Tariff composition is the set of elements that define how the final price of a public or regulated service is formed, such as electricity, sanitation, public transport and telecommunications.

Understanding this structure is essential! Here's how your bill is calculated and why it can vary over time.

What is the Tariff Composition?

The Tariff Composition is the set of elements that make up the final price charged for a service, especially in regulated sectors such as electricity, basic sanitation, public transportation, natural gas and telecommunications.

It defines how each part of the tariff is calculated and which factors influence the variations in the amount paid by the consumer.

In short, the Tariff Composition shows where the money on your bill goes - how much goes towards providing the service, maintaining the infrastructure, taxes and regulatory fees. It is made up of different parts that reflect:

1. Energy Generation Cost: refers to the total value of the energy consumed, from its production at the power stations to its final use.

2. Transmission Cost: encompasses the costs related to the transportation of electricity, from its production at the power plants until it reaches the distributors. These funds are earmarked to cover the costs of using the transmission infrastructure.

Understand the path of energy from generation to distribution here.

3. Cost of Sectoral Charges: Charges are created by laws passed by the National Congress to make the implementation of public policies for the electricity sector viable. The cost of these charges is collected together and can be identified in the statement field of your bill.

4. Distribution Cost: this item represents the percentage of your bill that goes to the distributor. Energy is received from the transmission companies and the delivery process begins. The energy is transformed in substations and distributed through an extensive network of poles and wires to homes. The funds collected are used to cover operating costs, maintenance, system expansion and investments to improve the quality of the energy supply.

5. Taxes: these are amounts determined by law and earmarked for the public authorities. Energy bills include federal taxes such as the Social Integration Program (PIS) and the Social Security Financing Contribution (COFINS). In addition, state taxes such as the Tax on the Circulation of Goods and Services (ICMS) and municipal taxes such as the Contribution to Fund the Public Lighting Service (CIP) are also included. It is important to note that although these taxes are charged on the bill, they are passed on to the relevant authorities.

The aim of the Tariff Composition is to ensure a balance between the quality of the service provided and the reduction in tariffs, while maintaining a fair price for consumers.

Understanding the difference between Price and Tariff

The energy tariff represents the price of the energy consumed, charged per consumer unit (R$/kWh). The setting of tariffs is the responsibility of ANEEL, which acts in accordance with the laws and concession contracts established with distribution companies in different regions of Brazil.

There is a difference between price and tariff. Tariff is the amount to be charged for providing the energy distributor's services, while price is the composition of the tariff and taxes. The final price of your electricity bill is equal to the tariff plus taxes.

The tariff composition is what comprises the total amount of your energy bill.

How the Tariff Composition is calculated

The calculation of the Tariff Composition is determined on the basis of technical and economic criteria, defined by regulatory agencies such as ANEEL - in the case of the electricity bill.

Although each sector has its own particularities, the general structure usually follows this logic:

Operating Costs(OPEX): these include personnel costs, fuel, inputs, energy, maintenance and other daily operating costs.

Investments(CAPEX): these are the amounts earmarked for works, improvements and expansion of the infrastructure.

Sectoral Charges and Taxes: include taxes, fees and mandatory contributions defined by law.

Remuneration of Capital: corresponds to the rate of return authorized to guarantee the sustainability of the provider company.

Efficiency and Quality of Service: performance factors can influence adjustments, rewarding efficient companies and penalizing those that fail to meet targets.

These elements are weighted in tariff formulas, which are reviewed periodically, guaranteeing a balance between the real cost of the service and affordability for the consumer.

In the electricity bill, tariffs are made up of the cost of the generator, the cost of the transmission company, the services provided by the distributors, sector charges and taxes.

What is the White Tariff?

The White Tariff is a tariff option that allows customers to pay different rates depending on the time they consume energy. It benefits consumers who concentrate most of their consumption during periods of lower demand, known as "off-peak" hours - between 21:00 and 15:59.

The white tariff works as follows: consumption is read at three different times: Peak, Intermediate and Off-Peak. These times are identified and shown together with their respective values on the energy bill.

The times are measured as follows:

On weekends and public holidays, the amount charged is always based on the Off-Peak Hours reading.

Attention: If consumption habits are not adapted to the White Tariff, this can result in a higher electricity bill, even without an increase in electricity consumption. The White Tariff does not apply to low-income residential consumers, beneficiaries of discounts provided for by law and public lighting.

How to sign up for the White Tariff: to do so, you need to contact the customer service channels of your energy supplier. Once your subscription has been confirmed, a new meter will be installed in your consumer unit, approved by Inmetro, which will record consumption according to the times when electricity is used.

How to cancel the White Tariff: to return to the Conventional Tariff, you need to go to one of the service stores or call your energy concessionaire.

Frequently asked questions about the Tariff Composition

1. Why does the tariff change every year?

Tariffs undergo periodic adjustments and revisions to reflect variations in costs (such as inflation, energy, fuel and exchange rates) and new investments.

2. Are all taxes included in the tariff?

Yes. In general, taxes and charges make up a significant part of the final amount paid. Depending on the service, this slice can represent 20% to 40% of the bill.

3. Can the company increase the tariff whenever it wants?

No. Any tariff adjustment or revision must be authorized and approved by the regulatory agency, guaranteeing transparency and public control.

4. What is a tariff review?

A tariff review is the process in which the regulator reassesses the concessionaire's entire cost structure and investments in order to adjust the amount charged to the current economic scenario.

5. For what reasons can tariffs vary?

• Inflation and operating cost adjustments;

• Exchange rate changes (impacting imported inputs and fuels);

• Network expansion or infrastructure improvement;

• Tax updates or the creation of new charges;

• Fluctuations in the price of energy, fuel or water;

• Contractual reviews and performance targets.

These factors are analyzed technically to ensure that the amount charged covers costs and maintains the quality of the service without unduly increasing the cost to the consumer.

Find out more about the Tariff Composition in your region:

• Neoenergia Coelba

• Neoenergia Pernambuco

• Neoenergia Elektro

• Neoenergia Cosern

• Neoenergia Brasília