Brazilian electrical sector: dead end
In 2024 it will be the turn of consumers served at medium voltage but without the minimum demand requirement (which was 500 kW).They can, if they wish, migrate to the free market.
Subsequently, the forecast is that consumers served at low voltage, including residential ones, will also be able to become free, if they so choose.
But it is the regulated tariffs that include a list of costs that free prices do not pay. It is exactly for this reason that there is a significant difference, which has made the free - deregulated - market much more attractive than the regulated one.
What will the costs that regulated pay if there is a massive free migration?
The lack of predictability in the electricity sector is a relevant factor, which makes decisions - especially long-term ones - extremely difficult in Brazil.
Our electricity sector, unfortunately, is and always has been - led with a predilection to look preferentially at the short term.
And so we are effectively trapped in terms of competitiveness and legal security.
Rafael Herzberg
Expert Member
Top Contributor
Wed, Jan 3