O MME (Ministry of Mines and Energy) reported, on Wednesday night (6), that from April 16th, the country will adopt the green tariff flag on electricity bills.
The measure, therefore, should cause an average reduction of around 20% in the value of residential consumers' energy bills from May onwards.
Currently, the tariff flag in force in Brazil is “Water Crisis”, created in September 2021 to offset the increase in generation costs amid the biggest water crisis in the country's history.
At the end of 2021, the reservoirs of the Southeast and Center-West Hydroelectric Plants, responsible for 70% of Brazil's water generation, for example, reached operate at less than 20% of its capacity, the lowest level in 91 years.
The national dependence on water resources, which at the time corresponded to more than 65% of the Brazilian energy matrix, forced the Federal government to take measures to ensure energy supply for the population.
To achieve this, energy was imported from neighboring countries, such as Argentina and Uruguay, and the use of thermoelectric plants was adopted – a more expensive source, in which the cost is ed on to the consumer in the electricity bill.
Since the beginning of last year, energy sector professionals have warned that making investments in renewables, including solar, would be a more viable solution to face and avoid the water crisis without causing major financial losses for the country and consumers.
In October, the TCU (Federal Audit Court) pointed out failures of the Federal Government and bodies in the electricity sector in combating the energy crisis. According to the Audit, the measures adopted would still have been taken in a “hasty” manner, with little predictability and without an estimate of tariff impacts on the consumer.
