PROVISIONAL MEASURE NO. 2.198-5, OF August 24, 2001

Creates and installs the Board of Management of the Electrical Power Crisis, of the Council of Government, establishes guidelines for programs of faced with the electric power crisis and gives other arrangements.

THE PRESIDENT OF THE REPUBLIC, in the use of the assignment that confers it on art. 62 of the Constitution, adopts the following Provisional Measure, with force of law:

CHAPTER I

OF THE MANAGEMENT CHAMBER OF THE ELECTRIC POWER CRISIS

Art. 1º It becomes created and installed the Board of Management of the Electrical Power Crisis-GCE with the aim of proposing and implementing emergency nature measures arising from the current critical hydrological situation to compatibilize the demand and supply of electric power, from form to avoid untimely or unforeseen disruptions of the electric power supply.

Art. 2º À GCE competes:

I-regulate and manage the Emergency Consumption Reduction Program of Electrical Power, noted the willing in this Interim Measment;

II-establish and manage the Electrical Energy Emergency Strategic Program;

III-follow up and evaluate the macro and macro consequences microeconomic from the electric power crisis and the measures adopted for its confronting;

IV-propose measures to mitigate the negative impacts of the electric power crisis on growth levels, employment and income;

V-propose the recognition of public calamity situation;

VI-establish limits on use and supply of electrical energy;

VII-establish compulsory measures of reduction of consumption and suspension or interruption of the supply of electrical energy;

VIII-propose the change of tributes and tariffs on goods and equipment that produce or consume energy;

IX- deciding as to the deployment of rationing and individual and collective suspension of the supply of electrical energy;

X-define the organ or entity responsible for the deployment and execution of the determined measures;

XI-articulate with the Powers of the Union and the remaining federated powers objecting to the implantation of energy-efficient crisis-facing programs;

XII-impose restrictions on the use of water resources no intended for human consumption and which are essential to the operation of hydroelectric power plants;

XIII-to propose, observed the provisions of the Supplementary Act No. 101 of May 4, 2000, the adjustment of the limits on investments of the federal state-owned electrical sector;

XIV-adopt other measures for the reduction of consumption and broadening of transmission and supply of electric power;

XV-establish negotiations with specific sectors of consumers for the largest electric energy consumption economy;

XVI-establish specific procedures for operation of the Electrical Energy-MAE Electrical Energy Market in emergency situations; and

XVII-establish guidelines for the media actions of the bodies and entities of the energy sector, aiming at the proper dissemination of the programs of which it treats this Interim Measuration.

Single paragraph. The solicitations and determinations of the GCE to the organs and entities of the Federal Public Administration will be met in priority character, within the time limit by it pointed out.

Art. 3º GCE has the following composition:

I-Ministers of State:

a) Head of the Civil House of the Presidency of the Republic, who will chair it;

b) of Mines and Energy, which will be its Vice-President;

c) of Development, Industry and Foreign Trade;

d) da Fazenda;

e) of the Planning, Budget and Management;

f) of the Environment;

g) of Science and Technology;

h) Head of the Government Communication Office of the Presidency of the Republic; and

i) Head of the Office of Institutional Security of the Presidency of the Republic;

II-maximum leaders of the following Entities:

a) National Electrical Energy Agency-ANEEL;

b) National Agency of Waters-ANA

c) National Bank of Economic and Social Development-BNDES; and

d) National Petroleum Agency-ANP;

III-Director-Chairman of the National Operator of the Electric System-ONS;

IV-Brazilian Director General of Itaipu Binational; and

V- other members designated by the President of the Republic.

§ 1º Powers will be invited to participate in the meetings of the technical GCE, personalities and representatives of public and private bodies and entities.

§ 2º The legal advisor to the GCE will be provided by the Advocate General of the Union.

§ 3º The members referred to the incisors I, points (a) and "b", II, ("a", III and IV of this article, shall dedicate full time to the proceedings of the GCE, without prejudice to the exercise of the custodial assignments of the respective posts.

§ 4º The President of the Republic shall designate the members who shall constitute the executive core of the GCE.

§ 5º The President of GCE will be able to practice the acts provided for in the arts. 2º and 5º ad referendum of the House, ears the members of the executive core.

Art. 4º The measures for overcoming the energy crisis will be disciplined in short, medium, and long term programs that will follow the guidelines set out in this Interim Measure.

Art. 5º The Emergency Consumption Reduction Program of Electrical Power Consumption is aimed at compatibilizing energy demand with supply, so as to avoid disruptions untimely or unforeseen of the power supply.

§ 1º For execution of the Program referred to in the caput, it will compete with GCE inclusive:

I-establish load contingency plan, defining the elements and the necessary measures for compulsory reduction of electric power demand;

II-optimize energy consumption, prioritizing strategic sectors;

III-deflagrate campaigns educational with views to raise awareness of the population for the need for the reduction of energy consumption;

IV-stimulate the immediate replacement of technologically overgrown apparatuses, equipment and facilities at their levels of energy consumption;

V-set special consumer charging regimes according to their levels and consumption limits, as well as to propitiate the granting of bonuses by reduced consumption of electric energy;

VI -establish limits on energy use and supply;

VII-stimulates self-production and independent energy production;

VIII-establish other measures that contribute to achieving the goals of the Program; and

IX-define specific conditions of marketing of electrical energy between concessionaires, permissionaries and authorized, as well as between these and consumers, objecting to the broadening of supply or reduction of the consumption.

§ 2º The GCE will be able to establish the territorial limits of application of the Program of which it treats the caput.

Art. 6º The Emergency Strategic Energy Program has by goal to increase electric power supply to ensure full demand fulfillment, with reduced burden of burden contingency, preventing harm to the population, constraints on economic growth and its undesirable employment impacts and in the income, and will understand medium and long term actions that should:

I-ensure full implementation of the economic and financial regime of the public service concessions of electric power, in the form of the Laws 9,074, of July 7, 1995, 9,427, of December 26, 1996, and 9,648, of May 27, 1998;

II-expand energy supply;

III-diversify the energy matrix, so as to reduce the dependence of the regime hydrological;

IV-fomenting research with views to the development of alternative sources of energy;

V-optimizing energy distribution;

VI-maximize productivity of the generating sources installed and complete the projects in deployment; and

VII-institute compulsory programs of rationalization of energy use.

Art. 7º The GCE will be able to recognize emergency character for works, services and purchases necessary for the implementation of the emergency measures for the overcoming of the electric power crisis, including for the purposes of the provisions of the inciso IV of the art. 24 of Law No. 8,666 of June 21, 1993.

§ 1º They do not apply, in the hypotheses of this article, the maximum period of one hundred and eighty days for the completion of the works and services and the extension sealing established in the inciso IV of the art. 24 of Law No. 8,666, of 1993.

§ 2º It could be instituted systematic award of award or performance bonuses to contracted companies, by anticipation of the completion of works and services referred to in the caput.

§ 3º The provisions of this article apply to the hiring, by organs of the direct and indirect Federal Administration, of works, services and purchases intended to plan, subsidize, implement and evaluate relevant actions in the face of the current critical hydrological situation.

Art. 8º The competent bodies, in the authorization or license processes of the endeavors necessary to the increment of the country's electric power supply, will meet the principle of the Speed.

§ 1º The ventures referred to in the caput comprise, among others:

I-lines of power transmission;

II-pipelines and pipelines;

III-thermoelectric power plants;

IV-hydroelectric power plants;

V-generation of electrical power by alternative sources; and

VI-energy import.

§ 2º Observed the willing in the arts. 3º, inciso II, and 225 of the Constitution, the environmental licensing of the undertakings referred to in this article should be decided by the competent bodies, with all their formalities, included the analysis of the environmental impact report, when it is the case, within the time of:

I-three months, in the case of the inciso I do § 1º;

II-four months, in the cases of the incisos II, III and V of § 1º; and

III-six months, in the case of the inciso IV of the § 1º.

§ 3º Until June 30, 2001, the National Council of the Environment-CONAMA will establish specific simplified licensing procedures, with a maximum of sixty days of tramping, for the endeavors, referred to in the caput, of small size environmental impact.

§ 4º The studies and opinions required for the authorization or licensing referred to in the caput may be carried out by physical or legal persons, of notorious specialty, contracted for this purpose, by the competent bodies.

Art. 9º Financing with funds from funds and programs, the post of the federal financial institutions will give priority to the actions understood within the framework of the programmes of which they treat the arts. 5º and 6º of this Provisional Measure.

Single paragraph. The budgets of the funds and programs of which it treats the caput are to be reviewed for compliance with the provisions of this article.

Art. 10. The administrative support and means necessary for the implementation of the work of the GCE will be provided by the Civil House of the Presidency of the Republic.

Art. 11. The President of the GCE will be able to request, in an iruscible manner, without prejudice to the rights and advantages to which they make jus in the respective bodies and entities of origin, servants and public servants, of the Federal Public Administration, direct and indirect, to assist the proceedings of the House.

Art. 12. GCE will be extinguished upon the act of the President of the Republic.

CHAPTER II

OF THE EMERGENCY REDUCTION PROGRAM OF ELECTRICAL ENERGY CONSUMPTION

Art. 13. The Emergency Reduction Program of Electric Power Consumption comprises, without prejudice to the provisions of art. 5º, the special charging regimes, the limits of use and supply of electrical energy and the measures for reduction of their consumption described in this Chapter.

§ 1º For the purposes of this Chapter, the classification of consumers defined in art. 20 of the Resolution of the National Electrical Energy Agency-ANEEL No 456, of November 29, 2000.

§ 2º While last the disciplined Program in this Chapter, the share of the monthly surplus consumption surplus to the target set for the consumers of which they treat the arts. 16 and 17 could be acquired, in the form established by GCE, directly from any independent power producer or autoproducer that comes in aggregating to the new energy system and from generating plants with compatible installed power with limit established by GCE.

Art. 14. Residential consumers are expected to observe electric power consumption target corresponding to:

I-one hundred percent of the average monthly consumption verified in the months of May, June, and July 2000, for those whose average monthly consumption is less than or equal to 100 kWh; and

II-eighty percent of the average monthly consumption verified in the months of May, June and July 2000, for those whose average monthly consumption is higher than 100 kWh, guaranteed, in any case, the minimum monthly target of 100 kWh.

§ 1º In the impossibility of characterizing the average effective monthly consumption referred to in this article, is the concessionary authorized to use any period within the last twelve months, observing, where possible, an average of up to three months.

§ 2º Consumers who disavs the respective monthly target fixed in the form of the caput will be subject to suspension of the supply of electric power.

§ 3º The provisions of § 2º shall not apply to consumers who, in the same period, submit monthly consumption of less than or equal to 100 kWh.

§ 4º The suspension of supply of electrical energy referred to in § 2º shall observe the following rules:

I-the target set in the form of GCE Resolution will be observed from the reading of the consumption carried out in June 2001;

II-will the advertised consumer, in writing, when of the first failure to set the target fixed in the form of the caput;

III-reiterated the failure to meet the target, will be, after forty-eight hours of the delivery of the account that characterize the defulfillment of the target and contain the respective warning, the suspension of the supply of electric power, which will have the duration:

a) maximum of three days, when of the first suspension of supply; and

b) minimum of four days a maximum of six days, on subsequent suspensions.

§ 5º The GCE will be able to establish term and procedures miscellanes of those provided for in § § 1º, 2º and 4º of this article.

Art. 15. They apply to residential consumers, as of June 4, 2001, the following fares:

I-for the share of the monthly consumption less than or equal to 200 kWh, the tariff set in Resolution of the National Energy Agency Electric-ANEEL;

II-for the share of monthly consumption exceeding 200 kWh and less than or equal to 500 kWh, the tariff set out in ANEEL Resolution increased by fifty percent of the respective value;

III-for the share of monthly consumption higher than 500 kWh, the tariff set out in ANEEL Resolution increased by two hundred percent of the respective value.

§ 1º To residential consumers whose monthly consumption is lower than the respective target will be granted individual bonus (Bn) calculated as follows:

I-for the monthly consumption equal to or less than 100 kWh, Bn=2 (Tn-Tc), where:

a) Tn corresponds to the value, calculated on the normal tariff, of the respective consumption target, excluded taxes, fees and other burden or charges included in the account; and

b) Tc corresponds to the tariff value of the effective beneficiary's consumption, excluded taxes, fees and other burden or charges included in the account;

II-for the monthly consumption exceeding 100 kWh, Bn shall be equal to the lesser value between that determined by the "c" of this incisus and the product of CR by V, being:

a) CR=s/S, where s is the difference between the goal fixed in the form of the art. 14 and the effective monthly consumption of the beneficiary, and S is the aggregate value of these differences for all beneficiaries;

b) V equal to the sum of the values billed as a result of the application of the percentage of which they treat the incisos II and III of the caput of this article and intended for the payment of bonuses, deducted proceeds intended to pay the consumers ' bonuses that it treats the inciso I of this paragraph;

c) the maximum value of the bonus per kWh lower or equal to half the value of the bonus per kWh received by consumers that it treats the inciso I of this paragraph.

§ 2º The value of the bonus calculated in the form of § 1º will not exceed that of the respective monthly account of the beneficiary.

§ 3º GCE will be able to change the tariffs, levels and limits of consumption and the manner of the calculation of the bonus of which it treats this article.

§ 4º The percentage increase of the tariffs to which the incisies II and III of the caput will not apply to consumers who observe the respective consumption targets set in the form of the art. 14.

§ 5º Caberá to the distributor dealerships, second guidelines to be established by GCE, decide on the cases of residential consumers subject to exceptional situations.

Art. 16. Commercial, industrial, service sector consumers and other activities framed in the constant B group of the inciso XXIII of the art. 2º of the ANEEL Resolution No. 456, of 2000, are expected to observe electric power consumption target corresponding to eighty percent of the average monthly consumption verified in the months of May, June and July 2000.

§ 1º Case the consumption monthly is lower than the target set in the form of the caput, the balance in kWh, at the consumer's discretion, will be accumulated for possible future use or the distributor will be able to acquire the lower than the target, through the mechanism of auctions in the form to be regulated by GCE.

§ 2º In case the monthly consumption is higher than the target set in the form of the caput, the share of the surplus monthly consumption will be acquired from the distributor dealers at the price practiced at the MAE or compensated with possible balance accumulated in the form of § 1º.

§ 3º Consumers who disfulfil the respective target fixed in the form of the caput will be subject to suspension of the supply of electric power, if unviable the compensation provided for in § 2º.

§ 4º The suspension of supply of electrical energy referred to in § 3º will have as a criterion of application of one day for each three percent exceeding of the target.

§ 5º The GCE will be able to change the criteria and parameters set out in this article on the grounds of possible modification of the hydrological situation or other relevant circumstances.

Art. 17. Commercial, industrial and service sector consumers and other activities framed in the group A constant of the inciso XXII of the art. 2º of the ANEEL Resolution No. 456, of 2000, are expected to observe consumption targets of electric energy corresponding to percentage between seventy-five and eighty-five percent of the average monthly consumption verified in the months of May, June and July 2000, in the form established by GCE, which will have inclusive of the special tariff and suspension regime hypotheses and interruption of the supply of electric power arising from the disfulfillment of the respective targets.

Art. 18. Rural consumers are expected to observe electric power consumption target corresponding to ninety per cent of the average monthly consumption verified in the months of May, June and July 2000.

§ 1º The consumers who unabiding the respective target set in the form of the caput will be subject to suspension of the supply of electric power.

§ 2º To the suspension of supply of electrical energy referred to in § 1º will be applied the one-day criterion for every six percent outdated of the target.

Art. 19. For consumers not mentioned in the previous articles, GCE will set the respective targets for reduction of consumption or supply of electric power, up to the limit of thirty-five percent of the average monthly consumption verified in the months of May, June and July 2000, noted the provisions of § 4º of the art. 14.

Art. 20. The values billed as a result of the application of the percentage of which treat the incisors II and III of the caput of the art. 15, deducted, if incidents, the tributes and fees, will be intended for:

I-constitute provision of two percent of these values, for the coverage of the additional costs of the distributor dealerships with the execution of the resolutions of the GCE;

II-remunerate the bonus provided for in § 1º of the art. 15.

§ 1º The dealerships will account for special account the debits or credits, the values set out in the caput as well as the costs arising from the implementation of the measures set out by the GCE, in the form to be defined by ANEEL.

§ 2º The balance of the special account will be compensated in full in the tariffs, in the form to be defined by ANEEL.

Art. 21. For non-residential consumers classified in group B, the suspension of the electric power supply will observe the following rules:

I-the target fixed in the form of GCE Resolution will be observed from the reading of the consumption carried out in June 2001;

II-only after June 30, 2001, will be the suspension of the supply of electric power by failure to comply with the respective monthly consumption target.

Single paragraph. The GCE will be able to set deadlines and procedures for the implementation of the provisions of this article.

Art. 22. For consumers rated in group A whose contracted demand is greater than 2.5 MW, the suspension of electric power supply will observe the following rules:

I-will be held reading consumption on May 31 of 2001, from which it will be observed, in the entirety of the respective month, the consumption target;

II-only after June 30, 2001, will be the suspension of the supply of electrical energy by failure to comply with the respective target of monthly consumption.

§ 1º The GCE will be able to set deadlines and procedures for the execution of the provisions of this article.

§ 2º On the grounds of the current electric power crisis arising from hydrological situation critical, contracted demand contracts will be able, at the consumer's discretion, to be reviewed to accommodate the required reduction.

Art. 23. For consumers classified in group A whose contracted demand is equal to or less than 2.5 MW, the suspension of the electric power supply will observe the following rules:

I-the target fixed in the form of GCE Resolution will be observed from the reading of consumption carried out in June 2001;

II-only after June 30, 2001, will be the suspension of the supply of electric power by failure to comply with the respective consumption target monthly.

Single paragraph. The GCE will be able to set deadlines and procedures for the implementation of the provisions of this article.

CHAPTER III

OF THE GENERAL PROVISIONS

Art. 24. Should the comarch in which domicile the person concerned is not a registered office of the federal judgment, the actions in which he intends to obstinate or prevent, on the grounds of the implementation of this Interim measure and the implementation of GCE standards and decisions, suspension or interruption of the supply of electric power, the collection of tariffs or the purchase of energy at the price practiced in the MAE will be able, without prejudice to the mandatory citation of the Union and ANEEL, to be proposed in the state justice, and to be appeased to the Regional Court Federal in the area of jurisdiction of the first-degree judge.

Art. 25. The relationships arising from this Provisional Measure between legal persons or non-residential consumers and dealerships apply the provisions of the Civil Code and the Code of Civil Procedure.

Art. 26. Do not apply to Laws n^os 8,987, of February 13, 1995, and 9,427, of December 26, 1996, in which they conflict with this Provisional Measure.

Art. 27. The Emergency Electrical Energy Consumption Reduction Program, as well as the remaining constant or authorized arrangements in this Interim Measure and in the GCE standards and decisions are considered emergency situations for the purposes set out in § 3º of the art. 6º of Law No. 8,987, of 1995.

Art. 28. In the eventual and future need for the recomposition of the economic-financial balance of concession contracts, duly proven in the form of the legislation, this will far be observed the provisions of the art. 20, in the form of § 2º of the art. 9º of Law No. 8,987, of 1995, upon recognition of ANEEL, resonated the hypotheses of fortuitous cases, force majee and inherent risks of economic activity and the respective market.

Art. 29. They are convalidated the acts practiced on the basis of the Provisional Measure No. 2.198-4, of July 27, 2001.

Art. 30. This Interim Measure takes effect on the date of its publication.

Brasilia, August 24, 2001; 180º of Independence and 113º of the Republic.

FERNANDO HENRIQUE CARDOSO

Pedro Malan

Sérgio Silva do Amaral

Jose Jorge

Martus Tavares

Jose Sarney Filho

Pedro Parente

Alberto Mendes Cardoso

A. Andrea Matarazzo

Gilmar Ferreira Mendes