The reform introduces new tariff modalities planned by ANEEL, tested under regulatory sandboxes to optimize pricing models. Key provisions address the financial impacts of migration such as splitting costs arising from distributors’ surplus contracting or unplanned exposure among all consumers. The implementation of a Supplier of Last Resort (Supridor de Última Instância, SUI) is mandated to guarantee supply continuity if commercial contracts lapse or if retailers default, with operational guidelines effective by February 2026.
MP 1300/2025 also revises subsidy distributions to rebalance sector economics. It limits discounts on usage tariffs (TUSD/TUST), uniformly apportions nuclear generation costs from Angra 1 and 2 across free and captive market consumers alike, and expands charges for distributed generation incentives to free consumers. The new tariff social framework offers free or discounted energy for low-income families under strict consumption caps, covering an estimated 16 million beneficiaries.
Complementing the legislative move, Congress ratified MP 1304/2025 to solidify the schedule and enable supportive infrastructure, including regulatory provisions for energy storage technologies and enhanced fiscal benefits. Market authorities anticipate these reforms to stimulate competition, reduce operational costs, and increase consumer control over energy sourcing, thereby incentivizing cleaner energy adoption and innovation across Brazil’s power sector.
This article was curated and published as part of our South American energy market coverage.
