Free Energy Market: putting the consumer at the center of the energy transformation

Freedom of choice is just one of the advantages that make the sector so attractive
Free Energy Market placing the consumer at the center of the energy transformation
The Free Energy Market is revolutionizing the way Brazilian companies manage their energy consumption. Photo: Freepik

In recent years, we have witnessed a significant change in the electricity sector in Brazil.

O Free Energy Market, which allows consumers to choose their suppliers, reached an impressive milestone: in July 2024, 51.389 consumer units were part of this environment, a significant growth of 25% in just seven months.

This move not only highlights the growing embrace of the free market, but also reinforces a clear trend: the consumer wants to be the protagonist.

What do these numbers reveal? First, that the The consumer's decision to seek more competitive alternatives in energy supply is a consolidated reality

Since Ordinance 50/2022, which expanded access to the free market for all high voltage consumers, we have seen a notable growth in the migration of companies to this environment.

As of July this year, 31.430 companies informed distributors of their intention to migrate to the free market in the coming months, 95% of which will be small and medium-sized companies.

Migrations to the ACL this year are twice as high as in 2023

This newfound freedom isn’t just about saving on your electricity bill. It's about being able to choose, about having control over one of a company's main operating expenses..

The free energy market allows companies to find solutions that best meet their specific needs, whether in of price or sustainability.

In this article I explain how this freedom, in addition to promoting sustainability, provides savings and flexibility, crucial aspects for competitiveness in any sector.

Cost reduction and increased competitiveness

One of the main reasons for migrating to the Free Energy Market is the significant cost reduction. In the regulated environment, energy prices are defined by the regulatory body, ANEEL (National Electric Energy Agency), and practiced by distributors, with no room for individual negotiations.

In the Free Market, the companies have the freedom to negotiate directly with suppliers, obtaining more competitive prices and contractual conditions that adapt to your specific needs.

For small and medium-sized businesses, which face tighter profit margins and greater sensitivity to variations in operating costs, this savings opportunity is crucial.

Energy, which was previously a fixed and uncontrollable cost, can now be managed strategically, directly contributing to increased competitiveness.

Sustainability as a Business Strategy

A sustainability process has become a priority for many companies, and the Free Energy Market offers a practical way to implement this strategy.

No regulated market, companies have no choice about the origin of their energy. On Mercado Livre, you can choose suppliers that use renewable energy sources, such as solar, wind and biomass.

This possibility of choice is essential for companies that want to reduce their carbon footprint and position themselves as leaders in sustainability. Market studies show that, by 2030, around 44% of the total energy load in Brazil will be supplied by the Free Market.

Free Energy Market will have a share of 44% of the total load by 2030

This means that companies migrating to Mercado Livre today are ahead of a growing trend and preparing for a future in which sustainability will be increasingly important.

Furthermore, adopting sustainable practices is not only beneficial for the environment, but can also bring competitive advantages.

Companies that demonstrate a commitment to sustainability often attract customers and partners who share these values, in addition to being better prepared to meet future regulatory requirements.

Predictability and Cost Stability

One of the biggest challenges for businesses, especially SMEs, is the unpredictability of energy costs. In the regulated market, tariffs can vary significantly over time, making long-term financial planning difficult. However, the Free Energy Market offers a solution to this problem.

In the Free Market, companies can negotiate long-term contracts with fixed or previously agreed prices. This ensures greater stability in energy costs, allowing for more effective planning and reducing the risks associated with price fluctuations.

For many companies, this predictability is a decisive factor when choosing to migrate to Mercado Livre.

In short…

The Free Energy Market is revolutionizing the way Brazilian companies manage their energy consumption. What was once seen as a viable option only for large corporations has now become accessible to small and medium-sized companies, which are discovering the numerous advantages of this model.

With the possibility of reducing costs, increasing flexibility in choosing suppliers and adopting sustainable practices, companies that migrate to the Free Energy Market are positioning themselves at the forefront of a trend that is only set to grow.

Freedom of choice and predictable costs are just some of the advantages that make Mercado Livre such an attractive option.

As more companies migrate to the Free Market, we are seeing a shift in the role of consumers, who now have more control over their energy decisions. This movement is not just a matter of saving money, but a strategic choice that prepares companies for a more sustainable and efficient future.

The Free Energy Market is giving consumers the power to make decisions that positively impact both their businesses and the environment.

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The opinions and information expressed are the sole responsibility of the author and do not necessarily represent the official position of the author. Canal Solar.

Photo by Marcio Sant'Anna
Márcio Sant'Anna
Founding partner and co-CEO of Ecom Energia, a trading company with 22 years of experience in the Free Energy Market. Márcio began his career at Ambev, where he worked in several areas, and entered the energy market at FL. In 2002, he founded Ecom alongside his partner Paulo Toledo.

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