The proposal presented by the Brazilian Electricity Regulatory Agency (Aneel) to resolve the legal battle over the hydrological risk (measured by the GSF factor) was considered a “setback” by generators, Valor has learned. Aneel received on Wednesday representatives from the five companies most exposed to the GSF: AES Tietê, CTG, Enel, Brookfield and Light. The new proposal provides that agents can purchase reserve energy to protect themselves against the GSF in the future at an average price of around R$220 per megawatthour. “Today, one can buy long-term contracts on the free market for R$140/MWh and even for R$130/MWh. Why will they accept to buy for R$220/MWh?” a source said. Aneel also gave up the plan to reimburse hydroelectric plants for costs incurred with the so-called nonhydrological GSF retroactive to 2013.