Aneel formalizes the transfer of R$451.4 million to Amazonas Energia, target of the Batista brothers

The amount, divided into monthly installments, was made possible by the provisional interest rate relief granted to Âmbar, which is negotiating the purchase of debt-ridden Amazonas.

BRASILIA-A National Electricity Agency (Aneel) approved this Tuesday afternoon, 27, transfers to the distributor Amazon Energy which together will cost R$451.4 million, paid from the electricity bills of all consumers. This assistance was made possible by a provisional measure (MP), No. 1,232, published by the federal government in June and of interest to Âmbar, a company owned by brothers Joesley and Wesley Batista.who are negotiating the purchase of the indebted company in the Northern Region.

The transfers are part of an effort to reduce the burden of financial and regulatory obligations on the company’s balance sheet and make it more attractive to potential investors. Âmbar, of the J&F group, presented on June 28 a proposal to acquire Amazonas Energia. The request is being evaluated by Aneel. When contacted, J&F Group did not respond.

The request came days after the government issued a provisional order to remove such obligations from the company’s balance sheet. In addition to regulatory requirements, the MP removed the company’s obligation to pay for energy purchased from thermal power plants purchased by J&F. These payments were transferred to the Reserve Energy Account, which is included in the value of energy paid by all consumers in the country.

The R$ 451.4 million will be transferred to the distributor of the Fuel Consumption Account (CCC). The CCC is the charge to subsidize the generation costs of isolated systems and is covered by the tariff of all consumers.

There are two accounts within four months. The first refers to monthly installments of R$ 39.06 million of flexible operating costs. The second is monthly installments of R$ 73.8 million, eliminating efficiency criteria, i.e. regulatory issues. The total reaches R$ 451.4 million.

Amazonas Energia was privatized in 2018, with the transfer of the controlling stake to the Oliveira Energia consortium. To make the tender valid, the Temer government (2016-2019) granted a grace period of five years for the application of these economic and energy efficiency parameters. These costs then become a credit that the company must receive. The Lula government extended this concession for another 120 days.

Amazonas Energia’s business has a history of successive deficits, without sufficient liquidity to cover the costs of distribution activities, make investments and honor debt service. The operation continued through financing or recurring contributions from Eletrobras, which was the parent company.

The government justified that the measure adopted was necessary so that the economic and financial situation of this concession would not further deteriorate during the period of transfer of corporate control. Another justification was the continuity of the provision of public service, at risk of interruption depending on the technical area.

“Bad faith litigation”

In parallel, the Attorney General of Aneel, Raul Lisboa, reported this on Tuesday 27th The regulatory body is seeking the conviction of Amazonas Energia for bad faith litigation, in a case that involves an injunction from the Amazonas Federal Court. A deadline of 72 hours has been set for Aneel to settle the parliamentary.

Aneel’s attorney’s office found that this process was distributed four times in a 20-minute period. This was intended as a way for the dealer’s legal representation to try to “choose” the judge who will hear the action against the regulator.

“This is unfortunately a common practice (in other cases)”, the prosecutor quoted in a conversation with Aneel journalists. “We want Amazonas Energia to be convicted for litigation in bad faith,” he added.

The court order mentions that the Agency was omitted in the process analysis of regulatory flexibility for Amazonas Energia. Despite the Court’s decision, the body had already added this topic to today’s agenda.

“This caused even more amazement, which was the basis of all this in MME letter 368 (sent by Minister Alexandre Silveira last week)citing delays in the processes, which in my opinion does not correspond to reality”, said director Ricardo Tili.

This Tuesday, 27th, the general manager of Aneel, Sandoval Feitosaqualifies as “undesirable” any interference by the judiciary and executive powers in the institutions, if carried out in an “exogenous” way to the regulatory process of the bodies.

Source: Terra

Rose

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