A ANEEL The Brazilian National Electric Energy Agency (ANEEL) announced the maintenance of the green tariff flag for the month of April, marking the fourth consecutive month without additional charges on consumers' electricity bills. Since January, electricity bills have remained without extra costs.
According to the Agency, the volume of rainfall recorded in March contributed to the recovery of reservoir levels at hydroelectric plants, ensuring a positive scenario for the electrical system.
"With the volume of rainfall observed in March, the reservoirs of hydroelectric plants are at a satisfactory level, resulting in favorable energy generation (...) The situation means that it is not necessary to activate thermal power plants more intensively.”, reported the ANEEL.
Green flag may remain in effect in May.
According to Fred Menezes, commercial director of Armor Energia, the rains recorded in March (especially in the Northeast and North-Central regions) were crucial for the improvement of the reservoirs.
Another factor that contributed to the more comfortable scenario was the contracting carried out in the Capacity Reserve auction, which brought greater predictability to the system.
"Overall, the wet season ends with a more comfortable scenario for the system, which reinforces the expectation that the green flag will remain in place for May as well," he said.
How do tariff flags work?
Created in 2015, the tariff flag system indicates the energy generation conditions in the SIN (National Interconnected System) and signals whether or not there will be additional costs on the electricity bill.
Every month, the ONS (National Electric System Operator) assesses the system's operating conditions and defines the generation strategy to meet demand, estimating the costs that may be passed on to consumers.
The flags are classified into four levels: green, yellow, and red (the latter divided into levels 1 and 2), and reflect the variation in the cost of energy over time.
When the green flag is in effect, there is no additional charge. However, the yellow and red flags indicate higher generation costs and result in increases in the bill for every 100 kWh consumed.
Currently, the values are:
- Green flag: no additional charge;
- Yellow flag: An additional R$ 1,88 for every 100 kWh;
- Red flag level 1: An additional R$ 4,46 for every 100 kWh;
- Red flag level 2: An additional R$ 7,87 for every 100 kWh.
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