Benefit reaches up to 60 million Brazilians; estimated annual cost is R$3.6 billion
The president (PT) sanctioned this Wednesday (October 8, 2025) MP 1,300, a provisional measure that increases the social electricity tariff. The program grants free consumption of up to 80 kWh per month to families in situations of economic vulnerability, benefiting millions of Brazilians.
The benefit is automatic for families registered with CadÚnico with an income of up to half a minimum wage per person, beneficiaries of the BPC (Continuous Payment Benefit), as well as indigenous and quilombola communities.
For families with an income between half and 1 minimum wage (R$ 1,518 currently) and consumption of up to 120 kWh (kilowatt-hour) per month, the MP establishes a partial discount on charges, such as the CDE (Energy Development Account), which represents around 12% of the electricity bill.
However, charges for state and municipal taxes and public lighting remain.
Benefits are granted automatically, without the need to request them from distributors.
The sanction event took place at Palácio do Planalto and was attended by the ministers (Civil House), (Mines and Energy) and (Institutional Relations).
COST
The government estimates that the measure will reach up to 60 million people, with an annual cost of R$3.6 billion. It states that the costs will be offset in the long term by the review of subsidies and the gradual opening of the free energy market for low voltage consumers.
These measures were originally in MP 1,300, but were to avoid the proposal’s expiry and will be addressed in future measures, such as MP 1,304 of 2025, which is valid until November.
TIGHT PROCESSING
The MP was presented to the Senate on September 17th, after being processed in the Chamber, which included adjustments to simplify the text.
The measure was at risk of expiring and ended up being voted on on the last day of the deadline.
The proposal faced opponents, who questioned the impact on other consumers.
Industry agents warn that the benefit could generate inflationary pressure on products and services, as electricity represents around 30% of the production cost of several essential items.
Lula, who will run for re-election in 2026, counts on increasing the social tariff as an instrument to strengthen his popularity among the low-income population.
