March 21, 2023

TR Soluções Launches Frequency Distribution for Tariff Repositioning

Paulo Steele*

New tool available in SETE presents average-deviation data, maximum and minimum values, and annual charts showing the frequency distribution of repositioning, historical and projected, for consumption and generation units.

How much should energy tariffs rise? Until now, whenever asked about the topic by the media or at events, TR Soluções presented average tariff-repositioning expectations.

However, the company recognizes that simply presenting this figure falls far short of describing the sector outlook expected for prospective tariff repositioning. After all, as Delfim Netto once said, if a guy has his tail in the oven and his head in the fridge, you can't say he's at an ideal average temperature.

That's why the company has just launched a new tool in the Energy Tariff Estimation Service (SETE): Frequency Distribution.

Figure 1 - Frequency Distribution of Average Tariff Repositioning

Source: SETE , by TR Soluções.

This tool provides more comprehensive information than average tariff-repositioning expectations, including average-deviation data, maximum and minimum values, and annual charts showing the frequency distribution of repositioning. It also shows tariff variations under these conditions since 2012.

Figure 2 - Average Tariff Repositioning

Source: SETE , by TR Soluções.

The goal is to at least partly get around the "myopia" induced by the average figure, without compromising the value of the services provided to SETE users, who also have access to historical and projected tariff figures for distribution companies and generators, as set out in their respective contract.

* Paulo Steele is a founding partner of TR Soluções.