Brazilian companies’ concern about energy costs fell at the end of 2024, according to a survey by Grant Thornton. According to the survey, 36% of businesspeople expressed concern about the issue in the country in the last quarter of last year, compared to 41% in the immediately previous quarter.
According to the leader of Energy and Natural Resources at Grant Thornton Brasil, Élica Martins, the result was driven by the opening of the free energy market in the country.
“The movement was made possible through ordinance MME 50/2022, in force since January last year, which reduces operational costs mainly for medium-sized industries, by enabling the migration of suppliers and by being able to choose the source of energy generation for the business. Analyzing the information, this format should remain on the rise in 2025,” says the expert.
Supplier choice
With the opening, all consumers on the medium and high voltage networks, which correspond to customers with an electricity bill of around R$10,000 per month, can choose their electricity supplier.
“This movement not only democratizes access to cheaper energy, but also promotes sustainability and energy independence,” says Martins.
Continues after advertising
The opening of the free market in Brazil to all medium and high voltage customers in January 2024 began an intense movement of smaller companies migrating to this contracting model.
According to data from Thymos Energia, there was a 55% increase in the number of consumers in the free environment in Brazil in 2024. The free environment corresponded to 39% of total electricity consumption in the country last year, a percentage that should reach 41% of the system’s demand in 2025, the consultancy predicts.
Continues after advertising
The scenario helped Brazil to stay against the rest of the world. In the global survey by Grant Thornton, concern about energy costs rose from 50% in the third quarter to 55% in the fourth quarter of 2024. In Latin America, concern about the topic increased from 37% to 39%.
In total, the study gathered opinions from around 4,000 medium-sized business leaders in 31 countries.
Movement must continue
Martins points out that the high water levels in the reservoirs of hydroelectric plants at the beginning of this year contribute to the continuation of the scenario of less concern about energy costs in Brazil in the short term. But she remembers that the sector still faces challenges in reducing prices.
Continues after advertising
Read more:
“The volatility of raw material prices and the need for continued investment in infrastructure are obstacles that cannot be ignored,” he says.
Continues after advertising
The executive also highlights that, in addition to opening the free market to all consumers, the adoption of other measures will also play an important role in reducing energy costs, such as tax incentives for renewable energy and regulations that promote energy efficiency.
Find out more:
“Specific regulation for energy cooperatives and the approval of energy purchases for small users is valid. Facilitating the contracting of energy through the free market, similar to choosing pay TV services, could increase the peace of mind of medium and small business owners, as well as consumers”, he states.