Brazil regulates free electricity market for small consumers

President Luiz Inácio Lula da Silva has signed a decree regulating the opening of the free electricity market to small and medium-sized consumers. This measure allows customers served by low voltage (below 2.3 kV) to choose their energy suppliers, similar to the telecommunications market.

The implementation follows a specific timeline: industrial and commercial consumers will gain access starting November 25, 2027, while all other consumers, including residential users, will be able to choose their providers starting November 25, 2028. To ensure security, the decree establishes the ‘Supridor de Última Instância’ (SUI), a last-resort supplier responsible for maintaining energy supply if a chosen provider fails. Energy distributors will fulfill this role until the end of 2030, after which other agents may be authorized by Aneel.

Additionally, the government signed decrees regarding energy transition, including the National Sustainable Aviation Fuel Program (ProBioQAV), which sets rules for the production and certification of sustainable fuels to meet emission reduction targets in the aviation sector.