Electricity bills will rise 3,5% after Congress overturns Lula's vetoes.

247 - The National Congress decided, by a large majority, to overturn four of the seven vetoes issued by President Luiz Inácio Lula da Silva (PT) to Bill No. 576, which became Law No. 15.097 of January 10, 2025. The decision, taken this week, was criticized by experts and entities in the electricity sector for allowing the reintroduction of provisions unrelated to the main subject of the law—the so-called legislative "riders"—paving the way for a multi-billion dollar impact on electricity tariffs in the coming years.

According to information from the National Front of Energy Consumers (FNCE), reversing the vetoes could lead to an increase of up to R$ 197 billion in Brazilians' electricity bills over a 25-year period. The organization estimates that, in the short term, the effect will be a 3,5% adjustment in tariffs, directly impacting the cost of living for the population, especially low-income families.

Cascading effects on inflation

A study by the consulting firm PSR, cited by FNCE and based on data from... National Electric Energy Agency (Aneel) pointed out that, if all presidential vetoes had been overturned, the total impact could reach up to R$ 545 billion. 

The amount would be equivalent to the continuous charging of the red tariff flag level 2, which penalizes consumers with higher rates during periods of energy scarcity. The entity's assessment indicates that, even with the maintenance of some of the vetoes, the Congressional decision tends to compromise the expected drop in electricity bills and put pressure on inflation.

“What disappoints us is the insensitivity of Congress, because it wasn't a lack of dialogue, documentation, or studies that were done and delivered to Parliament,” criticized Luiz Eduardo Barata, president of FNCE. He also warned about the multiplier effect of the measure on the prices of goods and services. “This increase isn't just reflected in families' electricity bills, but also impacts commerce and services. We, as consumers, would then pay twice, through the increase in our electricity bills and the increase in the price of services and products, which will also become more expensive.”

Legal reaction

Given this scenario, FNCE is considering appealing to the Supreme Federal Court (STF), arguing that the Legislative decision violated constitutional precepts. According to an official statement from the organization, "the Legislative Branch, once again, demonstrates disrespect for constitutional and democratic principles by persisting in defending proposals that harm the population and by conducting the legislative process ignoring internal regulations, preventing civil society from having broad and full participation and summarily approving measures of serious repercussions without technical basis or economic justification."