Journal of Accounting in Emerging Economies

Purpose – The paper seeks to examine the evolution of regulatory accounting within the context of the Brazilian electricity sector reforms. The paper traces the process of the reforms and the development of the regulatory accounting system.

Design/methodology/approach – The paper is based on data collected from various documents including those published by the regulator (such as laws, resolutions and technical notes), as well as information from distribution companies and other government agencies.

Findings – It is found that regulatory accounting played different roles under the different electricity sector reforms implemented in Brazil. For example, regulatory accounting was minimally used during the first reform, and this brought a range of problems of implementation and consolidation of the electricity sector model. However, regulatory accounting played an essential role in the regulatory framework under the second reform, and this in part contributed to addressing some of the problems of the sector.

Originality/value – This is the first study that describes and explains the Brazilian electricity sector reforms by analysing the so-called core issues in regulatory accounting and tariff review process. The paper contributes to the literature by providing a broader picture of the interconnection between regulatory accounting and the regulator's objectives.