Choosing an electricity supplier does not mean replacing the company that maintains the poles, cables and transformers in the neighborhood. That is the most important distinction for understanding the opening of Brazil’s free electricity market to low-voltage consumers. Decree No. 13,097/2026 set dates for consumers supplied at voltages below 2.3 kV to leave the Regulated Contracting Environment (ACR) and purchase electricity in the Free Contracting Environment (ACL). The opening will be gradual: first for industrial and commercial units and, one year later, for all other consumers.
In the ACL, the commercial component of electricity is negotiated with a supplier through retail representation. The local physical network, however, remains operated by the distribution utility. The customer continues to use the same distribution system and pay for the use of that infrastructure. Therefore, a “free market” does not mean an electricity bill without network tariffs, charges or regulated rules.
Who will be able to choose a supplier and from what date
| Type of consumer supplied below 2.3 kV | Date set by Decree 13,097/2026 | What changes |
|---|---|---|
| Industrial and commercial | November 25, 2027 | May choose to remain in the ACR or migrate to the ACL and select an electricity supplier. |
| All other consumers, including households | November 25, 2028 | Will gain the same choice, subject to migration and retail-representation rules. |
The dates are exact in the decree. A low-voltage household therefore does not gain this right in 2027: for consumers not classified as industrial or commercial, the opening is scheduled for November 25, 2028.
The timetable completes an opening that has already reached consumers supplied at 2.3 kV or above. Brazil’s Ministry of Mines and Energy states that Group A consumers are already eligible to migrate to the free market; for individual loads below 500 kW, participation takes place through a retail agent. The new stage extends supplier choice to consumers supplied below 2.3 kV.
What consumers will be able to choose — and what does not change
In the regulated market, the distribution utility supplies electricity under tariff conditions set by sector regulation. In the free market, the consumer can negotiate commercial electricity-purchase conditions such as price, term, quantity and, depending on the product offered, other contractual features. The Ministry of Mines and Energy summarizes the difference by stating that consumers continue paying for use of the distribution network while gaining freedom to negotiate the electricity itself.
The local distribution utility remains responsible for the distribution infrastructure that physically delivers electricity to the consumer unit. In other words, choosing a retailer does not create a second grid: electricity still arrives through the same wires. Network, connection and distribution-operation matters remain within the regulated sphere.
It is also not safe to assume today that the future bill will have exactly the same format as the current one or that there will be a single invoice. The decree requires ANEEL to define who is responsible for, and the conditions governing, metering, metering aggregation, billing, collection and supply suspension in retail commercialization. What is already clear is that the charge for using the network does not disappear when the consumer selects another electricity supplier.
Supplier, retail agent, distributor, CCEE and ANEEL: who does what
| Party | Role in the low-voltage opening |
|---|---|
| Consumer | Decides whether to remain in the ACR or migrate to the ACL, compares offers, selects a contract and formalizes the migration. |
| Retail agent | Represents the low-voltage consumer before the CCEE. Each consumer unit that migrates must have its load served by only one retail agent. |
| Distribution utility | Continues to operate the local network. It receives the formal migration request and will have metering, billing or other functions as defined by ANEEL regulation. Until the end of 2030, distribution utilities will also be the exclusive providers of last-resort supply. |
| CCEE | Provides the institutional market infrastructure for registration, accounting and settlement of transactions. The decree also requires the CCEE to provide a centralized platform for comparing offers and prices and a list of authorized retail agents, under ANEEL regulation. |
| ANEEL | Must detail tariffs, migration, the standard product, metering, billing, collection, last-resort supply, safeguards against anticompetitive conduct and other procedures required for market opening. |
The 90-day migration notice
Decree 13,097/2026 establishes that a low-voltage consumer’s option to migrate must be formally communicated to the distribution utility at least 90 days before the intended migration date. This creates a minimum planning horizon: consumers should not expect the commercial switch to occur immediately after signing an offer.
That period may, however, become shorter in cases defined by ANEEL. The decree authorizes the agency to create simplified migration and portability rules with a shorter deadline. Close to 2027 and 2028, consumers will therefore need to check the operational rules then in force, not just the general rule in the decree.
A smart meter is not automatically required to enter
Metering is another important point. The decree provides that, under ANEEL regulation, billing for low-voltage ACL consumers may be performed without replacing the existing metering system. Meter replacement should therefore not become an automatic barrier to migration.
The consumer may request replacement of the conventional meter with a smart metering system, directly or through the retail agent, if technical and communications infrastructure is available. In that case, the decree states that the consumer bears the associated replacement costs. Implementation details still depend on regulation.
Social Tariff and other ACR benefits do not follow the consumer into the ACL
This is one of the points that requires the most attention. The decree states that tariff benefits granted in the ACR do not apply in the ACL. The text expressly mentions the Social Electricity Tariff and special discounts for irrigation and aquaculture activities.
Before migration, the distributor and the electricity retailer must inform the consumer about the loss of these benefits, under ANEEL rules. For anyone receiving a regulated discount, the correct comparison is not simply between the supplier’s quoted price and the full electricity tariff: the total effective cost in each environment must be compared.
Consumers can return to the regulated market, but advance notice is required
Return to the ACR is guaranteed for low-voltage consumers provided the local distribution utility is notified one year in advance. This period may be shortened at the distributor’s discretion or by ANEEL regulation.
In practice, this makes the term and exit conditions of a free-market contract just as important as its entry price. A contract that looks inexpensive may be less attractive if it has a long duration, significant termination penalties or conditions that conflict with the consumer’s need to return to the ACR.
What is last-resort supply
The decree also created general rules for the Last-Resort Supplier (SUI), designed to provide emergency and temporary service to a compliant ACL consumer when its retail representation ceases in situations covered by the rule, such as termination, contractual non-performance or the retailer’s removal/ineligibility at the CCEE.
Until December 31, 2030, the SUI will be provided exclusively by electricity distribution utilities. From January 1, 2031, other legal entities may provide the service under ANEEL regulation. The service was not designed as a permanent alternative: its tariffs must encourage consumers to leave this regime, and ANEEL may establish a maximum period of service.
Which points still require regulation
The decree establishes the architecture of market opening but leaves several operational pieces to ANEEL. They include:
- tariffs applicable to ACR and ACL consumers, with segregation of the distributor’s costs;
- parameters for the standard product and reference price that retail agents must disclose;
- simplified migration and portability rules;
- metering procedures and possible adoption of smart meters;
- responsibilities and conditions for metering, aggregation, billing, collection and suspension;
- tariffs, oversight and operating rules for last-resort supply;
- prohibitions on anticompetitive conduct and equal conditions for consumers in the migration process;
- rules enabling the CCEE offer-comparison platform.
This means the opening dates are already defined, but the final step-by-step process a consumer will follow in 2027 or 2028 should be checked against the rules in force closer to the migration date.
Checklist to prepare before the market opens
- Confirm the unit’s voltage and classification. The decree’s timetable applies to supply below 2.3 kV and distinguishes industrial/commercial consumers from all others.
- Map your consumption. Keep at least 12 months of bills to understand consumption, seasonality and current costs.
- Identify tariff benefits. The Social Tariff and other ACR discounts can completely change the economic comparison.
- Compare total cost, not just electricity price. Include network costs, charges, taxes and contractual conditions once the final rules are published.
- Check the retail agent. Verify authorization, standard product, reference price, term, guarantees, adjustments, penalties and termination conditions.
- Plan the notice period. The general rule requires formal notice to the distributor 90 days in advance, unless ANEEL later creates a simplified route.
- Read the return rule. Returning to the ACR may require one year’s notice.
- Monitor ANEEL and the CCEE. The decree requires new rules and tools that will be important for comparing offers and executing migration.
Quick questions
Will households be able to choose a supplier in 2027?
Not under the current timetable in Decree 13,097/2026. For all other consumers, including households, market opening is scheduled for November 25, 2028.
Does the distribution utility disappear from the consumer relationship?
No. The distribution utility continues operating the local physical grid. What changes is the possibility of purchasing electricity in the free market.
Will a smart meter be mandatory?
The decree does not establish that as a general condition. It provides that migration may occur without replacing the existing meter, under ANEEL regulation, and allows the consumer to request a smart meter when infrastructure is available, bearing the replacement costs.
Does migration guarantee savings?
No. The free market expands the ability to negotiate conditions, but the result depends on the consumption profile, the contracted offer, network costs and charges, the loss of any ACR benefits and the contract terms.
