With the decision issued on January 9, 2024, the Plenary of the Brazilian Supreme Federal Court (STF), when judging Extraordinary Appeal with Complaint No. 1,464,347, clarified a crucial issue for the energy sector: the application of ICMS (Tax on the Circulation of Goods and Services) on the Tariff for the Use of Distribution Systems (TUSD) in cases of mini and microgeneration of energy is not a constitutional matter, but rather an infraconstitutional one.
On January 6, 2022, Law 14.300 was enacted. It established the Legal Framework for Distributed Micro and Mini Generation, along with the Electric Energy Compensation System and the Social Renewable Energy Program.
ANEEL Resolution No. 1,000/2021, published on December 7, 2021, and effective as of January 3, 2022, stands out as a significant regulatory milestone, particularly for its role in streamlining numerous regulatory provisions concerning the rules governing electricity distribution services. In essence, this resolution brought together what was previously addressed across 64 resolutions—issued at different times and with varied content—into a single, unified regulatory framework.
In addition to the usual clauses found in any contract related to a legal transaction between private entities, individuals, or business companies, the purpose of this article is to objectively introduce points for reflection on specific clauses included in energy purchase and sale agreements within the free contracting environment.
How will the tax credits be granted? Who will be eligible to access them? What will be the total amount available? How will the allocation process work, through competitive bidding? Will regulatory oversight be required?