Utility Management Group
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Power prices falling (Brazil)....BE CAREFUL
Power prices falling (Brazil)....BE CAREFUL
Low power prices (free market) are perceived as great news for companies and institutions that want to close contracts. Of course!
I would like to draw your attention to a situation that deserves caution.
In my assessment, the prices offered are well below the one that would offer a minimally adequate remuneration for the capital invested in the generation plants.
That is, to the limit, if a contract is signed under these conditions, in the future, the supplier could claim "economic-financial imbalance" and then a negotiation or even arbitration would take place.
It will be worth analyzing this scenario and finding ways to mitigate risks. Prevention is better than cure!
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