Thus, the release of the first contracts after January 2003 paved the way for self-action using the limits of Resolution 278/00, since Law 10604/2002 imposed the award of contracts between generators and distributors after that date by auction, but allowed to act yourself under your previous conditions. For these self-defeasing contracts, the price has generally been set by the UN ceiling (or rather UN – 11.5%, as has already been argued). This price was even more advantageous for distributors who generate electricity through thermal facilities. In response to the rationing crisis, ANEEL has put in place a correction formula for the United Nations, with three factors, in accordance with Resolution 22/2001, Article 90: K1 (correction by IGPM26), K2 (change in fuel prices) and K3 (change in exchange rate). As K1 and K2 were both affected by K3, the adjustments were consistently higher than the inflation indices at each period. Considering that this is a very attractive revenue guarantee, these distributors have also signed very long-term self-dening contracts; Celpe signed a 20-year supply contract with its thermal power plant from December 2003. Since the cost of thermal installations is much higher than the border system, which cost between 80% and 90% of the time, the price of the energy that consumers had to pay with these systems was significantly higher than the average cost of the system. The problem was greater when self-allocation was a larger share of a utility company`s market, and was compounded by the TPP. Renewable and conventional energy holders seek to compete with other energy holders and maximize their profits in the market. The bilateral reserve price and the amount of electricity charged between these two types of energy owners can be solved with game theory. The optimal bid strategy of the two energy owners can be modeled with the stochastic programming presented in the previous section.

Considering that the rules established during the implementation of Cardoso`s reform have favoured self-attribution to price harmful to consumers, given the method of calculation of the United Nations and its adaptations, Lula`s reform banned self-trade or the awarding of bilateral contracts within a single economic group (Articles 20 and 30, Act 10848/2004) and extinguished the United Nations and its adaptations on the basis of Kl, K2 and K3 (Article 20, Article 20, Act 10848/2004).