Brazilians will pay the electricity bill no extras this month. The National Electric Energy Agency (Aneel) confirmed last Friday, 29th, that it will maintain the green flag to all consumers in the country in August.
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“This means that the conditions for generating electricity in hydroelectric plants remain favorable, and it is not necessary to activate more expensive plants”, explained the regulatory agency.
The collection of the green flag began to take effect in Brazil on April 16th. Until then, since September 15, consumers were paying an additional R$ 14.20 per 100 kilowatt-hours (kWh) consumed.
Energy flags in Brazil
The charge originated from the so-called “water scarcity flag“, the most expensive in the system. It was created to try to cover the additional costs due to the lack of water in the reservoirs. Unlike in the case of the green flag, in which there is no additional charge due to the favorable conditions for energy generation.
In the case of yellow flags and red, respectively 1 and 2, there are also costs applied due to the generation and need to activate thermal plants when the volume of the reservoirs is low. In the current billing model, the added funds are transferred to distributors every month through the “Bandeiras account”.
When activated, the yellow flag charges an additional fee of BRL 2,989 for every 100 kWh consumed. In the case of red flag 1, an extra fee of BRL 6,500 is generated for every 100 kWh. However, there is still a more expensive range, red flag 2, for which an additional charge is R$9,795 per 100 kWh.