By Brazil Stock Guide – Brazil’s electricity regulator ANEEL approved on Tuesday (Oct. 14) the Annual Tariff Adjustments for EDP São Paulo (ENBR3) and Neoenergia Brasília (NEOE3), which together serve more than 3.3 million consumers. The new rates take effect on October 22 and 23, with average increases of 16.78% and 11.93%, respectively.
EDP São Paulo, serving around 2.2 million customers across 28 municipalities, will raise rates by 16.78% on average — 14.67% for residential users, 15.44% for low-voltage, and 19.80% for high-voltage consumers. Neoenergia Brasília, which supplies power to 1.19 million users, will apply an 11.93% increase, with adjustments of 10.56% (residential), 11.01% (low-voltage), and 14.47% (high-voltage).
Sectoral charges drive annual adjustment
ANEEL said the hikes mainly reflect sectoral levies, transmission costs, and financial adjustments linked to the current tariff cycle. These regulated pass-through items — known as Parcel A — account for a large share of the final price paid by consumers.
The Annual Tariff Adjustment (RTA) updates Parcel B, which covers distribution costs, according to inflation indices (IGP-M or IPCA) minus the X factor for efficiency. The broader Periodic Tariff Review (RTP), conducted every few years, redefines cost-efficiency benchmarks, quality standards, and acceptable energy-loss levels.
Inflation pressures and regulatory stability
The 2025 tariff revisions come amid rising operational costs and persistent inflation in Brazil’s power sector. ANEEL said the process ensures utilities’ financial balance while maintaining regulatory predictability and service reliability.