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Lula Weighs Sanction of Power-and-Oil Reform as Sector Splits Over Costs and Rules

The package faces veto requests after last‑minute changes and a rushed vote raised concerns about consumer impacts and regulatory stability.

Overview

  • Congress approved MP 1.304/2025, converted into PLV 10/2025, and the measure now awaits President Luiz Inácio Lula da Silva’s decision.
  • A proposed R$20 charge per 100 kWh on distributed generation, advanced by rapporteur Eduardo Braga, passed in committee but was removed on the floor after same‑day votes in both chambers drew criticism for curtailing debate.
  • Abrace Energia asked for vetoes to provisions shifting curtailment costs to consumers and extending compulsory coal‑fired capacity to 2040, estimating up to R$8 billion a year in additional costs.
  • Distributed generation companies such as Órigo back the bill for legal certainty and preservation of rights under Law 14.300/2022, calling it a platform for predictable, subsidy‑free expansion.
  • The relatório broadened the text to gas and pre‑salt governance: refiners (Refina Brasil) support royalty price‑reference changes they say could lift public revenue, while the IBP urges vetoes citing legal uncertainty, expanded CNPE powers and limits on gas reinjection.