Electricity Tariff Protection Law

On July 31, 2026, Law No. 21.833 on Electricity Tariff Protection (Bulletin No. 18.384-08) was published in the Official Gazette. This law is part of the 2026-2030 Energy Route and pursues three objectives: (i) to contain the impact of tariff increases on regulated customers; (ii) order and give certainty to the distribution and transmission tariff processes; and (iii) strengthen the security and quality of supply.

The main matters regulated by the law are summarized below:

I. Voluntary renegotiation of supply contracts (PPAs).

The National Energy Commission (CNE) is authorized, on a one-time basis and subject to a mandate from the Ministry of Energy (the “Ministry”), to develop a voluntary mechanism to modify future energy supply contracts in force, with the agreement of both parties, in order to lower the price of the energy component in the accounts of regulated customers.