Guide to the Reform of Brazil’s Energy Sector

On May 21, 2025, Provisional Measure No. 1,300/2025 ("Provisional Measure" or "MP"), also known as the Power Sector Reform MP, was published in the Federal Official Gazette. This initiative of the Ministry of Mines and Energy ("MME") was structured around three main pillars, as designated by the government:

Pillar 1: Tariff Justice
Pillar 2: Freedom for the Consumer
Pillar 3: Balance for the Sector

Processing of the Provisional Measure

Most provisions of the MP come into force immediately and remain in force for 60 days, and which may be extended once for an equal period. However, there are exceptions: (i) provisions related to the Social Tariff will come into force 45 days after the publication of the MP; and (ii) the funding by the Energy Development Account (“CDE”) of tariff components of distributed generation not remunerated by the generating consumer will come into force as of January 1, 2026.

The Provisional Measure’s legislative process begins in the joint committee of the National Congress, formed by deputies and senators responsible for issuing an opinion on the Provisional Measure. If the text is amended, the MP proceeds as a conversion bill.

Once approved in the joint committee, the proposal is submitted to a vote in the Plenary of the Chamber and the Senate. If the Provisional Measure is approved without any changes, it is promulgated directly by Congress, and becomes a law. If there are changes, the text will move for presidential sanction, with a deadline of up to 15 business days for total or partial veto. Accounting for the maximum term of the MP and the suspension of this term during parliamentary recess, its conversion into law must occur by October 1, 2025.