The singer hired by Omega Energia says consumers will be able to choose a carrier like they choose a cell phone, and it won’t be; in fact, the poorest can lose
A video shared on Friday (October 7th, 2022) by the singer Ivete Sangalo on her Instagram profile in support of the free electricity market can mislead the consumer. But in the early evening of this Friday at 7:46 p.m The post was no longer available in the artist’s feed see the image below (the print on the left is from late afternoon and the right is from the beginning of the night).
Instagram/ivetesangalo 7.Oct.2022 Left picture of profile on Instagram of Ivete Sangalo promoting Omega Energia. Late on Friday evening (October 7th, 2022) the singer seems to have regretted it and deleted the post (right picture)
The video was sponsored by Omega Energia, a company that owns wind farms and small hydroelectric power plants, which also published (and then turned off read below) the file on their social media profiles. It was not disclosed how much this marketing promotion was worth or how much the singer received. Ivete says in the recording that the electricity bill is expensive. He then asks, “What if we could choose the cheapest energy and supplier the same way we chose a cellphone operator or a bank? It seems strange, but it already exists here in Brazil”.
At 10:54 p.m., hours after the singer removed the video from her feed, the content about the free energy market with Ivete Sangalo was also no longer available on the Omega Energia Instagram profile. The posts have been deleted. See the 2 prints below:
Instagram/instadaomega In the 1st image above, Omega Energia’s Instagram profile showcases the free energy market campaign with Ivete Sangalo; in the 2nd image (below), hours later, the content appears unavailable
Watch Ivete’s video sponsored by Omega Energia (2min15s):
Ivete’s statement is disputed. She mentions that a project is being discussed “right now” and asks people to share her video: “Be part of this movement that can change the lives of millions of Brazilians”. In the jingle created for the campaign, the artist says, “Choose energy as you choose a bank, operator, and mobile.”
This is not a fact. To switch carriers, just go to a store in a mall, buy a SIM card, and install it on the device. When changing energy supplier, the negotiation is long and very difficult for the individual consumer. In the case of a building, all members of the condominium would have to validate through lengthy negotiations. Unlike a mobile phone with a prepaid chip that only needs to be replaced for a few reais, energy consumers will never have this option, as Ivete Sangalo claims in the advertisement paid for by Omega.
The project cited is PL 414/2021 (complete 191 KB). The proposal, which gives consumers the right to choose who they buy energy from, has unclear points and it’s not clear who exactly will benefit from it. Reason: It may have an opposite effect to what Ivete says in the videoIncrease electricity bills for captive consumers (households and small businesses) and make energy cheaper for large consumers who will have bargaining power.
It’s unclear if Ivete Sangalo knew exactly what she was defending when she shot the video for the company that paid for the campaign. The text read in the ad really gives the impression that it is something to help the poorest. Something very uncertain, to say the least, and that leads many people to believe in something that doesn’t exist.
The expansion of the free energy market is defended by the government of Jair Bolsonaro (PL) and has one of its biggest supporters in the Minister of Mines and Energy, Adolfo Sachsida. It is also unclear whether Ivete Sangalo knew about it or whether she supports or supports the current federal government.
The bill will be discussed by a special committee in the Chamber of Deputies. In August 2022, the President of the House of Representatives, Arthur Lira (PPAL), promised to chair it in October after the election. There is a possibility that the project will lose momentum in the next legislature as almost half of the congressmen who are part of the commission were not reelected.
The free market debate also requires a solution for the oldest power generation contracts. These are historical agreements that are paid for by the regulated market (which buys energy from the local distributor). For those who continue to shop at the retailer, the bill would rise as more consumers migrate to the open market. It is difficult to solve as there will never be a migration from one (regulated) system to another at once. Obviously, it is the smallest consumers especially the poorest who are left at the end. During the transition, they are the ones footing the bill.
A study commissioned by the Department of Commerce states that these overcontracting costs would be R$10 per MWh (megawatt hour) if the overcontracting costs were split between free and captive consumers. If the costs are not shared, the average fee could reach R$37 per MWh.
According to the text of Bill 414 of 2021, a fee must be created to cover these costs. The governmentcommissioned study by consulting firm PSR recommends gradually opening the market to all consumers from 2026 onwards. According to the consulting company, the gradual conversion could reduce the overcontract fee by R$ 6 per MWh. Still, it will be the poorest who will pay most for this burden on electricity bills.
According to the draft submitted to the Ministry of Mines and Energy for consultation, commercial and industrial lowvoltage consumers will be able to choose their energy supplier from 2026. Private households and rural consumers will have free choice from 2028.