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Energy Business
Rafael Herzberg
Rafael Herzberg
Expert Member
Top Contributor
 · Posted in Energy Business

Power prices (Brazil): yellow flag x PLD

Power prices (Brazil): yellow flag x PLD

The calculations to determine the color of the flag (and regulated power rates) that should be in force and the value of the hourly PLD (spot) follow the criteria defined by ANEEL (regulator) and CCEE (power clearinghouse).

They should be consistent with each other. Of course! For example. In May, the yellow flag was determined, which by definition is more expensive than the previously valid green flag.

The price published by CCEE in recent days has been "low", not corresponding to the yellow flag. 

These are contradictory signals. Especially considering that a few weeks ago, the PLD was in the hundreds of R$/MWh and the flag was green.

Although the two prices are calculated differently, one is hourly and the other monthly, they should be consistent with each other. Regulated customers pay the flags and deregulated pay the PLD. Why should they be so different? The same electrons are in circulation!