After two months at the red level, the tariff flag for November will be yellow, with an extra charge of R$1,885 on the electricity bill for every 100 kilowatt-hours (kWh) of electricity consumed. The National Electric Energy Agency (Aneel) reduced the tariff flag.
In October, the flag was at red level 2, the most expensive of all, with a charge of R$7,877 per 100 kWh. Since August 2021, the higher rate has not been activated.
According to Aneel, one of the factors that determined the reduction of the tariff flag to yellow was the improvement in energy generation conditions in the country. The regulatory agency, however, reported that the forecast for rainfall and flows in the hydroelectric power plant regions remains below average, which justifies the activation of the tariff flag to cover the costs of thermoelectric generation to meet consumer needs.
A sequence of green flags, without charging extra fees, began in April 2022. The series was interrupted in July this year, with the yellow flag, followed by the green flag in August, and the red flag level 1, in September. With the heat waves and strong droughts at the beginning of the second half of the year, Aneel activated the level 2 red flag in October.
Tariff flags
Created in 2015 by Aneel, the tariff flags reflect the variable costs of generating electricity. Divided into levels, the flags indicate how much it is costing the National Interconnected System (SIN) to generate the energy used in homes, commercial establishments and industries.
When the electricity bill is calculated using the green flag, there is no increase. When the red or yellow flags are applied, the bill is subject to increases of R$1,885 (yellow flag), R$4,463 (red flag level 1) and R$7,877 (red flag level 2) for every 100 kilowatt-hours (kWh) consumed. From September 2021 to April 15, 2022, a water scarcity flag of R$14.20 extra per 100 kWh was in force.
The SIN is divided into four subsystems: Southeast/Central-West, South, Northeast and North. Practically the entire country is covered by the SIN, with the exception of some parts of states in the North Region and Mato Grosso, in addition to the entire state of Roraima. Currently, there are 212 isolated SIN locations, where consumption is low and represents less than 1% of the country’s total load. The demand for energy in these regions is mainly supplied by diesel oil-fired thermal plants.
According to Aneel, the flags allow consumers to play a more active role in defining their energy bill. “Upon knowing, for example, that the flag is red, the consumer can adapt their consumption to help reduce the value of the bill”, assesses the agency.
