The free energy market has been gaining ground in discussions about efficiency, competitiveness, and the energy transition in Brazil. It allows some consumers to choose from whom to buy energy, instead of accepting only the distributor’s standard tariff.
Before considering this alternative, it is essential to understand how the model works, who can currently join, and which precautions help avoid decisions based solely on expectations of savings.
What is the free energy market
In the free market, the consumer can negotiate the purchase of electricity directly with generators or traders. Price, term, volume, and type of source (such as solar, wind, or hydro) are defined in a contract.
This differs from the regulated market, in which the local distributor purchases energy in auctions and passes the cost on to the end consumer through tariffs defined by public rules.
Who can join the free market today
Currently, access to the free market in Brazil is not universal. Eligibility depends on the consumption profile and the level of contracted demand.
In general, the following can participate:
- Consumers with a minimum contracted demand defined by current regulation - Companies, industries, businesses, and some condominiums - Units that are able to organize themselves for more active consumption management
The opening of the market is gradual, and the schedule may change over time. Therefore, it is important to follow updated rules before making any decision.
How energy contracting works
Contracting in the free market takes place through bilateral contracts. In them, the consumer defines:
- Amount of energy to be purchased - Contract term (short, medium, or long) - Price or pricing formula - Origin of the energy, when applicable
In addition to the energy contract, the consumer continues to pay the local distributor for use of the electric grid, which includes charges and network tariffs.
Main risks that need to be considered
Despite the flexibility, the free market involves risks that do not exist in the same way in the regulated market. Among the main points of attention are:
- Price variation in indexed contracts - Penalties for consumption above or below the contracted amount - Need for more active management and monthly monitoring - Dependence on the quality of the contract and the chosen supplier
Understanding these risks helps avoid frustrations and decisions based solely on superficial price comparisons.
How to assess savings without promising results
Assessing whether the free market makes sense requires analysis, not expectation. Some important precautions include:
- Gathering real consumption history, with attention to seasonality - Comparing total cost, including energy, charges, network use, and services - Simulating different price and consumption scenarios - Considering management, consulting, or internal adaptation costs
Savings, when they occur, depend on the consumption profile, contractual strategy, and market conditions, and are neither automatic nor guaranteed.
Relationship with renewable sources and the energy transition
The free market can facilitate contracting energy from renewable sources, such as solar and wind, through specific contracts. This makes it possible to align electricity consumption with environmental goals and sustainability strategies.
However, choosing the source does not eliminate the need to assess costs, risks, and consistency with the consumer’s operation. Renewable energy contracted in the free market remains subject to the same technical and commercial rules.
When it makes sense to deepen the analysis
The free market tends to be more relevant for consumers who:
- Have high and relatively predictable consumption - Can regularly monitor energy indicators - Are willing to understand contracts and rules of the electricity sector
For other profiles, the regulated market may continue to be the simplest and most appropriate option. Information and caution are the best starting points for any decision.
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