ANEEL opens public consultation to reduce the value of tariff flags

The Agency's technical staff suggests a reduction of up to 36.9% in the amounts of additional electricity bill charges
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ANEEL abre consulta pública para reduzir valor das bandeiras tarifárias
Photo: ANEEL/Disclosure

A ANEEL (National Electric Energy Agency) decided to open a public consultation to collect contributions from civil society and agents of the electrical system to set the values which will be applied to the 2024 tariff flags.   

The decision was taken this Tuesday (22), at a meeting of the regulatory body's board of directors. Interested parties may forward their suggestions starting this Wednesday (23). O Limite date for sending contributions It's until October 6th.  

A decision for the opening of public consultation is the result of a recommendation from the Agency's own technical staff, which suggested a reduction in the value of additional fees from the electricity bill for next year. 

ANEEL professionals assess that the reduction would be possible thanks to the more favorable scenario of 2023, with the growth in the supply of energy generated by renewable sources, the end of plant contracts negotiated in the emergency auction and the reduction in the costs of contracts under the management of the distributors.

A suggestion was so that all levels of the additional fee charged on the electricity bill passed through the following adjustments:

  • Green flag: continues without additional charge;

  • Yellow flag: reduction of 36.9%, going from R$ 2.99 to R$ 1.88 per 100 kWh;

  • Red Flag 1: reduction of 31.3%, going from R$ 6.50 to R$ 4.46 per 100 kWh;

  • Red Flag 2: reduction of 19.6%, going from R$ 9.79 to R$ 7.87 per 100 kWh;

Tariff flags

Created by ANEEL in 2015, the tariff flag is a system that applies an additional charge to the electricity bill whenever there is an increase in the cost of energy production in the country. 

The objective is to make the increase pay for the more intense use of thermoelectric plants and the operation is simple: the colors green, yellow or red (at levels 1 and 2) indicate whether the energy will cost more or less depending on the generation conditions .

When production at hydroelectric plants is favorable, the green flag is activated, without tariff increases. In bad conditions, the following flags may be activated: yellow, red 1 or red 2. 

It is worth remembering that the values are updated every year and take as a base calculation parameters such as: market estimates, inflation, projected volume of hydroelectric plants and the operating history of the SIN (National Interconnected System). 

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Henry Hein
He worked at Correio Popular and Rádio Trianon. He has experience in podcast production, radio programs, interviews and reporting. Has been following the solar sector since 2020.

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