Energy tariff flag returns to green, with no extra charge

The electricity tariff flag in August will be green, which means that consumers’ electricity bills will not have an extra cost next month. According to the National Electric Energy Agency (Aneel), favorable conditions for electricity generation in the country allow the adoption of the flag without charge.

Last month, Aneel had established a yellow flag, with an increase of R$1.88 for every 100 kW/h consumed, due to the forecast of below-average rainfall and the expectation of increased energy consumption.

“At the end of June, there was an expectation of lower rainfall volumes for July, which was confirmed in most of the country. However, the volume of rainfall in the South Region this month contributed to the definition of the green flag in August”, explained the general director of Aneel, Sandoval Feitosa.

Created by Aneel in 2015, the tariff flag system indicates to consumers the costs of energy generation in Brazil. The calculation for activating each flag takes into account mainly the hydrological risk and the price of energy.

The tariff flags work as follows: the colors green, yellow or red (at levels 1 and 2) indicate whether the energy will cost more or less depending on the generation conditions, with the red flag having a higher cost and the green flag having no extra cost.