Open Banking inspiration: Brazil-based Abraceel pushes for Open Energy

According to the association, this measure can increase competition in the sector and reduce energy tariffs. Inspired by Open Banking , Open Energy assumes that consumers own their own electricity consumption data and, therefore, should be free to share them whenever and however they wish, in line with the General Protection Law of Data (LGPD). According to Abraceel, for this to occur, the data must be made available in a machine format with a unified communication channel.

Abraceel believes that it is expected that there will be more engagement of the energy consumer with the information of the light bill, greater participation of technology companies in the electric energy market, reduction of information asymmetry among all those who participate in the electric sector – including consumers – and reduction of operating costs, which benefits the whole society with lower tariffs.

In addition, the association believes that the Open Energy process can encourage the process of modernising the commercial and regulatory model of the electricity sector, which will contribute to the digitisation and opening of the energy market in Brazil.

In the letter sent to the regulatory agency, Abraceel argued that the regulatory sandbox could boost ‘the very opening and efficiency of the market, expanding competition, which is why Open Energy is a vital aspect in the modernisation of the electricity sector, capable of inducing technological innovation and the emergence of new business models for the benefit of the consumer, MegaWhat concludes.