With a new tariff flag, the electricity bill will be 7% more expensive

The new tariff flag created by the federal government on the electricity bill, called the water scarcity flag, is already in effect. The extra fee will be R$ 14.20, remaining in effect until April 2022.

With this, the electricity bill will be, on average, 6.78% more expensive for residential consumers and small businesses, according to calculations by the Ministry of Mines and Energy.

electricity bill tariff flag

Credit: Kameleon007/iStockThe value of the additional fee charged on the electricity bill will increase from R$ 9.49 per 100 kWh to R$ 14.20 with the new tariff flag

The new rate represents an increase of R$4.71, about 50%, compared to the red flag level 2, until then the highest level, in the amount of R$9.49 per 100 kWh.

The decision was taken amidst the water crisis that affects the level of reservoirs at hydroelectric plants, the main source of electricity generation in the country.

According to the federal government, it is the worst drought in 91 years. With hydroelectric plants operating at their limit, it is necessary to increase the generation of electricity through thermoelectric plants, which have a higher cost.

Low-income consumers, registered in the social tariff, will not be affected by the new brand.

Award for those who reduce electricity bills

The government also announced a program that will discount the electricity bill of residential consumers and small businesses that voluntarily reduce energy consumption.

electricity bill tariff flag

Credit: Marcello Casal Jr/Agência BrasilWith a new tariff banner, the energy bill will be, on average, 7% more expensive

The government will pay a premium of R$ 50 per 100 kWh reduced in the electricity bill. The reduction threshold is at least 10%, limited to 20%.

Called the Voluntary Electricity Reduction Program, the “award” will be valid until the end of next year.