Eduardo Braga wants to reallocate subsidies from the electricity sector

by Andrea
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Senator says he will use price signals as an instrument to stimulate investments in storage

The rapporteur of the Provisional Measure senator (MDB-AM), stated on this 4thª fair (October 15, 2025) which intends to propose in its reallocation of subsidies currently existing in the electricity sector. According to him, this would be aform of stimulate new investments without increasing costs for consumers.

According to the congressman, the proposal is, in practice, to transfer subsidies that are already part of the tariff structure to projects that will participate in future energy auctionsfocusing on the entry of new ventures, especially focusing on storage.

He ruled out the creation of new incentives, warning of the risks of imbalance in the electricity bill.

“Carry out the reallocation without any impact or increase in subsidy. Carry out a reallocation for incoming projects […] We cannot add new subsidies to this account. Otherwise we won’t balance”he said, after the public hearing of the joint committee dealing with the measure.

The MP deals with, focusing on improving cost allocation, reviewing subsidies and encouraging competitiveness in energy auctions.

The senator said that the price signal it will be an instrument to make the sector more efficient in terms of storage.

According to him, adequate energy pricing for projects of this type can encourage behaviors “more rational” by sector agents, such as energy storage at strategic moments.

“The price signal in the electricity sector is impressive, it’s glucose in the veins. With it, I can stimulate the guy who is hired. Then he becomes interested in storing”he declared.

The price signal is the mechanism that indicates, through market values, the real cost of generating and supplying energy at a given time and place.

It is used to guide investment, operation and resource use decisions in the electrical system.

The excess charges on the electricity bill were also criticized by the president of the commission, deputy (União Brasil – PE).

He said that the National Congress and the federal government made mistakes over time and “hanged” the electricity sector on the shoulders of consumers. Which, for him, needs to change.

“We love to hang electricity sector subsidies on consumers’ bills as we should not have done to the extent that was done in the recent past. Now we have the opportunity to balance the Brazilian electricity sector”, he also said after the session.

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