Utility Management Group
Senior decision-makers come together to connect around strategies and business trends affecting utilities.
Post
Short-term electricity cost (Brazil)
Short-term electricity cost
This week an article came out indicating that the CCEE (Brazilian Chamber of Electric Energy Trading) predicts that the annual average of the CMO (marginal cost of operations) of the electric sector should be R$ 82/MWh (1 USD = R$ 5.6)
For those who wish to consider this scenario, it is worth taking great care in managing the deregulated power contracts in their portfolio.
That is to say, if the consumption of electricity is lower than the contracted one, you will have to "settle" the difference. And if the spot price is around R$82/MWh, it is equivalent to saying that there will be a loss in this transaction, as fixed prices in the medium or long term are at least twice as high.
The good news is that it will be worth considering strategies to reverse these losses. For clients that I provided consulting services and were in this situation, a very successful cost arbitrage strategy was implemented!
Discussions
No discussions yet. Start a discussion below.
Get Published - Build a Following
The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.
If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.
Sign in to Participate