BRAZIL Law and Practice Contributed by: Débora Yanasse, Bruno Salzano and Luisa Tortolano Barreto, Tauil & Chequer Advogados in association with Mayer Brown
A concessionaire has no exclusive right within a speci- fied geographical territory, but there is no competition among concessionaires, as the RAP is not based on the amount of power transmitted by the concession- aires’ transmission facilities, but on the availability of such facilities. 4.6 Transmission Charges and Terms of Service The principal laws governing the provision of trans- mission services, as well as transmission charges and terms of service, are: • the Concessions Law; • Law No 9,074/1995; • Law No 9,427/1996; • Law No 9,648/1998; • Law No 10,848/2004; • Law No 14,120/2021; • Law No 15,269/2025; and • the Concession Renewal Law. All of these have been previously discussed through- out this guide. As mentioned in 5.1 Constructing and Operating Electricity Distribution Facilities , power transmis- sion concessions are under a revenue cap regulation. These concessions may be divided into three catego- ries, as follows: • concessions granted prior to 1998 – their RAP is adjusted annually based on the IPCA, they were renewed for an additional 30 years in 2013 and they have a tariff review every five years; • concessions granted from 1999 to November 2006 – their RAP is adjusted annually based on the IPCA index or IGP-M index (the general market price index) and is reduced by 50% in the 16th year of their commercial operation, they have a 30-year term and no tariff review; and • concessions granted after November 2006 – their RAP is adjusted annually based on the IPCA index, they have a 30-year term and three limited tariff reviews within five, ten and 15 years of the granting of the concessions, which only takes into account changes in the cost of capital.
ANEEL adopts the weighted average cost of capital (WACC) methodology to review the transmission tar- iffs. In 2026, the WACC of transmission and genera- tion companies is 8% (after taxes, in real terms), as defined by ANEEL. The updated WACC was published on 4 March 2026 and applies to tariff review processes conducted from 1 March 2026 onwards. The 2026 WACC represents an increase of 0.11% relative to the previous cycle. The RAP is adjusted annually and revised periodically, as applicable, according to the concession agree- ment. In general terms, in the periodic tariff review, ANEEL covers the recalculation of the cost of capital, effi- ciency gains in the operation and maintenance of the facilities, and the partial or total deduction of reve- nues arising from other activities (so-called “other rev- enues”). The tariff review process follows a procedure of public hearing, where the company, consumers and any other party may submit contributions to ANEEL prior to definition of the new tariffs. For the periodic tariff review cycle of July 2026, ANEEL opened a public consultation process ( Tomada de Subsídios No 6/2026) covering 50 transmission con- tracts, with an average repositioning index of 2.42% for the reviewed concessions. The RAP is supported by revenues arising from pay- ments of the transmission tariff (TUST) by users of the transmission grid in accordance with Transmis- sion System Use Agreements ( Contratos de Uso do Sistema de Transmissão or CUST) entered into by and between the ONS and such users. Concessionaires collect their allowed share of the TUST from each user of the national transmission grid, despite the location of their assets. The TUST is calculated on a monthly basis by the ONS according to a nodal methodology and applicable reg- ulations that differentiate consumers from generators, and also observing the rights of certain generators that participated in auctions with stabilised TUSTs.
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