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Brazil: Pre-Paid Electricity Regulated

(May 21, 2014) The Brazilian Agency of Electric Energy (Agência Nacional de Energia Elétrica, ANEEL) published Resolution No. 610 in the country’s Official Gazette of May 13, 2014, to regulate procedures for the receipt of electricity before or after payment. (Resolução ANEEL No. 610, de 13 de Maio de 2014, ANEEL website.) The Resolution had been approved by ANEEL on April 1, 2014. (Press Release, ANEEL, Resolução Sobre Pré-Pagamento de Energia é Publicada no Diário Oficial (May 14, 2014).)

According to the Resolution, a consumer’s enrollment in the pre-payment model is voluntary, free of charge, and must be specifically requested. In the pre-payment model, consumers will receive an initial credit of 20 kWh that must be paid for subsequent power purchases. New credits may be acquired at any time and as often as desired, with a minimum established purchase of 5 kWh. The sale of electricity may occur through accredited agents or on the Internet. There is no difference in tariffs for pre-payment or post-payment purchases, but a discount may be granted to encourage consumers to join the new system. (Id.)