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ANEEL Keeps Yellow Tariff Flag for September

Lower hydropower output has forced dispatch of more expensive thermoelectric plants, so the regulator will keep a monthly surcharge to reflect higher generation costs.

Overview

  • ANEEL announced on Friday that the yellow flag will remain in place for September, so electricity bills will carry an extra charge next month.
  • The yellow flag adds R$18.85 per megawatt-hour to generation costs, which equals about R$1.88 for every 100 kWh consumed.
  • The yellow signal has been active since May because weaker rainfall and lower reservoir levels reduced hydropower output and raised the need for costlier thermal generation.
  • The flag system, created in 2015, is a monthly transparency tool with four tiers whose charges rise to R$44.63/MWh and R$78.77/MWh under the red patamar 1 and 2 levels.
  • ANEEL urged consumers to cut usage through small habit changes to limit bills and warned that sustained poor generation conditions could push the system into the more costly red tiers.