General Glossary
Annual Tariff Adjustment (RTA - Reajuste Tarifário Anual) – A mechanism for updating the electricity (power sector) or water and sewage (sanitation sector) tariff paid by consumers or users. Applied annually, it follows a formula established in the concession contract, aiming to restore the purchasing power of the concessionaire for the next 12 months.
BRR Accounting Engineering – Refers to support provided to the concessionaire for optimizing results and assessing the consistency of the Asset Valuation Report prepared by an ANEEL-accredited evaluator contracted by the concessionaire.
Free Contracting Environment (ACL - Ambiente de Contratação Livre) – Includes generators, traders, importers, distribution companies, and free consumers.
Generation Agents – Public and private concessionaires providing electricity generation services.
Independent Power Producer (IPP) (PIE – Produtor Independente de Energia) – A legal entity or a consortium of companies granted a concession or authorization by the granting authority to produce electricity for commercial purposes, selling all or part of the generated energy at its own risk.
Periodic Tariff Review (RTP - Revisão Tarifária Periódica) – A mechanism for updating the electricity tariff (power sector) or water supply and sanitation tariff (sanitation sector) paid by consumers or users. Its primary objective is to assess, after a pre-defined period in the concession contract (usually every 4 or 5 years), the economic and financial balance of the concession. During this periodic review, tariff repositioning is carried out, redefining the efficient level of operating costs, regulatory targets for losses and quality, and the remuneration of the concessionaire’s investments. The RTP is similarly applied to water supply and sanitation concessionaires.
Periodic Review of the Allowed Annual Revenue (RAP - Revisão Periódica da Receita Anual Permitida) – The periodic review of the Allowed Annual Revenue for transmission companies includes the recalculation of third-party capital costs, revenues from transmission reinforcements authorized by ANEEL, and revenues from other activities. This calculation is performed by the Brazilian Electricity Regulatory Agency (ANEEL).
Regulatory Remuneration Base (BRR - Base de Remuneração Regulatória) – Refers to the economic value of the physical assets in the Shielded Base and Incremental Base of electricity distribution or transmission concessionaires, as well as the facilities and equipment for water supply and sewage services. These assets are recognized by the regulatory authority as eligible for remuneration in electricity tariffs (power sector) or water and sewage tariffs (sanitation sector), to be paid by consumers or users.
Regulated Contracting Environment (ACR - Ambiente de Contratação Regulada) – Includes generators (concessionaires, independent power producers, and self-producers) and electricity distribution companies.
Self-Producing Energy Generator (APE - Autoprodutor de Energia Elétrica) – Characterized by the generation of electricity for self-consumption, with the possibility of selling any surplus energy, subject to authorization.