Brazil energy market settlement seen up to 90 pct insolvent -traders
SAO PAULO, Sept 29 (Reuters) - Energy traders in Brazil said on Tuesday that the upcoming balance of payments expected in October for supply contracts on the local energy market settled by the CCEE clearing house would likely be 80 percent to 90 percent insolvent.
After nearly two years of drought, Brazil's hydroelectric generators have been unable to produce enough electricity and the energy market regulator Aneel said they must buy energy on the spot market to cover their supply contracts.
The deteriorating conditions on Brazil's energy markets are due to several hydroelectric companies that have secured court injunctions suspending their requirement to cover these costs for spot energy, local energy traders said. (Reporting by Luciano Costa; Writing by Reese Ewing; Editing by Christian Plumb)
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