Brazil mandates smart meter expansion for electricity sector

New regulatory mandates in Brazil are driving the digitalization of electricity distribution networks. Under Normative Ordinance MME nº 126/2026, energy concessionaires must implement additional smart metering systems for 2% of consumer units annually over a 24-month period starting March 1.

These smart meters must support advanced functionalities, including remote reading, anti-fraud alarms, cybersecurity, and interoperability with Advanced Metering Infrastructure (AMI). The regulation also introduces time-of-use pricing and integration with billing systems via consumer applications.

Furthermore, the free energy market is set to expand to low-voltage consumers in two stages. Industrial and commercial consumers may migrate in November 2027, followed by residential consumers in November 2028. This transition emphasizes the need for reliable data and integrated processes as consumers gain the ability to choose their energy suppliers.