Brazil Proposes 33% Cut to 2026 Luz Para Todos Budget, Sets Higher Service Target

Overview

• MME set a 2026 allocation of about R$2.63 billion for Luz Para Todos, a roughly 33% reduction from 2025, and opened a public consultation through Dec. 22.
• The proposal raises next year’s physical target to 124,744 consumer units, about 28% above the 2025 goal.
• Government sources told Valor that roughly R$3 billion already under execution would add to the proposal, implying about R$5.6 billion in effective resources in 2026.
• Aneel’s InfoTarifa projects the CDE at R$52.7 billion in 2026, up 7.1%, with rising costs for distributed generation and the social tariff while the Luz Para Todos line drops 33%.
• The consultation on the 2026 CDE budget is slated for Aneel’s Dec. 9 agenda, and exceptional targets set in 2023 focus on reaching vulnerable communities in multiple states.