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In recent weeks, the power sector has been actively debating a regulatory proposal presented by the Ministry of Mines and Energy, as part of the long-anticipated reform of the sector’s regulatory framework. 

According to the draft text currently circulating, the proposal aims to:

  1. expand access to electricity by simplifying the rules for joining the Social Electricity Tariff program;
  2. enable the full liberalization of the Free Market, including low-voltage consumers;
  3. introduce new restrictions on projects that rely on the self-generation equivalency model (autoprodução por equiparação), among other measures. 

Specifically regarding self-generation, the proposal has already sparked significant discussions in the market, prompting the acceleration of negotiations for several projects that were already in development. 

The regulation is expected to be introduced through a Provisional Measure, which is initially scheduled to be signed during an official event on May 15. 

Check out our Newsletter to read about this and other key topics in the industry. 

This newsletter provides information about legal developments in Brazil to clients and members of Cescon, Barrieu, Flesch & Barreto Advogados. The content included herein is not meant to provide legal advice with respect to any specific matter. We do not undertake to update, supplement or modify the information contained herein.

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