Brazil Supreme Court sets deadline for electricity bill refunds

The Brazilian Supreme Federal Court (STF) has established a 10-year timeframe for electricity distributors to refund consumers for improper charges on energy bills. These charges originated from the incorrect calculation of PIS/Cofins federal contributions based on the state-level ICMS tax, a matter previously decided by the court in 2017.

The 10-year period begins when companies recover the overpaid funds from the Federal Revenue Service or when the tax compensation is definitively approved. This ruling clarifies the implementation of Law 14.385/2022, which empowers the National Electric Energy Agency (Aneel) to regulate how these recovered funds are returned to consumers.

The decision follows a clarification request regarding the starting point of the statute of limitations, with the proceedings reported by Minister Alexandre de Moraes.