Deputies will hold a public hearing to discuss the provisional measure for the electricity sector

The CME (Mines and Energy Commission) of Câmara dos Deputados will hold a public hearing to debate the impacts and consequences of the MP for the electricity sector – the provisional measure that proposes structural changes in the Brazilian electricity sector.

A request from deputies Arnaldo Jardim (Cidadania-SP) and Diego Andrade (PSD-MG) – the latter the president of the committee – was approved at the collegiate's regular meeting this Tuesday (28).

In their justification, the parliamentarians allege the “complexity and depth” of the suggested changes, citing among them the expansion of the social energy tariff, the opening of the free energy market for low voltage, the review of subsidies for incentivized sources and the redistribution of charges on the electricity bill.

For such a debate, it was suggested that only the Minister of Mines and Energy, Alexandre Silveira, is invited to this meeting, yet to be scheduled by the CME.

“The Federal Government has signaled the imminent publication of a Provisional Measure with broad reforms in the national electricity sector. This is a set of proposals with the potential to significantly impact the regulatory model, investments in infrastructure, subsidies for renewable sources and the composition of tariffs paid by consumers,” says the justification for the request.

Among the measures under discussion regarding the provisional measure for the electricity sector, the following stand out:

• Tariff exemption for around 60 million Brazilians with monthly consumption of up to 80 kWh, financed by other consumers in the regulated market;
• Elimination of subsidies for incentivized sources (wind, solar, PCH), which may compromise the economic and financial viability of projects contracted under previous rules;
• Opening of the Free Energy Market for low voltage consumers from 2027;
• Rebalancing the CDE (Energy Development Account), the costs of which currently fall mainly on small consumers;
• Potential increase in judicialization and legal uncertainty, given the breach of contractual and regulatory expectations.

“Such measures, although they contain positive aspects, such as the modernization of the energy market and the expansion of access, also raise legitimate concerns regarding distributive justice, regulatory predictability and the sustainability of investments in the energy sector. In this context, holding a public hearing is an essential measure,” the text concludes.

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