Alerts
- 18 September 2025
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MP 1,300/2025 Approved: Expansion of the Social Tariff and Sectoral Adjustments; Self-Production and TUST Issues to Be Addressed in MP 1,304/2025
In September 17th, 2025, the final version of Provisional Measure no. 1,300/2025 has been approved by the Brazilian National Congress and converted into Bill of Conversion (PLV) No. 4/2025, which now will be subject to presidential approval. The final text introduces relevant changes in the electricity sector, particularly for low-income consumers and specific segments, while more sensitive market matters, such as self-production and TUST, have been removed from its scope. It is widely expected that such measures will be addressed in the forthcoming discussions regarding Provisional Measure no. 1,304/2025 (MP 1,304/2025).
Key amendments confirmed in the approved text
- Social Electricity Tariff: full exemption up to 80 kWh/month for low-income families registered in the CadÚnico program, including Indigenous peoples and quilombola
- CDE (sectoral charge): from January 1, 2026, onwards, families with per capita income between ½ and 1 minimum wage, registered in CadÚnico, will be exempt from paying the annual CDE quotas for monthly consumption of up to 120 kWh by a single consumer unit.
- Irrigation and aquaculture consumers: will now benefit from a discount applied for 8.5 hours per day within a time window to be agreed with the distributor, replacing the current fixed schedule.
- Nuclear power (Angra 1 and 2): as of January 1, 2026, costs will be shared among all consumers of the National Interconnected System (SIN) through a tariff surcharge defined by Aneel, except for low-income consumers. It is important to note that the allocation of this charge, as provided for in the new Article 11-A of Law No. 12,111/2009, must comply with the principles set out in Article 3-A of Law No. 10,848/2004, meaning that self-producers shall bear the charge only on the portion of consumption that exceeds their self-supply.
- Payment of UBP by hydropower plants: possibility of renegotiating outstanding installments, replacing the obligation with a sectoral charge paid directly to the CDE, with funds directed to tariff affordability in 2025 and 2026 for regulated consumers in the Sudam and Sudene areas of influence.
What was left out of the final version
The following matters were removed from the text and postponed to MP 1,304/2025: the opening of the retail electricity market for residential and commercial consumers, CCEE’s role in the natural gas sector, the elimination of incentives for alternative sources, new restrictions on self-production (including self-production by equivalence), and the termination of discounts applicable for transmission and distribution wheeling tariffs (TUST/TUSD) for free consumers. In addition, proposals regarding time-differentiated tariffs, prepayment, and special rules for areas with high default rates were also removed.
Impacts and next steps
Distributors will need to adapt their billing and registration systems to the new Social Tariff and prepare for the implementation of the nuclear tariff surcharge, while consumers and energy traders must review their CDE cost projections and tariff pass-throughs as of 2026. Hydropower generators should assess the feasibility of UBP renegotiation within the deadlines and conditions to be defined, and self-producers and free market participants must closely monitor the progress of MP 1,304/2025, which will possibly concentrate regulatory changes on self-production and TUST/TUSD, as well as other matters removed from Bill of Conversion 4/2025.
Our Energy Team is closely monitoring these changes affecting the sector. Should you have any questions on this matter or other topics of interest, please do not hesitate to contact our professionals.
