The Ministry of Mines and Energy published in the Official Gazette (DOU) on Friday (28/10), Ordinance MME / SE No. 105, approving the Guidelines of the Systematic Energy Power Purchase Auction from Existing Generation Enterprises, Auction A-1 2016, expected to be held on December 9, 2016.

The contest guidelines were established by MME Ordinance No. 494, of October 11, 2016, providing for the negotiation of the Power Purchase Agreements in the Regulated Environment (CCEAR) in a single product in the form of quantity. The supply of electricity from these CCEAR will start on January 1, 2017 and ending on December 31, 2018, ie two years.

The auction will consist of a single phase, divided into two stages, namely: i) uniform step, during which sellers Tenderers may submit bids, the bid price; and ii) discriminatory step, in which sellers Tenderers may submit price bids for amounts of lots defined at the end of uniform step.

It is a systematic widely used in previous auctions, considering a descending clock in the first stage (uniform) and closed first price envelope in the second stage (discriminatory).

See Ordinance (Portuguese): http://bit.ly/2eiw125