Brazil free energy market expansion squeezes margins, boosts risk management

Brazil's free energy market now covers 43% of national consumption and 92% of industrial demand, with over 90,000 consumer units. Regulatory easing since January 2024 has allowed small and medium enterprises to enter, intensifying competition and narrowing margins, prompting greater risk control. The retail segment has grown nearly tenfold, signaling structural shift in the country's power market.