Transition to the Free Market

As of January 1st, 2024, consumer units receiving electrical energy at a voltage equal to or higher than 2.3 kV or those served by an underground distribution system (“Group A”) can choose to migrate to the Free Market – ACL. The main characteristic of this market is the free negotiation of terms and commercial conditions for the purchase and sale of electrical energy. It is estimated that this expansion phase will impact around 170 thousand consumer units in Brazil, according to studies by ANEEL.

The migration process, made possible by Ordinance No. 50 of September 27th, 2022 – Ministry of Mines and Energy (“Ordinance No. 50/22”), can be carried out individually by consumers with a load limit of less than 500 kW, provided it is under the representation of a retail trader before the Chamber of Electric Energy Commercialization – CCEE. At this point, Ordinance No. 50/22 itself, as well as Normative Resolution No. 1,000 of December 7th, 2021 (“REN 1,000/21”) from ANEEL, outline the main stages of this process, as well as the necessary documents to be submitted to CCEE for qualification purposes.

With the exponential growth of players in the free market, it is expected that, in the near future, there will be a significant increase in investments and opportunities in the sector. According to the Brazilian Association of Energy Traders – ABRACEEL, by 2035, the broad opening of the Free Market has the potential to generate a reduction of BRL 210 billion in electricity expenses, over 600 thousand jobs, and an average discount of 27% in energy purchases.

Our Energy team at Campos Mello Advogados monitors and advises companies and investors interested in exploring this market, offering a wide range of legal services. Our team stays abreast of sector changes, providing updated information to our clients and the legal framework necessary to structure their respective businesses.

To learn more about our work and the latest discussions on the subject, access the 7th Edition of our Energy InSight Newsletter, which gathers the main topics of the sector.

 

Main Contacts:

Alexandre Calmon
Sócio | Partner
E: acalmon@cmalaw.com

Fabiano Gallo
Sócio | Partner
E: fabiano.gallo@cmalaw.com

Marcelo Frazão
Sócio | Partner
E: mfrazao@cmalaw.com 

Rogerio Campos
Sócio | Partner
E: rogerio.campos@cmalaw.com

Isabela Morbach
Counsel
E: isabela.morbach@cmalaw.com