Impacts of white tariff on spot price in the Brazilian electricity market

In Brazil, the growth in demand is surprising. However, installed electrical capacity has failed to keep up with this rate of growth. It has led the saturation of transmission and generation capacity during peak periods, as well as problems such as reduced system security and an inability to maintain low energy prices. The white tariff mode was created recently for residential consumers. This tariff mode has higher tariffs for peak and intermediate load periods and much lower tariffs for off-peak times. This particular mode has yet to be regulated in the market due to the initial expense to the customer of having to pay for the replacement of the electromechanical meter with an electronic one. Nevertheless, the possible dissemination of this mode and its demand response effects on residential loads can be have consequences for spot prices. This paper presents an analysis of how demand response influences the write tariff on the spot market.