Electricity has more than doubled inflation in recent years

The residential electricity bill has risen more than inflation in the country. Since 2015, the difference in this increase has more than doubled. In 2021, the energy bill accumulated a high of 114%, compared to 48% of inflation in the same period.

The data are from the Brazilian Association of Energy Traders (Abraceel).

According to the entity, residential electricity had an average annual increase of 16.3% between 2015 and 2021. The consumer price index (IPCA) had a variation of 6.7% per year. This represents growth of 237% above inflation in the observed period.

Electric energy represented 10.65% of the IPCA variation. Last year, the index varied by 10.06%. Electricity, on the other hand, fluctuated by 21.21%. The impact on the 2021 IPCA was 0.98 percentage point.

The vice president of energy at Abraceel, Alexandre Lopes, believes that the market regulation format directly impacts the rise in the electricity bill.

“It is the model’s inefficiencies that end up affecting tariffs with the increase in charges and subsidies. The regulated environment model is inefficient, and ends up putting pressure on tariffs. Hence the importance of opening the free market to all consumers”, he explained.

In the regulated market, called the Regulated Contracting Environment (ACR), only distribution and energy generation agents participate.

The acquisition of energy takes place through public auctions promoted by the National Electric Energy Agency (Aneel) and operated by the Electric Energy Commercialization Chamber (CCEE) for its customers.

In the free market, or Free Contracting Environment (ACL), independent energy producers, generating agents, self-producers, traders and importers participate in the negotiations.

The agreements are made through bilateral contracts, where the consumer negotiates the terms of this contract directly with the generating and trading agents.