Brazil's electricity regulator, the Brazilian Electricity Regulatory Agency (ANEEL), has confirmed that the yellow tariff flag will remain in force throughout September. For the fifth consecutive month, customers connected to Brazil's National Interconnected System (SIN) will pay an additional R$1.885 for every 100 kilowatt-hours (kWh) used.  

What Are Tariff Flags, and Why Is the Yellow Flag Still in Force? 

Introduced by ANEEL, the tariff flag system provides a clear monthly indication of the actual cost of generating electricity in Brazil. It uses green, yellow and red flags (the red flag has levels 1 and 2) to show whether electricity generation costs are lower or higher. When rainfall is plentiful and hydroelectric reservoirs are full, the green flag applies and no additional charge is added to the bill.  

The yellow flag remains in force because Brazil's dry season is continuing. As water levels in hydroelectric reservoirs fall, the electricity system must bring thermal power stations into operation to meet national demand. Electricity generated by these plants is more expensive, so part of the additional cost is passed on to consumers through the surcharge.  

The Direct Impact on Condominiums and SMEs 

For anyone managing a condominium or a small or medium-sized enterprise (SME), September's additional charge will have an immediate impact on operating costs:  

• For Condominiums: Communal areas rely on the continuous operation of lifts, lighting in corridors and garages, water pumps and ventilation systems. The additional charge per kWh increases the building's running costs, making expenditure less predictable and putting upward pressure on condominium fees.  

• For Small and Medium-Sized Enterprises: In sectors such as retail, services, restaurants and healthcare clinics, the daily use of air conditioning, cold-storage facilities, lighting and electrical equipment means that the yellow flag surcharge can add substantially to monthly costs, reducing profit margins.  

Gain Budget Certainty and Protection with NewSun 

Changes in weather conditions and regulatory adjustments to tariff flags need not keep disrupting your budget planning. With NewSun's energy subscription service, your condominium or business gains effective protection against fluctuations in the bills issued by local electricity distributors.  

When you sign up for the service, you receive credits for clean, renewable energy generated by partner power plants, delivering ongoing savings and greater budget certainty without the need for building work, investment in solar panels or equipment maintenance. Subscribe to clean energy with NewSun and protect your business or condominium budget from unexpected increases.