Unleash your company's potential with the Free Energy Market!
Choose the best offer and boost your business with energy tailored to your company!
What is the Free Energy Market?
The Free Energy Market is a specialized environment for companies and industries to choose electricity suppliers and negotiate contractual terms more flexibly. Unlike the Regulated Contracting Environment (ACR), where rules are imposed by the government, in the Free Market, or Free Contracting Environment (ACL), there is greater autonomy.
Consumers can negotiate not only the price but also the amount of energy, contractual terms, and delivery conditions. This versatility allows companies to customize contracts according to their operational needs, promoting independence and efficiency in negotiations.
Despite the freedom to choose suppliers, the physical distribution of energy remains the responsibility of local companies. ANEEL regulates the sector, ensuring regular and reliable supply, regardless of the chosen supplier in the Free Market.
Example: You, as a consumer located in a city in the South of Minas Gerais, will buy wind energy generated in the Northeast of Brazil, and the company ensuring distribution is CEMIG.
Where did it come from and what is the goal?
The Free Energy Market began in 1995 with the government initiative to promote competition among companies and reduce energy costs. In 2019, there was a significant increase in the participation of more companies in this open market.
How does it work in practice?
By choosing the Free Energy Market, it is possible to acquire energy from anywhere in Brazil, as convenient. If you are establishing a factory, for example, you can negotiate directly with energy suppliers. This contrasts with the Regulated Contracting Environment (ACR), where energy acquisition is restricted to companies in your region.
Regulated Contracting Environment (ACR) vs. Free Contracting Environment (ACL):
If you buy energy from the company in your region, you are a captive consumer (ACR). It's like being tied to a package that includes everything: distribution, generation, and fixed rates. This applies to homes, some small businesses, and even those living in rural areas. In the free market, you choose who will supply your energy. You can negotiate how much, for how long, and adapt everything as your company needs. It's almost like making a contract the way you want.
History of the Free Energy Market in Brazil
What are the differences between Captive Market and Free Energy Market?
| Captive Market | Free Market | |
|---|---|---|
| Freedom of choice | Consumers can choose their energy supplier freely. | |
| Price | Regulated by ANEEL | Negotiated between consumers and suppliers. |
| Flexibility | Consumers can choose the type of energy they want to consume. | |
| Competition | The free market is more competitive than the captive market. |
Energy consumption in the Free Energy Market in Brazilian states
The participation of the free energy market in Brazil has grown in recent years, reaching 38% of the total electric energy consumption in 2023.This growth is the result of various factors, including the decline in energy prices in the free market, the increase in energy consumption by large consumers, and the expansion of the market to new states.
Who can migrate to the Free Energy Market?
According to the new Normative Ordinance No. 50/GM/MME, all Group A consumers have the opportunity to join the Free Energy Market, regardless of the sector or the contracted demand volume.
Free Consumers:
- With a load equal to or greater than 500 kW and any voltage level.
- Can purchase energy from various sources, whether alternative or conventional.
Special Consumers:
- Contracted demand greater than or equal to 500 kW and less than 1500 kW.
- Can contract Special Incentive and Conventional Special energies.
Retail Consumers:
- All Special Consumers are part of Group A.
Group A
High to Medium VoltageGreater than or equal to 2.3kV| Subgroup | Voltage |
|---|---|
| A1 | Greater than 230kV |
| A2 | 88 to 138 kV |
| A3 | 69 kV |
| A3a | 30 to 44 kV |
| A4 | 2.3 to 25 kV |
| A5 | Subterranean |
Group B
Low VoltageLess than 2.3kV| Subgroup | Voltage |
|---|---|
| B1 | Residential class and low-income residential subclass; |
| B2 | Rural class; |
| B3 | Industrial, commercial, services, and other activities, public power. |
| B4 | Public lighting |
Trading modalities in the Free Energy Market
Guaranteed Discount
Reduction in energy costs:
Offers a reduction in energy costs so that companies can negotiate competitive prices.
Greater flexibility in energy contracting:
Provides more flexibility for companies in energy contracting, allowing them to adjust contracts according to their needs.
Greater transparency:
Provides greater transparency for companies, as they have access to information about energy prices and offer conditions.
Fixed Price
Complexity in use:
Can be complex for companies without experience in negotiating energy.
Risk of price volatility:
Energy prices in the free energy market can be more volatile than regulated prices, posing a risk to companies.
Migration costs:
Migration may involve costs, such as hiring specialized consultancy and adapting electrical infrastructure.
Learn about the requirements for migration!
How to Start the Migration Process?
Consumers interested in migrating to the Free Energy Market must start the process by contacting an energy retailer. This retailer plays a crucial role in facilitating negotiations between the consumer and the energy supplier.
Contact with retailer
The consumer initiates the migration process by contacting an energy retailer.
Negotiation with supplier
The retailer facilitates negotiations between the consumer and the energy supplier.
Regularization with distributor
The consumer must comply with the local distributor, ensuring they are regularized and not in default.
Fiscal and legal status
Ensure there are no fiscal issues with taxes related to electrical energy and that the company is not under intervention or extrajudicial liquidation.
ANEEL authorization
Not having received prior authorization from ANEEL to participate in the free energy market through another energy purchase contract.
Service hiring
After completing the migration process, the consumer assumes responsibility for negotiating the price and volume of energy with the supplier.