Abrace proposes a reduction of R$ 109 billion in annual electricity bill charges, seeking greater industrial competitiveness and financial relief for Brazilian consumers amid the energy crisis.
The cost structure of the Brazilian electricity sector has reached a critical point, leading Abrace (Brazilian Association of Large Industrial Energy Consumers and Free Consumers) to present a strategic agenda to presidential candidates.
The plan aims to eliminate R$ 109.1 billion in annual expenses that unfairly burden electricity rates, compromising household budgets and the production viability of national industry.
The organization has intensified dialogue with the main candidacies, including representatives of Lula (PT), Flávio Bolsonaro (PL), Ronaldo Caiado (PSD), and Renan Santos (Missão).
The central focus of the discussions is to halt the exponential growth trajectory of charges, which have surged 300% in the last decade and a half, severely pressuring the cost of living in the country.
Structural Review and the Weight of CDE
The main bottleneck identified by the association is the Energy Development Account (CDE), which projects expenses of R$ 52.7 billion for 2026.
The proposal suggests a profound overhaul of the subsidy model, transferring sectoral charges and public policies that currently make up the energy bill to alternative sources, such as the Social Fund, funded by oil exploration.
Paulo Pedrosa, president of Abrace, states:
The high cost of energy drains the competitiveness of Brazilian products, making everything more expensive, from basic consumer goods like meat and bread to fundamental materials for civil construction, which demands immediate tariff relief measures.
Beyond Electricity: The Gas Market
Under the title “Energy, Sovereignty, and Competitiveness: A Choice for Brazil,” the association’s agenda extends its demands to the natural gas market.
The objective is to create conditions for national industry to access inputs at competitive prices, essential for resuming domestic production and reducing dependence on imports.
Suggestions include the implementation of strict reinjection targets for new exploration fields, the holding of specific auctions for gas belonging to the Union, and the adoption of the gas release model.
These measures aim to increase the supply available in the domestic market and stimulate competition among economic agents.
The Future of Tariffs
Parallel to the political movement, the debate on the sustainability of the electricity sector echoes in the National Congress, where the so-called Tariff Responsibility Law is being processed.
The initiative seeks to create control mechanisms to curb the rampant creation of subsidies that have become omnipresent in electricity bills in recent years.
The scenario demands an urgent course correction.
The expectation is that, regardless of the electoral outcome, the pressure from Abrace and the productive sector will force a regulatory restructuring capable of ensuring that Brazil not only generates energy sustainably but that this same energy ceases to be an obstacle to national economic development.
