National Energy Consumers Front says that the government must respect the agency’s technical criteria, even with an increase in the electricity bill
THE FNCE (National Energy Consumers Front) published a note this Tuesday (October 1, 2024) expressing concern about the letter sent by the Ministry of Mines and Energy to try to reverse the decision of the Aneel (National Electric Energy Agency) to activate the tariff flag with red level 2 for October.
The entity said that the attitude of the Minister of Mines and Energy, Alexandre Silveirawas taken without any debate within society and the electricity sector and that an attempt to reduce the electricity bill does not support the possible losses that could affect consumers by ignoring the technical decision of the regulatory agency. Read the complete of the note (PDF – 104 kB).
Silveira’s idea is that the agency considers using the balance in the Bandeiras Account to mitigate the extra charge on energy tariffs this month and in future months. The request was made official this Tuesday (1st October). Read the complete (PDF – 96 kB).
The Conta Bandeiras brings together the extra money collected from consumers with the tariff flags. It is used to pay additional costs in periods in which the system’s operating cost increases, with the activation of thermal plants. It has also been used to mitigate tariff adjustments by distributors. The ministry’s estimate is that the value of this account is greater than R$5.22 billion.
“The proposal to use this reserve, currently allocated in the so-called Conta Bandeiras, to have immediate effects on the country’s electricity bills and inflation, needs to have its impacts evaluated and presented publicly so that its possible benefits can be understood. It is worth remembering that using the Bandeiras Account balance to seek these immediate effects could result in an even greater expense for the consumer in the near future, which ends up falling on the electricity bill in the form of hiring thermal plants, for example”says the FNCE.
Aneel: objective methodology
In a press release, Aneel stated that as soon as it receives it, it will carry out the appropriate analysis. However, consider that “the methodology approved after public consultation is very solid and results in a red flag, level 2, for the month of October. This is an objective mechanism, without Aneel’s discretion in its application”.
According to the agency, any change to the flag mechanism and its calculation method will need to go through “by a competent, public and transparent analysis, following the procedure”.
The regulatory entity recalled that the flag was green for another 2 years following the same metrics, as the system’s operating conditions indicated this. And now the situation is different, since Brazil is going through a serious period of drought and low energy generation from hydroelectric plants.
Also according to Aneel, the Conta Bandeiras balance is always returned to consumers and, in 2024, it contributed to reducing readjustments. He said that, in February, the balance was R$10 billion, having reduced to R$5 billion, an amount that can be quickly consumed given the current scenario of extra costs in the system.
Read Aneel’s note in full:
“As soon as I receive the letter from the MME [Ministério de Minas e Energia]the agency will carry out the appropriate analysis. It is important to clarify that the methodology approved after public consultation is very solid and results in a red flag, level 2, for the month of October. This is an objective mechanism, without Aneel’s discretion in its application. Any change to the mechanism will undergo a competent, public and transparent analysis, following the Agency’s procedures.
“For more than two years the flag was green because, following the same metrics, the system’s operating conditions indicated this. The balance of the tariff flag is always returned to consumers and, in 2024, it contributed greatly to reducing the adjustments. It is worth mentioning that in February the balance was R$10 billion, having reduced to R$5 billion and, depending on hydrological conditions, it can be quickly consumed, given that we are going through a period of drought and low energy production from hydroelectric plants.
“Finally, it is worth saying that the tariff flag system not only has a financial effect, but it also has an educational effect. It is essential to signal to consumers the operating conditions of the system so that they can make an informed decision about electricity consumption. It is not interesting to encourage consumers to increase their consumption at a time of scarcity of resources. The flag is also a behavioral instrument.”
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