Price of electricity (Brazil): turning point?

Price of electricity (Brazil): turning point?

Prices on the electricity free market for log term deliveries had a systemic drop for months on end, thus enabling an excellent differential in relation to captive (regulated) tariffs.

But… in the last few weeks there has been a change and free prices have started to rise.

Is this movement something episodic or does it show a new trend?

This is an important question that deserves to be asked and mainly answered with quality so that robust and justifiable decisions can be made.

In my experience, since the beginning of the free market in Brazil (about 20 years ago), I have preferred never to “bet” – for or against the market.

My recommendation to clients has always been to propose a posture of capturing opportunities and even setting up a “tranche” scheme to make a more balanced “package”.