In response to the worsening conditions in the free energy contracting environment, a group of associations in the electricity sector decided to publish the manifesto "Liquidity in the free market: a risk for society and for the country's development".
In the text, the entities classify the current situation as "unsustainable" and highlight that "the Brazilian free electricity market will face a critical liquidity restriction in 2026, raising an alert for the entire chain, from traders to end consumers."
According to the document, "the insufficient supply in the futures market imposes a significant distortion," leaving agents exposed to the short-term market and regulatory penalties.
The organizations further emphasize that "this environment, originally conceived for the residual settlement of contractual irregularities, is now playing a disproportionate and undue role," increasing risks for consumers and marketers.
Another critical point highlighted is the combination of lack of liquidity and high price volatility. "This creates a particularly harmful combination: on the one hand, a shortage of liquidity for medium and long-term contracts; on the other, a growing dependence on a structurally volatile and, in the current scenario, excessively high short-term price," they argue.
economic impacts
The document goes beyond the electricity sector and highlights effects on the economy as a whole. According to the manifesto, "the unpredictability and increase in energy costs compromise production planning, erode the competitiveness of national industry, and put pressure on entire value chains, with direct repercussions on inflation and economic growth."
The associations emphasize that "this is not, therefore, a problem restricted to market agents," but rather "a systemic issue, with broad impacts on the Brazilian economy and the well-being of society."
As a next step, they advocate for regulatory changes, highlighting the need to "advance the regulation of Law No. 15.269/2025," especially to make the mandatory full contracting by free consumers more flexible.
Context
The entities' stance comes amid a backdrop of deteriorating financial conditions for trading companies in the free market. Recent cases include companies under monitoring or in receivership, as well as widespread difficulties in honoring contracts.
This environment is characterized by factors such as price volatility, credit restrictions, reduced energy available for trading, and increased contractual risk. The companies themselves point out that structural changes in price formation, coupled with events such as curtailment and hydrological limitations, have put pressure on the cash flow of market participants.
The document is signed by Abraceel (Brazilian Association of Energy Traders), Abiape (Brazilian Association of Investors in Self-Production of Energy), Abrace (Brazilian Association of Large Energy Consumers and Free Consumers), Anace (National Association of Energy Consumers) and the National Front of Energy Consumers (Frente Nacional dos Consumidores de Energia).
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