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ANEEL adopts yellow flag after six months of red flag.

Thermal power plants continue operating despite the start of the rainy season. Electricity bills will see partial relief in December.

ANEEL adopts yellow flag after six months of red flag.

Photo: Caio Coronel/Itaipu

After six consecutive months under the red flag, the ANEEL (National Electric Energy Agency) announced the change of the red tariff flag level 1 to yellow starting this Monday (1st).

According to the Agency, the change signals a slight improvement in energy generation conditions in the country, but caution is still required.

Thus, with the new flag, the additional fee charged on the electricity bill will be R$ 1,885 for every 100 kWh consumed, compared to R$ 4,46 charged under the red flag level 1.

According to ANEELThe decision reflects a more favorable scenario, influenced mainly by the onset of the rainy season in several regions of Brazil.

However, despite expectations of increased rainfall in December compared to November, the forecast remains below the historical average for the month, which necessitates maintaining some of the thermoelectric power plants in operation.

The Agency also stated that these plants, with higher generation costs, continue to be activated to ensure the security of the electricity supply.

Another point highlighted by ANEEL The problem is that the reduction in cost does not mean complete stability in the system. This is because the yellow flag signal does not eliminate the risks associated with climate volatility, but it does represent a small relief in the budgets of Brazilian families and businesses.

Tariff flags: what are they and how do they impact your energy bill?

The hydrological scenario in the coming weeks will be crucial in determining whether or not this milder condition is maintained.

Tariff flag mechanism

Created in 2015, the tariff flag system was developed to make the real cost of energy generation in Brazil more transparent. The flags indicate to the end consumer whether there is an increase in production costs and allow for monthly adjustments to tariffs, preventing the accumulated pass-through of these costs in the annual readjustment.

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Ericka Araújo
About the Author
Ericka Araújo

Communications Manager of Canal Solar. Host of Papo Solar. Since 2020, he has been following the renewable energy market. He has experience in producing podcasts, interview programs and writing journalistic articles. In 2019, he received the 2019 Tropical Journalist Award from SBMT and the FEAC Journalism Award.

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