O government announced on Tuesday that the highest level of the tariff flag will be readjusted by 50% as of this Wednesday. The extra charge on electricity bills will rise from R$9.49 to R$14.20 for every 100 kilowatt-hours (kWh) consumed. O Ministry of Mines and Energy also announced a program to encourage voluntary reduction of electricity consumption for residential and small business customers (which are served by energy distributors).
The flag will be called the tariff flag “Water scarcity” and will cause an increase of 6.78% in the average tariff of energy consumers. Low-income citizens who adhere to the social tariff will not be affected by the brand’s new rules, and the current value will be maintained. The measure will be valid from September 1st to April 30th, 2022.
Through the program, you will get a discount on electricity bills who decrease consumption by at least 10%. The rate bonus must be worth up to a 20% reduction — above that there would be no benefits. The measures are part of the government’s actions due to the water crisis, the worst in 91 years, which threatens the supply of electricity. As it is voluntary, the government does not consider the measure to be a form of energy rationing (which presupposes mandatory).
The goal is for the program to start being effective in September and extends to April. There will be a 0.50 bonus for every kilowatt-hour (kWh) of energy volume above the 10% target. The discount will be paid to anyone who saves above the 10% range. Therefore, below that, there would be no discount — just the normal reduction due to the drop in consumption.
For example, if a family consumes 200kWh of energy per month, it should reduce this consumption to a range between 160 and 180kWh. This family would earn a R$ 5 bonus on the account for reducing consumption by 10%. For a 20% savings, the discount would be R$10.
For a comparison, the average tariff paid by residential consumers today is R$ 0.60 per kWh (amount that is added by charges and taxes).
To calculate the percentage of savings, the comparison will start based on a monthly average of consumption for the months of September, October and November 2020. Thus, the period of more intense restrictions on mobility due to the pandemic is excluded, which could distort the mean.
There will be no government contribution to finance the program. The resources to pay for this discount will come from the System Service Charge (ESS), an obligation that is charged on electricity bills. Therefore, the bonus will be borne by the consumers themselves, both those served by the distributors and those operating in the so-called free market, such as industries.
While preparing a program for voluntary reduction of consumption, the government confirmed the readjustment in the tariff flag (additional charged on electricity bills). Today, an additional R$ 9.49 is charged for every 100 kWh. The value was readjusted to R$ 14.20 for every 100 kWh.
With this, the net value of the bonus, subtracting the R$14.20 from the banner, would be R$35.80 for every 100 kWh saved.
The ESS now pays for very expensive thermoelectric plants. For this reason, government officials say the program can be beneficial to the electricity sector because it will exchange expensive generation for lower consumption.
The final balance, according to one authority, is that the electricity system as a whole will be less expensive to operate if a significant number of distributors’ customers adhere to the voluntary reduction in consumption and achieve at least 10% savings. Meanwhile, the situation continues to deteriorate.
The water crisis situation has deteriorated in recent days. The National Electric System Operator (ONS) estimates that the Southeast/Midwest reservoirs will reach the end of September with only 15.4% of the storage capacity — far below the level verified on the same date last year ( 32.9%) and until 2001, when there was energy rationing (20.7%). The Southeast/Midwest subsystem is considered the main water reservoir in the country.
The 10% to 20% reduction in energy consumption is the same that was determined for federal public agencies — which are obliged to reduce.
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