The Batista Brothers, Lula’s Government and Brazil’s Energy Sector (Feb 3, 2026)
- Energy Channel Global
- 2 hours ago
- 3 min read
Over the past two years, the involvement of brothers Joesley and Wesley Batista in Brazil’s energy sector has continued to evolve with consequences that go far beyond the provisional measure issued in 2024.
1. From Provisional Measure 1,232/2024 to the impact on consumers
On June 13, 2024, the government of President Luiz Inácio Lula da Silva (PT) issued Provisional Measure 1,232/2024, allowing contracts from thermoelectric plants acquired by Âmbar Energia the energy arm of the J&F Group, controlled by the Batista brothers to be converted into Energy Reserve Contracts (CER).These contracts are funded through charges passed on directly to electricity consumers.
The original report published by Gazeta do Povo estimated that this change could increase electricity bills by more than R$ 2 billion per year for 15 years.
2. Expansion of Âmbar Energia’s presence in the power sector
Since then, Âmbar Energia has continued to expand its asset portfolio and strengthen its position in strategic segments of the electricity market:
Acquisition of thermoelectric plants in Acre: In 2025, Âmbar acquired three thermoelectric plants in the state of Acre, responsible for approximately 20% of local electricity supply, expanding both geographic reach and installed capacity.
Acquisition of Eletronuclear: In October 2025, J&F, through Âmbar, acquired a controlling stake in Eletronuclear, the company that operates Brazil’s nuclear power plants in Angra dos Reis (Angra 1, 2 and 3). The transaction involved around R$ 535 million, along with debt and guarantee commitments totaling R$ 2.4 billion, consolidating the group’s presence in the nuclear energy segment.
Eletrobras divestment: In October 2025, Eletrobras finalized the sale of its last thermoelectric plant to J&F for approximately R$ 703.5 million, completing its exit from thermal generation and reinforcing Âmbar’s portfolio.
3. Political controversy and public scrutiny
The relationship between the Batista brothers and the Lula administration has drawn criticism from political and civil society actors:
Congress and Public Prosecutors: Members of Congress, along with institutions such as the Public Prosecutor’s Office and the Federal Court of Accounts (TCU), requested clarifications regarding possible preferential treatment linked to the MP, including alleged advantages in negotiations with Eletrobras and debt restructuring.
Senate criticism: In November 2025, Senator Izalci Lucas (PL-DF) publicly accused the government of favoring the J&F Group and cited the provisional measure as a factor contributing to higher energy costs.
Transparency watchdogs: Organizations such as Transparency International – Brazil raised concerns about privileged access to government decision-making by business groups previously involved in major corruption cases.
4. Government and Âmbar deny favoritism
Both the Ministry of Mines and Energy and Âmbar Energia have publicly stated that:
No informal negotiations or undue advantages were granted in relation to the provisional measure or meetings between company executives and government officials.
All transactions were conducted within legal frameworks, aiming to ensure the economic sustainability of Brazil’s power sector amid financial stress and risks faced by utilities.
5. What changes in 2026
In 2026, the debate over Âmbar Energia’s role in Brazil’s power sector remains central to discussions about:
Transparency and governance in public and private sectors;
Energy regulation and policy design;
Economic impacts on residential and industrial consumers;
The role of large corporate groups in critical infrastructure.
The trajectory of the Batista brothers, long associated with past scandals and still under public scrutiny, continues to be closely monitored by regulators, lawmakers and energy sector specialists.
The Batista Brothers, Lula’s Government and Brazil’s Energy Sector (Feb 3, 2026)