Funds earmarked to soften electricity tariff increases for 21 power utilities in Brazil’s North and Northeast regions this year could total as much as R$5.5 billion, according to data presented on Tuesday (19) by the Brazilian Electricity Regulatory Agency (ANEEL). The final amount, however, remains uncertain and is expected to be determined only in June.
The funds refer to outstanding balances from the Public Good Use (UBP) quotas, a type of royalty paid by hydroelectric plants, from generation companies that expressed interest in joining the measure established under legislation approved by Congress late last year. In total, participation was equivalent to the renewal of 24 concession contracts.
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The law allows companies to bring forward payments, with the proceeds directed toward tariff relief for 21 distributing companies located in areas covered by the Superintendence for the Development of the Amazon (SUDAM) and the Superintendence for the Development of the Northeast (SUDENE).
The amount was presented in a separate opinion issued by ANEEL director Gentil Nogueira in proceedings discussing how the resources should be allocated among distributing companies affected by the public policy. Initially, the agency estimated the amount could reach roughly R$7 billion if all eligible companies joined the program, which ultimately did not happen.
According to Nogueira, uncertainty over the final amount persists because, according to the agency’s technical staff, installments already paid between January and April this year still need to be deducted when calculating outstanding balances. The final amount will only be known after adhesion agreements are signed with the generation companies. Actual payments are scheduled for July.
Based on available information regarding generators’ participation in the renegotiation process, the regulator’s technical staff developed different tariff-impact scenarios considering three possible revenue ranges from the measure. The analysis included both tariff effects already approved and projections through the end of 2026.
According to the projections, under the scenario closest to the agency’s estimate of R$5.5 billion, the average tariff impact for the benefiting distributors would be 4.51%. The technical staff cautioned, however, that results may vary because the estimates were based on current conditions and simplified methodological assumptions.
The impact also reflects the allocation criterion defended by Nogueira in his opinion, which seeks to equalize tariff-adjustment effects among the benefiting companies. The methodology was approved by the agency’s board on Tuesday (19).
Under the model, all distributing companies would see tariff adjustments around that level, currently estimated at 4.51%. If the target cannot be fully achieved this year, any difference in tariff effects would be incorporated into the 2027 tariff-review process.
As a result, funds allocated to each company will not be distributed equally but instead determined according to each concessionaire’s projected tariff adjustment this year, allowing convergence toward the established average effect.
Although the allocation model was only finalized on Tuesday (19), part of the resources had already been anticipated in tariff adjustments approved earlier this year. In some cases, however, no advance allocation occurred, and certain companies filed appeals seeking to incorporate the effects this year.
That is the case for Enel Ceará, Roraima Energia, and Energisa Rondônia. For those companies, the processing of new tariffs reflecting the inclusion of UBP funds is expected to occur as part of the review of appeals against approved tariff adjustments, whenever possible.
If no appeal is filed against the tariff process, the agency’s technical staff will formally approve new tariffs through an administrative order. The revised tariffs, however, will only take effect after companies receive the first installment of UBP resources. That is the case for Energisa Acre.
ANEEL: exact amount expected to be determined in June — Foto: Divulgação/Aneel
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