October's 'Green Flag' Eliminates Extra Cost on Electricity Bill

The announcement of the green tariff flag for October comes after five months of the yellow flag, which charged R$ 1.885 for every 100 kWh consumed. The determining factor was the increased volume of rainfall in the South and Southeast regions, which raised the level of hydroelectric reservoirs.

Why the Green Tariff Flag Reduces Your Energy Bill

With fuller reservoirs, hydroelectric generation can meet a larger portion of demand, reducing the dispatch of more costly thermoelectric plants. This change eliminates the collection of additional costs on the consumer's bill.

How the Tariff Flag System Works

Established by ANEEL in 2015, the mechanism indicates, month by month, the variable cost of energy production in the country. When the water volume in reservoirs is sufficient, the green flag signals no extra charge. Otherwise, yellow or red flags are activated, reflecting the use of more expensive sources.

Impact of Recent Rainfall on Hydrographic Basins

The transition between the dry and wet seasons brought more precipitation to the main basins of the South and Southeast. This scenario stabilized the reservoir levels of hydroelectric plants, allowing for a reduction in the activation of thermoelectric plants.

Outlook for the Coming Months

CCEE analysts point to energy prices between R$ 120 and R$ 140 per megawatt-hour in the coming months. Despite the green flag, the El Niño phenomenon could alter rainfall patterns and raise temperatures, drawing attention to energy availability, especially in the North region.

Preventive Measures Against Super El Niño

ANEEL adopted contingency plans and advanced funds from the Fuel Consumption Account to isolated generators in the North, aiming to ensure fuel stock in case of navigation difficulties. These actions seek to mitigate hydrological risks and guarantee electricity supply during the period of greatest impact, predicted for October to December.

With information from Federal Government, O POVO.