VERSÃO PORTUGUÊS

THE ROLE OF THE TRADING COMPANIES +A -A

Generators and consumers of energy often have distinct goals. Generators want to maximize the selling price, the volume sold and sell according to their production. They seek long-term contracts to fund financing. As to the buyers, they seek to minimize purchase price, service security, buy as its charge curves and shorter hiring terms.


Everyone wants to reduce the chance of being exposed to risks and penalties. It is up to the traders to act reducing the so-called transaction costs, making the effective encounter between generators and consumers.
 
They enable, with their activity, the break-even price and give economic rationality to the “apportionment" of surpluses and deficits. They allow the adjustment of buying and selling portfolios. They take the consumer credit risk and producer performance risk. They provide liquidity to the market enabling the competition. Trading companies develop products and associated services to the power product in an increasingly competitive and innovative market, focused on their customers’ needs. Analogously to other commodities markets, the power trading market is undergoing a process of modernization and sophistication, importing and adapting tools already used in other markets, such as options, futures, swaps, forward contracts and others.

Abraceel - Brazilian Energy Traders Association - Development ZONAElétrica