OF THE PROBLEM OF JUDICIALIZATION OF HYDROLOGICAL RISK

Abstract

Hydrological risks, greatly increased in recent years by some periods of drought, influenced many court decisions that caused default in the Short-term market, which was paralyzed by the difficulty of complying with Electricity Trading Chamber contracts. The rub is established to the extent that generators, hit by periods of drought, and without institutional guarantees, seek the intervention of the Judiciary, which, in many cases, intervene, granting injunctions, previously suspending the obligation to fulfill the contract of Energy supply. Based on these decisions, the contracts made are not fulfilled and the purchasers are surprised, not receiving the agreement, and, in turn, they also seek judicial acceptance to minimize their losses. In this context, the present work arises, bringing a little of the structuring of the sector, which summarizes why any intervention by a third party in the relationship unbalances the contractual arrangement and the intervening bodies. The recent Law that brings a solution to the situation of unbridled judicialization is brought, seeking to guarantee generators more  stability and security in the face of the risks that will endure with the moments of lesser water precipitation, as well as to the purchasers.