Senate Approves Bill That Reduces Electricity Bills And Regulation Eases The Burden On Brazilians, Who Pay One Of The Most Expensive Energy Bills In The World!

Project Relieves Brazilians Who Saw Electricity Prices Soar In Recent Years, With Forecast To Rise More Than 21% In 2022!

The Bill 414, of 2021, which alters the regulatory framework of the electric sector and expands the opening of the free electricity market, increasing the purchasing power for captive consumers, who today can only obtain electricity from already defined distributors without the option to choose, has already been approved in the Federal Senate and is now under consideration in the Chamber of Deputies!

With the opening of the market and more competition, experts expect a considerable reduction in the cost of electricity for consumers. A relief for Brazilians who saw electricity prices soar in recent years, with a forecast to rise more than 21% in 2022, according to data from the National Electric Energy Agency (ANEEL).

Brazil Has The Second Most Expensive Electricity Bill In The World!

Brazil has the second most expensive electricity bill in the world, according to research conducted by the platform Cupom Válido, based on data from Abrace (Association of Large Industrial Consumers of Energy and Free Consumers). According to the study, the cost of electricity in the country increased by 47% in the last five years and accounts for 25% of the Brazilian family budget.

Figures released by Trinity Renewable Energies, one of the largest managers in the free electricity market, show a savings of approximately 20% on the bill, comparing captive consumers and free consumers, during the years 2016 to 2021.

For now, the free electricity market is available to clients with a minimum demand of 500 kW, classified as special consumers, who are required to acquire energy from renewable sources, and 1000kW for free consumers, who can acquire energy from conventional sources.

Project Proposes To Expand Access To The Free Market For Ordinary Consumers

This is exactly what the project intends to change: to expand access to the free market for ordinary consumers, referred to as captive consumers. According to João Sanches, CEO of Trinity Renewable Energies, “with the regulated PL, these clients will be able to choose the company that will supply their electricity consumption, benefiting from the option to buy on demand and save, depending on factors such as current market price, rainfall performance and other factors”.

With the vote on the PL still scheduled for this year, operations will become more competitive, with the opening of the sector and the expansion of companies and clients.

For Sanches, “competition in the free electricity market ensures greater flexibility for companies and clients, who can decide which supplier is best and what type of contract to establish, allowing them to determine which provider best meets their needs, whether they are solid companies or contractual satisfaction”, the specialist adds.

The Bill, which is reported by Congressman Fernando Coelho Filho, has already been approved in the Senate and is now awaiting a vote in the Special Commission of the Chamber of Deputies. After approval, there will still be a 42-month period before it comes into effect, which, subsequently, will benefit a significant portion of the population, considering that currently only a small minority benefits from purchasing electricity in the free market.