ANEEL proposes an increase of up to 57% in the values of tariff flags

Adjustments to the yellow and red flags 1 would increase Brazilians' electricity bills by 5% and 10% from 2022
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ANEEL propõe aumento de até 57% nos valores das bandeiras tarifárias
ANEEL proposes adjustments to the yellow and red flags I and II. Photo: Pexels 

ANEEL (National Electric Energy Agency) opened, this Tuesday (12), a public consultation with the aim of increasing the value of tariff flags in Brazil by up to 57% in the years 2022 and 2023. 

According to the proposal, the value of the yellow tariff flag will increase by 56%, from R$ 1.874 to R$ 2.927 for every 100 kWh consumed by the consumer, while red flag 1 will increase by 57%, from R$ 3.971 to R$ 6.237.

The adjustments in both types of flags would imply an increase in the residential electricity bill of 5% and 10%, respectively, when they are activated. 

Red flag 2 will have a slight reduction, from 1.7%, from R$ 9.492 per 100 kWh to R$ 9.330. Even so, the value represents an increase of 15% compared to the current average residential tariff.

Atualização dos valores das bandeiras tarifárias
Source: ANEEL

The proposal may still undergo changes during the public consultation, considering that suggestions may be sent to ANEEL, between April 14th and May 4th. According to the Agency, the proposed increases are mainly motivated by:

  • The rise in fuel prices, which practically doubled last year;
  • Inflation measured by IPCA, which closed last year with an increase of 10.06% in relation to 2020;
  • The effects caused by the water crisis, which forced the hiring and activation of thermal energy plants over the past year. 

Green flag in 2022

Even with all the problems listed, ANEEL confirmed what was said this week by the ONS (National Electric System Operator), highlighting that the review of values should not have an impact on Brazilians’ electricity bills in 2022, as there is a high probability of the green flag remaining (at no additional cost) until December.

The two entities claim that the volume of rain recorded since the end of last year and the current situation of the main Brazilian reservoirs will allow the country to go through the rest of the year in a safer way than in relation to 2021, when Brazil was on the verge of an energy collapse due to the greater water crisis of the last 91 years. 

Tariff flags

O tariff flag system This is what defines the real cost of energy in Brazil. When energy generation conditions are not favorable, it is necessary to activate thermoelectric plants, increasing costs. 

Therefore, additional charges aim to cover the difference and also work to curb the population's consumption. The green flag is the modality that is exempt from the tariff, when the capacity of the hydro plants is in good condition. 

The yellow or red colors (at levels 1 and 2) vary respectively, according to generation conditions, while the Water Scarcity flag, the most expensive of all and created in September last year, is only activated in moments of extreme severity.  

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Henrique 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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