Joint Technical Note No. 15/2026: ANEEL proposes passing through the effects of the Tax Reform to electricity tariffs

With the extinction of PIS/PASEP and COFINS and the full entry into force of the Contribution on Goods and Services (“CBS”) as of January 1, 2027, the National Electric Energy Agency (“ANEEL”) has launched a public consultation to regulate the effects of the Tax Reform on electricity distribution and transmission concessionaires. Joint Technical Note No. 15/2026-SFF-STR/ANEEL focuses on the impacts arising from the CBS, while the effects of the Tax on Goods and Services (“IBS”), which will gradually replace ICMS and ISS through 2033, will be analyzed at a later stage.

Given the proximity of these changes and the need for regulatory adjustments before the new system fully takes effect, the agency proposes holding a public consultation with a shortened timeframe to gather contributions on a draft normative resolution. Broader issues, such as a possible review of concessionaires’ asset base, are expected to be discussed later within the framework of ANEEL’s 2026/2027 Regulatory Agenda.

Highlights of the technical note

1. Existing credits remain valid, but no new credits will arise.
   Companies that still utilize PIS/COFINS credits related to their equipment and facilities may continue to use them, now as CBS credits, following the same original schedule. The change does not create new credits for existing assets.
2. Assets acquired without taxation, such as those purchased under the Special Incentive Regime for Infrastructure Development (“REIDI”), with a zero rate or exemption, will continue not to generate credits.
   ANEEL proposes that the economic benefit associated with the remaining credits be passed on to consumers through a negative financial component, calculated in each tariff adjustment or tariff review. The mechanism will have two stages:

1. first, an estimate is made of the credits expected to be used during the period;
2. then, the estimate is compared with the amount actually used, and the difference is adjusted based on the Selic rate.

Initially, the asset base through which concessionaires are remunerated would not be changed.

3. Concessionaires will have new control and reporting obligations.
   Companies must report provisioned credits to ANEEL and maintain auditable controls linking each credit to its respective underlying asset, subject to inspection. If this information is not provided, ANEEL will apply a standard formula based on 9.25% of the asset base and the average depreciation rate. Any disallowances may be considered in the adjustments.
4. The scope of the measure is limited.
   The rule applies only to credits related to assets acquired by December 31, 2026, including works in progress and warehouse inventory. For assets acquired from 2027 onward, the credit will be reflected in the asset’s own value. For transmission activities, the mechanism will be applied at the next review of the Annual Allowed Revenue (“RAP”). Revenues obtained through auctions are excluded from the rule, since the winning bid already takes the credits into account.
5. There will be adjustments to other revenues of distributors.
   Part of the revenue derived from ancillary activities is shared with consumers. Since these percentages were calculated based on amounts including taxes, ANEEL proposes calculating them on net revenue using an equivalence factor, so that neither the company nor the consumer gains or loses as a result of the reform. The new rule would apply to all tariff proceedings as of January 1, 2027.
6. The effects on consumers will be gradual.

As of 2027, energy procurement and transmission costs will be considered without PIS/PASEP and COFINS. However, the tariff reduction will only be reflected in each distributor’s first tariff proceeding in 2027. The difference accumulated between January and such proceeding will be recorded in the Account for Compensation of Variations in Parcel A Item Values (Conta de Compensação de Variação de Valores de Itens da Parcela A – “CVA”) and offset in the subsequent cycle, without prejudice to ANEEL’s assessment of residual adjustments.

In light of the proposal, concessionaires and other affected companies should immediately begin identifying PIS/PASEP and COFINS credits linked to assets, reviewing the consistency of records in blocks F120 and F130 of the EFD-Contributions bookkeeping system, and verifying traceability among tax documents, asset controls, and the regulatory asset inventory. It is also advisable to quantify the impacts of the proposed financial component and assess the submission of contributions to the public consultation.

Access Joint Technical Note No. 15/2026 in full

Read also: Joint Technical Note No. 19/2026: ANEEL proposes revisions to regulated energy contracts following the phase-out of PIS/COFINS.

Demarest’s Energy and Natural Resources and Tax teams continue to monitor this matter and remain available to answer questions and provide any necessary assistance.