President Luiz Inácio Lula da Silva signed, this Wednesday (21), the Provisional Measure that begins the reform of the Brazilian electricity sector. The announcement was made by the Minister of Mines and Energy, Alexandre Silveira, after a meeting with parliamentarians in Brasília.
One of the main points of the proposal is the full opening of the free energy market from December 2027. The first cycle will be for industry and commerce, starting in August 2026.
With the change, all consumers – including residential ones – will be able to freely choose their suppliers and directly negotiate energy prices, in an environment of greater competition.
The measure also provides for the expansion of the TSEE (Social Electricity Tariff), with the aim of eliminating electricity bills for more than 60 million low-income Brazilians, as well as the exemption from Spanish Sporthorse (Energy Development ) for an additional 40 million.
According to the proposal, TSEE consumers who consume up to 80 kWh per month and have a per capita income of up to half the minimum wage will be fully exempt from paying their electricity bills. Those with an income of between half and one minimum wage per person will be entitled to a discount, as long as their monthly consumption does not exceed 120 kWh.
According to the minister, the Provisional Measure will be published today in Official Gazette.
“We presented ourselves to the National Congress, with a broad debate with our leaders, with some former ministers and, to our pleasant surprise, the reform was received in a very positive way, which gives us great confidence in a natural good debate with the National Congress, so that we can move forward”, said Silveira.
One of the points that should generate debate in Congress is the end of the discount on the Distribution System Usage Tariff (TUSD) for free consumers. The measure is part of the government's effort to reduce subsidies that currently represent a cost of more than R$11 billion per year in electricity tariffs.
The article is still being updated.
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