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White power rates, now!

Rafael Herzberg's picture
Consultant energy affairs Self employed

Rafael Herzberg- is an independent energy consultant, self-employed (since 2018) based in São Paulo, Brazil* Focus on C level, VPs and upper managers associated to energy related info, analysis...

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  • Apr 27, 2022
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White power rates, now!

We have for years, the white tariff (time of use) available for residential consumers, here in Brazil.

It is an excellent tool to encourage the use of off-peak energy, benefiting the consumer (lower bill than the conventional tariff) and the country (reducing investments in increasing the supply side).

To become practical, electronic meters must be installed, which are able to account for energy consumption in the hourly segments provided for in the white tariff (peak, intermediate and off-peak).

The good news is that electronic meters have become really cheap!

So the main issue at stake is the official initiative to make it happen in a massive fashion. For the good of all the consumers!

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Matt Chester's picture
Matt Chester on Apr 27, 2022

Tariffs regarding time of use definitely sound valuable for utilities and customers, but I'll just note that perhaps the branding may need to be more fine tuned than to have the rates referred to as 'white power' rates-- that's not going to go over well! A good example of where marketing and language is important to consider

Rafael Herzberg's picture
Rafael Herzberg on Apr 27, 2022

I agree 100%%!

Here in Brazil though, there are several rates available and the regulator (ANEEL) chose to designate each with a color, potentially to facilitate communications.

Additionally there are colors to designate "flags" associated with extra costs that depend on the volume of thermal power plants dispatch - that are way more expensive than the predominately renewable matrix (a lot cheaper).

My post brought an intriguing issue (in my view): the white rates, that were designed primarily to the residential sector, have not been promoted at all. Only a tiny fraction of the residential sector chose to migrate from the conventional (fixed in $/kWh) to the white rate. There is a huge opportunity to be recognized and captured.

Ultimately your point is about communications & marketing. Sure our regulator should be a lot more proactive (and careful) in this area also!
 

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