President Luiz Inácio Lula da Silva (PT) informed parliamentarians that he will veto a section added at the last minute to Provisional Measure 1.304/2025, which deals with the reform of the electricity sector, according to information released by... State of São Paulo.
The provision that is expected to be blocked stipulates that energy consumers, both in the regulated market and the free market, will bear the costs of compensation paid to solar and wind power plants that were forced to reduce their generation by order of the ONS (National System Operator) – a practice known as curtailment.
The measure was added during the plenary vote in the Chamber of Deputies, through an amendment by Representative Danilo Forte (União-CE). The text stipulated that these costs would be paid by the ESS (System Service Charge) and subsequently passed on to consumers' bills.
About MP 1.304
A MP 1.304 / 2025 It promotes changes in various aspects of the electricity sector, including: the creation of a timetable to allow low-voltage consumers to migrate to the free energy market; the contracting of coal-fired power plants; and incentives for energy storage.
After an expedited process, the provisional measure was approved in just one day – passing through the Joint Committee, the plenary of the Chamber of Deputies and, subsequently, the Federal Senate. The text was approved on October 31st and sent for presidential sanction, where it now awaits Lula's consideration.
Congress approves Provisional Measure 1.304 without charges for distributed generation.
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