Joint Technical Note No. 19/2026: ANEEL proposes reviewing regulated energy contracts following the end of PIS/COFINS

Joint Technical Note No. 19/2026-SFF-STR-SGM/ANEEL proposes adjustments to regulated electricity generation and trading contracts, as well as certain sector charges, to adapt them to the changes introduced by the Tax Reform. The proposal provides for the revision of regulated prices to exclude amounts associated with PIS/PASEP and COFINS, taxes that will be abolished as of January 1, 2027.

With the full implementation of the Contribution on Goods and Services (“CBS”), ANEEL understands that regulated prices may no longer include amounts intended to cover abolished taxes, since the new model adopts a “tax-exclusive” approach, under which taxes are separately stated in the tax document and are not embedded in the price.

Given the proximity of the transition to the new tax system, the agency proposes holding a public consultation with a reduced 10-day period to discuss a draft normative resolution governing the adjustments applicable to regulated contracts and the sector charges covered by the proposal.

Highlights of the technical note

1. The adjustment is mandatory.

According to ANEEL, the adjustment is not optional: the law requires that the extinction of a tax result in a price revision, whether upward or downward. Maintaining, within prices, amounts corresponding to abolished taxes would constitute undue remuneration to the seller. This applies even to contracts that allocate the risk of tax changes to the seller.

2. The proposal adopts January 16, 2025, as the framework for determining the treatment of contracts. This cut-off date deserves special attention because it creates different presumptions regarding price formation:

1. prices established before that date: they are presumed to include PIS/COFINS, and this portion will be removed as of January 1, 2027;
2. prices established after that date: they are presumed to have already been calculated without these taxes, and no adjustment will apply.

The relevant date for price formation is the date of the auction or public call. In the case of bilateral contracts, the relevant date is the execution date or the date of the act establishing the price.

3. The adjusted price would be calculated by multiplying the current price by 1 − the applicable rate.

ANEEL proposes applying the nominal rate of 3.65% to contracts subject to the cumulative regime and 9.25% to those subject to the non-cumulative regime, using a weighted average for mixed cases. The use of the nominal rate, rather than the actual tax burden borne by the company after applying credits, may have significant economic impacts and should be assessed on a contract-by-contract basis.

4. Sellers must report their tax regime.

Each seller must declare the PIS/COFINS regime to which it is subject. Those who fail to do so will automatically be subject to the higher reduction of 9.25%.

5. Contract amendments would not be required.

The adjustment would be implemented by different entities, depending on the type of contract:

1. the Electric Energy Trading Chamber (“CCEE”), for regulated market contracts (Energy Trading Contract in the Regulated Environment – “CCEAR”, reserve energy, and capacity reserve contracts);
2. distributors themselves, for bilateral contracts;
3. the Brazilian Company for Participation in Nuclear and Binational Energy (“ENBPar”), for contracts under the Incentive Program for Alternative Sources of Electric Energy (“PROINFA”);
4. ANEEL itself, for tariffs directly established by the agency.

6. Certain contracts will receive specific treatment.
   a) PROINFA: contracts extended with prices renegotiated in 2026 will not be subject to additional adjustment; the remaining contracts will.
   b) Angra 1 and 2: 2027 revenues will no longer include these taxes.
   c) Itaipu and quota-regime plants: prices already exclude these taxes, so no regulatory action regarding the price itself is required.
   d) Thermal power plants: the adjustment is made to contract revenue; the variable costs (“CVU”) of uncontracted plants will be reviewed.

7. CBS and IBS would not be embedded in prices.
   The new taxes will be assessed and collected through invoicing by the responsible agents, in accordance with the law. There will also be no reimbursement of CBS, IBS, or Excise Tax through the Fuel Consumption Account (“CCC”) or the Mineral Coal Subaccount, since the law already provides mechanisms through which taxpayers may recover their credits.
8. Most sector charges will not change directly.
   For most charges (TFSEE, R&D, RGR, CFURH, and CDE), no specific adjustment will be required. The budget of the National Electric System Operator (“ONS”), as of 2027, should be revised without PIS/COFINS. ANEEL further indicates that, in its view, sector charges would form part of the CBS and IBS tax base, while emphasizing that this determination ultimately falls within the authority of the Brazilian Federal Revenue Service (“RFB”).

The new prices would apply to transactions carried out as of January 1, 2027. Transactions carried out by December 31, 2026, remain subject to PIS/COFINS even if they are invoiced or settled afterward.

In light of these proposals, generators, traders, and distributors should prioritize the following actions:

1. determine which scenario applies to each contract based on the date on which the price was established;
2. confirm the PIS/PASEP and COFINS regime applicable to the revenue of each contract and prepare the documentation required for the declaration in order to avoid the automatic application of the 9.25% rate;
3. assess the financial impacts and the potential benefits of participating in the public consultation.

Access Joint Technical Note No. 19/2026 in full.
Read also: Joint Technical Note No. 15/2026: ANEEL proposes passing through the effects of the Tax Reform to electricity tariffs.

Demarest’s Energy and Natural Resources and Tax teams are available to assess the impacts of the proposals on contracts, regulated revenues, and remuneration bases, support the organization of tax and regulatory information, and assist in preparing contributions to the public consultation.