An extra edition of the DOU (Official Gazette of the Union) last Friday (11) brought MP (Provisional Measure) 1.304/2025, which aims to promote significant changes in several laws that govern the Brazilian energy sector.
The main focuses include the management of the CDE (Energy Development Account) and relevant points foreseen in the Eletrobras privatization process, in addition to decisions regarding the conditions for marketing natural gas from the quota belonging to the Union.
In total, five laws are subject to changes brought about by MP 1.304: 9.478, from 1997; 10.438, from 2002; 12.304, from 2010; 12.351, from 2010; and 14.182, from 2021. The deadline for receiving amendments by the National Congress expires next Thursday (17).
CDE Rebalancing
Regarding Law No. 10.438, which deals with the CDE, as of January 1, 2026, the total amount of resources collected will be limited to the total nominal amount of expenses defined in the account budget for the year 2026.
Market estimates suggest this amount could range between R$50 billion and R$55 billion. By 2025, the CDE is expected to be around R$50 billion.
To ensure this ceiling is not exceeded, the Provisional Measure creates the Resource Supplement Charge. In other words, in the event of a cash shortage, a supplementary contribution will be made through this charge to rebalance the CDE.
These resources will come from annual fees paid by agents currently benefiting from the CDE, in proportion to the benefit received.
Therefore, incentivized sources such as solar and wind power, distributed micro and mini solar generation (MMGD), irrigation and agriculture, coal, water, sewage, and sanitation will be impacted by the tax collection. However, the MP establishes exceptions to the application of this tax, such as:
- Expenses for universalizing electricity service throughout the national territory (Light for All Program);
- Economic subsidy for the low electricity supply tariff for end consumers in the Low Income Residential Subclass;
- CCC (Fuel Consumption Account) expenses;
- Payment of amounts related to the administration and movement of the CDE, CCC and RGR (Global Reversion Reserve) by the CCEE (Electric Energy Trading Chamber), including administrative and financial costs and tax charges; payment of expenses provided for in art. 4-A of Law No. 12.111 of 2009.
Payment of the Resource Supplement Charge will be staggered as follows: in fiscal year 2027, 50% of the total will be paid; starting in fiscal year 2028, 100% will be paid. The difference between the total amount of the charge in 2027 and the percentage paid will be redistributed to the CDE.
Privatization of Eletrobras
Law No. 14.182 of 2021, which addresses the privatization of Eletrobras, was also amended. The Provisional Measure reaffirms that the privatization of Eletrobras will be carried out through a capital increase, with public subscription of common shares and waiver of the subscription right by the Federal Government.
Also within the context of privatization, the provisional measure provides for the granting of new electricity generation concessions for a period of thirty years. It also allows for the extension of contracts for small hydroelectric plants (SHPs), biomass plants, and wind farms under the Proinfa Incentive Program (Alternative Sources of Electric Energy).
A key point is the granting authority's authorization to contract hydroelectric plants of up to 50 MW through a capacity reserve auction. The total contractable capacity is up to 4.900 MW, with a 25-year supply period and a maximum price equivalent to the ceiling established in the 6 A-2019 Auction for projects without a concession, with an update of this value.
Additionally, the MP establishes a schedule for the contracting of up to 3.000 MW of hydroelectric plants of up to 50 MW in the form of a capacity reserve auction, to be held by the first quarter of 2026, according to the following schedule: 1.000 MW for supply to begin from the second half of 2032; 1.000 MW for supply to begin from the second half of 2033; 1.000 MW for supply to begin from the second half of 2034.
It is worth highlighting that the generation of these hydroelectric plants of up to 50 MW will not participate in the MRE (Energy Reallocation Mechanism) and may have daily modulation, according to the guidelines of the granting authority.
The contracting of electrical energy from any source is now limited to the need identified by sectoral planning, with technical and economic criteria from the CNPE (National Energy Policy Council), except for the contracting of 3.000 MW from small hydroelectric plants.
With this new determination, the MP revokes articles 20 and 21 of Law No. 14.182, of 2021, which provided, respectively, for the contracting of thermoelectric generation and PCHs.
New rules for Union natural gas
The Provisional Measure also addresses the natural gas market, amending Laws No. 12.304 of 2010, No. 12.351 of 2010, and No. 9.478 of 1997.
The changes grant the CNPE (National Energy Policy Council) the power to determine the conditions of access, including its value, to the integrated flow, processing and transportation systems for the commercialization of the Union's natural gas.
For access purposes, the flow and processing system will be treated as an integrated infrastructure, and the Brazilian PPSA Administration Company (Oil and Natural Gas – Pre-Salt Oil) will not be subject to penalties arising from the operation of these systems.
According to the MP, the value for access will be based on a “fair and adequate” remuneration, considering the new replacement value depreciated with a weighted average cost of capital compatible with the business risk and the maximum capacity of the facilities.
The MP also authorizes that, when PPSA hires a marketing agent, the possession or ownership of natural gas (processed or not) and its derivatives may be transferred for a fee to that agent.
In the case of hiring PetroIn Brazil, as a commercial agent, PPSA may transfer ownership or possession of natural gas from the Union to the oil company before it enters the Integrated Flow System, and reacquire it after it leaves the Integrated Processing System.
Additionally, natural gas from the Union may be transferred directly by PetroFrom Brazil to the final recipient of the sale, by agreement between PPSA and the marketing agent.
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