The National Electric Energy Agency (Aneel) announced this Friday, 29, that it will keep the green flag activated in August for all consumers in the country. Thus, the electricity bills continue without additional charges for the next month. “This means that the conditions for generating electricity in hydroelectric plants remain favorable, and it is not necessary to activate more expensive plants”, says the regulatory agency.
The green flag has been in effect since April 16. From September 2021 to April 15, consumers paid an additional BRL 14.20 per 100 kilowatt-hours (kWh) consumed, referring to the water scarcity flag.
The tariff flag system was created in 2015 to indicate the costs of energy generation in the country to consumers and mitigate tariff readjustments and the impact on energy distributors’ budgets.
Before, the cost of energy in times of more difficult generation was passed on to tariffs only in the annual readjustment of each company, with interest. In the current model, resources are charged and transferred to distributors on a monthly basis through the “Bandeira account”.
The green flag, when there is no additional charge, means that the cost of producing energy is low. The yellow and red flags 1 and 2 represent an increase in the cost of generation and the need to activate thermal plants, which is mainly linked to the volume of the reservoirs.
When the yellow flag is activated, the energy tariff has an additional BRL 2,989 for every 100 kWh consumed. Red flag 1 generates an extra fee of BRL 6,500 for every 100 kWh. The most expensive level, red flag 2, implies an additional charge of R$9,795 for every 100 kWh.