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Benefits of tariff forecasting, tariff forecasting, electricity tariffs, energy consumption, electric energy, SETE, TR Soluções, trsolucoes, indicators

January 18, 2021

What Are the Benefits of Tariff / Rate Projections for Your Company?


Electricity tariff and rate projections are used to compare, track, project, and analyze the prices charged by electricity utilities, providing various benefits for companies in different sectors. Find out more below!

Electricity tariff and rate projections are essential for comparing, tracking, projecting, and analyzing the prices charged by electricity utilities. Projections of how tariffs are expected to behave are crucial for any economic and financial feasibility analysis that considers the evolution of energy costs.

Why Are Tariff Projections Important for Companies?

For companies migrating to the free energy market, entrepreneurs need to analyze how energy prices will evolve over time. It is, therefore, essential to have a clear projection of how tariffs and rates will behave.

It’s important to note that tariff variation does not depend solely on inflation. Several factors must be considered in tariff and rate agjustments processes, such as the economic and financial conditions of utilities, sector charges, and companies' energy contracts.

As a result, significant annual tariff variations are observed among electricity utilities, as shown in the following graph.


Graph: Tariff/rate variations registered by utilities in 2020 for A4-voltage level consumers

TR Soluções calculates its projections through the Energy Tariff Estimate Service (SETE), which considers hundreds of variables to ensure the best tariff projections over a horizon of up to six years.

What Are the Benefits of Tariff Projections?

The advantages of using tariff/rate projections depend on the type of company:

  • Energy traders: They can provide their clients with the appropriate parameters to define energy purchase strategies, including setting prices and adjustment conditions.

  • Generators: Knowing how tariffs/rates will behave is essential for defining an energy sales strategy, whether in government-promoted auctions or in the free market.

  • Distributed generation project integrators: With electricity tariff/rate projections, these companies are better equipped to demonstrate the investment for photovoltaic projects to their clients, making the sale easier.

General benefits include:

  • With all the necessary information gathered in one platform, SETE users can increase productivity in tariffs/rates analysis by conducting research in minutes that would otherwise take hours; and

  • The ability to create multiple scenarios for tariff adjustments and reviews using custom parameters or the data embedded in the system.

Did you enjoy learning about our tariff projection system? Discover more about TR’s solutions on our website.