Government expresses support for free energy market

energy marker brazil
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The government has said it backs plans to deregulate the electricity market, as the House prepares to vote on a bill on the issue. The bill would create an open electricity market for all consumers in Brazil, effective 42 months after the law comes into effect.

Camilla Fernandes, program director of the Mines & Energy Ministry’s Executive Secretariat, said during an event on Tuesday that the government supports the initiative. “The conclusion of a public consultation was that the opening of the market can generate benefits for society and can reduce electricity costs. But this process is complex and demands thorough studies as well as, principally, changes to the sector’s regulatory framework,” Ms. Fernandes said.

Currently, only large-scale consumers can source their electricity on the free market in Brazil, with the majority of Brazilian consumers served by regional distributors, paying prices set by the National Electricity Agency (Aneel).

The House is expected to vote on the bill this month, after which it must be returned to the Senate for approval.