Electricity bill will have an extra charge for the fourth consecutive month.

A ANEEL The National Electric Energy Agency (Agência Nacional de Energia Elétrica) has determined that the tariff flag for the month of August will be yellow for the fourth consecutive month, repeating the scenario observed in May, June, and July.

This type of flag represents an additional charge of R$ 1,885 for every 100 kWh consumed. In practice, in addition to the normal electricity bill, the consumer will pay this surcharge.

According to the Agency, the signal reflects the less favorable conditions for energy generation during the dry season, when there is a reduction in the levels of hydroelectric reservoirs and a greater need to activate thermoelectric plants, which have a higher operating cost.

The extra cost could have been higher.

According to Fred Menezes, Marketing Director of Armor EnergyThe rainfall recorded in the southern region of the country helped to avoid a scenario of greater pressure on generation costs, contributing to the maintenance of the yellow flag in August.

Another factor that helped prevent an even higher electricity bill was the reduction in energy consumption during the winter, especially in the South and Southeast regions, due to less use of air conditioning equipment.

Despite this, Menezes believes the scenario could become more challenging in the coming months. "For October and November, the possibility of activating the red tariff flag level 1 remains, due to the expectation of more restricted rainfall and the potential impacts associated with the El Niño phenomenon," he said.

How do tariff flags work?

Created in 2015 by ANEELThe tariff flag system aims to signal to consumers the cost of electricity generation in the country.

Monthly, the ONS (National Electric System Operator) evaluates the operating conditions of the SIN (National Interconnected System), defines the dispatch strategy for power plants, and estimates the costs of energy generation.

Based on this information, the tariff flags are defined. When the flag is green, there is no additional charge on the electricity bill. Yellow and red flags, however, indicate increased generation costs and result in extra charges for consumers.

Currently, the additional costs are:

• Yellow flag: An additional R$ 1,885 for every 100 kWh consumed;
• Red flag level 1An additional R$ 4,46 for every 100 kWh consumed;
• Red flag level 2: An increase of R$ 7,87 for every 100 kWh consumed.

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