Clipping of news on Brazilian Culture, Law and Citizenship
01.12.2016
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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The electricity bill received each month by consumers contemplating enough payment to the power distribution companies, so that they have the financial ability to provide quality service.
The National Electric Energy Agency is responsible for the assessment of energy all the country's distribution tariffs, precisely to ensure that consumers pay a fair value on the utility bill - not a penny more than necessary. It is not up to ANEEL, however, the definition of charges and taxes which also make up the account.
Below, we answer some key questions about the electric bill.
Meet the electric bill
As the electricity bill calculated?
The electricity bill is made up of the energy supply costs, the charges and the taxes. Sector charges and taxes are instituted by law.
The energy tariff, calculated by ANEEL, should ensure the supply of energy with quality and assure providers of services sufficient earnings to cover efficient operational costs and remunerate investments needed to expand capacity and ensure compliance.
Three costs are added by ANEEL for setting the tariff of each distributor: the energy generation, energy transport them to the consumer (transmission and distribution) and sector charges. In addition to the fare, the federal, state and municipal charge on electricity bills PIS / COFINS, ICMS and Contribution to Public Lighting, respectively.
What has changed in the calculation of the electricity bill after Law No. 12,783 / 2013?
Until 24 January 2013, a bill of $ 100.00, the purchase of energy was R $ 35.80 on average, while transmission cost R $ 6.70 and distribution, R $ 23.60. Charges responded to R $ 9.50 and the taxes and taxes (ICMS, PIS and Cofins) responded to R $ 24.50.
With Law No. 12.783 / 2013, ANEEL published new tariffs have reduced electricity bills, with average effect of a 20.2% reduction. The main changes that allowed the reduction of the bill were:
allocating energy quotas resulting from generating with renewed grant, at an average price of R $ 32.81 per megawatt-hour (MWh), lower average costs charged;
revenue reduction of transmission with renewed concessions;
the reduction of the sector charges, with the extinction of the Global Reversion Reserve (RGR) and the direct contribution of the National Treasury;
the removal of the tariff structure of subsidies.
Applied the provisions of Law No. 12,783 / 2013, the same consumption as the previous bill results in consideration of R $ 79.80, comprised of energy cost of R $ 30.20, transmission cost of R $ 2.60 and distribution of R $ 23.60. The charges account for R $ 3.90 and the taxes and taxes (ICMS, PIS and Cofins) corresponds to R $ 19.50. The reduction of the tax base resulted in a decrease in taxes, but there was no reduction of tax rates applied because it depends on change of tax policy.
As the value of the energy tariff is set?
The value of the initial rate and the mechanisms for updating are set in the concession agreements signed between the distributors and the Union (grantor). The documents are public and are available on the website of ANEEL (www.aneel.gov.br). These agreements contain three mechanisms for tariff updates, which are adjusted annually (on the anniversary date of each distribution contract), the periodic tariff review (occurs on average every four years) and the extraordinary tariff review (if necessary). The correction of tariffs is essential to maintain economic and financial balance of the concession in order to ensure the quality of electricity supply to society.
Why the power rate is different in every state?
Previously, the power tariff was only in Brazil. Concessionaires were entitled to a guaranteed return because oversees the regulatory regime for the cost of service. Concession areas to obtain compensation higher than the guaranteed collected surplus into a fund from which the distributors with less than the guaranteed profitability withdrew the difference.
Since 1995, the electricity tariff became fixed by the concessionaire (rate at the price and not the cost of the service), beginning the incentive regulation, where the distributors are encouraged to become efficient continuously. Tariff and tariff adjustments revisions passed, then, to consider the characteristics of each concession area, such as the number of consumers, the density of the market (amount of energy distributed from a particular infrastructure), the kilometers of distribution network of each company, the cost of energy purchased by the distributors. The concession area is the territory of each distributor performance, which can be equal, greater or less than a state.
What are sector charges and what are they?
Sector charges are created by laws passed by Congress to make viable the implementation of government policies for the energy sector. Their values are contained in resolutions or orders by ANEEL and are collected by distributors through the energy bill. Each of the charges is justifiable, but taken together, the impact rate and the consumer's ability to pay.
Law No. 12,783 / 2013, among other things, extinguished the global reserve charge reversal (RGR) and lessened the Electric Energy Services Inspection Fee (TFSEE), measures that have contributed significantly to the reduction of electricity tariffs. Learn more about the charges included in the electricity bill here.
What are taxes and what are they?
Are compulsory payments owed to the government, from legal requirements and to ensuring resources for the government to develop its activities. In Brazil, taxes are embedded in the prices of goods and services, so are present in water bills, energy and telephone, the purchase of goods and hiring of various services. The bills are included federal, state and municipal taxes. Energy distributors collect and pass on these taxes to the competent authorities for their collection.
The reduction of the tax amounts to be observed after Law No. 12,783 / 2013 due to the reduction of the tax basis and not the change in tax policy.
Learn more about the taxes included in the electricity bill here.
Why is it necessary to apply the rate the annual adjustment and periodic tariff review?
The concession contracts must be fulfilled. The adjustment and review are applied to allow the rate sufficient to cover costs necessary for the proper service, that is, continuous, comprehensive and efficient. To provide it, we need to remunerate the investments of recognized companies as prudent, encourage increased efficiency and quality of services provided by the concessionaire and ensure comprehensive care market with no geographical distinction or income. All these objectives are met without losing sight that the rate should be fair to consumers.
What is the annual tariff adjustment?
The readjustment awarded annually, is one of the update mechanisms of the energy value paid by the consumer. The calculation takes place in accordance with the formula set in the concession agreement signed between the companies and the Brazilian government. Your goal is to maintain the financial balance of the concessionaire, so that it can shoulder its responsibilities to consumers. For the purposes of adjustment formula, are passed variations of Parcel A costs, which are those related to the purchase of electricity to service its market, the value of the transmission of energy and sector charges. The costs of distribution activity, defined as Parcel B, are fixed by the Market General Price Index (IGP-M), the Getulio Vargas Foundation, reduced Factor X. Part B items are basically operating costs the distributors and related to investments made for this, as depreciation share of its assets and the regulatory remuneration, values that are set by ANEEL at the time of the tariff review. The purpose of the X Factor is to estimate potential distribution business productivity gains and remove them from the rate at each adjustment.
What is the periodic tariff review?
The periodic tariff revision is also one of the energy value setting mechanisms paid by the consumer, which is applied every four years on average, according to the concession agreement signed between the companies and the granting authority. In the periodic review, it resets the efficient level of operating costs and return on investments, the so-called Parcel B
Having defined the effective value of the costs related to distribution, they will be only adjusted (IGP-M least X Factor) until the next tariff review, not being re-evaluated every year. All utilities are encouraged to reduce their costs and become more efficient. The next tariff review, the efficiency gains achieved by the concessionaires are reversed in favor of lower tariffs. The first cycle of periodic tariff revisions took place between 2003 and 2006, the second between 2007 and 2010. The third was started in 2011, with completion scheduled in 2014.
ANEEL may fail to apply the update mechanisms of tariffs?
No, because these mechanisms are provided for in the concession contracts signed. In some cases, when the distributor is in default with the payment of any charge, ANEEL approves the adjustment or revision, but the company is prevented from practicing it until the disputes are resolved.
What can be done to reduce the energy bill?
The consumer should be aware of energy waste in order to reduce their consumption, and participate in the establishment of rules for tariff review and charging arrangements of its representatives in the Federal, State and Municipal. Various energy-saving tips can be found at the ANEEL website, especially in booklets Use energy wisely and saving and safety tips. It is also worth visiting the website of the Energy Conservation Program (Procel) (www.procel.gov.br).
The choice of tariff mode can reduce my energy bill?
Yes. In the setting of tariffs, ANEEL has tariff modalities for choosing the one that best meets the consumption characteristics. In addition to the conventional tariff mode, low voltage consumers, whether residential, commercial, industrial and rural areas, may soon join the White tariff system, which considers the consumption profile according to energy use times. Monday to Friday, a cheaper rate will be used in most hours of the day; other more expensive in time when power consumption reaches a maximum, in the early evening; and third, intermediate, will be between these two zones. On weekends and holidays, the cheapest rate will be employed for all hours of the day. The white rate is optional and will not count for street lighting and low-income consumers. For the application of the white rate, the installation of meters capable of measuring and recording energy consumption over time is required. Such a facility will depend on the replacement plan of energy meters in the concession area of each distributor. The mode also awaits ANEEL set the trade rules to be followed by distributors.
For consumers served in high voltage industrial consumers and large commercial consumers most often are available tariff blue, green and conventional modalities. The tariff mode should be chosen according to the profile of consumption, ie, in the manner and period of administration chosen.
To learn more about your account, read the booklet Inside utility bill.
Refer also to the Energy Series booklets of everyday life.
Power rates currently in effect are available at this link
Source: ANEEL
To access the ANEEL site, click here.
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This article was translated by an automatic translation system, and was therefore not reviewed by people.