Framework
The Commercial Relations Regulation (RRC) and the Tariff Regulation (RT) establish the separation of the functions of purchase and sale of electricity for the supply of customers and the purchase and sale of electricity from special regime production, both performed by the Supplier of Last Resort (CUR).
In the specific case of the purchase and sale of electricity to supply customers, the RRC establishes that the CUR must acquire electricity through regulated mechanisms, expressly provided for this purpose, with its own rules for contracting electricity. In addition, the CUR must also acquire electricity to supply its customers in organized markets, namely in organized markets for long-term contracts and in the organized daily and intraday market.
The contracting of electricity by the CUR, through long term contracting at auction, allows, among other advantages, the coverage of price variability risks and the stabilization of the CUR cost conditions, thus ensuring greater predictability of sales tariffs practiced by the CUR to the end customer.
ERSE is responsible for defining the schedule of long term energy acquisition by the CUR, through the publication of binding information mentioning volumes and maturities of standardized products, listed on the market managed by OMIP. The electricity forward purchase mechanism for supplying the CUR may determine the placement for trading of futures contracts with monthly, quarterly or annual maturity. Futures contracts follow the specifications provided for in the General Contractual Clauses of the respective contracts listed on the market managed by OMIP. The auctions for contracting electricity by the CUR are governed by specific rules, without prejudice to the application of the rules specific to the market managed by OMIP.
More information on ERSE website.