The Brazilian Electricity Regulatory Agency (ANEEL) launched its controlled regulatory environment, namely “tariff sandbox”, for distribution concessionaires and permittees to carry out innovative projects regarding tariff schemes for low-voltage consumers.

Normative Resolution n.º 966/2021 from the Brazilian Electricity Regulatory Agency (ANEEL) established the framework for concessionaires and permittees that offer distribution services to take part in the controlled regulatory environment, namely “tariff sandbox”, designed to enable the implementation of innovative pilot projects regarding tariff schemes for low-voltage consumers (group B, defined in ANEEL Resolution n.º 414/2010).

The normative resolution provided that distributors may submit projects comprising unique tariff schemes that seek to improve the provision of their distribution services in at least one of the ways listed in article 2. Such projects must follow the submission conditions (article 3), target a representative sample of willing low-voltage consumers (article 6), and may claim resources destined for Research and Development (article 10).

ANEEL also enacted a Terms of Reference document for the establishment of a governance body to coordinate and monitor the tariff sandbox over the next five years, whose composition will also include distributors. According to ANEEL, four public notice processes to select sandbox projects will be launched, once every year, over the next four years. Interested distributors may already submit their projects for the first selection process, scheduled to be carried out in April 2022. Submission instructions are provided in the Terms of Reference document.

The normative resolution stems from Public Consultation n.º 49/2021, reported in the 27th edition of the Regulatory Report, and whose results are available on ANEEL’s website.