The green tariff flag is maintained until the end of this year. The decision was announced by ANEEL (National Electric Energy Agency) in a Public Board Meeting. According to the agency, the emergency measure aims to alleviate consumers' electricity bills and assist the electricity sector amid the Covid-19 pandemic scenario.
According to an analysis by ANEEL technicians, load reduction and energy generation prospects are factors that make it possible to maintain the green flag until December this year. Furthermore, the costs covered by tariff flags are included in the Covid Account.
About tariff flags
Created by ANEEL, the tariff flag system works as a signal so that the electricity consumer knows, month by month, the conditions and generation costs in Brazil. When production at hydroelectric plants is favorable, the green flag is activated, without tariff increases. In bad conditions, the yellow, red 1 or red 2 flags may be activated.
The values of the tariff flags are updated every year and take into account parameters such as market estimates, inflation, projected volume of hydroelectric plants, operating history of the National Interconnected System, in addition to the values and limits of the Difference Settlement Price (PLD ).