Brazil’s electricity regulator Aneel announced on Friday that the November tariff flag will be green. Bills for the month will carry no extra charge.
Why the flag is green
Aneel said the green flag, in effect since October, stays in place in November. Generation conditions remain favourable. Rainfall has increased in the regions where the main hydroelectric plants are located, and reservoirs are in balance.
The regulator said there will be no need to dispatch thermal plants more heavily. Those plants cost more to run.
How the flag system works
The tariff flag system signals the real cost of power generation. When generation becomes more expensive, an extra charge is applied to bills automatically.
The yellow flag applied from May to September. It added 1.88 reais per 100 kWh, or 18.85 reais per MWh. The red flag level 1 added 4.46 reais per 100 kWh, or 44.63 reais per MWh. Red level 2 added 7.87 reais per 100 kWh, or 78.77 reais per MWh.
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Source: Aneel
