Free energy market (Brazil): what’s missing?

Free energy market: what’s missing?

The contractual format of the free market, since it emerged commercially around 20 years ago in Brazil, is complicated, bureaucratic, expensive – in short: inefficient.

Complicated

The contracts that need to be signed with the local distributor, the clearinghouse and the power trading company involve many interactions, and a substantial allocation of time for managers, directors and lawyers.

Bureaucratic

The “mountain” of contracts that are still all sent in electronic files via email, needing to be signed and “stamped” reflect the lack of “modernisation” that much simpler systems with documents and electronic signatures resolve “in a jiffy”.

Expensive

Free market modelling is completely outdated. The contract with the trader should follow a standard, with standardised wording, for a standard volume (or multiples) and with the possibility of selling it in a clearinghouse according to the customer’s wishes and at market prices.

Inefficient

In developed countries, free power is a commodity. It can be bought and sold in a standardised, fast, simple and automated way.

Are we, in Brazil, going to modernize, simplify and reduce costs?