J&F calls Aneel to partially cancel capacity reserve auction

A J&F, holding company of brothers Joesley and Wesley Batistaappealed to the National Electric Energy Agency (Aneel) calling for the partial annulment of the result of last week’s major electricity sector auction, in which the company says that some of its projects were harmed or prevented from participating in part of the disputes.

J&F was one of the biggest winners of the.

The company, which won contracts for several of its thermoelectric plants, was the only one to file an appeal after the contest, whose deadline for contesting ended at the beginning of this week.

Two appeals were presented by the group, one of them related to the Santa Cruz thermoelectric plant and the other to the Araucária plant. Both won contracts at auction, but would have been harmed in negotiations for different reasons.

In the case of the Santa Cruz plant, J&F said that the asset was prevented from participating in the dispute for power contracts for 2027, although it has no impediments to doing so. According to the company, the auction system was blocked for the plant in this competition, “without any prior indication, express motivation or possibility of exercising broad defense”.

J&F requested that, in this case, the result of the auction be annulled and the bidding phase be reopened for the negotiation of thermoelectric power contracts in 2026 and 2027.

Or, as an alternative, he requested that he not sign the commitment won in the tender, regarding the power for 2026, “without any cost”, since contracting only part of the plant would make its operations unfeasible.

As for Araucária II, J&F was able to participate in the competition only as an “existing thermoelectric project”, although this is a completely new project, having been incorrectly included in the auction system, said the company.

The Araucária II project won a contract for 2028, but was prevented from negotiating power “within the terms and prices applicable to new thermoelectric projects”, said J&F.

In this case, the company also asked Aneel to annul the result of the 2028 thermoelectric power negotiation and reopen the bidding phase and reprocess the competitive phase.

Aneel is still analyzing the winners of the competition and should publish the results of the qualifications next month.

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