Fiemg (Federation of Industries of the State of Minas Gerais) and Abrace Energia — an association that represents large energy consumers — asked President Luiz Inácio Lula da Silva (PT) to veto part of the measures approved by Congress in MP (provisional measure) 1,304.
Among the vetoes defended by Fiemg and Abrace na , is the article that creates the possibility of automatic reimbursement for generation cuts (curtailment) through charges paid by consumers, regardless of the cause.
“This wording transfers business risks and costs to the consumer, including oversupply or investment decisions estimated at up to R$7 billion by the end of 2025”, assesses Flávio Roscoe, president of Fiemg.
The entities also defend the veto of . Abrace estimates the cost of the measure at R$1 billion per year. The energy generated by thermal plants is more expensive and more polluting.
In Fiemg’s assessment, the hiring of cheaper and cleaner coal-fired thermal plants, contradicting the energy transition goals defended by Brazil during COP30, which is being held in Belém.
The two entities also ask for a veto on the article that authorizes the use of resources from the CDE (Energy Development Account) to pay for the distribution of satellite television signal reception equipment, as the measure is outside the electricity sector and increases the charges paid by consumers.
According to Abrace, the article that allows the use of CDE resources to finance TV reception antennas (Ku band) increases a burden that already exceeds R$50 billion annually.
Abrace also asked the government to veto other articles. Look:
- § 8 of art. 16th-B of Law No. 9,074/1995 – imposes unjustified restrictions on new self-production arrangements and creates market reserves, stimulating generation expansion even in an oversupply scenario;
- Article 18 of PLV nº 10/2025 – amends the Improbity Law;
- § 15-A and 19 of art. 1st of Law No. 14,182/2021 – determine the contracting of 3 GW of biomass and 3 GW of PCHs, with a potential cost of R$7.9 billion annually, regardless of the system’s needs;
- Art. 2º-A of Law nº 10,847/2004 – establishes priority for interconnection between Porto Velho (RO) and Manaus (AM).
Abrace Energia — brings together 60 business groups that represent more than 40% of the country’s industrial energy consumption — states that Brazil needs stable and transparent rules to stimulate productive investments, reduce the cost of energy and ensure industrial development.
“These devices represent setbacks, as they maintain practices that increase costs, conflict with sectoral planning, create market reserves and compromise the transition to a more efficient and clean matrix. The sector needs predictability and balance, not new distortions”, says Paulo Pedrosa, president of Abrace Energia.
The letters were sent to the Presidency of the Republic, the Civil House and the Ministries of Finance, Mines and Energy, Environment and Development, Industry and Commerce.
Loss of R$ 10 billion
The FNCE (National Energy Consumers Front) also asked for vetoes to articles that propose compensation for losses from wind and solar generators with costs for consumers. The text approved and submitted for sanction contains two sections that establish that energy consumers bear the costs of power cuts (curtailment).
“The FNCE draws attention to the fact that this is energy subsidized by the electricity bill and not generated, which the consumer would now have to pay again. The accumulated loss due to curtailment could reach R$10 billion by the end of 2025”, says the entity in a note.
In addition to the economic impact, the entity states that some of the provisions contained in the text cause harmful impacts on the country’s energy security. The Front highlights that Brazil already produces more energy than it consumes, which leads to “expensive” cuts in solar and wind energy.
For this reason, the entity assesses that it is not “coherent” that the reform of the electricity sector also determines the compulsory contracting of more than 6.35 GW in coal-fired thermal plants, small hydroelectric plants, and biomass.
“Increasing energy generation in this way will increase renewable cuts even further,” says FNCE.
FNCE represents more than 20 sector associations, from all classes of energy consumers.
