Eletrobras (ELET6): after recording volatility in the PLD in September, energy prices rose 20%

In a conference call after the balance sheet

“There was a market expectation of a minimum PLD this year, 2024 and perhaps 2025,” he said during a videoconference with analysts and investors

Estadão Content


8 Nov 2023 6:00 pm – Updated 28 minutes ago

The record of volatility in the spot price of energy – technically known as price settlement of differences (PLD) – from the end of September, amid the heat wave in the country, caused an increase in energy prices for supply contracts at the over the next few years, commented this Wednesday, 8th, the vice-president of Finance and Investor Relations at Eletrobras (ELET3;ELET6), Eduardo Haiama.

According to him, the price of energy rose by around 20% over the next three years, and increased slightly less in 2027, reflecting a repricing taking into account the volatility “that was not being priced”.

“There was a market expectation of a minimum PLD this year, 2024 and perhaps 2025,” he said during a videoconference with analysts and investors. He presented a graph showing the milestone of September 25th, when there was a strong fluctuation in the daily PLD intraday, after which energy future prices began to appreciate. In Haiama’s view, this shows that, despite the oversupply, “the system, given its current characteristics, is much more volatile”.

During the conference call, the company’s president, Ivan Monteiro, said that, despite the growing volumes of uncontracted energy, due to the discounting of plants, the company is not afraid of the low price scenario. He highlighted that the prospect is for growth in the customer base, which has already reached 250, compared to around 30 a year ago. And he commented that the company holds discussions with consumers in the areas of steel, cellulose and paper and mining.

Haiama reinforced that the company is gradually re-contracting de-quoted energy, and stressed that the re-contracting will be done “with parsimony, we are not in a hurry”.