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Understand The Changes To The Electricity Bill And How They Impact Millions Of Brazilians
On May 21, 2025, the federal government announced a significant reformulation of the electricity policy, aiming to promote tariff fairness and increase access to energy for low-income families. The provisional measure signed by President Luiz Inácio Lula da Silva introduces changes to the Social Electricity Tariff and establishes the gradual opening of the free electricity market for all consumers.
Free Electricity Bill For Low-Income Families
The main change brought by the new measure is the free electricity bill for families with a monthly consumption of up to 80 kWh. To benefit, it is necessary to be registered in the Single Registry for Federal Government Social Programs (CadÚnico) and have a per capita income of up to half a minimum wage. This change aims to assist approximately 60 million people nationwide. Previously, discounts varied with consumption: 65% for up to 30 kWh, 40% between 31 and 100 kWh, and 10% from 101 to 200 kWh. With the new rule, total free service up to 80 kWh aims to ensure access to electricity for the basic needs of beneficiary families.
Social Discount For Families With Intermediate Income
In addition to the free service for lower-income families, the measure provides a social discount for those with a per capita income between half and one minimum wage and a monthly consumption of up to 120 kWh. In these cases, there will be an exemption from the payment of the Energy Development Account (CDE), a charge that is part of the electricity bill. It is estimated that about 55 million people will benefit from this reduction, resulting in a decrease of approximately 12% in the electricity bill.
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Gradual Opening Of The Free Energy Market
The provisional measure also establishes the gradual opening of the free electricity market for all consumers. Starting in August 2026, industries and businesses will be able to choose their energy suppliers. Other consumers, including residential ones, will have this option starting in December 2027. This change aims to increase competition in the sector and enable a reduction in electricity costs for end consumers.
Financial Sustainability Of The Measure
The estimated cost of the new social tariff policy will be R$ 3.6 billion per year, according to calculations from the federal government. For this expense to be viable and not negatively impact tariffs for other users, the measure anticipates important adjustments. Among these adjustments, for example, is the elimination of subsidies granted to large consumers, which includes both energy-intensive industries and renewable energy generators. Furthermore, starting in January 2026, the government will cease to apply discounts on electricity network usage tariffs for these groups. With this, it is expected that the savings generated will compensate for the costs of the new policy. Thus, the initiative should directly contribute to the financial balance of the entire national electricity sector.
Processing And Approval Of The Measure
As it is a provisional measure, the new rules take effect immediately after publication in the Official Gazette. However, it is necessary for the National Congress to approve the measure within 120 days for it to become permanent. During this period, lawmakers may alter the text, which could reduce the scope and compromise the effectiveness of the proposed changes.
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