Government Does Not Want to Punish Those Who Save Energy and Will Grant R$ 0.50 Discount Per kWh for Those Who Reduce Energy Use Between 10% and 20%

All Consumers of Groups A and B Can Participate in the Program. Those with a Distributed Energy Generation System, Such as Solar Panels, Will Not Receive the Benefit.

The government does not want to punish those who save energy and will give a discount to those who can reduce their electricity consumption by between 10% and 20% by December 31, receiving a credit on their January electricity bill next year. This measure is part of the Voluntary Electricity Consumption Reduction Incentive Program launched by the Federal Government.

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The drought faced in Brazil has put consumers and the government on alert regarding the supply of electricity. Besides the fear of blackouts, Brazilians are feeling the impact of the red flag on their wallets.

With low reservoir levels, it is necessary to draw energy from other types of plants, such as thermal power plants, which are more expensive. Therefore, when thermal plants are activated, the cost of energy generation rises, and the tariff flag changes.

Government’s Energy Program Will Operate from September to December

The program will operate from September to December, but it may be extended. The initiative will be funded by the consumers themselves through a fee charged on their electricity bill.

The discount will be R$ 0.50 for each kilowatt-hour (kWh) of energy saved within the 10% to 20% target. Those who save less than 10% will not receive a bonus, and those who save more than 20% will not receive an additional prize.

The comparison will be based on the total consumption over the four months – that is, the total from September to December 2021, compared to the same four bills from 2020.

Once this comparison is made, if there is a reduction in consumption of 10% or more, the government states that it will credit the discount on the subsequent bill in January 2022.

The government’s goal is to achieve an average saving of 15% in consumption through the program. This would represent, according to simulations made by the Ministry of Mines and Energy (MME), a reduction of 1.4% in the total energy demand of the National Interconnected System (SIN). This measure is yet another attempt by the government to reduce electricity demand during this water crisis and thus avoid energy rationing.

Who Can Participate?

All consumers in groups A and B, in the regulated market, whether residential, industrial, commercial, service, or in rural areas. However, consumers in group A (high voltage) from the public sector, public lighting, and self-consumption are excluded from the measure.

In other words, those with distributed generation systems, such as solar panels, will not receive the benefit.