At red flag level 2, R$7,877 will be charged for every 100 kilowatt-hours (kWh) consumed.
The factors triggering red flag level 2 are influenced by forecasts of low rainfall in hydroelectric reservoirs and increases in electricity market prices throughout October.
Tariff flag triggers occur when the forecast rainfall for a certain period is below average, which directly impacts hydroelectric energy generation in the country.
Higher electricity bill costs are caused by the activation of thermoelectric generators at peak consumption times.
The Southeast and Midwest regions, which account for 70% of the country’s reservoir storage capacity, are facing severe drought. To avoid energy shortages or rationing, the federal government is taking several steps, such as refilling water from reservoirs in the region and in the North.
The government is also considering bringing back daylight saving time, a move recommended by the ONS to improve the system.