Brazil 's Ministry of Mines and Energy (MME) submitted a draft bill to reform the electricity sector to the Presidential Palace, proposing structural changes related to the free energy market, tariff restructuring, and sectoral balance. As previously reported by Energía Estratégica ( see article ), the proposal aims to expand access to electricity for families, reduce social inequalities, create balance in the electricity sector, guarantee greater freedom for consumers to choose energy providers, promote more competition, and protect the most vulnerable populations. One of the central pillars of the reform is the complete liberalization of the energy market.
Starting in March 2027, industrial and commercial consumers connected to low-voltage networks (less than 2.3 kV) will be able to freely choose their energy providers. This freedom will be extended to residential, rural, and other sectors starting in March 2028, allowing for greater competition and the option of renewable energy generation. To further the complete liberalization of the electricity market, the government seeks to create the figure of the supplier of last resort (SUI), which must be regulated before July 2026, in order to guarantee continuity of service for consumers who, for any reason, do not have active contracts in the free market. In addition, the reform proposes adjusting the discount period for irrigation, which is currently set between 9:30 p.m. and midnight and 6:00 a.m., taking into account changes in energy consumption and generation in Brazil, especially due to the increase in solar power generation. "The goal is to make this schedule more flexible and efficient, adapting it to the new scenario of energy generation and consumption, potentially even reducing renewable energy curtailments," government officials stated. The plan also aims to redefine the self-producer category, currently focused on large consumers with a minimum contracted demand of 30 MW and at least a 30% stake in the energy venture's share capital. Simultaneously, conditions are being established to maintain this category in the event of corporate restructurings or reviews by the Administrative Council for Economic Defense (CADE). The government anticipates the gradual elimination of cross-subsidies and the equitable distribution of charges from the Energy Development Account (CDE) among all consumers, regardless of voltage type. It also plans to modify the social tariff that currently benefits 17 million low-income households, representing 60 million people. Furthermore, Brazil's National Electric Energy Agency (ANEEL) will be able to establish differentiated tariffs based on time of day, location, delinquency, or prepayment model, among other factors; therefore, the possibility of multi-party tariffs and changes to the generation tariff regime is being considered. "The reform also aims to eliminate distortions and bring predictability and legal certainty to the sector."
The goal is to promote cost reductions for consumers while preserving a favorable environment for investment, especially in energy distribution and generation,” the draft bill states. Similarly, the government recently announced measures such as an investment of over R$60 billion in transmission infrastructure for the country’s full integration into the National Interconnected System (SIN), particularly in the Amazon region, to reduce the use of fossil fuels. The draft bill, still in its preliminary stage, must be approved by Congress and may be subject to changes.
However, it constitutes one of the most ambitious reforms in the sector in recent decades, with the aim of modernizing the system, promoting competition and ensuring fairer access to energy for all Brazilians.
