Energy Traders: What they are, how they work, and why they are essential in the free energy market
Energy trading companies play a crucial role in the dynamics of the free energy market. This sector, regulated in Brazil since 1995, allows consumers to choose their providers and negotiate energy contracts, ensuring greater flexibility, more competitive prices, and terms that better meet their needs. But what exactly does a trading company do, and why is it so important in this context?
In this article, we will explore how energy marketers operate, their functions in the free market, and how they have evolved to offer increasingly comprehensive services to consumers. Continue reading and discover why these companies are strategic for those seeking autonomy and savings in energy consumption.
What is an Energy Trading Company?
An energy trader is an institution that buys energy directly from generators – which can be hydroelectric plants, wind farms, thermal power plants, among others – and resells it to consumers in the free energy market. Its main function is to act as an intermediary that connects generators and consumers, negotiating the best conditions for both parties.
These companies operate within the so-called Free Contracting Environment (ACL), where consumers have the freedom to choose their energy supplier, unlike the Regulated Contracting Environment (ACR), where purchase contracts are conducted in auctions with prices determined by the National Electric Energy Agency (ANEEL).
How do Energy Trading Companies Work?
Energy marketers primarily work with bilateral contracts for buying and selling, which means they negotiate directly with generators and consumers. With a deep understanding of the electric sector and market variables, they are able to offer consumers contract options with terms, prices, and energy sources tailored to their needs.
In addition to negotiating contracts in the free market, trading companies also manage risks associated with these transactions, monitor the market to ensure the best price and time conditions, and stay alert to regulatory changes that impact the sector. All this work is regulated by the Electric Energy Trading Chamber (CCEE), which ensures transparency and security in operations.
Why are Electricity Traders Important?
The role of the marketers is essential for the proper functioning of the free energy market. Among the benefits for consumers are:
- Economy and Flexibility: In the free market, consumers have the opportunity to find more competitive prices, as well as choose from different energy sources, such as solar, wind, and biomass.
- Consumption Management and Cost Reduction: Some suppliers offer service packages that include consulting on energy efficiency, allowing consumers to adjust their consumption and reduce costs.
- Sustainability: Many consumers opt for renewable energy sources, and the suppliers facilitate this process, helping companies adopt sustainable practices and differentiate themselves in the market.
- Encouraging Competitiveness: By fostering an environment where suppliers compete, the suppliers contribute to a healthier and more accessible market.
The Evolution of Energy Traders: More than Just Energy Trading
In the past, energy traders were seen merely as trading desks, buying and selling energy. However, as the free market became more sophisticated, these traders evolved into what we now call 4.0 Traders. These companies, in addition to energy trading, now offer complete solution packages, such as consulting for self-production of energy and management of climate and financial risks.
For example, with the implementation of the Hourly Settlement Price (PLD), it has become essential to closely monitor variables such as weather and demand to make more accurate price forecasts. Additionally, many trading companies offer consulting for distributed generation (GD) and solar self-production, a sustainable alternative that reduces costs and improves the predictability of energy bills.
How Commercializers Facilitate the Transition to the Free Market
For consumers looking to switch to the free market, the role of the retailers goes beyond simple intermediation. They are responsible for:
- Migration to the ACL: Manage the entire transition from the regulated environment to the free market, including adherence to the CCEE and economic feasibility analysis.
- Contract Registration and Management: Carry out the registration of energy contracts with the CCEE and monitor compliance with contractual clauses.
- Consumption and Generation Supervision: Monitor energy consumption and generation by suppliers, ensuring that operations are efficient.
- Market Auditing and Monitoring: Conduct audits to ensure that negotiated prices comply with market fluctuations and analyze factors that impact energy supply and demand.
Commercial Dealership: Complete Solutions in Energy in the Free Market
With 15 years of experience, Deal Comercializadora is a reference in the free energy market, operating in both trading and direct sales of energy in wholesale and retail. We act as a strategic partner for companies looking to reduce their energy costs and gain autonomy in electricity consumption. In addition to offering the best contracts, Deal provides comprehensive management and consulting services, ensuring efficiency and security for our clients.
Want to know how to migrate to the free market or optimize your energy consumption? Contact us and discover the opportunities for savings and sustainability that Deal can offer!cer!
