The green tariff flag returned to effect in October, after five months of the yellow flag, which has an additional cost of R$ 1.885 per 100 kWh consumed for all consumers connected to the National Interconnected System (SIN).
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Created in 2015 by Aneel, the tariff bands system reflects the variable costs of electricity generation.Divided into colors, the bands indicate how much it costs for the SIN to generate the energy used in homes, commercial establishments, and industries.
The colors of the tariff bands are determined based on the forecast of the variation in the cost of energy each month. When the electricity bill is calculated using the green band, there is no additional charge. When the red or yellow bands are applied, the bill incurs an additional charge of 100 kilowatt-hours (kWh) consumed.
The charges are as follows:
- on the yellow flag, with less favorable generation conditions, the tariff increases by R$ 1.88 per 100 kilowatt-hours (kWh) consumed;
- on the red flag, in Level 1, with more costly generation conditions, the tariff increases by R$ 4.46 per 100 kilowatt-hours kWh consumed.
- on the red flag, in Level 2, the generation conditions are even more costly, and the tariff increases by R$ 7.87 per 100 kilowatt-hours kWh consumed.