Antonio Junqueira

Antônio Junqueira questioned the foreseen impacts of the capacity auction ordinance and Provisional Measure 1304 on marginal expansion costs and incentives over the next 3-5 years, and asked for insights on potential policy changes, particularly regarding distributed generation (GD).

Answer

Elio Wolff, VP of Strategy and Business Development at AXIA Energia, viewed the provisional measure positively, noting it addresses industry distortions, reduces subsidies, and provides guidelines for price policies. He mentioned the removal of a proposal to charge for distributed generation projects from the draft bill and discussed the ongoing efforts to balance expansion and curtailment reimbursement.

Antônio Junqueira questioned the potential impacts of the new provisional measure and the 1234 ordinance on regulation, marginal expansion costs, and incentives over the next three to five years. He also asked what policy changes AXIA Energia would propose.

Answer

Elio Wolff, VP of Strategy and Business Development, expressed a positive view of the provisional measure, noting its efforts to address industry distortions, reduce subsidies, and limit high production models. He highlighted its guidelines for price policies aligned with system needs, regulating flexibility and availability. He also discussed the complete market opening and controversial items like distributed generation charges and curtailment reimbursement, emphasizing the need for balance between generator risks and consumer costs.

Antonio Junqueira analyzed that the financial impact from submarket price differences should be lower in the second quarter compared to the first, due to a different commercial strategy, and asked for confirmation of this view.

Answer

Executive Rodrigo Nascimento confirmed the analyst's reasoning was correct. He explained that Eletrobrás has less portfolio exposure in the Southeast for Q2, and the price mismatch between submarkets is also expected to be lower than in Q1. He noted that both factors should benefit the company's results, though he declined to provide a specific quantitative estimate.

Antonio Junqueira asked about the company's relationship with the regulator and the confidence level that historical gaps between regulatory and actual revenues will be closed, noting the regulator has been a source of past skepticism.

Answer

CEO Carlos Piani described the relationship with the regulator as strong, technical, and beneficial, stating that a strong regulator is an asset in an incentive-based system. He expressed confidence that most historical issues can be resolved over time and views the agency as an enabler, not a restriction, for performance.