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Are you migrating to the free market? Check out 5 things to consider before hiring a trading platform.

These recommendations come from Ecom Energia, a trading company that has been operating in the Brazilian market for over 20 years.

Canal Solar - Migrating to the free market? Check out 5 things to consider before hiring a solar energy supplier.

Photo: Magnificent

The possibility of choosing from whom to buy electricity should reach thousands of small and medium-sized Brazilian companies starting in 2027, with the expansion of access to the free energy market. This change opens up opportunities to negotiate supply conditions and seek savings on electricity bills.

However, choosing an energy supplier based solely on the price offered can lead to financial risks and unexpected costs. This warning comes from Ecom Energia, a supplier that has been operating in the Brazilian market for over 20 years.

According to the company, a successful migration depends on an analysis that goes beyond the discounts presented in the proposals, involving price formation, contractual conditions, and the supplier's ability to meet expectations.

With the entry of new consumers, the expectation is for increased competition among suppliers and diversification of offerings. In this scenario, comparing proposals will require attention to identify which costs are included and which risks may be transferred to the consumer.

“Savings on electricity bills are one of the main attractions of the free market, but it cannot be the only criterion for choosing a supplier that supports the migration to the free market,” says Márcio Sant'Anna, co-CEO of Ecom Energia.

“Business owners and entrepreneurs need to understand how energy prices are formed, what costs are included in the proposal, and what risks their business will be exposed to during the contract. A well-informed decision is essential to ensure that the migration is safe and financially advantageous,” he emphasized.

Over the course of two decades, the company claims to have served more than 3 companies throughout Brazil, including Bauducco, Honda, Siemens, Volkswagen, and Bluefit. Based on this experience, Ecom Energia has compiled five recommendations for consumers who intend to enter the free market starting in 2027.

Canal Solar - Migrating to the free market? Check out 5 things to consider before hiring a solar energy supplier.
Márcio Sant'Anna, co-CEO of Ecom Energia. Photo: Press release

Five things to consider before hiring a marketing company.

  1. Verify the company's financial stability and track record.

Before closing a deal, it's important to know the company's track record, its client portfolio, and its ability to fulfill contractual commitments. Consumers should also verify if the company is authorized to operate in the sector, evaluate its reputation, and seek references. Offers with prices significantly below market conditions deserve extra scrutiny.

  1. Analyze the contractual conditions.

The contract needs to be reviewed before signing. Points requiring attention include the rules for price adjustments, the term of validity, the conditions for renewal, the required guarantees, and the penalties for early termination. It's also important to understand how any discrepancies between the contracted energy and the company's actual consumption will be handled, as well as the responsibilities of each party.

  1. Understanding price formation and the risks involved.

The lowest initial price offer doesn't always represent the best economic deal. It's necessary to understand whether the contract involves a fixed price, an indexed price, or another modality, what costs and charges are included, and what the consumer's exposure to short-term market fluctuations will be. The comparison should consider the total estimated cost over the contract period and the level of predictability offered.

  1. Evaluate management and monitoring services.

Contracting for energy in the free market also requires monitoring consumption and expenses. Therefore, it's worth checking if the energy supplier offers tools to monitor energy performance, analyze bills, project expenses, and identify potential deviations. These services help consumers track their contracts and make informed decisions about their own consumption.

  1. Understanding the service and support structure

Another point is to assess the supplier's service capacity. It's important to verify if the company has specialized teams, accessible channels, and the structure to offer support during the migration and throughout the entire contract. Issues related to billing, changes in consumption, and regulatory changes may require technical guidance and quick responses.

Opening the market expands opportunities for new consumers.

Starting November 25, 2027, commercial and industrial consumers connected to low voltage will be able to choose their electricity suppliers. In November 2028, this option is expected to be opened to other consumers, including residential ones.

Currently, consumers connected to high-voltage networks can already participate in the free market. With the expansion of access, energy trading companies will also face the challenge of serving businesses that are not yet familiar with the rules for contracting and managing energy.

According to the co-CEO of Ecom Energia, the role of these suppliers should go beyond price negotiation, especially given the arrival of consumers with different consumption profiles and needs.

“A good trading firm needs to go beyond price negotiation, offering market intelligence, consumption monitoring, and specialized support. Our role is to help companies take advantage of the benefits of competition with information, transparency, and trust,” concludes Sant'Anna.

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Henrique Hein
About the Author
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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