In participating in Prumo Day 2023, Eduardo Capelastegui, CEO of Neoenergia, believes

What opening-up of the energy market will promote new solutions, but still needs robust regulation

Rio de Janeiro, August 30, 2023

“Market liberalization is a natural path for the Brazilian electricity sector, as has happened with other countries.” The expansion of the free market is seen by the CEO of Neoenergia, Eduardo Capelastegui as a differential factor that will reduce the cost of electricity, as well as promote the offer of energy solutions integrated with the consumer's profile. According to the executive, this new scenario depends on a robust regulatory framework, with very well defined rights and obligations, to function properly.

Eduardo Capelastegui addressed the topic this Wednesday during Prumo Day 2023, held in the city of Rio de Janeiro. He participated in the panel “Energy Transition: opportunities and challenges for Brazil” alongside more market representatives.

For the CEO, today there are two points that need adjustment to allow the liberalization of the electricity sector to advance. “The first point is the disparity in prices between the regulated market and the free market, as this distortion may provoke a demand for free contracting without considering the legacy contracts of the distributors. The second is market security and price transparency,” Capelastegui said.

He considered that Brazil needs to take a step forward in price transparency and in the financial guarantees required from marketers. “The market rule is not effective, but I believe that we are going to move in the right direction,” he said. For Eduardo Capelastegui, the market needs structural safety rules that discourage agents who seek short-term gains. Neoenergia has been present in the country for 26 years.

Regarding the energy transition, Eduardo Capelastegui commented that three factors will be decisive for the development of integrated solutions. They are: the supply of clean energy; the technology and expertise of the operators; and the governance for the viability of a new business model, in which the operator, the investor and the final consumer work together.