The Short-Term Segment of the Brazilian Electricity Market Moved More Than Half a Billion Reais, Even With Current Judicial Controversies.
In April 2023, the Short-Term Market (STM) of Brazil’s electricity managed to move an impressive R$ 609 million, representing one-third of the total R$ 1.85 billion recorded. However, the Electric Energy Trading Chamber (CCEE) points to a bottleneck of R$ 1.05 billion due to court injunctions questioning the payment of hydrological risk, also known as GSF (Generation Scaling Factor), in the free contracting environment.
Financial Flow and Judicialization of the GSF
The STM has proven resilient, even in the face of judicial challenges. Installments, including those tied to the payment of debts generated after the GSF renegotiation, totaled around R$ 155 million. In addition, actual delinquency reached approximately R$ 31 million, or less than 2% of the total recorded.
Understanding Compliance in the Context of Injunctions
Agents who obtained court decisions to exempt themselves from the sharing of delinquency resulting from the GSF injunctions presented a compliance rate close to 89%. Those protected by decisions mandating proportional payment had a compliance rate of about 28%. Finally, creditors who are not covered by injunctions received approximately 25% of their credits.
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This dynamic reflects the complexity of the STM of the Brazilian electric sector and the influence of judicialization on the cash flow of companies. Still, the STM maintains its relevance and dynamism, showcasing the strength of the electric sector in the Brazilian economic landscape.

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