O blog found that level 2 of the red flag, which is currently R $ 9.49, will change to BRL 14.20 for every 100 kilowatt hours (kWh) consumed… Anil, however, stated that the amount was 19 reais in three months.

The decision on the new value was made during a meeting between President Jair Bolsonaro and ministers of the House of Exceptional Rules for Hydropower Management (Creg), which was set up in June to manage the water crisis. Aneel CEO André Pepiton attended the meeting.

The tariff flag was installed in 2015 to indicate the cost of energy production. Deciding what color of the flag will be in effect each month defined by Anil based on generation costs. The value of the flag is determined collegiate council Aneel, after public consultation.

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The government fears the negative impact of yet another increase in electricity bills in addition to the impact on inflation, which is already high in the country.

The red flag level 2 was R $ 6.24 and was adjusted in June. Technicians heard by the government even mentioned the need to increase the new cost to $ 24 in September.

The R $ 19 sum that Aneel is defending explains the high cost of energy production, which today depends on thermoelectric power plants. The government opted for a lower amount, with no deadline for completion.

The meeting with Bolsonaro was devoted to the political implications of this measure, which is considered inevitable for financing the activation of thermal power plants.

Reportedly blog Of those who accompanied the meeting, the minister asked Bolsonaro if he would prefer to “save the electricity sector or his government and be re-elected.”

At the meeting, which was also attended by Central Bank President Roberto Campos Neto, Campos Neto expressed concern about the impact of the adjustment on inflation.

The idea is that the announcement of the new value will take place on Tuesday (31) and will take effect on September 1. Instead of doing it like Anil usually does, Craig should do it as an emergency measure to overcome the water crisis. Another option considered is for the government to send Anil a statement next Monday asking for an adjustment to the new values.

This chamber is composed of six ministers: Bento Albuquerque (mining and energy), Paulo Gedes (economics), Tarsicio de Freitas (infrastructure), Teresa Cristina (agriculture), Joaquim Pereira Leite (environment) and Rogerio Marinho ( regional development).

The government is also evaluating a new radio and television announcement from Mines and Energy Minister Bento Albuquerque.

The biggest problem that industry experts have pointed out – and that has been passed on by technicians to the president and ministers – is that an adjustment to R $ 14.20 is not enough to afford the high cost of energy production, and this will create debt in the size of almost reais. $ 10 billion with distributors by the end of the year.

This value could force the government to make new adjustments this year.

In late July, the blog revealed that pressure from the government had already forced Aneel not to make adjustments to surcharge on electricity bills, despite higher generation costs.