Part of Grid Network »

The Grid Professionals Group covers electric current from its transmission step down to each customer's home. 

Post

Brazil: becoming free... so what?

Rafael Herzberg's picture
Consultant energy affairs Self employed

Rafael Herzberg- is an independent energy consultant, self-employed (since 2018) based in São Paulo, Brazil* Focus on C level, VPs and upper managers associated to energy related info, analysis...

  • Member since 2003
  • 2,166 items added with 1,268,006 views
  • Oct 2, 2022
  • 173 views

Brazil: becoming free... so what?

As of January 2024, all consumers connected at high voltage will be able to migrate to the free market.

Currently, they can only be free above a minimum contracted demand.

This is great because those who migrate to the free environment make significant savings in relation to what they pay as regulated.

A good part of the savings made stem from the fact that in the free environment a series of regulatory costs are not charged. Only the regulated are.

And what will happen is an important increase for regulated since these fixed costs, measured in USD billions, will be shared by less energy consumed in this environment.

And the big ones impacted will be the low voltage regulated consumers. They shall have their tariffs significantly increased to "compensate" for this distortion.

But, with the expectation that low voltage consumers may also migrate to the free market in a few years, one can foresee (1) a great legal/institutional uncertainty and (2) an increase in future costs also in the free environment for "accommodate" this situation.

Discussions

No discussions yet. Start a discussion below.

Rafael Herzberg's picture
Thank Rafael for the Post!
Energy Central contributors share their experience and insights for the benefit of other Members (like you). Please show them your appreciation by leaving a comment, 'liking' this post, or following this Member.
More posts from this member

Get Published - Build a Following

The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.

If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.

                 Learn more about posting on Energy Central »