(Image: iStock/RafaPress)
A National Electric Energy Agency (Aneel) announced this Friday that the October tariff flag will be red level 2, which implies the highest additional charge in electricity billamid a drop in the level of hydroelectric reservoirs in this dry period.
This tariff flag represents an increase of 7.877 reais per 100 kilowatt-hours (kWh) consumed. The flag system indicates to consumers the costs of energy generation in Brazil, which needs to connect more expensive thermoelectric plants when reservoir levels drop.
“The factors that triggered the level 2 red flag were the GSF (hydrological risk) and the increase in the Difference Settlement Price (PLD), which were influenced by forecasts of low inflow for hydroelectric reservoirs and the increase in the price of the oil market. electricity throughout the month of October”, stated Aneel, in a note.
O National Electric System Operator (ONS) estimated this Friday that the reservoirs of hydroelectric plants in the Southeast/Central-West should reach 39.9% of capacity by the end of October
This flag with the highest cost has not been activated since August 2021, according to Aneel. A sequence of green flags began in April 2022 and was interrupted in July 2024 with a yellow flag, followed by a green flag in August and red flag level 1, in September.
Despite the growth of other energy sources, such as wind and solar in recent years, hydroelectric sources still account for more than half of the country's electricity matrix.