Economy & Business - November 2025

BRAZIL | Energy legislation to benefit consumers and renewables. Brazil’s congress passed legislation on 30 October that grants consumers the right to choose their power supplier and provides tax breaks and compensations for renewable energy, among other measures. Within 24 months, commercial and industrial customers will be able to choose from which power company to buy electricity, while residential consumers will be able to do so in 36 months. Currently only large-scale users can freely choose their supplier. Subsidies for social welfare or other public interest programmes granted through the Conta de Desenvolvimento Energético (CDE), a fund financed through surcharges on power rates, will be capped from 2027. That helps limit additional costs and thereby the price of electricity in the long run. Generators of renewables will be compensated when their output is capped due to an ‘oversupply’ in the market. A surcharge was removed on renewable energies designed to limit their rapid expansion, which has made it difficult for the national power grid operator (ONS) to manage sudden spikes or declines in supply.

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