People’s Light Program: zero electricity bill

A social program with the largest number of beneficiaries created in the current administration of the federal government, People’s Light Program zeroes the electricity bill for 60 million low-income Brazilians whose monthly family consumption goes up to 80 kWh, a change in force since 07/05/2025. It is one of the most relevant initiatives in the fight against energy poverty.

These 80 kWh per month aim to guarantee a minimum of dignity for people: electricity to keep the house brighter, the refrigerator to preserve food and the television to watch the favorite program, in addition to the hot shower, the socket to charge the cell phone and the iron.

Families with a monthly per capita income of up to half a minimum wage, enrolled in CadÚnico, the Single Registry for Social Programs of the Federal Government, are entitled to the benefit.

If consumption is higher, families pay only what exceeds 80 kWh. For example, if the consumption is 100 kWh, the payment will be only 20 kWh.

With the implementation of gratuity, there is a great advance in the old Social Tariff for Electric Energy (TSEE), which only established discounts depending on the consumption range. Now, families who need it most can have relief in their monthly household expenses and spend more on food, for example.

Another new benefit is the Social Discount for Electricity for CadÚnico families with a monthly income between half and one minimum wage per capita, with monthly consumption of up to 120 kWh. These families have an 11.8% reduction in energy bills. In this category, 55 million people will be covered with the discount.

In the sum of gratuity and discount, therefore, People’s Light Program benefits 115 million people and contributes to tariff justice in electricity in Brazil.

The program originates from Provisional Measure (MP) No. 1,300/2025, signed by President Luiz Inácio Lula da Silva and Minister Alexandre Silveira, of Mines and Energy, on 05/20/2025. It was approved by the National Congress and sanctioned by the president on 10/08/2025, as Law No. 15,235.

WHO IS ENTITLED TO THE BENEFIT

To be entitled to the benefit of the Social Tariff for Electricity, one of the following requirements must be met:

Families enrolled in CadÚnico, with monthly per capita family income less than or equal to half a minimum wage;
Seniors aged 65 or over or people with disabilities (PwD), who receive the Continuous Social Assistance Benefit (BPC);
Indigenous and quilombola families enrolled in CadÚnico with a per capita family income of up to half a minimum wage;
CadÚnico families served in isolated systems by generation module;
From 2026, families with an income between half and one minimum wage per capita will also be exempt from the CDE for consumption of up to 120 kWh/month

The Social Tariff for Electricity is automatically granted to families who are entitled. To receive it, it is enough that the person responsible for the electricity supply contract (the one with the name on the invoice) is among the beneficiaries as described above. It is not necessary to request it from the distributor. However, it is necessary to have an active CadÚnico registration.

REFORM OF THE ELECTRICITY SECTOR

Originally, the MP covered three axes for the Reform of the Electric Sector in Brazil: Tariff Justice (People’s Light Program), Freedom for the Consumer and Balance for the Sector.

The initiative sought to expand families' access to quality electricity at a fair price, reducing social inequalities, providing a balance in the electricity sector, ensuring greater freedom for consumers to choose energy suppliers, promoting more competition and protecting the most vulnerable population.

The last two axes became part of MP 1,304, which was also approved in the National Congress and awaits presidential sanction.

FREEDOM FOR THE CONSUMER

The Freedom for the Consumer axis provides the possibility of choosing the supplier company from whom to buy electricity, as is done with the cell phone operator or internet provider.

This measure will benefit middle-class families and owners of micro and small companies in commerce, services or industry, with the free energy market. It applies to both urban and rural units. The change will contribute to reducing the electricity bill and improving the quality of services provided by the concessionaires, which today act practically as monopolies, without local competition between them.

In the free energy market, consumers are the ones who choose which generating company they want to buy the service from. Within the industry, this is known as the Free Contracting Environment (ACL). Today, companies, industries and other establishments that consume a large volume of electricity are within the ACL. Now, there will be democratization of access.

The change in the Freedom for the Consumer axis begins to be implemented gradually from 2026. The user will be able to compare energy offers, prices, contractual conditions and choose the company that best suits him, through websites, applications or other forms of market research. It will be possible for the consumer to change the supplier and look for the one that offers better services. This will encourage the supplier to offer advantages to keep and win customers.

The consumer will know what he is paying to the distributors and to the energy supplier he chooses, making the model more transparent and fair. Local concessionaires, regulated by the National Electric Energy Agency (Aneel), will continue to be responsible for the distribution infrastructure that makes electricity reach your home.

SECTOR BALANCE

In the third axis of the reform, Sector Balance, the measures aim to make a fairer, more egalitarian and proportional distribution of electricity costs, without losing sight of the reality of Brazilian consumers.

The reform provides a more modern and efficient electricity sector, in which the cost of energy is presented in a transparent way, without distortions and respecting legal certainty. With this, the sector gains from attracting investments and more competitiveness and the consumer, with the reduction of energy prices.

The set of measures was designed in such a way that the increase in the resources necessary to offer social benefits is neutralized with other structural actions to reduce or redistribute sectoral burdens. They are: the reduction of charges arising from the consumption of incentivized energy, the uniform distribution of charges among all consumers and a better definition of the self-production of electricity.

All existing contracts will be respected. The objective is that the implementation of the measures is done gradually and responsibly, so that there is no breach of commitments signed and so that consumers are not harmed. The federal government continues to work to ensure predictability and legal certainty in the sector, while adjusting the system to better meet the needs of consumers.

NUMBERS

Throughout Brazil, 17.3 million consumer units are entitled to free admission at People’s Light Program, which is equivalent to more than 60 million people.
Regarding the discount, 21 million families can benefit, which gives an estimated total of about 55 million people.
In total, there are about 115 million people benefited throughout Brazil.
The Northeast region is the one with the largest number of consumer units benefiting from the new Social Tariff. There are 7.8 million families, equivalent to 27.2 million people

DATES

05/20/2025 – Provisional Measure No. 1,300/2025, signed by President Luiz Inácio Lula da Silva and Minister Alexandre Silveira, of Mines and Energy
07/05/2025 – Beginning of the validity of gratuity on electricity bills, according to Aneel
10/30/2025 – Provisional Measure No. 1,304/2025 approved by the National Congress to be sent for presidential sanction.