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Home / News / Politics & Regulation / Brazil has the structure to fully open Mercado Livre, says minister

Brazil has the structure to fully open Mercado Livre, says minister

Government intends to forward a bill to the National Congress to restructure the electricity sector
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  • Photo by Henrique Hein Henrique Hein
  • August 14, 2024, at 09:00 PM
1 min 35 sec read
Brazil already has the structure to fully open Mercado Livre, says minister
Alexandre Silveira, MME minister, in a hearing in the Chamber of Deputies. Photo: TV Camera/Reproduction

At a hearing held at Câmara dos Deputados this Tuesday (13), the Minister of Mines and Energy, Alexandre Silveira, said that the Federal Government intends to submit to the National Congress, by September, a bill to restructure the electricity sector.

The text would aim to reduce the electricity bill of consumers and carry out the full opening of the Free Energy Market immediately, upon enactment of the law, so that all Brazilians can choose their electricity supplier.

To do this, the bill would need to be approved by the Chamber of Deputies and the Senate and, subsequently, undergo presidential sanction. “(Brazil) already has the structure to be able to carry out (the opening of the Free Energy Market), following the approval of the law, of course,” said Silveira.

Created in 1996, the Free Energy Market is now available for migration to all medium and high voltage consumers, in the so-called Group A.

In the case of low voltage, as is the case for residential and rural consumers, access to the free contracting environment has not yet been released. In 2022, the Federal Government opened a public consultation to open this market to all consumers by 2028, but the text was never published.

Regarding the electricity bill, Silveira said that the bill that will be sent to parliamentarians also aims to increase the social tariff on the electricity bill and distribute the subsidy costs to those who consume more energy. The proposal would have three guidelines:

  • Expand the consumption range eligible for the social tariff on the electricity bill from 50 kW to 80 kW;
  • Allocate sectoral charges more fairly;
  • Make a correction to the distribution of subsidies in energy tariffs to burden consumers who consume more energy. 

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Alexandre Silveira Brazil Free Market Course solar energy Free Energy Market Minister of Mines and Energy bill
Photo by Henrique Hein
Henrique Hein
He worked at Correio Popular and Rádio Trianon. He has experience in podcast production, radio programs, interviews and reporting. Has been following the solar sector since 2020.
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