Distributors defend the creation of a new tariff flag

Proposal from the Enel and Neoenergia groups defends a new modality for crisis situations
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Bandeira tarifária
Groups are calling for the creation of a new tariff level on electricity bills. Photo: Lúcio Bernardo Jr./Agência Brasília

Like the example of water scarcity flag, created by Federal government Last year, during the worst drought in 91 years, two of Brazil's main energy distributors suggested ANEEL (National Electric Energy Agency) the creation of a permanent tariff flag for crisis situations. 

The proposal was forwarded by the groups Enel It is Neoenergia during the Agency's public consultation, which discusses the review of the values of tariff flags in the country. The suggestion is that the calculations for a possible new flag incorporate all the hydrological scenarios that the country has recorded in recent years, considering that the current standard considers 95% of the scenarios, disregarding the worst 5%.

Enel justified the request by claiming that several research institutes highlight that new water crises in the country – similar to the one that occurred last year, with the reservoirs of the main hydroelectric plants operating at critical levels – would be inevitable due to global warming.

For this reason, the group informed that it is pleading with Aneel to create a new flag level (red flag 3 or black flag) and that this new modality be activated in extreme moments. 

Neoenergia stressed that the permanent creation of a new tariff flag would contribute to “adding greater robustness to the methodology by ensuring that there is coverage through the current system that tries to deal with exceptional scenarios, even if these are not so frequent”, it says the company's contribution.

Tariff flag

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

How it works 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 conditions in which electricity is generated. 

With the water crisis, the Federal Government created the Water Scarcity banner at the end of last year, with a higher charge, to face the measures adopted to avoid energy rationing in 2021. A modality stopped operating in May this year. 

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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