The problem of the order of merit compensation in the Brazilian regulation in a thermoelectrical powerplant operation

After the Brazilian Electrical System National Operator (ONS) flash a yellow light due to the low level of the hydroelectric plants water reservoirs in October, 2012, several stand-by thermoelectric plants were called to operate. Months later, some problems between their operation characteristics and Brazilian regulation of electric power regarding to order of merit dispatch began to appear. This paper intends to clarify the conflicts point between the power demand of the country in a moment of crisis and the power plants maintenance plan. A solution to match both interests into a common benefit for both stakeholders is also purposed. The Brazilian regulation topics about order of merit compensation and power generation maintenance scenarios have been brought to evaluation. The impacts of compensation in a thermoelectric power plant in northeast of Brazil have been used to illustrate effects on their financial results. An approach on regulation laws that allow these companies to perform the contractual maintenance avoiding the compensation is taken as possible a solution.