The Brazilian Electricity Regulatory Agency (ANEEL) launched a public consultation on the establishment of a regulatory sandbox on the tariff schemes applied by distributors to low-voltage consumers. It is designed to optimize consumer choice and incorporate technological changes through tariff pilot projects.

Public Consultation n.º 49/2021 from the Brazilian Electricity Regulatory Agency (ANEEL) seeks to collect public contributions to a proposal to establish a regulatory sandbox on the tariff schemes applied by distributors to low-voltage consumers (group B, defined in ANEEL Resolution n.º 414/2010), namely “tariff sandbox”. As an experimental regulatory environment – defied under the legal framework for Startups (Complementary Law n.º 182/2021, see more in the 25th edition of the Regulatory Report) –, the tariff sandbox aims at attaining innovation in tariff composition through the testing of distributor pilot projects under ANEEL’s controlled environment.

The institution of the tariff sandbox seeks to develop tariff schemes that optimize consumer choice, while preparing for changes to consumption patterns resulting from technological innovation, both inside (e.g., distributed generation and energy storage systems) and outside the energy sector (e.g., electric vehicles). The incorporation of international experiences and the participation of academy researches are also envisioned by ANNEL.

The sandbox’s implementation comprises three initiatives:

  • A normative resolution enacting the tariff sandbox and providing the conditions and criteria for distributors to establish tariff pilot projects, whose draft is submitted to public consultation;
  • A mechanism coordinating the participation of ANNEL and other agents within the tariff sandbox, which will be defined within a Research and Development pilot project on sandbox governance; and
  • Public notices from participating distributors intended to promote their pilot projects.

Contributions can be submitted to this e-mail address until October 13. A public hearing (n.º 23/2021) will be held on October 6. Technical notes, the draft normative resolution, a regulatory impact analysis, instructions for participation, and more information are available at ANEEL’s website.