Decree modifies System of Tariff Flags

The Official Gazette (DOU) published last Wednesday (20), Decree 10,114/2019, which removes the annual periodicity of the approval of tariff flags made by the National Electric Energy Agency (ANEEL). The previous text defined that tariff flags would have to be approved to be each calendar year, however, the current decree brings changes to the article without mention some periodicity.

The Tariff Flag System was implemented in 2015 to indicate the actual value of the cost of power generation in the country and is formed by three colors (green, yellow and red) that indicate whether or not there will be increase in the amount of energy to be charged to the final consumer’s electricity bill depending on the conditions of electricity generation. In the past, the cost of energy was passed on to tariffs on the annual adjustment of each company and had the application of a basic interest rate.

By the system, the green color does not have extra charge, indicating favorable conditions of power generation in the country. On the flag with less favorable conditions, the extra fee is R$ 1.50 per 100 kWh consumed. Red flag can be triggered on one of two landings Charged. In the first, the additional is R$ 4.00 per 100 kWh. In the second extra charge is R$ 6.00 per 100 kWh.

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