PL-414/2021, discover the solution to lower the electricity bill price

 In times of water crisis, red flag on the tariff and an increasing concern among Brazilians regarding the price of the electricity bill, there is a light at the end of the tunnel for companies and consumers to have more options and access to cheaper energy.

The Bill 414/2021, from the Senate, deals with the expansion and opening of the Movimento Luz Livre in Brazil, that is, it amends the regulatory framework of the electric sector so that more competitive operations are created among energy‑supplying companies. The purpose of the text, which is currently pending in the Chamber of Deputies, is to diversify the Brazilian energy matrix by bringing choice power to consumers.  

This model is already available for large companies that have a contracted demand equal to or greater than 500 kilowatts (kW) per business unit, which results in an energy cost of approximately R$50 thousand per month. Companies that fall into this classification can negotiate prices and terms directly with the energy supplier and achieve cost reductions of up to 30% compared to other distributors.

Sign the petition and support the #MovimentoLuzLivre.

Why can companies choose the energy supplier and not the final consumer?

Today, indeed, only companies that exceed the required minimum demand can register in the Free Energy Market and choose among price options and different market conditions. For the average consumer, known as a captive consumer, this is not yet a reality.

The main reason is that current legislation does not yet provide a competitive scenario and does not allow individuals to choose from whom they prefer to buy energy. On the contrary, they are forced to pay for residential energy consumption to a predetermined supplier that does not offer conditions nor guarantees clean energy.

What are the advantages of the Bill's approval?

The future law will apply within a period of up to 42 months and, after that period, all consumers will be able to contract energy from the supplier of their choice.  

With this, any citizen will be able to even define the source of the contracted energy, enabling the choice of clean and sustainable energy such as wind and solar. This diversification in the energy sector will prevent other critical moments, like the current water crisis, since Brazil depends on energy supply through hydroelectric plants.  

More companies will be able to offer product alternatives and conditions and the consumer will determine what makes the most sense for their profile. Thus, the main advantage is the possibility of negotiation and cost predictability, with supply security, effectively reducing the electricity bill.  

What changes in the price of your electricity bill?

Just as already happens in the telecommunications and banking sectors, where the client can choose which company to contract the service from and, if not satisfied, switch to another that meets their needs and offers better advantages, with the approval of Bill 414/2021, the consumer will also have a competitive scenario in the energy offering and, therefore, the electricity bill will become cheaper.  

Moreover, the main cause of the rising electricity bill in Brazil is the lack of diversity in the sector, which will be solved with the future law. The Brazilian energy matrix is dependent on hydroelectric plants, i.e., almost all comes from the same resource. In this case, lack of rain causes instability in energy distribution, directly reflecting in tariffs that become more expensive for the final consumer and without a lower‑cost alternative.  

With the Free Market it will be possible for people to define the origin of the acquired energy and thus choose clean sources, such as solar and wind. The heterogeneity of the system will be guaranteed by the increased demand for other sources and crisis moments will be secured, without an increase in the electricity bill.      

But how is a Bill approved?  

A bill first needs to be presented to the Senate or Chamber by any member of society; in this case, the author is Senator Cassio Cunha Lima, from the PSDB of Paraíba.  

After the bill is presented, it goes through a review in both houses of Congress and then proceeds to committee analysis according to the subject matter. Only then does it go to a vote and is approved by simple majority in the legislature. Finally, the Bill proceeds to the President's sanction.  

How to demonstrate support for a Bill?  

The general public can demonstrate support for a Bill through petitions, social networks, demonstrations and directly with parliamentarians. The main goal is to apply pressure so that the majority's aspirations are placed as a priority in the Federal Congress votes.

In the case of Bill 414/2021, you can join the #MovimentoLuzLivre, sign the petition and accelerate the process of deregulating energy in Brazil! In this way, the power to choose cheaper and sustainable energy will be in your hands.