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Energy in Brazil Final Customers Identification

Customers Categorization

The final customers in the Brazilian energy value chain can be categorized into two primary segments: Business-to-Business (B2B) and Business-to-Consumer (B2C). These segments exist in both the electricity and the oil and gas sectors, albeit with different characteristics and points of interaction within the respective value chains.

In the Electricity Value Chain, the final customers are served at the Distribution and Commercialization stages. B2C customers are primarily the "captive consumers" who receive electricity from distribution companies within their geographic concession areas at regulated tariffs. These typically include residential consumers, small commercial establishments, and some smaller industrial users. B2B customers in the electricity sector are predominantly the "free consumers" in the Free Contracting Environment (ACL). This segment includes larger industrial and commercial users, and as of 2024, has expanded to encompass all high and medium voltage consumers who can choose their energy supplier and negotiate bilateral contracts directly with generators or commercializers.

In the Oil and Gas Value Chain, the final customers are served at the Commercialization stage, receiving refined products, natural gas, or petrochemicals. B2C customers include individual vehicle owners who purchase fuels (gasoline, diesel, ethanol, NGV) at retail service stations. Residential consumers of Liquefied Petroleum Gas (LPG) for cooking and heating also fall into the B2C category. Residential consumers connected to local piped natural gas networks are also B2C customers. B2B customers in the oil and gas sector are diverse and include fuel distributors and resellers who purchase from refineries or importers, large industrial and commercial consumers of fuels, and various users of natural gas such as industrial facilities, power plants, commercial establishments, and NGV stations. Petrochemical companies sell their products to other industries, representing a significant B2B segment.

Detailed Profiles of Customer Characteristics and Demographics

Electricity Sector:

  • B2C (Captive Consumers):
    • Characteristics: These consumers are typically bound to a single distribution company based on their geographic location and consume electricity at regulated tariffs set by ANEEL. Their consumption patterns are generally more stable and predictable compared to large industrial users, although residential consumption can be influenced by factors like climate (heating/cooling needs) and appliance usage.
    • Demographics: This segment represents a broad demographic spectrum across Brazil, encompassing households of varying income levels, as well as small businesses and industries with lower energy demands. The distribution companies collectively serve a vast number of these consumers, with companies like Neoenergia serving over 15 million units and Cemig serving approximately 9.4 million clients. Access to electricity for households in Brazil is high, at around 97%.
  • B2B (Free Consumers):
    • Characteristics: These consumers have higher energy demands (high or medium voltage connections) and the ability to negotiate energy purchase contracts directly with suppliers in the free market. They are often more sophisticated energy consumers, actively managing their energy costs and seeking customized supply solutions, including renewable energy sources.
    • Demographics: This segment primarily comprises medium to large-sized industrial facilities, commercial centers, shopping malls, and other businesses with substantial energy consumption. The expansion of the free market eligibility in 2024 has increased the potential customer base in this segment.

Oil and Gas Sector:

  • B2C (Retail Fuel, Residential LPG, Piped Gas):
    • Characteristics: These consumers purchase fuels and natural gas for personal or household use. Fuel purchasing behavior at retail stations is influenced by price, location, brand loyalty, and vehicle type. Residential LPG consumption is largely for cooking and heating. Piped natural gas for residential use offers convenience and a continuous supply.
    • Demographics: This is a very broad demographic, encompassing the majority of the Brazilian population who own vehicles or use LPG/piped gas in their homes. Geographic location and income level can influence fuel choices (e.g., ethanol vs. gasoline) and access to piped natural gas. Raízen, through its Shell brand, interacts with almost 50 million customers in its markets, which include Brazil.
  • B2B (Wholesale Fuel, Industrial/Commercial Gas, Petrochemicals):
    • Characteristics: These customers purchase energy products in bulk for their operations, production processes, or resale. Their purchasing decisions are driven by price, supply reliability, product specifications, and logistical considerations. They often have established contractual relationships with suppliers.
    • Demographics: This segment includes a wide range of businesses across various sectors, such as transportation companies, manufacturing industries, power plants, commercial buildings, and retail fuel station operators. Companies like Vibra Energia, Raízen, and Ipiranga are major suppliers to this B2B fuel market. The natural gas B2B market serves diverse industrial and commercial clients.

References:

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