June 18, 2024

Electricity bills are expected to rise 16.7% in 2022, Enel estimates

5 min read

BRASILIA – Preliminary calculations by the National Electric Energy Agency (Aneel) predict that electricity bills could rise, on average, 16.68% next year, mainly due to the water crisis, which is affecting the country’s major hydropower plants.

To prevent bills from rising, the regulatory agency is already analyzing measures to mitigate the effects on consumers and keep adjustments below double digits.

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The data was presented by the regulatory agency’s director of tariffs, Davey Antonis Lima, on Monday at a public hearing at the chamber’s participatory legislation committee.

Lima estimates, however, that new measures designed by Aneel, such as anticipating funds arising from the privatization of Eletrobras, will be able to raise R$8.5 billion and reduce the tariff adjustment imposed on consumers.

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– With these additional measures, instead of a forecast of 16.68% for 2022, we still have a forecast of a 10.73% adjustment, but we are still studying alternatives – the director said.

Power tariffs are adjusted on a case-by-case basis and vary for each power distributor.

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Aneel’s supervisor says several factors justify the tariff increase. Because of the water crisis, more energy was generated through more expensive thermal power plants.

Part of this account is covered by tariffs, but the rest will not be transferred to tariffs in 2022, with interest.

Red Flag 2 is in effect today, an additional RRL 9.49 for every 100 kWh consumed. Even if it is high, it is not enough to cover thermoelectric generation.

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According to Aneel, the measures set up by the government’s crisis committee – called the Hydropower Management Exceptional Rules Chamber (CREG) – will have an impact of between R$2.4 billion and R$4.3 billion.

Among the measures, for example, is to reduce the use of water for navigation, while compensating those affected.

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In addition, the rising dollar affects the accounts because the cost of Itaipu is charged in US currency.

Aneel’s supervisor said the agency is analyzing measures to prevent the account from going salty.

– He said that Aneel’s goal this year is to seek to adjust the tariff by less than two digits.

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