Increase in Energy Consumption Leads to Red Flag Across Brazil, Worrying Families and Businesses With Higher Bills in September

Written by Rannyson Moura

Published on 02/09/2025 at 10:00

Consumo de energia volta a subir no Brasil, puxado por residências e crescimento do mercado livre, levando à permanência da bandeira vermelha no país. Fonte: gerado por Inteligência Artificial

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Energy Consumption Rose Again In July 2025, Driven By Residences And Growth In The Free Market, Leading To The Red Flag Remaining In The Country.

After three months of decline, energy consumption rose again in July 2025, resulting in the maintenance of the red flag, as pointed out by Poder360 this Tuesday (02.Sept.2025). According to the Energy Research Company (EPE), the country recorded 45,177 GWh, up 0.6% compared to the same month last year.

The increase interrupts a trend of retraction and highlights changes in electricity use behavior, particularly in residences.

Residential Leads The Increase, While Industries Consume Less

The residential sector showed significant growth, with a 5.9% year-on-year increase. On the other hand:

ARTICLE CONTINUES BELOW

Regional Analysis: South Registers Largest Increase

The consumption growth was not uniform:

South: +4.4%
Northeast: +1.7%
North: +1.0%
Southeast: -1.1%
Central-West: -1.1%

According to the EPE, the South grew due to a low comparative base with July 2024, when floods reduced consumption in Rio Grande do Sul.

Free Market Grows And Dominates Almost Half Of Consumption

The free energy market continues to expand. In July 2025:

Consumption: 20,760 GWh (46% of the national total)
Consumption Growth: +4.8%
Growth In The Number Of Consumers: +49.7%

Regional Highlights:

South: Largest Consumption Growth (+10.1%)
Central-West: Largest Increase In Free Consumers (+72.1%)

In contrast, the regulated market, with 24,417 GWh (54% of consumption), fell 2.8% in consumption but saw a 1.7% increase in the number of customers.

Impact Of The Red Flag On Energy Bills

Aneel announced that the red flag level 2 will remain in effect in September 2025. This means:

Increase Of R$ 7.87 For Every 100 kWh Consumed
Need To Reduce Residential Consumption
Special Attention For Companies That Increased Energy Use

The scenario reinforces that energy conservation is essential, especially for residences, which lead the consumption growth.

Accumulated Consumption And Future Trends

In the last 12 months, total national consumption reached 563,208 GWh, up 1.6%. The trend of migration to the free market is expected to continue impacting the numbers.

The expectation is that regions and sectors will adopt energy efficiency measures to reduce costs and avoid the impacts of the red flag.

Increase in Energy Consumption Leads to Red Flag Across Brazil, Worrying Families and Businesses With Higher Bills in September

Energy Consumption Rose Again In July 2025, Driven By Residences And Growth In The Free Market, Leading To The Red Flag Remaining In The Country.

Residential Leads The Increase, While Industries Consume Less

Regional Analysis: South Registers Largest Increase

Free Market Grows And Dominates Almost Half Of Consumption

Impact Of The Red Flag On Energy Bills

Accumulated Consumption And Future Trends

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Increase in Energy Consumption Leads to Red Flag Across Brazil, Worrying Families and Businesses With Higher Bills in September

Energy Consumption Rose Again In July 2025, Driven By Residences And Growth In The Free Market, Leading To The Red Flag Remaining In The Country.

Residential Leads The Increase, While Industries Consume Less

Regional Analysis: South Registers Largest Increase

Free Market Grows And Dominates Almost Half Of Consumption

Impact Of The Red Flag On Energy Bills

Accumulated Consumption And Future Trends

The Soviet Union spent 22 years drilling into the Earth’s crust and reached a depth of 12,262 meters — they found water where it was thought impossible, hydrogen bubbling from the rock, granite that is 2.7 billion years old, and temperatures of 180 degrees that melted the drill bits.

Egypt wants to draw 10 million cubic meters of water from the Nile per day into the desert, irrigate a new agricultural frontier, and build a city where there is currently only sand.

Ethiopia has banned gasoline and diesel cars, placed over a hundred silent electric buses on the streets of Addis Ababa, and now aims for half a million electric vehicles by 2030, all powered by Africa’s largest dam and a courage that few countries have shown.

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