Aneel to change Brazil's electricity flag prices

Brazil's electric power regulator Aneel has launched a public consultation on changing of prices for the system of electricity flag bands.

Under a 2015 overhaul of electricity pricing, Brazil's four regional subsystems are allocated green, yellow or red flags, which affect the rates consumers pay. Currently, the yellow flag means consumers pay an additional 1 real (US$0.27) per 100kWh. In the red band, the additional cost is 5 reais (US$1.34) per 100 kWh, while green represents the cheapest rate, with no additional costs, and red level 2 is the most expensive.

Aneel's proposal is to change the additional cost of the yellow flag to 1.5 reais (US$0.40) per 100kWh. Red flag level 1 would have an additional cost of 3.5 reais (US$0.94) per 100kWh and red flag level 2 an extra 6 reais (US$1.61) per 100kWh.

According to the regulator, the changes could show consumers a more accurate portrayal of the hydropower generation situation in the country.

The regulator will receive comments and observations on the subject between February 27 and April 1. Further information, in Portuguese, is available on Aneel's website.