TR Soluções Bulletin March 2017 - III, Angra, nuclear energy, electricity tariffs, energy consumption, electricity, sete, TR Soluções, trsolucoes, indicators

March 29, 2017 - III

Republication of 2016 Tariffs – Angra III's EER

TR followed the decision on item 1 (Proceeding 48500.001515/2017-79) at ANEEL's board meeting on 3/28/2017, which addressed "Republishing Electricity Tariffs – TEs and Distribution System Usage Tariffs – TUSDs to reverse tariff coverage related to the Reserve Energy Charge – EER for the Almirante Álvaro Alberto Thermonuclear Plant – UTN – Unit III."

ANEEL decided to republish distribution companies' 2016 tariff-proceeding tariffs under two effective periods:

i. From April 1 to 30, 2017, an "adjustment tariff" will be subtracted from the new tariff to be published, which will already exclude the effect of billing for Angra III's fixed costs. This adjustment tariff will be calculated so that a single month's billing captures the full financial refund for amounts paid in the months prior to republication, that is, the full amount consumers overpaid since the distribution company's anniversary date in 2016 through now. In the extreme case of Energisa Borborema, the adjustment tariff will be 83.42 BRL/MWh. The others will see a smaller reduction in April, since the adjustment tariff's value depends on how much has already been overpaid, meaning it's tied to each distribution company's anniversary date.

iii. From April 1, 2017, through the distribution company's next tariff event, a new Electricity Tariff (TE) will apply, disregarding Angra III's fixed costs. TR estimates the republished application tariffs should see a reduction of about 5 BRL/MWh relative to the tariff figures approved in 2016.

Distribution companies with a tariff proceeding in April this year are excluded from this item's application, since it will already be applied as part of the tariff event happening this month.

To help our clients get a sense of the tariff impacts tied to item (i), TR presents below an order of magnitude for each distribution company's "adjustment tariff." Keep in mind that the new Electricity Tariff (TE) to be republished must still be reduced by the adjustment tariff to quantify April 2017's billing.

Table 1– Adjustment Tariffs Estimated by TR

Adjustment Tariffs Estimated by TR, Angra, nuclear energy, electricity tariffs, energy consumption, electricity, sete, TR Soluções, trsolucoes, indicators

Republishing the tariffs in the Federal Register should happen by Friday, since the new tariffs need to be in effect starting Saturday.