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Rafael Herzberg
Rafael Herzberg
Expert Member
Top Contributor
Tue, Jul 8

Energy in Brazil: everyone can be free!

Energy in Brazil: everyone can be free!

In a few years, even residential power consumers will be able to migrate to the free market if they wish.

The motivation is the same as that which encouraged business and institutional consumers: to reduce costs.

There is one drawback to be considered.

Assuming a massive migration of residential consumers, the whole market will basically be established in the free market.

And the question remains: will all the costs that were previously paid by the rates granted by ANEEL(regulator) to the distributors be passed on to the now free consumers?

If the answer is yes, it will be as if we were returning the "free" consumers to the captive market. If it is no, who will pay the costs then?

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