What is Regulated Procurement Environment (ACR) and Free (ACL)?
When consuming content about energy, it’s common to encounter acronyms and very specific sector terms. In this guide, the goal is to keep it simple: you will understand what ACR and ACL are, how each environment works in practice, and which points really matter before deciding on a migration. Stay here, we’ll explain everything!
What is ACR (Regulated Contracting Environment)
The Regulated Contracting Environment (ACR) is the model in which most Brazilian consumers operate: you buy electricity from the distributor in your region, without choosing a supplier, price, or conditions. For this reason, it is also called the captive market.
In this environment, captive consumers are geographically tied to a specific distributor, defined by a concession contract signed with ANEEL. This distributor acquires electricity through public auctions organized by the federal government, guaranteeing supply for its entire concession area.
The monthly bill gathers several components: the cost of consumed electricity, sector charges, federal and state taxes, transmission and distribution costs, as well as the tariff flags when generation conditions require the use of more expensive plants. ANEEL carries out annual tariff adjustments to reflect variations in operational costs and infrastructure investments.
Who participates in ACR (and why the tariff is “regulated”)
In ACR, distributors must ensure full service to their market through regulated contracting, carried out via bidding/auction processes, according to sector rules.
In practice, the electricity purchased by the distributor to serve captive consumers is passed on to the consumer through tariffs defined within the sector’s regulated model.
How the bill reaches the captive consumer
In ACR, the consumer pays a monthly invoice to the distributor, which includes electricity + network usage + charges and taxes, as well as possible cost signals such as tariff flags (when applicable). To understand the differences between profiles, this content helps: captive consumer and free consumer.
What is ACL (Free Contracting Environment) and how does it work?
The Free Contracting Environment (ACL), known as the Free Electricity Market, allows eligible consumers to negotiate electricity purchases directly with generators and traders. In this model, contract, price, term, volume, and source can be aligned with the company’s strategy.
All ACL operations are recorded and monitored by the Electric Energy Commercialization Chamber (CCEE), which performs measurement, accounting, and financial settlement of transactions. All agents must be registered with CCEE to operate legally.
Consumers sign bilateral contracts with chosen suppliers, while CCEE ensures market transparency and discipline without participating in commercial negotiations. The local distributor remains responsible for the grid, receiving only the system usage tariff (TUSD), while the electricity is paid directly to the supplier according to the negotiated contract.
Who can migrate to ACL? (current rule)
Since January 2024, consumers connected to medium and high voltage (Group A) can opt to migrate to the Free Electricity Market.
Normative Ordinance MME No. 50/2022 establishes, as of 1 January 2024, the possibility for Group A consumers to choose contracting in the free environment.
In general terms, Group A consumers with an individual load below 500 kW tend to access the market through representation by a retail trader, as explained by the sector’s own ecosystem.
How is billing handled in ACL?
In ACL, the distributor remains essential — it delivers the electricity through the grid — but the purchase of electricity itself comes from the consumer’s contract. Therefore, companies usually view the distribution portion (regulated) and the electricity portion (negotiated) separately, which improves cost management and transparency.
ACR vs ACL: differences between the regulated contracting environment and the free contracting environment
Now that you know each environment separately, it’s easier to compare. The table below gathers the main criteria that differentiate ACR and ACL in practice, helping you identify which model makes more sense for your company’s profile.
ACR vs ACL Comparison
Criterion |
ACR (Captive Market) |
ACL (Free Market) |
Supplier |
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Pricing |
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Contract Type |
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Tariff Flags |
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Consumer Profile |
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Cost Predictability |
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Source Choice |
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Complexity |
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Potential Savings |
