The Director-General of ANEEL (National Electric Energy Agency), Sandoval Feitosa, signaled this Monday (26) that there is a possibility of activating the red flag in electricity tariffs in the second half of this year.
The warning was made during his participation in the XP Energy Sector Political Forum, an event that brought together authorities and experts to discuss the direction of the reform of the Brazilian electricity sector.
According to the director, the scenario of increased generation costs, combined with the end of the wet season and the provisional measure that expanded the exemption range for low-income consumers, put pressure on the Agency to make this decision.
Currently, Brazilian reservoir levels are below 71% – a percentage lower than the 75% recorded in the same period last year. “It is possible that the tariff flags will be positioned between the yellow and red levels by the end of the year, if the unfavorable conditions are confirmed,” said Feitosa.
The activation of the red flag becomes even more sensitive after the enactment of the Provisional Measure that expanded the tariff exemption range for the low-income population. The proposal seeks to extend exempt consumption to thousands of Brazilians – precisely at a time of greater hydrological pressure and rising costs in the sector.
Feitosa highlighted that the Agency will seek to maintain dialogue with parliamentarians to ensure that their assessments are considered in the processing of the MP. “I want to be sure that the ANEEL will be heard in this process,” said Sandoval.
tariff flags
O tariff flag system was created by ANEEL in 2015 and aims to adjust the cost of the electricity bill for Brazilian consumers on a monthly basis, consisting of the colors green, yellow and red (at levels 1 and 2).
This sequence indicates the cost of energy for the following month: green means there is no additional cost; yellow indicates a slight increase in the energy bill and red means a higher cost for Brazilians.
The sequence reflects the variable cost of energy production, considering factors such as the availability of water resources, the advancement of renewable sources, as well as the activation of more expensive generation sources such as thermoelectric plants.
“With the activation of the yellow flag, the ANEEL reinforces that it is crucial to maintain good consumption habits to avoid waste and contribute to the sustainability of the electricity sector”, highlighted the Agency, in its press release.
Daylight saving time returns to debate
The CEO also commented on the possible reintroduction of daylight saving time in the country. Although the final decision lies with the Federal Government, Sandoval noted that the issue has been debated by various sectors and state governments, especially due to the impact it could have on energy consumption, tourism and commercial activities.
Last week, the ONS (National Electric System Operator) had already defended the return of the measure as a way of alleviating the demand for energy during peak hours, especially given the reduction in water reserves in some regions of the country.
Despite this, Feitosa reinforced that the eventual resumption of daylight saving time requires a careful analysis of the current energy matrix, considering society's new consumption profile and the technological advances that have changed usage patterns over the last few years.
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