and others) are commonplace.
Traders
The energy trader is a company associated with the Electric Power Trade Board (CCEE) operating in the Free Contracting Environment to intermediate contracting between the generator and the free consumer. As agents active in the market, traders are subject to the Energy Commercialization Rules and Procedures.
Transmission
The activity of transmission is the transportation of electric energy from the main generator (plant) to the point of consumption.
Transmission Companies
Electric energy transmission concessionaires that operate in the Brazilian electric energy market, among them ENGIE Brasil Energia.
Transmission Line
The length between the first and the last powerline tower (or portico) installations, excluding substation feeder busbars. The electric energy transmitters have the public utility service concession for electricity transmission.
Turbine
Rotating equipment responsible for converting thermoelectric energy from steam or gas into mechanical work in the form of steam or gas turbines. Hydraulic turbines, more frequently used in Brazil due to the country's water resources, convert the potential energy of the water into mechanical rotational energy. The turbine is composed of two main parts, the set of moving blades (rotating) attached to the turbine shaft interspersed with stationary blades,fixed to the turbine casing, which redirects the steam or gas as one or the other expands in the turbine. The heated gas or steam, on entering the turbine at high temperature and pressure, meets the resistance of the moving blades, making them turn. That rotating movement makes the generator convert the mechanical energy into electric energy. Hydraulic turbines are comprised of a single set of moving and stationary blades.
Volt (V)
Unit of measurement used to measure electric tension in a circuit and adopted by the International System of Units. It can be stated in its multiple’s kV (a thousand volts) or MV (a million volts).
Watt (W)
Watt is the unit used to measure the rate of energy transfer and adopted by the International System of Units. The Watt is calculated from the product of current and voltage.
Watt-hour (Wh)
Amount of energy used to feed a charge with a 1-watt (W) power for one hour. Consumers of electric energy are typically charged by the kilowatt hour (kWh), equivalent to 1,000 watt-hours.
Wholesale Electric Energy Market (MAE)
Organized environment, in which the purchase and the sale of energy among its participants had been processed - until the enactment of the Sector's New Model Law (Law 10.848/2004) - through both bilateral agreements as well as on a short term basis, having as limits the country's interconnected systems.
Wind Energy
Energy generated from the force of the winds. The kinetic energy of the wind is transformed by a turbine into mechanical energy which, through a generator connected to the turbine, is transformed into electrical energy.