bandeira do idioma
bandeira do idioma
Log in to SETE
click tariff logo, a snapshot of tariff projections by TR Soluções
Return

tusd components and paid to the energy distributor by acl consumers

March 6, 2024

Which TUSD and TE components must be paid to the electricity utility by ACL consumers?


In the free energy market, consumers in the Free Contracting Environment (ACL) benefit from not having to pay the energy tariff (TE) or Tariff Flags. However, ACL consumers remain responsible for paying the Distribution System Usage Tariff (TUSD), which is essential for the maintenance of the electrical grid.

In addition to TUSD, participants in the free market are also burdened with other components on their free market bill, which include:

  1. Generation Costs: In the free market, free consumers compensate their energy generators or traders for the production of electricity, reflecting the direct purchase of energy from their sources.
  2. Transmission Losses: To ensure the proper transport of energy, free market consumers purchase slightly more electricity than their actual demand to offset inherent losses in the distribution grid.
  3. CDE_Contas Charge: The CDE_Contas charge is a financial obligation of energy distributors, designed to pay off loans taken during the Covid-19 pandemic and the Water Scarcity Crisis of 2021.
  4. ESS and EER Charges: In the free market, the energy bill includes ESS (System Service Charge) and EER (Reserve Energy Charge), imposed by the CCEE (Electric Energy Trading Chamber) to ensure system stability and security.

It's important to highlight that the percentages of the TUSD breakdown components, as well as other sector charges on the free market consumer's bill, may vary according to the consumer's voltage level and submarket.

CDE_Contas Charge

The CDE_Contas charge relates to the repayment of loans taken by electric distributors to cope with the Covid-19 pandemic and the water scarcity crisis in 2021. This charge is present on the electricity bill breakdown and is charged to consumers. It covers the loans associated with the Covid Account and the Water Scarcity Account, which are used to mitigate the financial impacts caused by these events.

It is essential to note that the CDE_Contas charge, also known as "migration charges," is billed by distributors on the same invoice where the Distribution System Usage Tariff (TUSD) is charged to free consumers. Consumers who opted to migrate to the Free Contracting Environment (ACL) after certain dates must bear the full payment of the tariff/rate components related to the CDE Covid or CDE Water Scarcity, depending on the migration date.

System Service Charge (ESS)

The System Service Charge (ESS) is a critical component in the operation of the electrical grid, designed to fund services provided by electricity sector agents that aim to enhance reliability, optimize energy production, and ensure the safety of energy supply. Moreover, the ESS is crucial for covering the costs of ancillary services, such as voltage regulators and synchronous generators, and it serves as the primary funding source for potential energy imports from neighboring countries.

There are three key services funded by the ESS:

  1. ESS for Electrical Restrictions: This service is activated when it is necessary to dispatch thermal power plants to address electrical restrictions, such as the shutdown of a transmission line due to the activation of a protection system. The energy consumption generated by these thermal operations is funded by the ESS in the submarket affected by the restriction.
  2. ESS for Energy Security: This service is triggered when the Electric Sector Monitoring Committee (CMSE) decides to dispatch power plants that do not follow the merit order, meaning those with higher variable costs than expected. This measure is taken to strengthen the system's energy security and prevent supply interruptions.
  3. Additionally, the ESS funds other vital energy services, such as voltage regulation, generation curtailment schemes, load shedding, and the operation of generators as synchronous compensators, all essential for the stability of the electrical system.

The ESS plays a significant role in the electricity sector, with the goal of ensuring safe and reliable operation of the electrical grid and maintaining a consistent supply of electricity to consumers.

Reserve Energy Charge (EER)

The Reserve Energy Charge (EER) is a fee designed to finance the fixed revenue of power plants operating under reserve energy contracts. These plants, contracted through specific auctions, play a critical role in enhancing the security of energy supply in the National Interconnected System (SIN), with the EER distributing the associated costs among all final electricity consumers in the SIN.

The EER's value is influenced by the short-term energy price (PLD). When the PLD is below the operational cost of the power plants, the EER is adjusted upwards to cover the necessary fixed revenue. Conversely, if the PLD exceeds the operating cost, the EER is reduced, as the fixed costs of the plants are offset by the profits obtained from selling energy in the short-term market.

In addition to regular reserve energy auctions, the EER also finances the Simplified Competitive Procedure (PCS), which is triggered during critical periods of water scarcity, and capacity reserve auctions, which are vital to ensuring energy supply stability.

The EER plays a crucial role in the electrical system by ensuring the remuneration of reserve energy plants, which is fundamental to reinforcing the security of electricity supply and maintaining the continuity of service.

A Still have questions on the topic? Ask Chatbot TR GPT...