Higher Electricity Bill In August: Red Flag Increases Rates For Consumers Nationwide

Written by Andriely Medeiros de Araújo

Published on 29/07/2025 at 19:58

Aneel anuncia bandeira vermelha patamar 2 para agosto e conta de luz fica mais cara. Entenda os motivos do aumento e como economizar energia. Imagem: Canva.

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Aneel Announces Red Flag Level 2 for August and Electricity Bills Get More Expensive. Understand the Reasons for the Increase and How to Save Energy.

The National Electric Energy Agency (Aneel) confirmed last Friday (26) the activation of the red tariff flag level 2 for the month of August. The decision directly impacts the pockets of Brazilians: the electricity bill will increase by R$ 7.877 for every 100 kWh consumed. The increase applies nationwide and is due to low water inflows, meaning less water entering the reservoirs of hydroelectric plants.

Understand Why the Electricity Bill Is More Expensive This Month

This scenario limits electricity production by hydroelectric plants and forces the activation of alternative sources, such as thermoelectric plants, which have a higher cost. As a result, the tariff flag system — created to alert about the real costs of electricity generation — has reached its most critical level since October of last year.

The activation of the red flag level 2 reflects a widespread drought situation in the main reservoirs of the country. According to the National Electric System Operator (ONS), all Brazilian regions recorded projections of Natural Energy Inflow (ENA) below the historical average.

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According to the ONS, the South is expected to reach 82% of the Long-Term Average (MLT), the Southeast/Central-West 76%, the North 65%, and the Northeast only 47%. The ENA measures the volume of water that reaches hydroelectric plants and can be converted into electricity. With less available water, hydroelectric plants produce less, and energy starts to depend on more expensive sources.

How Do Tariff Flags Work on Electricity Bills?

The tariff flag system, created in 2013 and implemented in 2015, informs consumers about the real cost of electricity generation. There are four levels:

Green flag: no additional charge;
Yellow flag: increase of R$ 1.885 for every 100 kWh;
Red flag level 1: increase of R$ 4.463;
Red flag level 2: increase of R$ 7.877.

In the last two months, the country operated under the red flag level 1. Before that, in May, the yellow flag was activated. The most favorable scenario was between December and April, when the green flag was in effect.

Aneel Issues Alert on Conscious Energy Consumption

With the new increase, Aneel reinforces the call for responsible use of electricity. In an official statement, the agency emphasized:

“With the activation of red flag level 2, Aneel stresses the importance of awareness and responsible use of electricity. Saving energy also contributes to the preservation of natural resources and the sustainability of the electric sector as a whole.”

In other words, small actions in daily life — such as turning off unnecessary lights, reducing the use of electrical appliances during peak hours, and making better use of natural light — can help contain costs and contribute to the stability of the system.

Reservoirs Still Have Stability, But Risk Persists

Despite the critical situation regarding rainfall and flows, the levels of Stored Energy (EAR) remain stable. The North, for example, is expected to reach 90.8% of capacity, while the South should hit 78.4%. The other regions have slightly lower forecasts: 60.9% in the Northeast and 59.4% in the Southeast/Central-West.

Even with this scenario, the general director of ONS, Marcio Rea, states that operations remain secure:

“The stability in storage levels ensures the operating conditions of the National Interconnected System (SIN) to safely and efficiently meet the energy demands of the country. We continue with an operational policy of preserving water resources and staying alert to the scenarios that will arise as the dry period progresses.”

August promises to be a month of heightened attention. If the water situation remains unfavorable, elevated flags may be extended.

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Higher Electricity Bill In August: Red Flag Increases Rates For Consumers Nationwide

Aneel Announces Red Flag Level 2 for August and Electricity Bills Get More Expensive. Understand the Reasons for the Increase and How to Save Energy.

Understand Why the Electricity Bill Is More Expensive This Month

Major Oil, Gas, and Energy Event Will Take Place in Brazil: Macaé Energy Will Gather Petrobras, Equinor, Prio, Among Other Suppliers and Energy Executives for Business, Networking, and Employment Opportunities

How Do Tariff Flags Work on Electricity Bills?

Aneel Issues Alert on Conscious Energy Consumption

Reservoirs Still Have Stability, But Risk Persists

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Higher Electricity Bill In August: Red Flag Increases Rates For Consumers Nationwide

Aneel Announces Red Flag Level 2 for August and Electricity Bills Get More Expensive. Understand the Reasons for the Increase and How to Save Energy.

Understand Why the Electricity Bill Is More Expensive This Month

Major Oil, Gas, and Energy Event Will Take Place in Brazil: Macaé Energy Will Gather Petrobras, Equinor, Prio, Among Other Suppliers and Energy Executives for Business, Networking, and Employment Opportunities

How Do Tariff Flags Work on Electricity Bills?

Aneel Issues Alert on Conscious Energy Consumption

Reservoirs Still Have Stability, But Risk Persists

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