Bill wants to prohibit distributors from operating in the DG market

The objective is to establish mechanisms to guarantee free competition and avoid conflicts of interest
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Federal deputy Delegate Marcelo Freitas (União Brasil/MG). Image: Naiara Araújo/Chamber of Deputies

O 671 / 2024 Bill, authored by federal deputy Delegado Marcelo Freitas (União Brasil/MG), proposes prevent the participation of energy distributors and licensees in the energy market GD (distributed generation).

O target is to establish mechanisms to ensure free competition and avoid conflicts of interest. proposal aims to change the Law 14.300/22, known as the milestone of GD in Brazil, through the inclusion of article 24-A.

This article stipulates that “electricity production activities through microgeneration or distributed minigeneration or economic exploitation of these installations may not be carried out by concessionaires and licensees for the distribution of electricity or by their subsidiaries, s or controlling companies”.

According to deputy Freitas, the creation of distributed generation subsidiaries by of distributors can create situations of monopoly and unfair competition, occupying spaces that should be destined for small generators.

“It turns out that distributors, due to the fact that they have the power to authorize the access of other generators to the distribution network, may be tempted to favor companies from their own business group, to the detriment of the consumers they must serve, which characterizes, in unequivocally, the aforementioned conflict of interest. This harms free competition, discourages the entry of new participants and limits the diversification of energy generation sources in the country,” explained the deputy.

O parliamentarian also highlights that limited load absorption capacity in distributor networks it can be used to create market reserves, harming the development of the electricity sector.

“This bill aims to preserve the integrity of the distributed generation market, ensuring that all generators have equal access to the network and that concessionaires do not use their privileged position to create undue advantages”, argued Freitas.

“In turn, regulation must ensure mechanisms for the effective implementation of these measures and guarantee an environment conducive to the sustainable growth of distributed energy generation”, he highlighted.

O project was presented on March 11 and awaits dispatch by the president of the Chamber of Deputies, Arthur Lira (PP/AL).


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Photo by Wagner Freire
Wagner Freire
Wagner Freire is a journalist graduated from FMU. He worked as a reporter for Jornal da Energia, Canal Energy and Agência Estado. Covering the electricity sector since 2011. Has experience in covering events such as energy auctions, conventions, lectures, fairs, congresses and seminars.

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