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[BUSINESS] · Brazil · 3 sources

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Brazil regulates low-voltage consumer migration to free energy market

The Brazilian federal government has issued Decree No. 13.097/2026, regulating the migration of low-voltage consumers to the free electricity market. The decree tasks the National Electric Energy Agency (Aneel) with establishing the technical rules for this transition.

The market opening will occur in two stages: November 25, 2027, for small industries and commerce, and November 25, 2028, for all other consumers, including residential households. While the move allows for the negotiation of energy costs, it does not automatically reduce expenses, as network fees and mandatory charges remain unchanged.

Key restrictions include the loss of access to the Social Electricity Tariff (Tarifa Social de Energia Elétrica) for those who migrate, and a requirement of one year's notice to return to the regulated market. The Brazilian Association of Energy Traders (Abraceel) estimates that full opening of the low-voltage sector could result in annual savings of up to R$ 35 billion.

Entities

Abraceel · Aneel · Brazil · Marcelo Freitas · Soul

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