Camila Maia: Federal government promises new MP to stop high electricity bills

"I hope this reform isn't split up. Why? Precisely to avoid what's already been said here: the reform was implemented in a balanced way, protecting the poorest and the middle class and guaranteeing consumer freedom. Dividing the MP is irresponsible," the minister stated.

Provisional Measure 1.300 was structured around three main pillars, aiming to modernize the Brazilian electricity sector. The first is the expansion of the social tariff, which seeks to extend the benefit to low-income consumers, with free electricity for up to 80 kWh consumed per month. The change has already been implemented and came into effect at the beginning of this month, and is expected to lead to an increase in the CDE, the "supercharge" on electricity bills, of approximately R$1.2 billion this year. The total impact is expected to reach R$3.6 billion per year, according to MME estimates.

The other two axes are important because they help reduce electricity bills and CDE costs, despite the increased sectoral burden caused by the expansion of the social tariff. One of them is the opening of the free energy market to all consumers by December 2027, allowing businesses and households to choose their suppliers and thus seek more competitive prices.

The third axis involves the so-called "rationalization of subsidies" on electricity bills, with the aim of reducing excessive costs and promoting greater tariff fairness by adjusting the balance between different consumer classes. This aspect is controversial because it involves removing significant discounts on electricity bills from renewable generators and large energy consumers, such as electro-intensive industries.

According to Gentil Nogueira, Secretary of Energy at the Ministry of Mines and Energy (MME), "what rises most above inflation when you look categorically at each component of the tariff" are precisely the CDE subsidies, not the costs of energy generation, transmission or distribution.

The government's strategy, with the provisional measure, is to balance the equation: expanding benefits to those who need them most while reducing subsidies for sectors that already have other competitive advantages.