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Economy

Lula signs decree opening free energy market for residential consumers and small establishments

President Luiz Inácio Lula da Silva (PT) signed this Wednesday (12) a decree that regulates the opening of a free electricity market for low voltage consumers (less than 2.3 kV) from November 2027. The decree establishes the rules so that...

By 365 Breaking News Editorial Team 2 min read
Lula signs decree opening free energy market for residential consumers and small establishments
365 Summary

For other consumers, including residential consumers, this possibility will be available from November 2028. The president signed the measure during a ceremony at Palácio do Planalto.

  • According to the Minister of Mines and Energy, Alexandre Silveira, small establishments could see a reduction of up to 20% in their electricity bills with the measure.
  • At the event, vice-president Geraldo Alckmin also reinforced that the change should make energy prices cheaper.

Editorial reading aid based only on information contained in this story and its identified source.

President Luiz Inácio Lula da Silva (PT) signed this Wednesday (12) a decree that regulates the opening of a free electricity market for low voltage consumers (less than 2.3 kV) from November 2027. The decree establishes the rules so that consumers such as small commercial establishments, rural properties, smaller industries, hospitals and schools can freely choose their electricity supplier. For other consumers, including residential consumers, this possibility will be available from November 2028.

The president signed the measure during a ceremony at Palácio do Planalto. According to the Minister of Mines and Energy, Alexandre Silveira, small establishments could see a reduction of up to 20% in their electricity bills with the measure. At the event, vice-president Geraldo Alckmin also reinforced that the change should make energy prices cheaper. "Today, large consumers can access the free market and get energy 23% cheaper, but lower voltage consumers cannot. This signed decree allows commerce and small industry to enter the free market next year and then the residential consumer, so it will lower the price of energy for everyone, nothing like competition, opening up the market for everyone." The decree also establishes the rules for migration to the Free Contracting Environment (ACL) and also provides for the Supplier of Last Instance (SUI), responsible for guaranteeing energy supply if the supplier chosen by the consumer stops providing the service. Until December 31, 2030, the role of Supplier of Last Resort will be performed by electricity distributors. After this period, other agents will be able to carry out the activity, in accordance with regulations from the National Electric Energy Agency (Aneel). Electric Energy;Energy Network;Energy Distribution Fré Sonneveld The agency will also have to define how the transition will be made between regulated and free environments, with rules on consumer information and protection, comparison of offers and migration between contracting models. Lula also signed three other decrees in the energy and energy transition sectors that regulate policies aimed at sustainable aviation fuel, low-carbon hydrogen and carbon capture and storage.