TCU approved reconnection between the government and four thermal power plants

The Federal Accounting Chamber (TCU) approved this Wednesday (6) the review of state contracts with four thermal power plants. According to the agency, this agreement could save up to 1.64 billion reais for consumers who will no longer pay electricity bills.

The review concerns four floating thermal power plants installed in Sepetiba Bay in Rio de Janeiro. The plants, owned by the Turkish company KPS, were awarded emergency contracts during the 2021 water crisis, but did not need to be activated again with the restoration of hydroelectric reservoirs in the following years.

The government tried to amicably cancel the contracts with the plants, which were awarded at high prices two years ago due to high demand for thermal power plants. In the absence of agreement, TCU became the mediator in the negotiations.

Citing difficulties in meeting the deadline, the Turkish company requested exemption from fines imposed by the National Electricity Agency (Aneel). In addition to the administrative appeal, the company initiated a legal dispute.

The four thermal power plants involved in the agreement have a capacity of up to 560 megawatts (MW). The agreement made it possible to reduce the average production from 144 MW to 29 MW. The fine dropped from 1.114 billion reais to 336 million reais. In return, KPS would drop its claims.

The R$1.64 billion savings considers a worst-case scenario for the government in which the Court wins the case for KPS, cancels the fines and forces the government to enter into an energy contract at an average price set in 2021 of R$1,599. 47 per megawatt hour (MWh). If the government had won the lawsuits, the savings would have dropped to R$80 million, but the TCU agreement would still have been beneficial to the consumer.

This is the second contract with KPS approved by TCU. In June, the body approved another agreement that made the energy produced by the company’s thermal power plants more flexible and projected savings for consumers of R$580 million. However, this first agreement will only last until the end of 2023, and Aneel could resume administrative penalties if the second agreement is not approved.

Check Also

VICTORY! The government demands an INCREASE in the average salary in all national companies

Last Monday (11) Minister of Labor Luis Marinhoparticipated in the launch of National pact on …

Leave a Reply

Your email address will not be published. Required fields are marked *