Aneel activates red flag 2 in August and electricity bills will become more expensive

The National Electric Energy Agency (Aneel) announced this Friday, the 25th, that the red flag will be activated at level 2 for the month of August. This means that electricity bills will be charged an additional R$7.87 for every 100 kilowatt-hours (kWh) consumed.

This is the tariff flag with the highest rate. According to Aneel, the measure is necessary due to the scenario of below-average inflows across the country, which reduces generation from hydroelectric plants. "This situation increases energy generation costs due to the need to activate more expensive sources, such as thermoelectric plants," the agency said in a statement.

The tariff flag system was created by Aneel in 2015 to indicate to consumers the costs of energy generation in Brazil. It reflects the variable cost of energy production, considering factors such as the availability of water resources, the advancement of renewable sources, as well as the activation of more expensive generation sources such as thermoelectric plants.