Brazil offers two types of
electric power contracting
The regulated contracting environment – known as captive market for a local distribution concession holder (Distributor) provides the customer with both the contract for use of the distribution system and the consumed energy.
The free contracting environment – known as free market for the local distribution concession holder (Distributor) provides only the contract for use of the distribution system and the contract for electric power supply is jointly signed with a supplier freely chosen by the customer.
|Characteristics||Captive Market||Free Market|
|Energy Supplier||Distributor||Free Choice|
|Contracting of renewable sources||Choice not permitted
(mix of the distributor’s contracts)
free and special consumers
total of market agents