Aneel<\/a> at R$751.73 (US$140,41)\/MWh \u2013 the highest since the implementation of the current model \u2013 illustrates the new cost level in the market.<\/p>\nThe transition from a predominantly hydroelectric matrix to a more diversified one, with intermittent renewable sources , flexible thermal power, and investments in storage, has increased average costs. At the same time, expiration of concessions for incentivized plants and sectoral charges further pressure prices.<\/p>\n
Menezes predicts a \u201cslightly reduced\u201d migration speed in the coming months due to higher prices in the dry period window.<\/p>\n
\u201cSomething around 1,600 new consumers per month over the next six months,\u201d he told BNamericas.<\/p>\n
Despite the challenging scenario, migration to the ACL has not lost its appeal, according to Menezes. Contracts with a fixed price or guaranteed discount on the regulated tariff have gained popularity because they offer predictability in a more volatile environment\u2014a characteristic increasingly valued by businesses and consumers.<\/p>\n
“The market’s stance today is one of caution. Consumers and retailers are paying more attention to risk management and regulatory changes. But this behavior is a sign of maturity, not decline. The free market is more demanding,” Menezes assessed.<\/p>\n
Opening for low voltage<\/strong><\/p>\nIn early September, the federal government opened a public consultation to discuss the full opening of the free electricity market. The topic is also expected to be debated by the National Congress under Provisional Measure (MP) 1.304\/25 .<\/p>\n
Regarding the challenges of enabling the migration of low-voltage consumers to the ACL, Menezes highlighted that the systems need to be more robust, as the scale will increase from thousands to millions of consumers.<\/p>\n
\u201cThe free market\u2019s management capacity needs to undergo a technological transformation to be able to process this amount of data,\u201d he stated.<\/p>\n
He also considers it possible that costs will increase \u2013 and, consequently, prices on the free market \u2013 given the need to amortize investments in new systems.<\/p>\n
New generation projects<\/strong><\/p>\nWhile the increase in the PLD represents a challenge for consumers, the scenario serves as an incentive for developers of new generation projects, facilitating economic viability. However, the increasing incidence of curtailment poses a barrier .<\/p>\n
” Curtailment is certainly a significant source of uncertainty that makes new renewable energy projects less attractive. I believe the operator’s priority has been to diversify the energy matrix,” Menezes analyzed.<\/p>\n
Inflation<\/strong><\/p>\nWith the end of the incorporation of the Itaipu Bonus , credited in the invoices issued in August, residential electricity — in the regulated market, therefore — rose 10.31% in September, standing out as the main individual impact on the broad consumer price index (IPCA) of the month (0.41 pp), according to the IBGE.<\/p>\n
The federal institute also highlighted the continued validity of the red tariff flag level 2, starting September 1st , adding R$7.87 to the electricity bill for every 100 kWh consumed. For October, Aneel activated the red flag level 1, with an additional R$4.46\/100 kWh.<\/p>\n
Federal subsidy<\/strong><\/p>\nOn Thursday (October 9), President Luiz In\u00e1cio Lula da Silva sanctioned the People’s Light Law , a program that ensures free electricity for low-income families.<\/p>\n
With an estimated cost of up to R$10 billion per year, Luz do Povo will be financed by the Energy Development Account ( CDE<\/a> ), the fund responsible for promoting and financing sectoral policies. The program will benefit more than 17 million families in its first phase.<\/p>\n(The original version of this content was written in Portuguese)<\/p>\n","protected":false},"excerpt":{"rendered":"The pace of consumer migration to the free energy market in Brazil is slowing, reflecting the structural rise…\n","protected":false},"author":2,"featured_media":488378,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3091],"tags":[51,2441,16,15],"class_list":{"0":"post-488377","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-markets","10":"tag-uk","11":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115350000932211046","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/488377","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=488377"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/488377\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/488378"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=488377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=488377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=488377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}