Economic and Regulatory Perspectives on Deregulated Electricity Markets: A Case Study in Brazil with Insights for Honduras

Abstract

The liberalization of electricity markets has created opportunities for consumers to reduce costs and access more sustainable energy sources, while also raising new regulatory and operational challenges. This paper evaluates the feasibility of migrating a qualified consumer in Brazil from the regulated contracting environment to the deregulated electricity market. For this purpose, a digital platform was developed to automatically extract and manage data from electricity bills, enabling simulations based on two real proposals offered by energy traders. Results show potential savings between 22.2% and 28.2% compared to the regulated market, representing significant longterm economic benefits while ensuring the purchase of renewable energy. Additionally, the paper discusses the broader implications of market liberalization in Latin America by analyzing the current regulatory and infrastructural situation in Honduras. The findings highlight both the opportunities for efficiency and competitiveness and the regulatory barriers that must be addressed for an effective transition in developing economies