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Why raise tariff flags?

Why raise tariff flags?

The Board of Directors of Aneel (National Electric Energy Agency) held a meeting scheduled on Tuesday (29th) to decide on the new values ​​of the tariff flags. The agency’s director general, Andre Bipiton, has already stated that Modification must pass 20% For landing Red Flag 2, more expensive.

Flags are the additional fees charged to the electricity bill depending on the energy production conditions in the electricity sector. According to Aneel, it’s not just meant to cover the extra costs: The agency claims the mechanism is a way to signal to the consumer when it’s time to spend less energy. However, in 2018, a review by the TCU (Court of Accounts of the Union) indicated that the flags were not effective in causing conscious consumption of energy.

Why will the value go up now?

wanted by UOLAnil stated that the signs reflect the variable costs of power generation. Now, according to the agency, the revision of the values ​​is justified by the increase in input prices for thermal power plants, especially those that use oil. With a drought, the thermoelectric stations are energized so that there is no shortage of power.

“In the case of a red flag, since Aneel has identified more moments of scarcity in hydropower plant reservoirs, the values ​​are intended to protect the protection of the Brazilian electrical system,” the agency said.

The increase in the value of the flags was submitted to a public consultation in March. As per Anil’s suggestion, the changes will be as follows:

  • green flag
    • There are still no additional fees
  • yellow flag
    • From 1.343 R$ per 100 kWh to 0.996 R$ per 100 kWh
  • red flag landing 1
    • From R$ 4.169 per 100 kWh to R$ 4.599 per 100 kWh
  • red flag landing 2
    • From R$ 6,243 per 100 kWh to R$ 7.571 per 100 kWh
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Currently, a Level 2, the most expensive red flag, is in effect. Aneel clarifies that the shipping date for the new values ​​will also be set on Tuesday (29). According to the agency, there is no estimate of the total amount consumers will pay with the new values.

What did TCU say

In its 2018 review, TCU stated that tariff flags were, in fact, “assuming an increasingly important role in revenue forecasting to avoid cost accretion for energy distributors, leaving behind the intent to act as a marker to reduce consumption”.

The flag system was created in 2015. According to data from Aneel itself, consumers have since paid an additional 38.5 billion R$ on their electricity bill. The agency reported that it does not have an estimate of low consumption from the flags app.

However, according to Aneel, the mechanism avoids a greater cost to consumers. This is because prior to the implementation of the signage, the increase in power generation costs was only passed on to the tariff adjustment, which occurs once a year.

Therefore, the consumer also had to bear the interest, as the bill was delayed. Now, the increase is immediate: if generation costs increase, banners are activated and the consumer pays immediately. According to Aneel, since 2015 consumers have saved R$3.8 billion in interest.

wanted by UOL, TCU stated that the process had not been considered by a court.

How much consumers pay for tariff flags

  • 2015 – 14.6 billion Rls
  • 2016 – 3.5 billion BRL
  • 2017 – 6.1 billion BRL
  • 2018 – R$ 6.8 billion
  • 2019 – R$4.2 billion
  • 2020 – 1.3 billion BRL
  • 2021 (data reported in June) – R$ 2.048 billion
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Source: Aneel

There are no awareness campaigns, says the professor

According to Dorel Ramos, a professor in the Department of Energy Engineering at the Polytechnic School of the University of the South Pacific (University of São Paulo), the effectiveness of the signage as an energy-saving signal depends on the type of consumer.

For those who earn more, the impact is reduced because the electric bill has little impact on the budget. And for those who earn less, there is a lack of information, according to the professor.

Residents are not properly informed, they hardly know what tariff science is. [Quando a conta vier mais alta], you’ll think it’s just another modification, without knowing why. It requires an awareness campaign.
Dorel Ramos

However, according to Ramos, trademarks will have to be readjusted “from time to time” to restore prices.

If it’s too light, it won’t do the job. It should hurt in the pocket. If it rises a little, the citizen will not be spared. But it is necessary for people to understand why the bill is high and what is the antidote to it, that is, it is necessary to change consumption habits.
Dorel Ramos

The value of flags was last reviewed by Aneel in 2019.

Incentive for those who save

Kluber Light, energy program coordinator at Idec (Brazilian Institute for Consumer Advocacy), advocates a “stronger” policy to reduce consumption, including awareness campaigns and incentives for those who save.

There is no incentive other than punishment for those who consume more. It would be appropriate to improve the science system.
Clubper Light

The article asked Anil about conducting awareness campaigns and about possible incentives for those who save energy. The agency did not respond.

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