Aneel maintains green flag in November and electricity bill will not have extra fees
The announcement was made this Friday, 30. In October, the yellow flag added R$ 1,885 to every 100 kWh, according to Times Brasil.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM GAZETA DO POVO · 2 MIN
Aneel decided to maintain the green flag for November, and the consumer will not pay extra charges on their electricity bill next month. According to Gazeta do Povo, the announcement was made this Friday, October 30, and Exame reported the same decision. The maintenance of the green flag was expected by the market, according to Times Brasil.
Context helps measure the size of the change. Until October, the yellow flag added R$1,885 for every 100 kWh consumed, according to Times Brasil. According to Estadão's survey, the flag system was created in 2015 to indicate generation costs and to mitigate the impact on distributors' budgets.
According to Aneel, recent rains have raised the level of reservoirs and reduced the need for thermoelectric plants, which have a higher cost. Times Brasil reported that, in October, rains in the South and Southeast stabilized the hydroelectric reservoirs, amid the transition from the dry to the rainy period.
Gazeta do Povo recalls that the flags are defined by factors such as water availability, advancement of renewables and activation of thermoelectric plants. Estadão cites, among the triggers, the hydrological risk (GSF) and the rise in the PLD, the Difference Settlement Price.
What is at stake is the balance between the cost of generation and the consumer's pocket. With stable reservoirs, the decision avoids additional costs for families this month and keeps the system operating without depending on more expensive plants.
What changes for the investor
In the short term, the green flag signals that the current generation cost does not require extra transfer to the consumer, which tends to ease family budgets. As the decision was within what the market expected, the announcement itself brings little news to prices. For those who follow the electricity sector, the point that deserves attention is the upcoming announcements, which depend on rainfall, reservoir levels and the PLD. This analysis is not a buy or sell recommendation and does not project quotes.
Automatically translated from Portuguese.
