The electric energy distribution companies are responsible for receiving the high-tension energy from the transmission-interconnected system lower it at commercial levels and make it reach the final consumer. Residential consumers receive electricity at low tension (220 V, for instance) while large commercial or industrial clients may contract energy supplies at average tension (13.8 kV, for instance) and lower it in their own substations.

There are in Brazil 64 distributors taking energy to some 63 million consuming units, of which 85.38% are residential. Ninety-nine per cent of the Brazilian municipalities are met by distribution networks. Programs are still under way to universalize access to energy in the country, among which it is highlighted program Luz To All.

The agency that regulates the distribution of energy in the country is the Agencia Nacional de Energia Eletrica [National Electric Energy Agency].ANEEL is responsible for, among other activities, establishing standards and technical procedures for the area, in addition to disciplining the expansion and the operation of the distribution networks, always aiming at improving the performance indicators, preserving safety, efficiency and the reliability of the electric systems.

ANEEL is responsible as well for defining a reasonable tariff, one that is fair both for the final consumer and for the investor, and does that through periodic processes of tariff revision. Each 4 or 5 years, the regulating agency revises the cost structure that each distributor needs to have to meet its concession area and defines efficiency goals for the next few years, keeping the reasonability of the prices and the economic and financial balance of the concession contract. In the period among revisions, it is natural that the distributor seeks a productivity larger than that foreseen, which will be reverted in favor of the consumers in the next revision.

More information on the distribution network in Brazil, click here and access the site of ANEEL.