Power regulator cuts transmission surcharges by R$5.6bn

The move aims to reconcile opposing interests in a battle that has dragged on for years. On one side, generators, self-producers, and large consumers—represented by groups such as Abrace (Association of Large Industrial Energy Consumers) and Abiape (Brazilian Association of Self-Production Energy Investors)—had pushed for a larger cut of about R$11 billion.

On the other side, transmission companies including Furnas, Chesf, Eletronorte, and Eletrosul (subsidiaries of Eletrobras), as well as Isa Energia, Cemig-GT, CEEE-GT, Copel-GT, and Celg-GT, defended maintaining the full indemnity values. Agnes da Costa, the board member who issued the deciding vote, said the ruling preserves compensation but adjusts future payments in favor of consumers.

“These are assets of transmission companies that, for a period, consumers weren’t paying for, weren’t compensating, and are now returning to the tariffs. There was controversy over part of that amount. Now, with this decision, the consumer will keep paying—but going forward, we can see there’s about a R$5 billion reduction between what was originally expected and what will actually be paid,” Ms. Costa told reporters.

While reading her final opinion on the case, Ms. Costa highlighted that the process demanded a thorough technical review due to the issue’s complexity, strong legal arguments on both sides, and the real risk of billion-real litigation.

“While not abandoning their legal theses, both sides expressed willingness to find a balanced outcome through a technically defensible solution based on prior technical analyses—one that delivers immediate benefits to consumers and minimizes legal risks.”

The central controversy surrounded the methodology for calculating owed amounts, particularly with regard to return on invested capital in those assets. Ms. Costa rejected arguments from dissenting votes that previous calculations contained methodological errors, reaffirming the technical soundness of the analysis conducted thus far.

The measure passed by a 3-2 vote, with support from Director-General Sandoval Feitosa and Acting Director Daniel Danna. The dissenting vote, previously proposed by former director Hélvio Guerra and backed by Fernando Mosna, called for changes to the calculation method and a deeper cut to compensation. Director Ludimila Lima did not participate in the vote, as she currently occupies Mr. Guerra’s former seat.

The case dates back to Provisional Measure No. 579/2012, issued during President Dilma Rousseff’s administration, which sought to reduce electricity costs. The measure altered the concession model for the power sector by requiring early and conditional contract renewals for generation and transmission operators. As a result, transmission firms that opted into the new model stopped receiving returns on assets still in operation and critical to the grid.