Legal front that questions the event in court is considering filing a writ of mandamus against the minister’s decision
The (Brazilian Association of Unions and Energy Industries Associations) and state unions in the sector will activate the STJ (Superior Court of Justice) in a new stage of the legal dispute over the results of the LRCap (Capacity Reserve Auction in the form of Power). In favor of suspending the event, they question the order of minister Jorge Oliveira, from TCU (Federal Audit Court)published on Tuesday (May 19, 2016).
In his decision, Oliveira said he agreed with the Court of Auditors who requested the partial suspension of the approval of the results on the grounds that there was an unjustified increase in ceiling prices and unusual profits. Although he recognized inconsistencies in the dispute, the minister chose to ask Aneel (National Electric Energy Agency), responsible for approval, to comment on the matter with “information that you consider pertinent about the irregularities” presented.
In the opinion of lawyers for the associations questioning the auction in court, Oliveira exempted himself from the responsibility of deciding on the suspension by not taking a definitive position on the injunction.
The basis of the movement is article 105 of the Constitution, which allows direct appeal to the STJ in cases of decisions by ministers. The purpose of the writ of mandamus is to block the continuation of the auction phases, according to a member of the initiative heard by the Poder360.
OFFENSIVE IN JUSTICE
On another front, Sindienergias (Energy Industry Union) questions the LRCap in the courts of first instance in several States. Added to the initiative is an action by Fiesp.
In some states, the courts have already decided to send the cases to the Federal District, as the case involves institutions linked to the Union. In the DF, Abraenergias is leading the offensive. The tendency is for all processes to be concentrated in the federal capital.
On Wednesday (May 20), requests to suspend the auction in the Federal District and Ceará were urgently requested. Abraenergias appealed the decision in the capital, but the TRF-1 once again rejected the immediate suspension of the contest.
Also on Wednesday, the MPF (Federal Public Ministry) he once again recommended that the competition be held immediately and asked that there be no approval of the results “until all the technical and legal uncertainties highlighted are resolved”.
COMES AND COMES FROM LRCAP
Entities in the energy sector have put pressure on the auction in March by the federal government in recent weeks. There are also cases against LRCap in Cade (Administrative Council for Economic Defense), in the MPF (Federal Public Ministry), in the TCU and in the Federal Court
The auction, which contracted R$515 billion in energy reserves from companies such as J&F, Eneva and Petrobras, is the target of questions about the ceiling prices, the volume contracted, the predominance of non-renewable sources and the concentration of winning contracts in the hands of large economic conglomerates.
ANEEL DECIDES TODAY
The board of Aneel meets this Thursday (May 21) on an extraordinary basis to decide whether to approve the first results of the products contracted for 2026.
The approval discussion was scheduled for the collegiate meeting on Tuesday (May 19), but was postponed by director Fernando Mosna, rapporteur on the issue at the agency, who said he would wait for a judicial statement on the Abraenergias action before submitting the process for deliberation.
As there was no decision to suspend the dispute, the Aneel called an extraordinary meeting to discuss the topic, in order to meet the deadline set out in the notice. According to the document, the winners of products that must be delivered this year must have their results approved by this Thursday (May 21).
