Operating in the country for more than 20 years, EDP - a company engaged in energy generation, transmission, trading, services and supply - contributed to Public Consultation No. 033/2017 of the Ministry of Mines and Energy (MME). The company will present its vision for Sectoral Reform today.

To prepare its contributions, the company has brought together about 60 individuals, including employees, Brazilian and international experts and consultants, and academics and researchers working in the field. Among them, sectoral specialist JosŽ Luiz AlquŽres, Prof. Joisa Campanher Dutra (FGV-RJ), Prof. Secundino Soares Filho (Unicamp), and Prof. Dorel Soares (USP) have helped the company improve its proposals with their R&D studies. Claudio Salles, the president of Instituto Acende Brasil, was also one of the researchers who made decisive contributions to EDP proposals. Bain & Company, EDM Advisory and Consultoria em Engenharia ElŽtrica have also given valuable inputs.

The contributions were based on several guidelines that aim to reconcile the interests of the various stakeholders, such as safe electricity supply, the agents economic and financial balance, economic rationality, the adoption of a holistic vision that comprises a global analysis of reform impacts, and the customer perspective as a key factor in the debate.

EDP also argues that changes should be gradual and implemented in such a way as to avoid disruptive movements in the industry. To implement these changes, the company argues that the process should engage society in a transparent dialogue, and that all measures must take present and future socio-environmental issues into account.

According to EDP Brasil CEO Miguel Setas, "the Brazilian regulatory model has enabled, for a long time, investments that met the needs of the country economic and social development. Now, however, we are aware that current pressures and industry trends demand a transformation agenda."

The company provided the Ministry with six technical notes, one for each of the major topics discussed in the Public Consultation. These are: (1) Free Market; (2) Pricing; (3) Structural Elements for the Market; (4) Supply Expansion; (5) Discounts and Subsidies; and (6) Unlocking the Market. To prepare the proposals, the company has analyzed regulatory frameworks from 12 countries, including the United States, European countries, and neighboring Latin American countries, thereby bringing international models into the picture.

"EDP believes that the concepts introduced by the future Sectoral Reform are aligned with international benchmarks and address critical issues in the sector, making its regulatory framework evolve with a contemporary vision.

As a result of the public consultation and a comprehensive dialogue with the market, we can expect improvements to the initial proposal," Setas points out.