Government maneuvers succession in private association of the energy sector – 04/19/2023 – Market

The government acted in the election of one of the most important private organizations in the energy sector, the CCEE (Electric Energy Commercialization Chamber). In the assembly that chose the new members for the council, this Wednesday (19), the candidate considered favorite to accommodate the nomination of the Secretary of Mines and Energy, Efrain da Cruz, resigned.

CCEE is a private association, with approximately 14,000 members, which operates in the accounting of financial operations for practically the entire energy market in Brazil and moves more than R$ 150 billion per year.

Its board has five seats. By law, the government can appoint the president, and the Minister of Mines and Energy, responsible for the selection, usually chooses the name among executives with experience in the market. The distribution, generation and commercialization sectors each have a chair. There is still a vacancy for a consensus name, chosen collectively by the three sectors.

Lawyer Roseane Santos occupied that vacancy. With over 20 years of industry experience, her reappointment was a given, and many associates believed she could be nominated for the presidency. It would be the first time that a woman would lead the CCEE.

At the last minute, however, Rose resigned. The exit was an arrangement between the government and private associates, which opened space on the board for Eduardo Rossi to join.

The name was defended by Efraim da Cruz, executive secretary of the MME. Rossi specializes in regulation and acted as an advisor to Efrain when he was director of Aneel (National Electric Energy Agency).

In the vote that ratifies board members, all associates can participate, but the larger the company, the greater the weight of the vote. Sector executives say that Efrain and centrão politicians acted directly in defense of Rossi’s candidacy, getting in touch with the associates.

The current management of the MME will have to decide on sensitive issues, such as the renewal of new concessions and new auctions. People who follow the CCEE, and do not want to have their name revealed, say that it was impossible to deny the suggestion.

The main mission of the assembly was to choose the new chairman of the board, replacing Rui Altieri, whose mandate ends.

The name of Alexandre Peixoto, who is the current Director of Regulatory and Institutional Relations at Cemig (Companhia Energética de Minas Gerais), appointed by Minister Alexandre Silveira, was approved. Peixoto has long experience in the sector, with passages through the MME, Aneel and EPE (Empresa de Pesquisa Energética), but has no experience in the business of buying and selling energy, according to market participants.

Peixoto will assume a four-year term, with the possibility of reappointment for another four.

The MME had not given any more concrete indications about who would indicate for the succession. The market spent months speculating on various names. The possible indication of Peixoto was also a surprise. He just entered the radar of executives of companies in the sector this week.

The 24th Ordinary General Meeting of CCE also elected Talisa Rezzieri as a new member of the Fiscal Council

When contacted, the CCEE press office said that the entity would not comment on the backstage of the election. The MME did not respond until the publication of this text.

The MME had not given any more concrete indications about who would indicate for the succession. The market spent months speculating on various names. The possible indication of Peixoto was also a surprise. He just entered the radar of executives of companies in the sector this week.