Review of the tariff flag enters public consultation

ANEEL's proposal foresees a reduction in the value of the yellow flag and higher charges for red flags
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ANEEL (National Electric Energy Agency) will open this Wednesday (24) a public consultation on the review of additional fees and activation bands for tariff flags in the 2021/2022 period. 

According to the agency, this is the first price change proposal made since 2019, as last year the values were maintained due to the Covid-19 pandemic.

On that occasion, the green flag was activated between the months of June and November, as the compensation resulting from the activation of the flags during the period was carried out by Covid Account – line of credit that was established last year to provide financial relief to energy distributors during the pandemic.

The proposal presented by ANEEL for the years 2021 and 2022 is to reduce the value of the yellow tariff flag, which would increase R$ 1.343 for every 100 kWh consumed to R$ 0.996.  

Red flag 1 would increase from R$ 4.169 for every 100 kWh to R$ 4.599 for every 100 kWh consumed and red flag 2 would increase from R$ 6.243 to R$ 7.571 for every 100 kWh consumed.

The public consultation will be available for contributions between March 24th and May 7th, 2021, via email: [email protected]

According to ANEEL, all other information about the consultation will be published on the agency virtual page

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 consider 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 PLD (Difference Settlement Price).

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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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