For large consumers, it is an option of contracting energy which emerged as a way of stimulating the free competition and reducing energy costs. In this ambiance, broad Brazilian consumers can choose teir electricity supplier and negotiate bilaterally the contractual conditions (price, term, indexation, consumption flexibilities, among others).
Currently, the Electric Sector in Brazil is divided in two types: the Free Contracting Environment (ACL) and the Regulated Contracting Environment (ACR), also called the Captive Market.
ACL participants are energy Traders, Generators, Free Consumers or Special Consumers. Those can freely negotiate energy between them. On the other hand, in the ACR, Traders can only negotiate energy directly with Distributors through auctions regulated by the National Electric Energy Agency (ANEEL).