A lack of political consensus and government coordination for six years has hindered Congress from moving forward with projects that introduce new rules for the electricity sector. Resistance is delaying change, such as giving all consumers access to a free energy market, where a buyer can buy directly from producers or traders (who are sort of resellers).

One of the advantages for those who stick to this form of buying is the predictability of prices. Whoever closes the contract knows how much they will pay for the energy they will consume over the life of the contract. When a consumer purchases energy from distributors, rates are adjusted annually by the National Electricity Agency (Aneel). The adjustment takes into account inflation and the distributor’s energy purchase costs in addition to their investments.

The opening of the free market and other updates to the rules are foreseen in two similar texts, both of which come from public consultations conducted by the administration of Michel Temer. The proposals also leave room for the so-called “modernization of the electricity sector”, which is a priority for the energy group in the government of Jair Bolsonaro.

portability

With government support, Bill 414/202 has been approved in the Senate and suspended in the House since the beginning of this year. The text stipulates that consumers will be able to freely negotiate energy with producers without the need for a distributor for three and a half years after the law is passed. Today, this type of negotiation is limited to large consumers such as industries. Bill 1917/2015, known as “PL for Electricity Bill Portability”, specifies that this release must be made within six years.

President of the Forum of Associations in the Electricity Sector (Fase) Mario Menel believes it is easier to endorse the text approved by the Senate. “This bill is more advanced. Strategically, it would be necessary to make several changes to the Chamber and repeal some provisions that have been approved by other laws. ” However, he fears that the final text may come out of Congress. This is because recent proposals for the electricity sector, such as the privatization of Eletrobras, have been approved using “turtles” – the jargon used to denote non-original issues – that represent billions of dollars in costs to consumers in the coming years.

Lacking prospects, the MPs returned to study PL 1,917, which is being processed by a special committee of the Chamber, according to a report by MP Edio López (PL-RR). The text was restored in September, but there is still no consensus. The congressman made changes to the text, such as removing incentives and regulations for energy generated from garbage and trying to bolster the government base. The intention is to enlist the support of MPs and the Ministry of Mines and Energy to vote on the matter next Wednesday. Behind the scenes, there is an assessment that a political overriding action dispute could further delay the determination of a new legal framework for the electricity sector.

what is being discussed

There are now two projects on this topic. One of them has already been approved in the Senate and is in the House under the rapporteur of MP Fernando Coelho Filho (DEM-PE). Another, which deals with electricity bill portability, is being analyzed by an interim committee of the Chamber.

The texts of the projects are very similar. One of them is the opening of a free market where all consumers can now buy energy directly from generating companies (station owners).

Currently, only those who consume more than 3,000 kilowatts (kW) per month – large consumers such as industrial plants – can buy energy directly from any generator.