Electricity Sector Reform: Enactment of Law No. 15,269/2025

The Federal Government published on November 25, Law No. 15,269, originating from Provisional Measure No. 1,304/2025, which establishes measures for the modernization of the Brazilian electricity sector. The provisions vetoed by the Presidency of the Republic will be deliberated by the National Congress in a joint session within 30 calendar days after receiving the reasons for the vetoes, with the possibility of Congress accepting or rejecting the vetoes.

Please find below the main points addressed in the Law, considering the presidential vetoes.

1. Power self-production

1.1. Concept

A self-producer is a consumer who holds a concession or license to produce energy for itself at their own risk and expense.

1.2. Self-production by equivalence

Consumers may be equated to self-producers if they:

• Have an aggregate contracted demand equal to or greater than 30 MW, composed of consumption units with individual demand equal to or greater than 3 MW; and
• Meet one of the following criteria:
  • Direct or indirect shareholding, with voting rights, in the company holding the concession/license; or
  • Under common corporate control, direct or indirect, or are a controller, controlled or affiliated with the generator of the company holding the concession/license.

1.3. Limits and Conditions

• The equivalence is limited to the portion of energy intended for the consumer’s own consumption or to its proportional shareholding – whichever is lower.
• If the grant holder issues non-voting shares that grant economic rights superior to those of voting shares, each economic group of shareholders must maintain a minimum direct or indirect shareholding of 30% of the total share capital, weighted by the proportion of voting shares held by the group.
• The identification of the shareholding of the equivalent consumer must be kept up to date with ANEEL.

1.4. Acquired Rights and Transition

• The acquired rights and effects of legal acts entered under Article 26 of Law No. 11,488/2007 shall remain in force until the end of the respective generation grants. In this context, consumers who meet the following criteria are exempt from the new demand limits and minimum participation requirements:

• Have already been treated as self-producers and registered with the CCEE prior to the publication of the Law;
• Belong to an economic group with 100% participation in the grant holder; or
• Within three months of the publication of the Law, submit to the CCEE:
  • A contract for the purchase and sale of shares or quotas; or
  • A contract for the option to purchase shares or quotas, both with a certified signature or ICP-Brasil digital signature.

• The transfer of equity interests resulting from these transactions must be completed within 36 months from the date of execution of the aforementioned agreements, by means of:
  • Amendment to the articles of association registered with the commercial registry and proof of participation in the economic group; or
  • Registration in the share transfer book and proof of participation in the economic group.

2. Opening of the Free Energy Market

2.1. Objective

To gradually, safely, and in a regulated manner expand consumers’ access to Free Energy Market (“ACL”), including those served by low voltage.

2.2. General Rules

According to amendments to Article 15 of Law No. 9,074/1995, introduced by the Law:

• Consumers who choose to migrate to ACL must ensure that their entire load is met by contracting with one or more suppliers, under penalty of fines.
• The Governmental Authority may relax the criteria for contracting the total load through regulation.
• The minimum advance notice for migration – currently 5 years -, may be reduced by act of the Governmental Authority.

2.3. Migration Schedule for Low Voltage Consumers (Paragraph 17 of Article 15 of Law No. 9,074/1995)

Consumer Category	Deadline for opening after the Law is enacted
Industrial and commercial consumers served at voltages below 2.3 kV	Up to 24 months
Other low voltage consumers (residential, rural, public services, etc.)	Up to 36 months

2.4. Preconditions for opening

Before the effective opening for low voltage consumers, the following requirements must be met:

• Preparation of a communication plan to raise consumer awareness about migration to the ACL;
• Definition of tariffs applicable to consumers in the Regulated Energy Market (“ACR”) and ACL, with segregation of distribution costs;
• Regulation of Supplier of Last Resort (SUI), including:
  • Definition of the party responsible for providing the service;
  • Identification of eligible consumers;
  • Circumstances in which supply will be mandatory;
  • Maximum term of this supply;
  • Possible temporary use of reserve energy for this form of supply;
  • Possible exemption from ballast for contracting;
  • Method of calculation and allocation of costs

• Creation of a standard product and reference price, with the aim of facilitating comparison between offers and promoting transparency;
• Regulation of over-contracting charges or involuntary exposure of distribution companies referred to in Article 15-D of Law No. 9,074/1995.

3. Supplier of Last Resort (SUI)

• Authorized and supervised by ANEEL.
• May be exercised by distribution companies, with or without exclusivity.
• Remuneration by specific tariff set by ANEEL.
• Costs apportioned among ACL consumers via a specific tariff charge;
• The financial effects of over-contracting or involuntary exposure of distribution concessionaires will be apportioned among all ACR and ACL consumers through a tariff charge in proportion to energy consumption.

4. Discounts on Transmission and Distribution Network Usage Tariffs (TUST/TUSD)

4.1. Discounts application:

The reduction percentages of no less than 50% to be applied to the TUST/TUSD shall consider the issuance of the requested power authorization until March 2, 2022 (under the terms of § 1-C), including those issued as of MP No. 998/2020.

4.2. Loss of benefit:

The discount will no longer apply if the project does not begin trial operation of all generating units within 48 months after the date of the power authorization.

4.3. Revocation without penalties:

Grants with a 36-month extension to meet conditions may be revoked by ANEEL, at the request of the entrepreneur, without penalties, provided that:

• the request is made within 30 days of the publication of the provision; and
• the Agreement for the Use of the Transmission or Distribution System (CUST/D) has not been signed.

4.4. Enforcement of guarantee:

The Performance Bond may be enforced if the license is revoked under the above terms.

4.5. Flexibility in the start of CUST:

Projects with a signed CUST and energy not sold in the ACR may adjust, without penalty, the start date of the CUST, respecting the new start-up date defined in the extended license.

4.6. Presentation of prior guarantee:

In cases where the CUST was signed without a Prior Guarantee (GPC), the postponement mentioned above will only be possible upon placement of the guarantee, in accordance with the applicable regulation.

4.7. Prohibition on the application of discounts (consumption):

The reduction in tariffs does not apply to consumers who:

• have already exercised the options to migrate to the Free Market in accordance with Laws No. 9,427/1996 and No. 9,074/1995; or
• request an expansion of the use of transmission or distribution systems demand after the provision takes effect — maintaining the discount only on the amount previously contracted.

5. Energy storage systems

1. Storage systems located in the Basic Grid must be put out to tender.
2. Defined as an activity regulated by ANEEL, which may be autonomous or integrated with the grant for generation, transmission, or distribution.
3. The regulation of electricity storage activities may involve autonomous operation or integration with power generation, commercialization, transmission, and distribution agents and the provision of multiple services to the electrical system.
4. Costs arising from the contracting of energy storage systems will be apportioned only among generators, in accordance with ANEEL regulations.
5. Creates incentives for batteries, under terms to be defined — REIDI and reduction of import tax rates

6. ANEEL’s responsabilities

• Expands the agency’s responsibilities to include regulation of energy commercialization and storage, which, in the latter case, also includes the responsibility to supervise and establish rules for remuneration and access for the implementation and operation of electricity storage systems connected to the National Grid (SIN) or to Isolated Systems
• Allows for the establishment of regional administrative units.
• Authorizes the imposition of administrative fines of up to 3% of revenue or estimated energy value, unlike the current limit of 2%.

7. Competencies, responsabilities, and activities of the CCEE

• Market monitoring: The CCEE is responsible for monitoring its members and operations carried out in the electricity market, taking appropriate measures in accordance with the procedures approved by ANEEL.

• Liability of contracted managers: Individuals or legal entities contracted by the CCEE to perform management or supervision monitoring functions are liable for losses resulting from acts committed with intent or gross negligence that violate legal, regulatory, or statutory rules, without prejudice to the criminal liability and subsidiary liability of the CCEE.

• Responsibility of sector agents’ administrators: The administrators of agents in the electricity sector are also liable for damages caused by willful misconduct, gross negligence, or violation of legal, regulatory, or statutory rules, in addition to any criminal liability and the subsidiary liability of the legal entity they represent.

• Operations in other markets and services: The CCEE may participate in other energy markets or provide additional services, including:
  • management of guarantees for purchase and sale contracts in ACL;
  • record management; and
  • energy certification, provided that applicable laws and regulations are observed.
• Separation of activities: In this expanded role, the CCEE shall maintain administrative, financial, and accounting separation between electricity trading activities and those related to participation in other markets.

8. Conditions for extending generation concessions

8.1. Renewal:

The Governmental Authority may extend concessions for hydroelectric projects with an installed capacity exceeding 50 MW and granted before December 11, 2003, provided that the conditions set forth in this article are met.

• Mandatory conditions for renewal:
  1. Payment to the CDE: contribution corresponding to 50% of the estimated value of the concession to the Energy Development Account (CDE), in accordance with Law No. 10,438/2002 in addition to  considering the value of investments linked to reversible assets, not yet amortized or depreciated
  2. Payment for the grant: additional amount of 50% of the estimated value of the concession;
  3. Adoption of the independent production regime, in accordance with Law No. 9,074/1995, including rules for termination of the concession, expropriation, and compensation;
  4. Full assumption of hydrological risk by the concessionaire, with no new renegotiation permitted under Law No. 13,203/2015;
  5. Recalculation of the assured energy valid from the extension, with no limit on variation in relation to the previous one, subject to periodic reviews;
  6. Maximum extension period: up to 30 years.

8.2. Power trading

• The holder of the extended concession will be guaranteed the right to sell energy both in ACR and ACL, in accordance with Law No. 10,848/2004.
• The Federal Government may require a minimum percentage of electricity to be allocated to ACR for concessions extended under this article.

9. Research and development (“P&D”)

9.1. Limitation of exemption:

• The exemption provided for in Article 2 (from the obligation to invest 1% of net operating revenue in R&D annually) does not apply to wind and solar photovoltaic plants that apply for a concession on or after January 1, 2026.

10. Energy Development Account (CDE)

• Introduces a Supplementary Resource Charge to cover budget differences.
• Reduces tariff charges for large consumers as of January 1, 2026:
  • ≥ 69 kV → pay 50% of that paid by consumers served at a voltage level below 2.3 kV
  • 2.3–69 kV → pay 80% of that paid by consumers served at a voltage level below 2.3 kV.

11. Contracting of Thermal Power Plants

• Guarantees the contracting of coal-fired thermoelectric plants, in the form of capacity reserves, with a term until December 31, 2040.