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TOU rates must change in Brazil

TOU rates must change in Brazil

Time of use rates were created decades ago. For a long time they were well adjusted to the national demand curve which had a relatively short peak in the early evening. Currently there is a new profile for this curve: The peak lasts much longer. Possibly it will also vary from season to season.

Tariffs need to be adjusted accordingly. TOU must unequivocally signal the actual costs of energy according to the hours of the day. They make it possible for energy demanders to seek the best allocation of consumption and suppliers to be interested in expanding the capacity of the entire value chain, always based on firm, consistent and correct data and regulations.

If this is not the case, if the regulator and the system operator maintain the current definitions of on-peak and off-peak hours, there will be a perverse reinforcement of consumption at times of the day officially considered as off-peak but that have become on-peak. And most importantly: costs will increase and be passed on, for sure, to all consumers. Brazilian power cost is already the most expensive among the BRICS (Brazil, Russia, India, China and South Africa).

It's high time to wake up!

Rafael Herzberg's picture

Thank Rafael for the Post!

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