MEZ tries to return to auction, but Aneel bars participation in re-bidding
The attempt by MEZ Energia, a company owned by the Zarzur family (controlling company of the developer Eztec), to return to compete for the transmission lots that it itself returned to the Union ended up frustrated by Aneel (National Electric Energy Agency).
The company sought to participate in the second stage of the transmission auction, held last Friday (3), but its registration was not confirmed due to problems related to the presentation of the proposal guarantee, being prevented from competing for the projects bid.
The episode closes one of the most controversial chapters in the recent history of broadcast auctions. Behind the scenes in the electricity sector, however, the solution built between the company, the MME (Ministry of Mines and Energy) and the TCU (Federal Audit Court) still arouses criticism from agents who consider that the company received different treatment in relation to Aneel's precedents.
This is because Aneel did not participate in the construction of the agreement. The agency had concluded by recommending the expiry of the five concessions due to breach of contract. The consensual solution that preserved one of the concessions and allows MEZ to compete for new auctions again.
Minister Benjamin Zymler even expressed, in the TCU plenary, his concern regarding the conduct of consensual solution processes without technical basis and spoke of a "very accentuated moral risk". When contacted, MEZ did not return contact.
MEZ gained notoriety in December 2020 by winning important transmission lots with aggressive bids. In one of the main assets, the company offered a discount of around 70% on the maximum Allowed Annual Revenue (RAP) set out in the notice, drawing the market's attention. Subsequently, the company expanded its portfolio by winning new projects in the 2021 auction.
The works, however, practically did not progress. Aneel concluded that the five contracts were non-executing, 0% physical progress and non-compliance with schedules, recommending that the MME declare the expiry of the concessions.
Instead of the definitive loss of contracts, a consensual solution approved by the TCU was created. Under the agreement, MEZ only maintained the concession of the so-called MEZ 6, considered strategic to reinforce the electrical system in the Metropolitan Region of São Paulo, while amicably returning the other four assets for new bidding.
In return, the company agreed to pay fines, transfer projects, studies and environmental licenses already developed free of charge and accept new contractual obligations, including the future exchange of controlling interest in the remaining concession.
Although the agreement preserved only one of the five projects, some sector agents believe that the solution represented an unprecedented flexibility. Historically, the processes conducted by Aneel resulted in the expiry of concessions, while, in this case, a consensual termination was opted for the majority of the assets and the maintenance of one of them upon review of economic conditions.
In the re-bidding carried out last week, the four lots registered an average discount of 53.2%, lower than that observed in part of the contracts originally won by MEZ. The projects, now taken over by Áxia Energia and the Olympus Consortium, formed by Alupar and Infra II Investment, total planned investments of R$1.8 billion and are scheduled to start operations between December 2029 and June 2031.
Proponents of the negotiated solution argue, on the other hand, that the alternative will avoid a prolonged legal dispute and will allow MEZ 6 to come into operation in around 24 months, a period considered substantially shorter than that of a possible re-tendering of the asset, estimated at approximately five years. Furthermore, the use of studies and projects already developed by the company should accelerate the implementation of the four returned projects.
Source: CNN