Electricity price signals (Brazil)
The prices offered on the free market, for the quarter (short term) and for 4 years (long term) are the same.
Generally, this situation points to an opportunity for those who are betting on an escalation in prices due to a possible reduction in hydroelectric reservoir levels.
The most important challenge – in my experience providing consultancy to companies and institutions – is a decision has to be made! Plain and simple!
In Brazil, the most “favourite” path is to leave it until the last minute – locking a new deal on the eve of the end of the contract currently in force.
So the main question is: who are you? Someone interested in capturing an opportunity by taking proactive actions or someone who prefers to “let it go” on a reactive mode?
