The Chamber approved the “mutant turtle”, which will increase the electricity bill by 118 billion rubles.

The extension of the entry into force of the new regulatory framework alone will bring an impact of BRL 39 billion.

Joao Gabriel, Alexa Salomao and Lucas Feitosa
Brazil D.F

The Chamber of Deputies this Tuesday (6) approved a proposal that would extend the legal framework for distributed generation by another six months and could lead to an increase in the energy bill in addition to the inclusion of a “mutant turtle”. with potential environmental impacts.

The initial proposal provided for a 12-month extension. After pressure from the opposition parliamentarians, rapporteur Beto Pereira (PSDB-MS) changed the proposal and cut this period in half. The text now goes to the Federal Senate.

According to Abradee (Brazilian Electricity Distributors Association), even with the concession made by the rapporteur, the impact of the approved measure will be R$118 billion by 2045.

The extension of the entry into force of the new regulatory framework alone will bring an impact of BRL 39 billion.

“Maintaining and expanding subsidies for a category that doesn’t need it because it’s already high-income hurts the low-income population,” Abradi president Marcos Madureira said.

“It brings a lot of spending by the Brazilian population for the benefit of any category,” he added.


The draft originally only applied to an exemption for so-called distributed generation, which is mainly power from solar panels.

However, a clause has been added to the draft which mandates that gas-fired thermal plants be replaced by PCH (Small Hydro) and extends the distributed generation exemption to these hybrid projects.

Jabuti is slang for a section that is not related to the original proposal of the bill, as is the case here.

The change in this proposal is considered so drastic that it qualifies as a “mutant turtle,” explains Luis Eduardo Barata, president of the National Front of Energy Consumers. The organization is rallying efforts to stop the power bill from advancing in Congress in initiatives like this one.


During the privatization of Eletrobras, congressmen included in the project a commitment to build 8,000 MW (megawatts) of gas-fired thermal power plants. These thermals have become known as Eletrobras turtles.

Of this total, 2,500 MW will be installed in the Midwest.

According to experts, MP Beto Pereira’s proposal is a new turtle to replace the old one. It converts 1,500 MW of thermal power plants in the Midwest into smaller hydroelectric plants, such as 30 MW. These new projects, in addition to not paying for the use of wires, will be exempted from other subsidies for the DG sector, which are currently partially paid by these types of enterprises.

These changes have an additional impact on the BRL 79 billion project, Abradei says


The proposal is also seen as an environmental risk. Since each PCH would have a maximum of 30 MW, thousands of smaller projects would need to be spread across the Midwest, home to important environmental resources such as the Pantanal.

“We already opposed the initial amendment to this PL, which extends the subsidy period, because it is a social injustice to charge benefits to the poorest that benefit the richest consumer,” says Barata.

Abrapch (Brazilian Association of PCHs and CGhs) supports the measure and says that the inclusion of PCHs will actually result in R$13 billion in savings for the country.


“Such a statement is justified based on the analysis of the average prices used in the last energy auctions, where the ceiling price of the new energy auction (A-5) for PCHs was R$352/MWh, while the ceiling prices of Eletrobras The thermal auctions amounted to R$444/MWh, which resulted in savings of more than R$13 billion,” said Alessandra Torres de Carvalho, president of the organization.


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