Brazil MME Establishes Sectoral Crisis Committee – COVID-19

On March 19, 2020, the Ministry of Mines and Energy (“MME”) published the Ordinance No. 117/GM/2020 (“Ordinance”), which created the Sectorial Crisis Committee (“Committee”) and established the rules and procedures to face the emergency public health situation caused by COVID-19.

The Committee will be composed by the following members: (i) Executive Secretary of the MME – responsible for coordinating the Committee; (ii) Head of Staff of the Minister; (iii) Secretary of Energy Planning and Development; (iv) Electric Power Secretary; (v) Secretary of Petroleum, Natural Gas and Biofuels; (vi) Secretary of Geology, Mining and Mineral Transformation; (vii) Head of the Special Advisory Office to Follow the Sector Policies, Strategies and Performance; (viii) General Counsel; and (ix) Associate Secretary for Planning, Budget and Administration.

The Ordinance assigned to the Committee the attribution of articulating, coordinating, monitoring, guiding and supervising the provisions and measures to be adopted by the MME Management, by the related bodies and entities, as well as by agents from sectors with activities regulated by the agencies.

Among the rules and procedures established by the Ordinance, it should be highlighted the obligation of the regulatory agencies linked to the MME to request action plans from their regulated agents, regarding their respective activities, aiming at maintaining the provision of services. Linked mixed-capital and state-owned companies must submit their respective action plans to the MME.

Furthermore, in order to enable the centralization of the information on ongoing activities, companies and regulatory agencies linked to the MME, in addition to the National System Operator (ONS) and the Electric Energy Marketing Chamber (CCEE) must submit on a daily basis, the following information:

i. Electric Power Sectors: power generation, transmission, distribution and dams status, as well as and flood alerts.

ii. Mining Sectors: dams and natural hazards monitoring, as well as and flood alerts.

iii. Oil, Natural Gas and Biofuels Sectors: the production of oil and its byproducts, natural gas and biofuels, as well as the supply of natural gas and the status of supply.

iv. All Sectors: number of public officials or employees, including employees from third parties’ service contractors, affected by the COVID-19, informing the geographical location, and any other data deemed as relevant.

The information above must be sent to the email mme-covid19@mme.gov.br.

Lastly, in order to ensure celerity in communications, a cell phone number will be activated by the MME for the use of messaging and data communication applications, such number will be disclosed in due course.

For more information related to this legal update, please contact EnergypartnersTC@mayerbrown.com.