Study shows that it is possible to achieve value without any changes in the legal framework of the sector, simply by modifying subsidies, opening up the electric energy market and creating an energy transition program

There is the possibility of reducing the average energy tariff by 13.5% without the need to change the framework of the sector. This is the main conclusion of an unprecedented study made by the Instituto Escolhas and submitted to the Federal Senate in May.

In order to achieve this, three measures are necessary: the first of them, with a potential reduction of 8.5%, establishes the transfer of the subsidies without any direct relationship with the operation of the electric sector to the National Treasury; the second is the total opening up of the electric energy market in the country because the possibility of residential consumers choosing their supplier would lead to new business models that are capable of reducing tariffs by 4%. Finally, the other 1% decrease in average cost of electricity is in the creation of an energy transition program aimed at the installation of solar panels in low-income households.

Read the report in the Folha de S. Paulo!

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