Government plans to open Mercado Livre in January 2024

Union publishes public consultation with the aim of collecting contributions for ACL advancement in the country
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Governo planeja abertura do Mercado Livre em janeiro de 2024
Free energy market has been gaining strength in Brazil since last year. Photo: Enel/Reproduction

O MME (Ministry of Mines and Energy), made available, this Tuesday (26), through Ordinance 672/2022, Public Consultation No. 131/2022, with the aim of collecting contributions from society regarding the proposed ordinance that advances in opening of Free market of electrical energy in the country.

With the initiative, Pasta intends to continue the path taken of gradual opening of the market, enabling All consumers served in high voltage (HV) can choose to purchase electricity from any supplier from January 1, 2024. 

The measure has no direct relationship with PL 414, which is being processed in the National Congress and provides for discussion on a broad opening of energy trade on the Free Market. This is an individualized action by the MME. 

In the view of Abraceel (Brazilian Association of Energy Traders), the proposal brings an effective advance in the market liberalization agenda, potentially providing an even greater number of adhesions to the ACL (Free Contracting Environment).

“It continues the process that had been taking place in recent years, but which was just the end of the market reserve, now it is finally moving towards opening up effectively, and with this it will bring more efficiency and competition to the sector”, Bernardo Sicsú, deputy -president of Strategy and Communication at Abraceel.

Mercado Livre in Brazil

The discussion about the opening of the Free Energy Market in Brazil has been gaining strength since last year, mainly due to the effects of the water crisis. Such openness is seen as necessary to give more bargaining power to consumers, who can close more predictable contracts with chosen suppliers, without general adjustments each year.

Currently, the market is restricted only to consumers with a load equal to or greater than 1,000 kW. From January 1, 2023, this limit will be reduced to 500 kW. 

“With regard to low voltage (BT) consumers, it is not possible to cover them at this time, given the prior need to promote legal and regulatory developments arising from a possible inclusion, in order to safeguard the sustainability of the opening of market for this segment”, highlights the MME.

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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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