Free energy market: the tariff as a choice

Since January 1, 2024, every company connected to the grid at 2.3 kilovolts (kV) or higher may choose its energy supplier. The rule is set forth in Normative Ordinance 50/2022, issued by the Ministry of Mines and Energy (MME). On November 25, 2027, it will be the turn of low-voltage commerce and industry; by November 25, 2028, it will include the rest, homes included, under Decree 13,097/2026. The question is no longer "can I?" but rather "is it worth it, and with which contract?".

As InnCorPower sees it, leaving the utility tariff means swapping a regulation for a contract. The regulator, ANEEL, sets and adjusts the rule; the company signs and fulfills the contract. Price is the most visible component. Term, exit conditions, and liability in the event of supplier failure determine whether the savings appear at the end of the year.

Medium and high voltage companies can choose their energy supplier since 2024

Freedom of choice did not begin in 2024. Law 9,074/1995, in Article 15, started with a high threshold: consumers with a load of 10,000 kW or more, served at 69 kV or higher. The article itself, in paragraph 3, left the granting authority (the federal government, which sets the sector's rules) the task of "reducing load and voltage limits." This is what Ordinance 50/2022 did: as of January 1, 2024, all consumers classified as Group A may purchase from any concessionaire, licensee, or authorized entity of the National Interconnected System.

Group A is the technical term for those receiving energy at a voltage equal to or greater than 2.3 kV, which is the medium or high voltage connection. Below that is low voltage, and those in this category are still awaiting their date. The MME (Ministry of Mines and Energy) summarizes it in one sentence: all medium and high voltage Group A consumers "are now eligible to migrate."

The movement is significant and recent. The CCEE (Electric Energy Trading Chamber), which accounts for and settles purchases and sales in the sector, recorded 4,827 new members in the first quarter of 2026, of which 3,387 used the simplified model, executed via a digital interface between the distributor and the CCEE. In April, there were 1,213 consumers. In March 2026, the free market accounted for 32,093 of the 76,423 average megawatts consumed in the country, according to InfoMercado No. 225. This represents 42%, based on InnCorPower's own calculation using the two columns of table 5.

The distributor remains the owner of the grid; only the energy provider changes

Think of a building's plumbing. The pipes belong to the condominium, and they remain so even if each resident chooses who to buy water from. In the electricity sector, the pipes are the distributor's grid. According to the MME (Ministry of Mines and Energy), those who migrate continue to pay for the use of the distribution grid, the “wire,” which appears on the bill as TUSD (Distribution System Use Tariff), and the distributor remains responsible for the delivery and maintenance of the service.

The bill is thus divided into two parts. The grid remains regulated and is the same for those who migrate and those who stay. Energy is the part that changes in nature: from a regulated tariff, it becomes a contract price. Law 10,848/2004 separates the two worlds in Article 1: commercialization occurs in a regulated contracting environment (ACR, the “captive” market, where the distributor sells at the tariff) or a free contracting environment (ACL), with contracts between generators, traders, importers, and consumers. Therefore, any honest comparison looks only at the energy line; the grid is the same on both sides.

Question	Regulated environment (captive)	Free environment	Basis
Who sells the energy	The local distributor	Generator or trader, chosen by the consumer	Law 10,848, Article 1
How the price is formed	Tariff set by ANEEL, plus the month's flag	Negotiated in a contract, with a term and adjustment index	ANEEL, flags; Law 10,848
Tariff flags	Charged to all captive consumers	ANEEL applies the system to captive consumers; in the free market, the contract price applies	ANEEL, flags page
Distribution grid	Paid (TUSD)	Paid (TUSD)	MME, 08/17/2026
Volume	The distributor meets measured consumption at the tariff	The consumer must contract the total load	Law 9,074, Article 15, § 7
Difference between contracted and consumed	Does not apply	Settled at the CCEE at the Settlement Price for Differences (PLD)	CCEE, InfoMercado no. 225
Returning to the regulated market	Does not apply	5-year notice for Group A; 1-year for low voltage	Law 9,074, Article 15, § 8; Decree 13.097, Article 5

In the regulated environment, the tariff flag changes the energy price every month

The flag is a generation cost notice that ANEEL (Brazilian Electricity Regulatory Agency) sends on electricity bills. It has existed since 2015, with four levels. According to the official ANEEL page, the green flag adds nothing; yellow adds R$ 0.01885 per kilowatt-hour (kWh); red level 1, R$ 0.04463; red level 2, R$ 0.07877. The agency explains that before the flags, generation cost variations only reached the bill up to a year later, during the next adjustment. The signal became faster, and more volatile.

ANEEL notes that all captive consumers of distribution companies are billed through the flag system, except for those in isolated systems. For a company that consumes 150,000 kWh per month, the difference between a green month and a red level 2 month is R$ 11,815.50, just on this line item. It does not break a budget, but nobody foresaw it when the budget was drafted.

A contract does not eliminate the risk of the electricity sector; it changes who bears it and for how long. In the tariff, the consumer receives the monthly notice and pays. In a fixed-price contract, the value per kWh is valid for the agreed term, and the cost increase is the supplier's problem for as long as it lasts. When the term ends, the renewal price reflects the current market. Predictability lasts for a period, not a lifetime.

In the free environment, the price comes from a contract and the difference is paid at the day-ahead price

Those who migrate sign an energy purchase agreement with a supplier: volume, term, price, and adjustment index. Under Law 9,074 (Public Utility Concession Law), Article 15, § 7, the consumer “must guarantee the supply of its entire load” and is subject to penalties if it fails to do so. Law 15,269/2025 maintained the rule and opened the door for the granting authority to flexibilize it through regulations; this flexibilization, as far as this text has verified, is a possibility, not a rule currently in force.

Actual consumption does not coincide, to the kilowatt-hour, with what was contracted. The difference does not vanish: it goes to the CCEE (Electric Energy Trading Chamber) short-term market and is settled by the PLD, the price the chamber calculates for these differences. In March 2026, the average PLD was R$ 307.05 per megawatt-hour, a decrease of 20.52% compared to February, and the short-term market accounted for 19,249 average MW, 25.2% of the month's consumption, according to InfoMercado No. 225. The settlement of differences, therefore, is not a footnote detail.

For the company, this becomes two tasks. Sizing the volume: contracting too little exposes the company to the PLD, while contracting too much forces it to pay for excess energy. And reading the contract: term, adjustment index, margin for volume variation, and the destination of any surplus or shortage.

Consumers with less than 500 kW need a representative, the retail energy trader

Ordinance 50/2022 (Portaria 50/2022) establishes, in Article 1, § 2, that Group A consumers with an individual load of less than 500 kW are represented by a retail agent before the CCEE (Electric Energy Trading Chamber). The MME (Ministry of Mines and Energy) explains that this agent "manages the purchase" and assumes representation before the chamber. In practice, it is a company qualified by the CCEE that buys the energy, sells it to the small company, and is accountable for it within the system.

This path is the one growing the fastest. The CCEE reported that approximately 75% of the 1,213 consumers as of April 2026 entered through retail representation. The CCEE questions and answers on the simplified model (version of June 6, 2025) show how the mechanism is set up: the migration only proceeds in the CCEE after approval by the distributor; the contract between the retailer and the client is signed within the CCEE platform itself, via a link sent to legal representatives; the termination notice to the distributor remains mandatory, and its date is entered into the registry; and changing retailers requires a new contract with the new one.

What the retailer does not do is eliminate risk. Law 10,848, in Article 4-A, § 2, states that if the consumer does not ensure the continuity of their service when the representation ends, the termination "will result in the suspension of supply" to all units modeled under that retailer. The CCEE addresses the case from another angle: a client whose energy was suspended due to debt with the retailer must settle outstanding issues to return to the free market. A company that chooses a representative also chooses the financial strength of whoever will manage its contract.

Leaving the distributor requires notice, and returning requires five years of notice in Group A

The exit door also has rules. Under Article 15, § 4, of Law 9,074 (Electric Power Concessions Law), a consumer without a term clause in their supply contract with the distributor must follow the deadlines set by regulation, and none may exceed 36 months from the formal notice. The CCEE (Electric Energy Commercialization Chamber) indicates that the termination notice must still be filed with the distributor through its service channels.

The path back is longer. § 8 of the same article allows a consumer who chose the free market to return to the regulated tariff, "provided they inform the concessionaire [...] at least 5 (five) years in advance." § 9 authorizes the distributor to reduce this period, and Law 15,269 added § 16, which grants the granting authority the possibility to reduce it via regulation. The text read does not provide the shorter period; it provides the possibility of shortening it.

Entering is a decision of months; returning is a decision of years. For those who have doubts about the future of the unit (sale, relocation, closure), the return period must be taken into account before signing.

Low voltage opens on November 25, 2027, for commerce and industry, and in 2028 for others

The opening for voltage below 2.3 kV originated from Law 15,269/2025. The new § 17 of Article 15 of Law 9,074 set maximum deadlines: up to 24 months from the effective date for industrial and commercial consumers, and up to 36 months for others. Before that, the law requires five measures: a consumer communication plan; separate tariffs for both environments; rules for last-resort supply; a standard product with a reference price to facilitate offer comparisons; and a rule for the charge regarding over-contracting by distributors.

Decree 13.097/2026 transformed these deadlines into specific dates: November 25, 2027, and November 25, 2028. It also mandates that ANEEL (Brazilian Electricity Regulatory Agency) define the tariffs, regulate the standard product, and oversee last-resort supply. As far as this text has verified, the decree establishes what ANEEL must regulate; the status of these rules as of October 2026 was not verified, and it is worth checking at the agency before making any decision.

Category	Eligible since	Representative	Notice to leave	Notice to return	Legal basis
Group A, individual load of 500 kW or more	Jan 1, 2024	Not required by ordinance	Regulation deadline; max 36 months if no term is set	5 years, reducible	Ordinance 50, Art. 1; Law 9,074, Art. 15, §§ 4, 8, and 9
Group A, individual load below 500 kW	Jan 1, 2024	Retailer mandatory	Same as above	5 years, reducible	Ordinance 50, Art. 1, § 2
Low voltage, commercial and industrial	Nov 25, 2027	Retailer mandatory, one per unit	90 days	1 year, reducible	Decree 13,097, Arts. 1 to 3 and 5
Low voltage, other consumers	Nov 25, 2028	Retailer mandatory, one per unit	90 days	1 year, reducible	Decree 13,097, Arts. 1 to 3 and 5

There is one more detail that low-voltage consumers must weigh carefully. Article 4 of the Decree states that tariff benefits from the regulated environment, including the Social Electricity Tariff and discounts for irrigation and aquaculture, "shall not be applicable in the ACL" (Free Contracting Environment). The consumer must choose between keeping these benefits or migrating "under market conditions." Both the distributor and the retailer must warn the consumer before the migration takes place.

If the representative leaves the market, an emergency supplier takes over and charges more

The low-voltage framework includes a safety net for customers whose retailer stops operating. Decree 13,097 creates the Supplier of Last Resort (SUI): a legal entity responsible for the emergency and temporary service of compliant consumers when the retailer terminates the contract, is disconnected from the CCEE (Electric Energy Commercialization Chamber), or is disqualified. Until December 31, 2030, only distributors provide this service; starting January 1, 2031, other companies may do so, according to ANEEL (Brazilian Electricity Regulatory Agency) regulations.

This protection has a price and a limit. The decree states that SUI tariffs "cannot be lower than the energy tariff of the respective tariff subgroup" and must be increasing to encourage a departure. ANEEL may set a maximum term, with a mandatory return to the regulated market. Furthermore, the SUI "will not be responsible for any pending issues of the consumer with the CCEE or the retail agent." The charge covering the service cost is shared among all consumers in the free market, in proportion to consumption (Article 7, § 5).

The SUI prevents immediate disconnection, but not financial loss: it provides time to sign another contract, with the regulated tariff as a floor. Choosing a retailer remains the decision that offers the most protection or exposure.

In an illustrative situation, the migration saves R$ 55.9 thousand per year for a company using 150 MWh per month

The calculation below is an illustrative situation. All premises belong to the example, except for the tariff flag values (ANEEL) and the PLD (CCEE, March 2026). The grid (TUSD) is the same in both environments and is excluded; only energy is compared.

Line	Premise	Regulated	Free
Annual consumption	150,000 kWh per month, 1,800,000 kWh per year	1,800,000 kWh	1,800,000 kWh
Energy tariff	R$ 0.30 per kWh (premise)	R$ 540,000	not applicable
Annual flag surcharges	4 green months, 5 yellow, 2 red-1 and 1 red-2 (premise); ANEEL values	R$ 39,342	not applicable
Contracted energy	97% of consumption, 1,746,000 kWh, at R$ 0.28 per kWh (premise)	not applicable	R$ 488,880
Difference to PLD	3% of consumption, 54,000 kWh, at R$ 0.30705 per kWh (average PLD for March 2026)	not applicable	R$ 16,581
Management and representation	R$ 18,000 per year (premise)	not applicable	R$ 18,000
Annual energy total		R$ 579,342	R$ 523,461

The difference is R$ 55,881 per year, 9.6% of the regulated total. The result, however, depends on two premises that the reader should replace with their own. The first is the contract price: under the same conditions, the savings disappear when it rises to R$ 0.312 per kWh. The second is the difference to the PLD: here it costs R$ 16,581 because the March PLD was close to the contracted price. A PLD significantly above the contract price, applied to a larger volume of difference, consumes the savings without warning.

Excluded from the table are the term, the contract adjustment, the guarantees required by the supplier, and the cost of upgrading metering. None appear in the calculation; all appear at the signing.

Regarding workflow, InnConta, from the same group, maintains an energy division that audits invoices, contracted demand, and tariff classification, while managing migration to the free market. The method they declare is the order: "first the invoice, then the contract, and finally the asset." The reason is arithmetic: migrating with incorrect contracted demand carries the error into a fixed-term contract.

When it is not worth it: three situations where the tariff remains the best choice

When the contract price is close to the tariff. In the example, the break-even point is R$ 0.312 per kWh. This is slightly above the R$ 0.30 tariff in the premise, because the tariff carries the flag charges and the contract carries management costs and the difference to the PLD (Price for Settlement of Differences). A proposal that falls within this range, after adding management and the PLD difference, returns the savings to the distributor. Two numbers resolve the doubt: the contract price and the annual management cost.

When the consumer would lose a tariff benefit. In low voltage, the Social Tariff and the irrigation and aquaculture discounts do not apply in the free market (Decree 13,097, Article 4). Those who use them must compare the free market bill with the regulated bill already including the discount, not with the full tariff.

When the unit's permanence is uncertain. Selling the property, changing addresses, or closing operations before the end of the contract turns the term into an obligation. And, for those who wish to return to the tariff, the notice period is five years for Group A and one year for low voltage, which may be reduced by rule or by the distributor's decision. What the contract provides for early exit must be read beforehand, and with the legal department by your side.

Checklist: seven checks before requesting an energy proposal

1. Confirm the group and supply voltage on the invoice (Group A is 2.3 kV or more). Who confirms: the finance department, with the latest invoice from the distributor.
2. Separate energy, grid (TUSD), and flag charges in twelve invoices. Who confirms: the finance department, with the payment history.
3. Compare the contracted demand with the measured demand before migrating, so as not to carry an error into a long-term contract. Who confirms: engineering or the energy consultant.
4. Request more than one proposal, with the same term, and check the supplier on the list of commercialization agents of ANEEL (Brazilian Electricity Regulatory Agency). Who confirms: the finance department, with the agency.
5. Read the contract for the term, the adjustment index, the volume variance margin, and who pays the difference to the PLD. Who confirms: the legal department.
6. Formalize the notice to the distributor and confirm the start date of the new energy. Who confirms: the person responsible for the migration, with the distributor.
7. Verify if the representative is qualified with the CCEE (Electric Energy Commercialization Chamber), and define a plan B if they exit the market. Who confirms: the legal department, with the CCEE.

This text is informational and does not replace legal, accounting or technical advice. Before signing an energy contract or moving to the free market, consult a specialist who knows your case.

Frequently asked questions

Who can migrate today?

Every Group A consumer, meaning those connected at 2.3 kV or higher, since January 1, 2024 (Ordinance 50/2022). For individual loads under 500 kW, representation by a retailer is mandatory. Low voltage consumers cannot yet migrate: the dates are November 25, 2027, and November 25, 2028.

Does the distributor stop maintaining the grid?

No. According to the MME (Ministry of Mines and Energy), the distributor remains responsible for the delivery and maintenance of the service, and the consumer continues to pay for the use of the grid (TUSD). What changes is who sells the energy and how its price is formed, through a contract rather than a tariff.

Are the low voltage dates already set?

They are, by Decree 13,097/2026. Law 15,269 conditioned them on actions by ANEEL (Brazilian Electricity Regulatory Agency): separate tariffs, a standard product with a reference price, and rules for the last resort supplier. The status of these rules should be checked at the agency before any planning based on those dates.

Is it possible to return to the distributor's tariff?

Yes, with notice. In Group A, the law specifies five years in advance, which the distributor or the granting authority may reduce. For low voltage, the decree guarantees a return with one year of notice, also reducible. Shorter terms depend on a rule or decision that must be in writing.

What happens if the retail supplier exits the market?

For low voltage, the compliant consumer is served by the Last Resort Supplier, at a tariff that cannot be lower than the regulated energy tariff and which increases over time. The supplier does not assume outstanding issues with the retailer or the CCEE (Electric Energy Trading Chamber). Those with outstanding issues may have their supply suspended.

Before requesting a proposal, do the math: twelve invoices, the contract price that negates savings, and the return notice period. If the margin between the proposal and the break-even point is narrow, the tariff remains the right choice.

References (13)

1. Brasil. Ministério de Minas e Energia. Portaria Normativa nº 50/GM/MME, de 27 de setembro de 2022 (DOU 28/09/2022). Consultado em 01/10/2026. https://www.gov.br/mme/pt-br/acesso-a-informacao/legislacao/portarias/2022/portaria-normativa-n-50-gm-mme-2022.pdf
2. Brasil. Decreto nº 13.097, de 12 de agosto de 2026 (abertura do mercado para consumidores em tensão inferior a 2,3 kV e suprimento de última instância), DOU de 13/08/2026. Planalto. Consultado em 01/10/2026. https://www.planalto.gov.br/ccivil_03/_ato2023-2026/2026/decreto/D13097.htm
3. Brasil. Lei nº 9.074, de 7 de julho de 1995, texto consolidado (arts. 15, 15-C, 15-D e 16). Planalto. Consultado em 01/10/2026. https://www.planalto.gov.br/ccivil_03/leis/l9074cons.htm
4. Brasil. Lei nº 15.269, de 24 de novembro de 2025 (modernização do marco regulatório do setor elétrico). Planalto. Consultado em 01/10/2026. https://www.planalto.gov.br/ccivil_03/_ato2023-2026/2025/lei/L15269.htm
5. Brasil. Lei nº 10.848, de 15 de março de 2004 (arts. 1º e 4º-A). Planalto. Consultado em 01/10/2026. https://www.planalto.gov.br/ccivil_03/_ato2004-2006/2004/lei/l10.848.htm
6. Ministério de Minas e Energia (MME). Mercado Livre de Energia: entenda como funciona a migração e as regras para contratação de energia (publicado em 17/08/2026, atualizado em 18/08/2026). Consultado em 01/10/2026. https://www.gov.br/mme/pt-br/assuntos/noticias/mercado-livre-de-energia-entenda-como-funciona-a-migracao-e-as-regras-para-contratacao-de-energia
7. Agência Nacional de Energia Elétrica (ANEEL). Bandeiras tarifárias (atualizada em 08/01/2026). Consultado em 01/10/2026. https://www.gov.br/aneel/pt-br/assuntos/tarifas/bandeiras-tarifarias
8. Agência Nacional de Energia Elétrica (ANEEL). Comercialização: lista de agentes comercializadores e relatório de migração potencial do ACL (atualizada em 03/03/2026). Consultado em 01/10/2026. https://www.gov.br/aneel/pt-br/centrais-de-conteudos/relatorios-e-indicadores/comercializacao
9. Câmara de Comercialização de Energia Elétrica (CCEE). Varejo representou 75% das migrações ao mercado livre de energia em abril de 2026 (27/05/2026). Consultado em 01/10/2026. https://www.ccee.org.br/pt/web/guest/-/varejo-representou-75-das-migracoes-ao-mercado-livre-de-energia-em-abril-de-2026-aponta-ccee
10. Câmara de Comercialização de Energia Elétrica (CCEE). Confira tudo que a CCEE entregou ao mercado no primeiro trimestre de 2026 (19/05/2026). Consultado em 01/10/2026. https://www.ccee.org.br/pt/web/guest/-/confira-tudo-que-a-ccee-entregou-ao-mercado-no-primeiro-trimestre-de-2026
11. Câmara de Comercialização de Energia Elétrica (CCEE). InfoMercado Mensal nº 225, contabilização de março de 2026. Consultado em 01/10/2026. https://www.ccee.org.br/documents/80415/31257588/InfoMercado-mensal_mar_26_225.pdf/f4594386-d23b-867a-133f-bb4e8781d091
12. Câmara de Comercialização de Energia Elétrica (CCEE). Perguntas e Respostas, Comercialização Varejista, Modelo Simplificado, Submódulo 1.8, versão 1.0 de 06/06/2025. Consultado em 01/10/2026. https://www.ccee.org.br/o/ccee/documentos/CCEE_1206015
13. InnConta. Energia e infraestrutura (frente de serviços; página do grupo, lida em 01/10/2026). https://innconta.com.br/frente/energia