Decree signed by President Jair Bolsonaro and published yesterday (29) in the Official Gazette of the Union favors new tenders to replace concessions for transmission of electricity that have expired, in place of the extension of existing contracts.

"The aim is to reduce the cost of energy transmission to the final consumer, with positive effects on the value of electricity tariffs charged by distributors", said the General Secretariat of the Presidency of the Republic, in a note.

Several transmission concession contracts start to expire from 2025, especially from 2030 onwards, informed the secretariat.

According to the text of Decree 11,314/2022, new bids must have as their main criterion the lowest annual revenue for providing the public service, the so-called reasonable tariff.

Extensions can still be made, but only in exceptional situations, after reasoned analysis by the National Electric Energy Agency (Aneel) and with specific public consultation.

“The renewal of transmission contracts, in addition to providing a reduction in tariffs paid by consumers and electricity generators, will be an opportunity to redesign the concessions, increasing their technical and economic efficiency, and maintaining the quality of the service provided”, said the Ministry of Mines and Energy, in a note.

The ministry added that the transmission facilities for expiring concessions may be tendered together with new investments foreseen by the sectoral planning, which would make the tenders more attractive.