The Brazilian Electric Energy Agency (Aneel) today (30) makes an auction for distribution companies can purchase energy already being generated by hydroelectric and thermal. Thus, the purchase will be reduced in the free market, where prices are higher. 

The energy contracted by distributors should start being provided by generators from tomorrow (1st). According to Aneel, the auction aims to meet the immediate need for energy contracting by distribution. 

According to the notice, the contract for availability, price ceiling will be R$ 262 per megawatt-hour (MWh) and the contract amount is R$ 271 per MWh. In contracts for availability includes the thermal power projects, including biomass, and contracts for amounts included are other sources.

The auction was announced by the government as part of an aid package to distributors. At the time, it was also announced the hiring of a financing by companies and an additional contribution from the Treasury in the Energy Development Account (CDE). 

In addition to the greater expense of the distributors with energy from thermal plants, because of the low level of hydroelectric reservoirs, the cost of distribution has increased because they have resorted to free to buy energy market. This is because at the last auction held by the government in December last year, there was insufficient power supply, because the stipulated ceiling price, which was low by generators.