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Now Brazilians Have the Freedom to Choose Their Energy Supplier: New Rule Opens Free Market to Households with Supply Guarantees in Case of Company Failures

Author profile image Romário Pereira de Carvalho
Written by Romário Pereira de Carvalho Published on 12/08/2026 at 22:08
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Decree opens the free energy market to low-voltage clients, starting in 2027 for commerce and industry and in 2028 for households, while also creating guarantees for continuous power supply

President Luiz Inácio Lula da Silva signed on Wednesday the decree that regulates the free energy market for low-voltage customers, allowing households to choose their suppliers starting in November 2028.

Free energy market begins earlier for commerce and industry

The change affects customers serviced at low voltage, below 2.3 kV. For industrial and commercial consumers, the option to choose their suppliers begins in November 2027.

Other customers, including residential consumers, will be able to migrate starting in November 2028.

In practice, they will be able to choose their electricity suppliers in a model similar to that existing in telecommunications.

The decree does not modify the rules for energy production and transmission, which are subject to their own regulations.

It establishes how the migration to the Free Contracting Environment, known by the acronym ACL, will occur.

Now Brazilians will have the freedom to choose their energy supplier: commerce and industry enter the new market in 2027, and residential consumers will have options starting in 2028
Consumers will be able to choose energy suppliers starting in 2027
Photo: Marcelo Casal Jr / Agência Brasil / Disclosure / CP

Distributors will ensure supply in case of failure

One of the new features is the Last Resort Supplier (SUI), which will function to guarantee supply if the company chosen by the consumer stops providing the service.

Until the end of 2030, this responsibility will remain with the energy distributors. After this period, other agents may assume the role, further opening the market.

The National Electric Energy Agency (Aneel) will be responsible for regulating the transition from the current regulated environment to the free energy market, as well as establishing rules for information and consumer protection.

Decrees also cover aviation and hydrogen

At the same event, three other decrees regulated policies related to sustainable aviation fuel, low-emission hydrogen, and carbon capture and storage.

In aviation, the National Sustainable Aviation Fuel Program (ProBioQAV) sets rules for production, certification, commercialization, and traceability. The sector is expected to reduce its emissions by 10% between 2027 and 2037.

The National Hydrogen Program, the Low Carbon Hydrogen Development Program, and the Brazilian Hydrogen Certification System have also been established.

Carbon capture gains regulatory framework

The package also established a regulatory framework for carbon capture and storage. The Ministry of Mines and Energy will lead the development of a national infrastructure plan for carbon capture, transport, and geological storage.

This planning will be reviewed every two years and will guide the implementation of areas designated for the different stages of the activity.

This article was prepared based on the information present in the provided base material, with data, numbers, timelines, and rules preserved according to the consulted content.

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Romário Pereira de Carvalho

I have published thousands of articles on recognized portals, always focusing on informative, direct content that provides value to the reader. Feel free to send suggestions or questions.

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