Glossary

Self-producer. Individual, legal entity or companies gathered in a consortium that receive a concession or authorization to produce electricity for their exclusive use, and may, under regulatory conditions, commercialize their surplus energy. Decree 2.003, of September 10, 1996 and Law 9.427 of December 26, 1996.

ANEEL. National Electric Energy Agency, an autarchy under a special regime, linked to the Ministry of Mines and Energy - MME, whose attributions are to regulate and supervise the generation, transmission, distribution and commercialization of electric energy; mediate conflicts among agents of the electric sector and between them and consumers; grant, allow and authorize energy facilities and services; homologate tariffs; watch over the quality of service and investments; stimulate competition among the operators and ensure the universalization of services. Law 9.427 of December 26, 1996.

National installed capacity. It is the sum of the installed capacities of the interconnected systems plus the installed capacities of the isolated systems.

Power Load. Volume of energy required from the generating system. It comprises the energy consumption measured by the selling agents and the electric system losses.

CCEE. Chamber for Commercialization of Electric Energy, a non-profit private legal entity, which operates under the authorization of the Granting Authority and regulation and supervision of Aneel, with the purpose of enabling the purchase and sale of electricity between the agents participating in the Chamber, restricted to the National Interconnected System - SIN. Law 10.848, of March 15, 2004, Decree 5.177, of August 12, 2004, Aneel Normative Resolution n. 957, of December 7, 2021.

Eolioelectric Generating Station. Installation that produces electrical energy with generators coupled to rotors, by means of a mechanical transmission system, which are driven by the kinetic energy of the wind, and are called wind turbines.

Photovoltaic Generating Station. Installation that, by means of a photovoltaic system, converts solar radiation directly into electric energy.

Hydroelectric Generating Station. Facility that produces electrical energy from the use of hydraulic potential (see Hydroelectric Generation). In the Brazilian electric system, the authorization for exploitation of hydroelectric exploitation in hydrographic basins obeys the terminology defined according to the installed power (Aneel Normative Resolution n. 875, of March 2020, this way it is classified:

Hydroelectric Generating Station with Reduced Installed Capacity (CGH). A plant with installed capacity equal to or less than 5,000 kW.

Small Hydroelectric Plant (SHP). A plant with an installed capacity of more than 5,000 kW but not exceeding 30,000 kW and with a reservoir area of up to 13 km2 , excluding the regular river bed. The area restriction does not apply in the case of reservoirs that are regularized at least weekly or whose sizing has been proven to be based on objectives other than generating electricity. The regularization is measured by means of the useful volume and the maximum turbine flow.

Hydroelectric Power Plant (HPP). Utilization whose classification, besides the installed capacity, takes into account the regime of the concession granted.

I - installed capacity greater than 5,000 kW and equal to or less than 50,000 kW, as long as they are not classified as SHP and are subject to the authorization grant;

II - installed capacity greater than 50,000 kW, subject to the granting of a concession;

III - regardless of the installed power, have been granted a concession or authorization.

Consumption Classes. Classification of electricity consumers according to their main characteristic, in accordance with ANEEL’s Resolution 1000 of 2021. They are consumption classes: Residential, Industrial, Commercial, Rural, Public Power, Public Lighting, Public Service, and Own Consumption.

Residential Sector.

The consumer unit in real estate used for housing purposes must be classified in the residential class, with the exception of the rural residential sub-class, considering the following sub-classes:

I – residential;

II – low income residential;

III – residential low income indigenous;

IV – low income quilombola residential;

V – residential low income continued social assistance benefit;

VI – low income multi-family residential.

Industrial Sector.

It is characterized by the supply to the consumer unit where industrial activity is developed, as defined in the National Classification of Economic Activities - CNAE, as well as the transport of raw materials, inputs, or products resulting from their processing, characterized as a support activity and with no economic purpose of its own, as long as it is carried out in a physically integrated way to the industrial consumer unit.

Commercial Class, Services and other Activities.

The consumer unit in which the activities of services and other activities, not included in the other classes, are developed must be classified in the commercial class, services and other activities, divided into the following subclasses:

I – commercial;

II – transportation services, except electric traction;

III – communications and telecommunications services;

IV – association and philanthropic entities;

V – religious temples;

VI – condominium management: facilities for collective use in a building or group of buildings, including lighting of internal streets;

VII – Street lighting: requested by those who hold a concession or authorization to manage roads owned by the Union or the States;

VIII – traffic lights, radar and traffic monitoring cameras, requested by whoever holds the concession or authorization for traffic control;

IX – other services and activities.

Rural Class.

Based on Law No. 10,438 of 2002, Decree No. 62,724 of May 17, 1968, and Decree No. 7,891 of January 23, 2013, the consumer unit in which the activities described in the following subclasses are developed must be classified in the rural class:

I – rural farming: located in the rural area, where farming activities are developed, classified in groups 01.1 to 01.6 of the National Classification of Economic Activities - CNAE, including:

  1. the processing or conservation of agricultural products coming from the same property;

  2. the supply of electric power for electric installations of water catchment wells, to meet the purposes of this item, as long as there is no commercialization of the water;

  3. the supply of electric energy for water pumping service intended for irrigation activity.

II – urban farming: located in the urban area, where the activities of item I are developed, observing the following requirements:

  1. the installed load in the consumer unit must be predominantly for agriculture and cattle-raising activities, except for cases of subsistence agriculture;

  2. the consumer must have a rural producer registration issued by a public agency or other suitable document that proves the exercise of agricultural and cattle-raising activities.

III – rural residential: located in a rural area, for housing purposes, used by a rural worker or retired person in this condition;

IV – rural electrification cooperative: located in a rural area, which owns and operates electric power facilities for the private use of its members, whose loads are intended for the development of activities classified as rural in the terms of this article, in compliance with the applicable legislation and regulations;

V – agro-industrial: regardless of its location, as long as it meets the following criteria:

  1. have industry activity;

  2. transform or benefit products coming directly from farming and cattle raising, even if they come from other properties;

  3. be from Group B or, if from Group A, have a transformer with power less than or equal to 112.5 kVA.

VI – public rural irrigation service: located in the rural area where the irrigation activity is developed and explored by an entity belonging to or linked to the direct or indirect administration, or public law foundations of the Union, the States, the Federal District, or the Municipalities;

VII – agrotechnical school: teaching establishment focused on agriculture and cattle-raising, located in the rural area, non-profitable and operated by an entity belonging to or linked to the direct or indirect administration, or public law foundations of the Union, the States, the Federal District or the Municipalities;

VIII – aquaculture: regardless of its location, where the following criteria are met:

  1. development of cultivation activity of organisms whose life cycle under natural conditions takes place totally or partially in aquatic environment, disposed in group 03.2 of the National Classification of Economic Activities - CNAE;

  2. the consumer must have a rural producer registration issued by a public agency, or an aquaculture registration or license, except for aquaculture for subsistence purposes.

Public Power Class.

Regardless of the activity to be developed, the consumer unit under the responsibility of a public legal entity must be classified in the public power class, excluding those classifiable as public rural irrigation service, agrotechnical school, public lighting and public service. Includes the lighting on roads that are not in the public lighting class, traffic lights, radar and traffic monitoring cameras, considering the following subclasses:

I – federal public power;

II – state or district public power;

III – municipal public power.

Public Lighting Class.

Must be classified in the public lighting class the consuming unit destined exclusively to the public service rendering of public lighting, of responsibility of the municipal or district public power or the one that receives this delegation, with the objective of lighting streets, squares, avenues, tunnels, underground passages, gardens, streets, roads, footbridges, shelters for public transportation users, common use and free access areas, including the lighting of monuments, façades, light fountains and works of art of historical, cultural or environmental value, located in public areas and defined by specific legislation, with the exception of the supply of electricity for the purpose of any form of advertising or publicity, the performance of activities aimed at economic interests, the lighting of the internal streets of condominiums and the attendance of traffic lights, radar and traffic monitoring cameras.

Public Service Class.

Must be classified in the public service class the consumer unit under the responsibility of the public authority or of the one that receives this delegation, destined exclusively for the supply of electric power to motors, machines and loads essential to the operation of public services in the following sub-classes:

I – water, sewage and sanitation;

II – electric traction.

Own Consumption Class.

The consumer unit owned by the distributor must be classified in the self-consumption class, subdivided into the following subclasses:

I – electric vehicle charging station;

II – other activities.

Dealer. Agent holding a federal concession to provide the public service of distribution, transmission, or generation of electric energy.

Consumer. Individual or legal entity that requests the supply of the service to the distributor, assuming the obligations arising from this service to its consumer unit. Normative Resolution No. 1000, of December 7, 2021.

Regulated Market Consumers. Consumer who is only allowed to buy energy from the distributor that holds the concession or permission in the area where the user’s facilities are located, served under regulated conditions defined by ANEEL.

Free Consumer. Consumer, served at any voltage, who has exercised the option to purchase electric power, in accordance with the conditions established in art. 15 and in art.16 of Law No. 9.074, of July 7, 1995. Normative Resolution No. 1000, of December 7, 2021.

Special Consumer. Free consumer or a group of free consumers united by common interests, in fact or in law, whose load is greater than or equal to 500 kW and who have acquired electrical energy in the manner established in § 5º of art. 26 of Law nº 9,427, of December 26, 1996.

Supply Voltage Level in Distribution

According to Normative Resolution n.956, of December 7, 2021.

Demand. Average of the active or reactive electric powers, injected into or required from the distribution electric system during a specified time interval.

Distributor. Agent holding a federal concession or permission to provide the public service of electricity distribution. Normative Resolution Nº 1000, of December 7, 2021.

Exporter. Agent holding federal authorization to export electric power. Normative Resolution Nº 1000, of December 7, 2021.

Power Source. Natural resources that are used to move machinery and equipment and to generate energy. For example: water, natural gas, coal, petroleum derivatives, biomass, wind, and solar irradiation, among others.

Generator. Holder of a concession, permission, or authorization for the purpose of generating electric power, under the terms of Law 9.074, of July 7, 1995.

Consumer Groups.

Group ‘A’: group composed of consumer units with connection at a voltage higher or equal to 2.3 kV, or served from an underground distribution system at a voltage lower than 2.3 kV, and subdivided into the following subgroups:

  1. subgroup A1: connection voltage greater than or equal to 230 kV;

  2. subgroup A2: connection voltage greater than or equal to 88 kV and less than or equal to 138 kV;

  3. subgroup A3: connection voltage equal to 69 kV;

  4. subgroup A3a: connection voltage higher or equal to 30 kV and lower or equal to 44 kV;

  5. subgroup A4: connection voltage greater than or equal to 2.3 kV and less than or equal to 25 kV;

  6. AS subgroup: connection voltage lower than 2.3 kV, from an underground distribution system.

Group ‘B’: group composed of consumer units with connection at a voltage lower than 2.3 kV and subdivided into the following subgroups:

  1. subgroup B1 - residential;

  2. subgroup B2 - rural;

  3. subgroup B3 - other classes;

  4. subgroup B4 - Public Lighting.

GEE. Greenhouse gases. These are the gases responsible for the warming effect of the atmosphere. For the purposes of electricity generation it is very common to consider only CO2.

Importer. Agent holding federal authorization to import electricity.

ONS. National Electric System Operator, the agent responsible for coordinating and controlling the operation of electricity generation and transmission of the National Interconnected System - SIN. Laws nº 9.648, of 1998 and 10.848 of 2004, Aneel Normative Resolution n. 109, of October 26, 2004.

Power Losses. Difference between the energy injected and the energy supplied by the distributor, expressed in megawatt-hour (MWh), composed of technical and non-technical losses. Aneel Normative Resolution n.956, of December 7, 2021.

Losses and differences. Comprise technical losses in transmission and distribution networks and so-called non-technical losses, which consider irregular/illegal connections, measurement errors, billing process errors, consumer units without measuring equipment, calendar effect, etc. Additionally, total losses account for other differences related to the very concepts used of global load (ONS/CCEE) and grid consumption (EPE), as is the case of some free consumers connected to the Basic Network that have self-production of energy, whose consumption is fully considered in the global load, but not in grid consumption.

PLD - Price for Settlement of Differences. Value published by CCEE, calculated in advance, with a maximum weekly frequency and based on the marginal cost of operation, limited by minimum and maximum prices, in effect for each period and for each submarket, by which the energy traded in the Short-Term Market is valued. Aneel Normative Resolution n. 957, of December 7, 2021. Decree 5.163 of July 30, 2004.

Installed Power. Sum of the nominal powers of the electric equipment of the same type installed in the consumer unit and in conditions to start operating.

Installed Power of a Generating Power Plant. Measured in kW, it is defined in whole numbers by the sum of the nominal active electric power of the generating units of the plant. Aneel Normative Resolution n.956, of December 7, 2021

Independent producer. Legal entity or consortium of companies holding a concession, permission or authorization to produce electrical energy destined to the trade of all or part of the energy produced, at its own account and risk. Law 9.074, of July 7, 1995.

National Program of Universalization of Access and Use of Electric Energy - ‘LUZ PARA TODOS’. This program was instituted in 2003 with the objective of bringing electricity to homes in rural areas that still do not have access to this public service. The Ministry of Mines and Energy is responsible for defining the goals and deadlines for service in each state or concession or permission area. Decree no. 7,520, July 8, 2011.

Distribution Network. Set of structures, utilities, conductors and electric equipment, overhead or underground, used for the distribution of electric power, operating at low, medium or high distribution voltage. Aneel Normative Resolution n.956, of December 7, 2021.

National Interconnected System (SIN). Facilities responsible for the supply of electricity to all the electrically interconnected regions of the country. Aneel Normative Resolution n. 956, of December 7, 2021.

SIMPLES System. Market information system for the planning of the electric sector, under the responsibility of EPE, to collect the necessary data to subsidize planning. MME Directive n. 331, of July 29, 2005.

Isolated Systems. Radial electric systems (generation dedicated to a specific market), not interconnected to the SIN. Almost all of them are located in the Northern Region of the country and served by thermal generation.

Subsystem. Divisions of the SIN for which specific PLDs are established and whose boundaries are defined, from the point of view of the System Operator (ONS), for energy reasons, for adequate representation of reservoirs and inflows in the simulation of the electro-energetic operation, and/or as a function of electrical restrictions on energy exchange.

Tariff.

Monetary value established by ANEEL, fixed in R$ (Reais) per unit of electric energy or power demand, being:

Consumer Unit. Set composed by installations, entrance branch, electrical equipment, conductors, accessories and, in case of connection at a voltage higher or equal to 2.3 kV, the substation, and characterized by:

  1. receiving electric power at only one connection point;

  2. individual measurement;

  3. belonging to a single consumer;

  4. located on the same or contiguous properties.

Plant. Represents a grouping of electric energy generating units. They can be hydroelectric, thermal, wind power, among others.

Hydroelectric Generation. A generation process in which the potential and kinetic energy of water is transformed into electrical energy. It can be of the run-of-river or regulation type.

Thermoelectric Generation. Generation process in which chemical energy, contained in fossil fuels (solid, liquid or gaseous) is converted into electrical energy. It produces electrical energy with generators coupled to thermal machines (engines or turbines), which obtain the mechanical energy to move them from the combustion of a heat source, which can be mineral coal, fuel oil, natural gas, industrial waste, biomass, and others.

Thermonuclear Generation. Generation process in which the energy released from nuclear fuel is converted into electrical energy. It produces electrical energy with generators coupled to thermal machines (turbines), which, in turn, obtain the mechanical energy to move them from the transformation of thermal energy resulting from controlled nuclear fission.

Curtailment (in Portuguese, “despacho de energia”). Reduction of electric energy generation, by the generator, due to technical or operational restrictions of the electric system, or for safety reasons, or even for economic reasons, as is the case of wind and solar generators.