Reduced costs, predictable budgeting and free negotiation are attracting more and more energy consumers

Does your company have a predictable energy budget and/or the ability to negotiate freely with energy suppliers?

These are some of the advantages of the unregulated energy market. And we have good news for you: this may be the right time for your company to migrate to this market.

Faced with the crisis and a scenario marked by uncertainties, many companies are looking for strategies to become more competitive and considering alternatives to reduce costs without affecting results. The answer may lie in managing your energy costs.

An environment where you can contract and negotiate prices and conditions freely may give your company the decisive edge to stand out among competitors.

Industrial companies have long realized the advantages: 80% of all industrial consumers are already operating in the unregulated market. The Electric Energy Trading Chamber (CCEE) has more than 9,000 members in this category, and the number is growing.

Why is this the right time to migrate?

The clear advantage at this time are the long-term energy prices, lower than in the regulated market. By negotiating contracts with energy suppliers now, your company can ensure predictability and savings for the medium and long term.

Many people don't know that the migration process to the so-called free energy market can take six months or more. It takes this long to cancel the existing contract with distributors in the regulated market.

Studies and negotiations can start now, but the contracts and payments will only be effective when the migration is concluded.

How can I migrate to the free energy market?

In order to migrate to the free energy market, consumers must have at least 500 kW contracted demand and belong to Group A (high voltage). However, with reduced energy prices, this option might be attractive to some consumers with slightly lower demand.

If you are interested in a free feasibility study for you company, click here to send you latest power bills.

In our webinar “From identifying benefits to migration”, our experts explain the step-by-step process for migration. You can watch it here:

Read more about it: How to migrate to the free energy market

Inflexibility in the regulated market

One aspect of the regulated or captive market that can be disadvantageous to large energy consumers is inflexibility: no negotiations or choices are possible.

Consumers are exposed to tariff flags and price volatility dictated by distributors, with no discussion or previous agreement.

In the free market, on the other hand, consumers get to negotiate payment terms and contracts directly with their energy supplier (generator or trader), adjusting terms and details to suit particular company needs.

Expanding free energy market

Senate Bill No. 232/2016 is advancing in Congress with a proposed schedule for the gradual opening of the free market. Within 42 months of its approval, all consumers (of any load and voltage) can join the unregulated market and become free consumers.

This model is already adopted in many countries and it is now closer to becoming a reality in Brazil, although it still needs some fine-tuning before it can be fully implemented.

Read more about it: Closer to opening the free energy market to more consumers

To help you understand how this can be a feasible alternative for your business, we recorded a special episode of our Comercast. Check it out in full:

If you have other questions, just send us an email: