Senacon will investigate alleged abuse of power in the free market

A senacon (National Consumer Secretariat), an agency linked to the Ministry of Justice and Public Security, will investigate suspicions of abuse of power in the Free Energy Market.

On September 18, the Secretariat notified 105 energy distributors and their affiliates to provide clarifications on the use and sharing of consumer data between companies in the same economic group. The concessionaires have 10 days to respond. 

Senacon's concern stemmed from several reports in the media in which independent retailers complained of being harmed in the process of consumers migrating from the captive to the free market. 

With the flexibilities stipulated by Ordinance No. 50/2022 of the Ministry of Mines and Energy, thousands of small consumers began to migrate to the free energy market this year. By August, there were more than 16 thousand companies.

ABRACEEL (Brazilian Association of Electric Energy Traders) has received some complaints in which the network's monopoly agent, in this case the distributor, uses this position to leverage another competitive activity, which is the commercialization of energy. 

At the end of August, the ANEEL (National Electric Energy Agency) opened the call for proposals No. 14/2024 to discuss with the market possible practices of abuse of power. Contributions were sent until September 17. In the coming weeks, the agency is expected to present some proposal to contain these cases. 

“We want to ensure that the energy market operates in a transparent and fair manner, without consumers being harmed by abusive practices or unfair competition. Senacon will act rigorously to prevent any violation of consumer rights and to ensure a competitive environment,” said National Consumer Secretary Wadih Damous.

Among the main issues raised by the secretariat are:

• the existence of retail energy marketing agents within the distributor's economic group;
  
• details of contracts between these agents and distributors for the sharing of infrastructure, equipment or personnel;

• Information about consumers who have migrated to the free market and their relationship with retail agents belonging to the group;

• the technical requirements made during the migration process and whether these requirements were differentiated for consumers linked to independent agents or to the group.

What does ABRADEE say?

According to ABRADEE, the association that represents distributors, the energy distribution segment operates in strict compliance with the General Data Protection Law (LGPD).

The entity also said that it actively participates in the dialogue about the opening of the market, including in the Aneel Subsidy Request regarding the topic, with data and contributions for the continuous evolution of the sector.

“The opening of the electricity market, contrary to what is foreseen in Federal Law 10.848/04, has caused additional costs for consumers in the regulated market, due to subsidies that have been granted for migration and not adequate allocation for the cost of energy”, wrote ABRADEE in a note sent to Canal Solar..

“Abradee represents 39 energy distribution concessionaires, covering 99,6% of Brazilian consumers. The distribution segment invests more than R$30 billion per year to guarantee the population’s due service and ensure the market’s economic and financial balance,” he concluded. 

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