What is CCEE and how does it work?

There are several agents that inspect and manage the energy market in our country. Despite being complex, the system is organized to guarantee the production and consumption of energy by the companies involved in this process. Among the main bodies operating in this segment is CCEE.

The acronym refers to the Electric Power Commercialization Chamber (Câmara de Comercialização de Energia Elétrica), which is divided and constituted by other agents: generators, distributors, traders, and consumers. The commercial relations in this sector are established in distinct environments: Free Contracting Environment (ACL) and Regulated Contracting Environment (ACR).

In this post, we will explain what CCEE is and its importance. To understand how CCEE works and what its functions are, keep reading!

What is the Electric Power Commercialization Chamber?

CCEE is a body created through Law No. 10,848/2004, which was later regulated by Decree No. 5,177/2004. It is a non-profit entity with the function of enabling commercial electricity transactions in the Free Energy Market.

It is independent, inspecting and managing the sector, influencing market regulation, and protecting the other agents. In addition, it is responsible for working to promote an efficient environment for the purchase and sale of electric power.

How does CCEE work?

The institution has a Board of Directors formed by five people. These executive professionals have a 4-year term, with the right to a single re-election through a vote held in a general assembly. The body is technical and aims to offset what was planned and what was actually executed.

The practice began in the 21st century, after the establishment of the legislation and decree mentioned earlier. CCEE, therefore, calculates the issues of energy supply, its origin, purchase and sale, and the debts and credits of the involved agents. The entity is maintained by organizations that trade energy, such as:

• generating companies;

• autoproducers;

• independent producers;

• public utility concessionaires;

• traders;

• distributors;

• exporters;

• importers;

• free consumers.

The Board of Directors manages the body, while the superintendent ensures the execution of strategic guidelines and executive decisions. CCEE is also composed of the Fiscal Council — which oversees administrative acts and compliance with statutory duties —, as well as its thousands of members, who guarantee its development.

What is the function of CCEE?

As you already know, the body is responsible for managing the electric energy market in Brazilian territory. It is the one that accounts for purchase and sale activities, calculates the Difference Settlement Price (PLD), and continuously discloses it to assign value to electricity transactions in Brazil.

The main function of CCEE is to manage and inspect, in a fair manner, the Free Energy Market, disseminate and execute auctions, as well as draft the inherent contractual instruments. CCEE maintains records of consumed electricity information, implements the rules and procedures of commercial operations, and also:

• manages contracts of the Regulated Contracting Environment and the Free Contracting Environment;

• investigates infractions committed by agents and applies penalties;

• holds energy purchase and sale auctions in the ACR;

• executes Reserve Energy auctions, under delegation from the National Electric Energy Agency (ANEEL);

• performs the financial settlement of amounts contracted in the auctions.

The body functions as a forum where policies and ideas for the growth of activities are discussed. Through it, contact occurs between agents and regulatory instances.

CCEE was only created due to a process of altering the energy market, which began in the 1990s, and the creation of ANEEL.

Why is it important to understand CCEE's role?

It is necessary to understand the role of this body because the energy market offers several opportunities in the private sector. Consumer units have the freedom to contract and can negotiate directly with trading companies to obtain financial profits. This knowledge helps avoid unnecessary wear and tear and eliminates the chances of fraud in the sector.

How does CCEE influence energy commercialization?

CCEE impacts the Free Electric Energy Market so profoundly that this sector would not exist without its action. Negotiations would be impossible without the existence of this entity, which is responsible for inspecting, managing, and conducting auctions. Furthermore, it regulates and controls this entire market, as well as protects traders. 

What are the main numbers and facts about CCEE? 

According to information published by CCEE, dispatch costs were hit by the water crisis, which led consumer agents to import energy and activate thermoelectric plants. Consequently, they exceeded R$ 24 billion last year — which caused the consumer to receive a charge of R$ 39 per megawatt-hour (MWh). 

The cost increase in 2021 was crucial to avoid load shedding or energy rationing, and in November, approximately 26% storage was achieved in equivalent reservoirs. The efforts added 20 percentage points, but CCEE has the duty to seek structural solutions that reduce the operating expenses of our country's electrical system. 

How does CCEE make these calculations? 

The entity calculates the Difference Settlement Price (PLD) and uses it as a basis of values for electricity purchase and sale transactions. This calculation includes: 

• energy demand; 

• hydrological conditions; 

• deficit cost; 

• fuel prices; 

• availability of generation and transmission equipment; 

• entry of new projects. 

In its calculation, CCEE considers that the supply of electricity is mostly provided by hydroelectric parks. On the other hand, analyses of a series of factors are carried out to reach the Marginal Operating Costs (CMO) for each studied period. 

Did you understand what CCEE is? The Electric Power Commercialization Chamber aims to balance future storage capacity with the current water energy generation potential. It measures the economics of the hydroelectric plant, desired by thermoelectric plants, fuel-saving opportunities, and points to the most economical alternative. 

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Read also:

• Opening of the Free Energy Market: main changes

• Energy Trader: what is it and what is it for?

• Captive Consumer and Free Consumer: understand the differences