In December 2022, the Ministry of Mines and Energy (MME) released a report on Public Consultation No. 137/2022, which addressed the reduction of load limits for contracting electricity by the free energy market for consumers in low voltage. The consultation proposed allowing the total opening of the market to all electricity consumers, including residential ones.
According to the report, the vast majority of agents voted in favor of the proposal to open the market for low voltage consumers. In total, contributions were received from 53 agents representing all segments of the Brazilian electricity sector.
The high percentage of approval, 94%, is a reflection of the benefits to consumers provided by the free market, which will have the freedom of choice to choose suppliers and products that best meet their consumption profile and their expenditure on electricity.
According to data from the CCEE (Electric Energy Trading Chamber), the free energy market reached the mark of 10,585 consumer agents in August 2022, registering growth of 6.6% compared to December 2021. The expansion is linked to three major factors: greater financial viability, budget predictability, with contracting on demand, and the possibility of opting for a supply of renewable sources.
In addition, a study by the Deloitte consultancy points out that the opening of the free market for all electricity consumers can bring savings of up to R$ 9.6 billion per year for residential and commercial consumers. The research also shows that the opening of the market can generate a 30% increase in the volume of energy traded in the country by 2030.
However, the MME report points out that it is still necessary to evaluate and improve issues such as the management of the distributors’ portfolio, the creation of the figure of the Last Instance Supplier (SUI) and its attributions, the aggregation of measurement data, the treatment of legacies and energy auctions. These topics were addressed by the agents who contributed to the public consultation, highlighting the importance of a broad and constant dialogue between the different segments of the Brazilian electricity sector for the evolution of the free electricity market.
“There are more than 20 years of maturation of the free energy market in the country and that, at this moment, is ready to move towards low voltage consumers” it says Gustavo Machado, CEO
The result of the Public Consultation proves that the total opening of the electricity market remains an inevitable and essential future for the Brazilian electricity sector.
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