Electricity bill continues with green flag, without extra charge, in June, says Aneel

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Tariff flag system was created to signal the cost of energy generation. Flag has been green since mid-April 2022, i.e. over a year ago. The National Electric Energy Agency (Aneel) reported this Friday (26) that the electricity bill will continue with the green flag in June, that is, without extra charge. The tariff flag system was created by Aneel to signal the cost of energy generation. When the production cost increases, the agency can activate the yellow or red flags level 1 or 2 — which represent an extra cost to the consumer. The green flag, on the other hand, does not add costs to energy consumers’ tariffs based on their monthly consumption. This flag has been in effect since April 16, 2022, that is, for over a year. Data from the National Electric System Operator (ONS) show that the country’s reservoirs have a high level of storage, between 82.87% and 98.67%, depending on the region, until last Thursday (25). When the level of the reservoirs is low, the hydroelectric plants start to generate less energy, and the operator is forced to activate thermoelectric plants to guarantee electricity to the country. As thermal plants are more expensive than hydroelectric plants, they end up increasing the cost of generating energy, which is passed on by Aneel through tariff flags. Green flag throughout the year Aneel estimates that it is very likely that the green flag will be triggered throughout 2023. The estimate is in line with ONS projections, which indicate that reservoir storage levels should remain high, including during the typically dry period (with scarce rainfall), which normally lasts from May to October. The ONS projection is to end this year’s dry period with the best storage level in the historical series, with storage percentages in reservoirs ranging between 70.4% and 81.6%. Then, in November, the rainy season should begin. What is the cost of flags on the electricity bill? Green flag (favorable conditions for power generation) – no additional charge; Yellow flag (less favorable conditions) – BRL 2,989 for every 100 kilowatt hours (kWh) consumed; Red flag level 1 – (unfavorable conditions) – BRL 6,500 for every 100 kWh consumed; Red flag level 2 (very unfavorable conditions) – BRL 9.795 per 100 kWh consumed. At the end of every month, the agency decides the flag color for the following month.

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