Tariff Flags: Understand electricity bills

Thursday 14, April 2016

Customers should be aware of the billing period of their account; Since the Green Flag is taking effect on April 1st

The simple gesture of pressing an electric power switch and the light bulb turning on has become so common and natural that it goes unnoticed by most people in the different environments they inhabit: houses, offices, shops, offices, bathrooms, etc.

The power that enables the lamp glow, heating of water for showers, functioning of sound equipment and TVs, recharging of mobile phones, movement of elevators in buildings, and the operation of a multitude of electrical equipment that we use in our day-to-day life, goes a long way from the power plants where it is produced, along the transmission lines that bring it to the cities, and through the distribution systems that enter into our homes.

Until 2013, the consumer had no signal of the cost of energy produced by the plants when they decided to connect a new appliance to the socket, take a longer bath, or leave devices on standby mode for long periods.

In order to transparently provide the actual cost of electricity production to customers, the Tariff Flags were implemented in January 2014, having a testing phase throughout the year, and beginning to change energy prices from January 2015 on. Since then, Brazilians" electricity bill signals monthly the cost of power to residences, industries and commerce.

The green, yellow and red flags indicate the cost of producing power.

If energy production is being carried out in accordance with the costs in a heavy rainfall scenario, without supplemental use of thermoelectric power plants, the signal is ** Green Flag **.

If the electricity generated by the hydroelectric plants does not meet demand because of low water levels in reservoirs, the National System Operator (ONS) decides to call on thermal power plants, which are more expensive, and the signal can be a Yellow Flag, Red Flag Level 1, or ** Red Flag Level 2**, depending on the cost of the thermoelectric plants activated. The more expensive the thermoelectric power required to meet consumption, the redder the flag gets.

The cost of the thermoelectric plants comes in the same month, in this way the consumer is given an appropriate signal of the cost of electricity consumed.

Prior to this change, the customer paid, at one time, each annual tariffs" readjustment based on the distributors. The Tariff Flag System clarifies the variation of the electricity cost produced in the country, allowing everyone to manage their own consumption monthly, adopting practices of conscious consumption.

For a better understanding of the tariff flags on electricity bills, EDP, the electricity distributor in Alto Tietê, Vale do Paraíba and the North Coast of São Paulo, reinforces the importance of reading the information contained in the invoice. On the "Tariffs" tab, the flag color enforced in the invoiced period is identified, as each customer billing varies according to the measurement. Now on the "Billing Details" tab are described the values for the components of the tariff, including the increase from the flags.

In the migration from one flag to another, as defined by Aneel, it is common for the customer to receive the electricity bill with two tariffs: "Let think of the consumer who has their account billed from March 7th to April 7th, for example. They will be charged with the Yellow Flag between March 7th and 31st and from April 1st to 7th with the Green Flag in force, there will be no invoice increase in this period", explains Marcos. Scarpa, EDP institutional relations.

Tariff Flag values

[Green flag]: normal conditions of power generation. The tariff does not incur any increase;

[Yellow flag]: conditions of hydroelectric generation are less favorable. The tariff increases R$1.50 (without taxes) for every 100 kWh consumed;

[Red flag 1]: when generation partly depends on the operation of thermoelectric power plants, which are more costly. The tariff increases R$3.00 (without taxes) for every 100 kWh consumed.

[Red flag 2]: when all the generation depends on the operation of thermoelectric power plants and is the most costly. The tariff incurs an increase of R$4.50 (without taxes) for every 100 kWh consumed.

The National Electricity Agency - ANEEL maintains a website with all the information about the Tariff Flags: http://www.aneel.gov.br/bandeirasTarifarias.

The customer can also obtain information through the EDP Virtual Agency (www.edp.com.br), or through the Central Attendance (0800 721 123, which operates 24 hours and with free calls).