Brazil Opens Free Energy Market to Households

What Is the Free Energy Market and Who Can Join?

Brazil's free energy market currently serves only medium- and high-voltage consumers, who negotiate electricity prices directly with generators or traders. The new decree opens that same freedom to low-voltage users — small businesses, micro-industries and households — for the first time.

When Can Small Businesses and Households Switch?

The government has set two clear deadlines. Low-voltage commercial and industrial consumers can migrate from 25 November 2027. Residential and other remaining consumers must wait until 25 November 2028. These dates were formally established by Law 15.269.

Will the Electricity Bill Actually Drop?

The Ministry of Mines and Energy estimates savings of 20% to 22% on the energy portion of the bill for small businesses. However, distribution tariffs and taxes remain unchanged, so the reduction applies only to the consumed electricity component — not the full bill.

What Happens If My Supplier Fails?

ANEEL still needs to regulate migration procedures and the so-called Supplier of Last Resort. Until 2030, local distributors will play that safety-net role, ensuring uninterrupted supply if a commercial trader defaults.

What About the Social Tariff?

The original reform package (MP 1.300) was split by Congress to ease negotiations. Law 15.235 focused social tariff benefits into the Luz do Povo programme, protecting lower-income households during the transition.

Any Other Measures in the Package?

The federal decree also covered low-emission hydrogen, carbon capture, and sustainable aviation fuel — the latter set to take effect from 2027 — signalling a broader energy transition agenda.