The tariff flag for the month of December will be green, with no extra charge on the electricity bill. According to the National Electric Energy Agency (Aneel), the change was possible thanks to the “significant improvement in energy generation conditions” in the country. 
“In recent weeks, the more intense rainy period favored the generation of hydroelectric energy, with a lower generation cost than thermoelectric sources – activated more frequently when reservoir levels are low”, explains Aneel.
This year, the lack of rain caused Aneel to activate the red level 1 tariff flag in September and the red level 2 tariff flag in October. In November, the yellow tariff flag was activated, with an additional charge of R$1,885 for every 100 kWh consumed.
Created in 2015 by Aneel, the tariff flag system reflects the variable costs of generating electricity. Divided into levels, the flags indicate how much it is costing the National Interconnected System to generate the energy used in homes, commercial establishments and industries, considering factors such as the availability of water resources, the advancement of renewable sources, as well as the activation of sources generation systems such as thermoelectric plants.
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 being the one with the highest cost, and the green flag being the one with no extra cost.
