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Politics & Regulation

Minister wants to limit CDE and asks that reform of the electricity sector not be divided

Alexandre Silveira participated in a public hearing at the Chamber of Deputies' Mines and Energy Committee

Canal Solar - Minister wants to limit CDE and asks that reform of the electricity sector not be divided

Alexandre Silveira in a hearing this Wednesday (9) Photo: Kayo Magalhães/Chamber of Deputies

The Minister of MME (Ministry of Mines and Energy), Alexandre Silveira, participated, this Wednesday (9), in a public hearing at the CME (Mines and Energy Commission) of the Chamber of Deputies. 

The meeting served to discuss Provisional Measure (MP) 1.300/2025, which proposes reform of the electricity sector. Silveira defended the bill, which has already received 600 amendments (changes) and is awaiting the establishment of a special committee to move forward.

"The last restructuring of the sector was in 2004, more than twenty years ago. The provisional measure we submitted addresses tariff justice, market openness, and balance in the electricity sector. I understand and respect the 600 amendments; it's part of the debate, so we can improve the matter," said Silveira. 

“I hope this reform is not fragmented, as has already been reported in the press, because it was carried out in a balanced manner,” the minister added.

During his speech, Silveira announced that the government will introduce a new provisional measure, this time to limit charges paid by consumers on their electricity bills. In this case, he referred to the CDE (Energy Development Account).

"It's no longer acceptable for us to continue accepting such high costs as a result of interests that often don't reflect the interests of the Brazilian people. Therefore, we must limit how far we go in the CDE, because energy, besides being a source of life, is also a fundamental input for national industry, commerce, and production," he stated. 

The head of the Ministry also said that the country should not depress the national economy as a result of interests that, according to him, are not always those of the Brazilian nation. 

"I hope this committee helps us defend the interests of the Brazilian nation. We will submit this provisional measure by next week at the latest. We cannot afford to pay more for energy to expand a matrix that is already 90% clean and renewable," he added.

What is the CDE?

The CDE, among its various purposes, grants tariff discounts to user groups, such as low-income users; funds energy generation through solar and wind systems; and promotes natural gas and domestic coal. 

According to ANEEL (National Electric Energy Agency), revenues from this charge have increased and could reach R$40,6 billion in 2025. In 2016, the value was R$18,3 billion.

New director of ANEEL

The minister participated in the debate for an hour and a half, and was later replaced by Energy Secretary Gentil Nogueira. He is considered for a position on the board of directors of ANEEL, the aide's name was championed by Silveira, who even asked the legislators for help with the nomination. "I'm going to lose the best energy secretary of all time," he exclaimed.

The names chosen for regulatory agencies undergo a hearing in the Federal Senate, where President Davi Alcolumbre has already signaled a direct interest in supporting his preferred candidates. He and Silveira have a tense relationship, with the senator repeatedly calling on Lula for the minister's resignation over the past two years.

Cuts in regulatory agencies

Regarding the situation of regulatory agencies, which had around 30% of their budget frozen by presidential decree, Silveira stated that the Government has done everything to ensure the structuring of the agencies. 

"We need to separate structuring from budgeting. As far as possible, we've done everything we can to address structuring. I can give several examples. The budget issue needs to be addressed within the context of tax justice. We have R$800 billion in tax relief in Brazil. And it's entirely possible to address this issue by combating tax relief, which should be limited," he quipped.

The minister also claimed that the country has a "brutal budgetary constraint," which prevents it from addressing its serious problems. "No one in their right mind would defend the efficiency of the public sector, but we cannot abandon oversight, especially of organized crime entering the fuel sector in this country," Silveira reinforced.

MP of the electricity sector

A MP 1.300 / 2025 is in effect until September 18th. Congress is awaiting the installation of a joint committee to evaluate the matter, which has received 600 amendments. Silveira offered to collaborate on the debate and improvements. 

So far, party leaders have already nominated the committee members, but it should only actually begin in August, as reported by the rapporteur of the provisional measure, Congressman Fernando Coelho Filho, former Minister of Mines and Energy.

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Manoel Guimarães
About the Author
Manoel Guimarães

He worked as a reporter, radio announcer and communications advisor. Passages in newsrooms and the three Powers of the Republic. He has been following the electricity sector since 2016.

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