Background and benefits
With its inception in 1995, the Free Energy Market is a special trading environment whereby sellers and purchasers can trade electric energy freely among themselves in compliance with the regulations for the sector. This allows industrial, commercial, and service company consumers to contract electric energy directly from generators and trading companies.
With a greater ability to choose customized conditions, the Free consumer is able to negotiate the amount of energy to be acquired in accordance with the consuming profile of their business in line with duration of supply and price practiced, among other advantages. In addition, the purchase of energy can be guaranteed in the short, medium, and long terms, with energy expenses for the term of the agreement already established, thus facilitating financial management.
Advantages of the Free Energy Market
How it works
Electric Energy Trade Board (CCEE)
Energy purchase and sale transactions in this market are registered and booked by the Electric Energy Trade Board (CCEE), a not-for-profits private sector entity responsible for booking the operations conducted on the Free Energy Market.
To become a Free Market Agent the consumer company must satisfy some requirements both in terms of consumption as well as registration with the CCEE and, necessarily, communicate with the Distributor company with which it is linked. Below you can find criteria for becoming a consumer in the Free Energy Market.
Contracting and measuring
To receive the acquired energy, the consuming company should also sign agreements for connection and use of the distribution systems with the local distributor. In addition, the company’s measuring system must be adjusted to the standards required by the CCEE. For more information on migration, click here. (?)
Criteria for joining the Free Energy Market
The contracted company can choose between two categories of consumption.
Provided in any voltage and must have contracted demand with the distributor equal to, or more than 2.0 MW. Can acquire conventional energy from large hydroelectric power plants and thermoelectric plants or incentivized energy.
Provided in any voltage, with contractual demand equal or more than 0.5 MW and energy exclusively from incentivized sources such as small hydroelectric power plants (SHPs), biomass, wind or solar.
Amalgamation of loads to become a special client
Companies with the same tax code (CNPJ) located in a contiguous area – not separated by public highways – may be classified as a special consumer by combining the loads consumed by their different units to reach the 0.5 MW - the minimum level of demand required.
An example: picture a commercial network with five stores all of them with the same tax code, each one with a contractual demand of 100 kW – total demand therefore 500 kW (0.5 MW), thus classifying this company as a special consumer.
Models for entry into the Free Market
Once the criteria of eligibility have been satisfied, the consumer company can choose between two models of agreement.
Know our products for the two models.Access
the contractual party joins the Electric Energy Trade Board (CCEE) and becomes a Market Agent, complying with its rules and procedures, which includes commercial adjustment, financial guarantees, and exposure to risk. Recommended for large or medium- sized organizations with consumption of more than 1MW – and those which preferably already have experience of the Free Market.
the contractual party’s sole point of contact is ENGIE – which represents the client in the CCEE. In this case, ENGIE is responsible for the entire operation – from migration to management such as modeling, measuring, bookkeeping and compliance with financial obligations with the CCEE. Companies with several consuming units also benefit from this model.
How to migrate
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