Brazil's National Electric Energy Agency, Aneel, said July 31 that the yellow tariff flag will remain in effect for August [1], [2].
The decision impacts all consumers connected to the National Interconnected System. It reflects the ongoing struggle to maintain power generation during the dry season, which forces the country to rely on more expensive energy sources.
This marks the fourth consecutive month that the yellow flag has been applied to electricity bills [1]. The agency said unfavorable generation conditions caused by the dry period and water scarcity were the primary drivers for the cost increase [1], [3].
Under the yellow flag, consumers face an additional charge on their monthly bills. Reports indicate the surcharge is approximately R$1.88 [1] to R$1.885 [3] for every 100 kWh consumed.
Water scarcity in Brazil's reservoirs typically increases the need for thermoelectric plants. These plants are more costly to operate than hydroelectric dams, and those costs are passed to the consumer through the color-coded tariff system managed by Aneel [1], [3].
The agency said the maintenance of the current rate on Thursday to provide advance notice to the public before the August billing cycle begins [1], [2].
“The yellow flag has been applied to electricity bills for four consecutive months.”
The persistence of the yellow flag highlights Brazil's vulnerability to seasonal climate patterns. By relying heavily on hydroelectric power, the national grid becomes susceptible to drought, necessitating the use of expensive thermal backups that drive up consumer costs during the dry season.
