Brazil’s National Electric Energy Agency (ANEEL) announced on September 25 that the green tariff flag would apply in October. Under the system, consumers will not pay an additional tariff charge associated with the flag for that month.

The agency said rainfall increased as some of the country’s main river basins began shifting from the dry season toward the wet season, helping stabilize hydropower reservoir levels in the South and Southeast. That allowed generators to reduce dispatch from higher-cost sources such as thermal plants. Created in 2015, Brazil’s tariff-flag system signals monthly changes in variable generation costs, including water availability, renewable output and the use of more expensive thermal power.