Brasilia, Brazil --- (METERING.COM) --- November 28, 2011 - Brazil’s energy regulator Aneel has paved the way for the introduction of time-of-use tariffs for low voltage residential and business customers.

A regulation approved last week makes provision for the development of a “white tariff” with three levels, based on the cost of generation. This will apply on weekdays, with the highest rate applicable to the evening peak period, a low rate applicable during most hours of the day, and an intermediate rate. On weekends and holidays, the lowest rate will apply.

In a statement Aneel said the aim of this “white tariff” is to encourage consumption at the times when the cost is lowest, with the aim to reduce consumers’ bills and the need to expand peak generation. However, it is optional and if a consumer doesn’t wish to change their consumption habits, a conventional tariff will remain available.

According to Aneel the new tariff structure will be introduced by distributors in their tariff reviews between 2012 and 2014. However, it will become applicable only after electromechanical meters are swapped out with electronic meters.

Under the regulation a further change that will become effective January 2014 is the introduction of a “traffic light” system, with green, yellow and red flags reflecting the prevailing cost of generating energy. Green will indicate the lowest cost, yellow will be a warning indicating that costs are increasing, and red will indicate that costs are at their highest. This will be for all low and high voltage customers connected to the National Interconnected System (SIN).