An overview of electricity prepayment experiences and the Brazilian new regulatory framework

Brazil recently established a new regulatory framework contemplating the use of prepayment methods by electricity distribution utilities. The assessment of the benefits and risks associated with the introduction of prepayment schemes in Brazil, both for users and electricity companies, requires understanding and evaluating the international experiences. Both developed and developing countries have relevant international experience on this matter, so confronting international experience with the Brazilian regulatory framework provides a relevant standpoint for the analysis of possible risks and bottlenecks of electricity prepayment in Brazil.