ANEEL announces yellow flag after 26 months

Tariff price now increases by R$ 1.885 for every 100 kWh consumed
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ANEEL anuncia bandeira amarela após 26 meses
July begins with additional charges on Brazilians' electricity bills. Photo: Fernando Frazão/Agência Brasil

O month of July started with the electricity bill more expensive for Brazilian consumers, with the activation of tari flagfaria Yellow authorized by ANEEL (National Electric Energy Agency).  

This is first change to the flag since April 2022. In total, there were 26 months with a green flag, when there were no increases in the value of the electricity bill. The price of the tariff therefore increases by R$ 1.885 for every 100 kWh consumed.

A Agency alleges, in a note, that the reason for the change was the forecast of below average rainfall by the end of the year (in approximately 50%) and the expectation of load growth It's from energy consumption in the same period.

“This scenario of scarcity of rain, added to the winter with temperatures higher than the historical average for the period, means that thermoelectric, with more expensive energy than hydroelectric plants, will start to operate more”, informed ANEEL.

Tariff flag 

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

O goal is to do with that the increase pays for more intense use, for example, of activating thermoelectric plants. 

O Operation is simple: The colors green, yellow, red (at levels 1 and 2) and water scarcity indicate whether the electricity bill will cost more or less due to generation conditions.

When the system operates under the green flag, there are no additions to the electricity bill. For other flags, the consumer pays an additional proportional to each color, with yellow being the cheapest and water scarcity being the most expensive.  

“With the activation of the yellow tariff flag, vigilance regarding the responsible use of electricity is essential. The orientation is to use energy consciously and avoid waste that harms the environment and affects the sustainability of the electricity sector as a whole”, highlighted ANEEL.  

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Picture of Henrique Hein
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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