The National Electric Energy Agency (Aneel) announced that the tariff flag for January 2026 will be green, with no extra costs on electricity bills for Brazilian consumers. This follows eight months of yellow and red flags, due to maintained rainfall and hydroelectric reservoir levels in November and December. The last green flag was applied in April 2025.
The Aneel confirmed on Tuesday, December 23, 2025, that January 2026 will start with a green tariff flag on electricity bills, avoiding surcharges for consumers. According to the agency, although rainfall remains below the historical average, there was maintenance of precipitation volumes and hydroelectric reservoir levels in November and December. "In January 2026, it will not be necessary to dispatch thermal power plants in the same quantity as the previous month, which avoids charging additional costs," the agency stated in a note.
This is the first green flag since April 2025, after a period of oscillations between yellow and red (levels 1 and 2). In December 2025, the yellow flag was applied, with an addition of R$ 0.01885 per kWh consumed, while November had red level 1, with R$ 0.04463 per kWh. The tariff flag system, implemented in 2015 and marking 10 years in 2025, signals monthly energy generation costs, encouraging conscious consumption by immediately passing on the impacts of lower water availability and greater use of thermal plants, which burn fossil fuels like natural gas, coal, and oil.
The flag determination is mainly based on the PLD (Difference Settlement Price), influenced by reservoir conditions. Despite advances, the mechanism is criticized in the sector for not considering hourly price variations, especially with the expansion of solar plants, which make energy cheaper during the day. The Aneel is monitoring tests of hourly billing by distributors, but faces challenges such as the need to replace residential meters.
Green flag indicates favorable generation conditions, with no addition. Yellow: R$ 0.01885/kWh. Red level 1: R$ 0.04463/kWh. Red level 2: R$ 0.07877/kWh.
