Brazil Keeps Electricity Tariff Flag Green for November, With No Surcharge

Brazil's electricity regulator ANEEL announced on October 30 that the tariff flag for November 2026 will remain green, continuing the status in effect during October. Consumers covered by the system will face no additional charge under the tariff-flag mechanism during the month. The decision concerns that surcharge, rather than eliminating other electricity-bill charges. ANEEL attributed the decision to favorable generation conditions as rainfall increases in the regions containing the main hydroelectric plants. The regulator said the rain was helping balance reservoir levels. In its announcement, ANEEL said, “there will be no need for increased use of thermal power plants.” Those plants generate electricity at a higher cost, according to the regulator. The tariff-flag system was created in 2015 to reflect changes in electricity-production costs. The Ministry of Mines and Energy explains that the flag is determined monthly using electricity-system operating conditions, available generation resources, the need to use different energy sources and the estimated cost of meeting demand. Water availability and renewable-generation conditions form part of that assessment. The mechanism applies to consumer units served by distributors connected to Brazil's National Interconnected System. The ministry lists its coverage as the South, Southeast, Center-West, Northeast and part of the North. Under the ministry's published rates, yellow adds R$0.01885 per kWh, red level 1 adds R$0.04463 per kWh and red level 2 adds R$0.07877 per kWh. November's green flag carries none of those additional charges.