Published this Wednesday (21), in an extra edition of the DOU (Official Gazette of the Union), the MP (Provisional Measure) 1.300/2025, contains decisions that should directly benefit low-income regulated consumers. In return, they may lead to changes in investment strategies in the generation segment, especially with regard to self-production.
The provisions of the Provisional Measure came into effect yesterday. The Executive Branch expects that the text will be sent to the National Congress for consideration on the same day. The deadline for approval is 60 days, extendable for another 60 days. If this deadline is not met, the bill will expire and lose its effectiveness.
The resources needed to make free education viable electricity bill consumption of up to 80 KWh/month, covering an estimated contingent of 60 million people, will come, in part, from the sharing of various charges with other free consumers and in part from the limitation of network usage discounts valid for TUSD (distribution) and TUST (transmission).
MP 1.300 removes the discount on the wire tariff for consumers of renewable production projects. The incentives provided for in contracts that have been ed and validated by the CCEE (Electric Energy Trading Chamber) until December 31, 2025 remain valid. After this date, the energy transacted will no longer have the discount.
The government has also changed the definition of self-producer. There is now a requirement for a minimum demand of 30 MW for inclusion in the equivalent category. Individual consumption units must be at least 3.000 kW, with a direct or indirect partnership with the holder of the project's concession. A maximum period of 60 days has been set for existing projects to include consumers in the category.
Awaited with great anticipation by agents, MP 1.300 brought content that failed to address the most significant structural issues in the electricity sector, according to professionals in the sector.
The federal government preferred to give priority to the policy of “tariff justice”, as it classifies it, seeking to rebalance the distribution of responsibilities.
In the National Congress, the preference was for the measures to be forwarded through a Bill. This would give parliamentarians more time to suggest modifications.
The fair deadline, however, should not prevent the proposal of amendments that, historically, can also result in the so-called “jabutis”. In other words, suggestions that differ from the original purpose of the government's act, aiming to meet different interests.
Free market liberalization in 2027 brings challenges to the electricity sector
Among other determinations, Provisional Measure 1.300/2025, announced yesterday (21) by the federal government, also established in practice a countdown for the so-called “broad and unrestricted” opening of the free energy market.
According to the proposal, industrial and commercial consumers served at low voltage will be able to migrate to the ACL (Free Contracting Environment) from August 2026.
Captive or regulated customers, according to the nomenclature used by ANEEL (National Electric Energy Agency), will be able to choose who to buy energy from from December 2027. The previous forecast was the first half of 2028.
The government's decision to bring forward the opening for the largest contingent of customers currently dependent on distribution concessionaires, around 93 million people, occurs in the midst of the contract renewal season for these companies, a context that may bring new questions regarding the commitments proposed by the MME (Ministry of Mines and Energy) for approval of the processes.
Emergency reception
The government is also responsible for creating and regulating the Supplier of Last Resort (SUI) until February 2026, according to MP 1.300. This entity will be responsible for providing emergency assistance to free consumers who may eventually face the insolvency of their supplier.
Retailers today have their structures focused on serving segments classified in Group A. They are going through a learning curve due to the significant expansion of their target audience, which includes the implementation of more sophisticated relationship platforms.
From December 2027 onwards, the challenge of prospecting and managing customers will multiply exponentially, requiring expertise, personnel and systems similar to those of mobile phone operators.
Savings of R$35,8 billion annually
In a press release, Abraceel (Brazilian Association of Energy Traders) states that the full opening of the free market from the end of 2027 “equalizes rights in Brazil”.
According to the entity, technical studies for the beginning of this stage have been developed for 25 years and the government's proposal “addresses well the necessary care to protect consumers, especially residential ones”.
For Abraceel, market liberalization has the potential to generate savings for consumers of R$35,8 billion per year in the purchase of electricity compared to the amount currently spent, that is, an average reduction of approximately 20% at 2024 prices.
“This will also help to alleviate inflationary pressure, increase GDP and generate new jobs,” according to Rodrigo Ferreira, the association’s executive president.
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