Systep Report

The effects of the social crisis continue. This time the projections point to the electricity sector, in particular the supply bidding mechanism for regulated customers, among which residential customers dominate.

The monthly report of the consulting firm Systep warns that the downward trend in energy prices offered in the last two processes, which even broke world records due to their low level, could be interrupted in this process scheduled for May of this year.

“Given the new economic scenario, with higher country risk, it remains to be seen whether prices resulting from this process will follow the downward trend observed in recent years,” the report states.

They add that although the tariff stabilization mechanism, which will freeze for 18 months the payment for energy received by a group of generators, and which is the first measure of the Government’s Social Agenda to come into effect, does not affect new contracts, “it introduces a sense of regulatory risk that could be reflected in final prices”.

They end with the discussion of potential changes to this auction system within the framework of the so-called long distribution law.