Electricity bill will continue with red flag at level 2 in September, informs Aneel | water crisis

The National Electric Energy Agency (Aneel) informed this Friday (27) that the electricity bill will continue in September with the red tariff flag landing 2, the most expensive in the system.

The tariff flag system is an additional charge applied to electricity bills when the cost of energy production increases. The extra value reflects the water crisis that affects the reservoirs of hydroelectric plants. To preserve water, the government activated the thermoelectric plants, which are more expensive and more polluting.

Currently, the value of the additional charge is R$ 9.49 per 100 kilowatts/hour (kWh) consumed. According to the columnist of G1 Ana Flor, the banner will be readjusted next week and will cost R$ 14.20 per 100 kWh.

Unlike previous months, this time, Aneel did not include the value of the tariff flag in the statement.

The value of the level 2 red flag had already been readjusted by 52% for the month of July, going from R$ 6.24 per 100 kWh to the current R$ 9.49.

Aneel opened a public consultation to decide whether the banner fee would remain at R$ 9.49 per 100 kWh or if it would increase to R$ 11.5 per 100 kWh.

However, according to the columnist of G1 Ana Flor, President Jair Bolsonaro and the ministers who are part of the Chamber of Exceptional Rules for Hydroenergy Management (Creg) decided to increase the additional charge by one amount higher than predicted by the public consultation, but lower than desired by Aneel’s technical area.

Normally, the readjustments of the tariff flags are decided only by the collegiate board of Aneel, in a public meeting, after consultation with the society.

Understand the tariff flags — Photo: Arte G1

Brazil is experiencing the worst water crisis in 91 years. The forecast is that the reservoirs of the hydroelectric plants will reach November with only 10% of capacity, volume lower than that registered in the 2001 crisis, when the country went through energy rationing.

To make matters worse, in August it rained less than expected. According to the National Electric System Operator (ONS), if there is no additional supply as of September, it will not be possible to meet the energy demand in October and November and the country is at risk of blackouts.

Among the measures adopted by the government is the activation of thermoelectric plants and the import of energy from Argentina and Uruguay to try to preserve water in the reservoirs until the beginning of the rainy season, in November.

The actions, however, proved to be insufficient. Voluntary demand reduction programs will be launched in September for residential, industrial and other business consumers.

Government proposes compensation for industry that saves energy

Government proposes compensation for industry that saves energy

Tariff Flag System

The tariff flag system was created in 2015 to signal the cost of energy generation.

The flag is on the green color when the level of the reservoirs is high and there is no need for extra activation of thermal power plants. In this case, there is no additional charge on the electricity bill.

With low reservoirs, the outlook is for high energy cost since it requires the activation of more thermal plants. Thus, the flag can move to the yellow and red colors (level 1 or 2), at which there is an extra charge.

Before the flag system, the cost of activating the thermal plants was transferred late, only in the annual adjustment of tariffs, which resulted in the charging of interest and monetary correction, penalizing the consumer.

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