Aneel activates the green flag in January and electricity bills will not incur additional costs | Brazil

In a note, the agency indicates that precipitation is below the historical average during this wet period, but that in November and December, the volume of rain and the level of hydroelectric reservoirs remained generally maintained.

“In January 2026, it will not be necessary to ship thermoelectric plants in the same quantity as in the previous month, which avoids imposing additional costs on the consumer’s energy bill,” explained Aneel.

This decision represents savings for consumers. In December the yellow flag is in effect, with an additional R$1,885 for every 100 KW/h consumed, which already signals an improvement in conditions for generations with the start of the rainy season. In previous months, the regulatory agency even raised an alarm at levels 1 and 2.

The tariff flag system was created in 2015 to signal to consumers the cost of energy production in the country. The flags show the variable cost of energy production, based on the analysis of the availability of water resources, the promotion of renewable sources and the activation of more expensive production sources.

In practice, green, yellow and red flags 1 and 2 indicate whether or not there will be additional charges on electricity bills. The green flag, when there is no increase, means the cost of production is low. Yellow and red flags indicate, for example, an increase in costs and the need to use thermal power plants.

The model also reduced the financial impacts on distributors. Previously, companies bore the costs of the most expensive production for months, which were only reflected in electricity bills during the annual tariff adjustment, with accrued interest.