The global energy system is going through a systemic transformation and domestic consumers will have a determining role if we want to achieve net zero. Consumers are already becoming more interactive with their energy behaviours. Some are producing their own power and starting to contribute to grid flexibility with connected appliances or electric vehicles.

But to unlock all this potential, regulators have an essential role to play in redesigning energy markets to empower households whilst creating enough security for companies to adapt and innovate mechanisms which incentivise new business models.

Brazil’s big opportunity 
In recent years, Brazil has been holding discussions on opportunities to modernise its energy market. To put it in perspective, Brazil had the sixth-largest domestic power consumption in 2021, with 579 TWh, according to the Enerdata yearbook. But the vast majority of these consumers did not have the freedom to choose their power supplier or their tariff. Brazil’s electricity trading chamber CCEE estimates that just 34% of the electricity consumed in the country is currently being purchased in the free market and is only accessible by large consumers with demand above 500 kW.