Regulatory Environment

Rate Adjustments/Reviews

Energy rates are set by ANEEL via periodical procedures established in concession agreements, supported by mechanisms that aim to establish an adequate rate level to guarantee the economic and financial equilibrium of companies at the minimum cost to consumers.

The main rate regulation mechanism is the so-called Periodical Rate Review, which takes place every four or five years at Energisa Group‘s distribution companies. This mechanism essentially aims to re-determine the efficient level of operating costs and investment remuneration.

In addition to this mechanism, every year Ordinary Rate Adjustments are made to adjust rates for inflation and to capture part of the efficiency obtained by the companies as a result of the market growth observed in the period.

In 2016 and 2018 the National Electricity Regulatory Agency (“Aneel") ratified the 4th Cycle of the Periodical Rate Reviews (“4CRTP”) of nine subsidiaries of Energisa S/A. 

The effects for consumers deriving from the latest adjustment process and rate review of each Energisa Group distribution company were as follows:

Tariff Events - Average Effects

Distribution company % Tariff Events Effective date
Energisa Minas Gerais + 12.05 Annual Adjustment 6/22/2018
Energisa Nova Friburgo + 13.95 Annual Adjustment 6/22/2018
Energisa Sergipe + 11.30 4CRTP 4/22/2018
Energisa Borborema + 4.36 Annual Adjustment 2/4/2019
Energisa Paraíba + 15.73 Annual Adjustment 8/28/2018
Energisa Mato Grosso + 11.53 4CRTP 4/8/2018
Energisa Mato Grosso do Sul + 9.87 4CRTP 4/8/2018
Energisa Tocantins + 10.13 Annual Adjustment 7/4/2018
Energisa Sul-Sudeste + 15.55 Annual Adjustment 7/12/2018
Ceron + 25.34 Annual Adjustment 12/13/2018
Eletroacre + 21.29 Annual Adjustment 12/13/2018


Regulatory Remuneration Base

The process of valuing assets of the regulatory remuneration base uses the VNR - New Replacement Value, which denotes the value at current market prices of an identical, similar or equivalent asset subject to replacement, which provide the same services and have the same capacity as the existing asset, including all the expenses necessary to install it.

The Regulatory remuneration base consists of the values of the following items:

  1. Property Plant and Equipment in Service (AIS)
  • Land
  • Buildings, civil works and improvements
  • Machinery and equipment
  1. Intangible Assets - Easements
  2. Operations Warehouse
  3. Special Obligations

The net remuneration bases (BRL) of Energisa Group‘s distribution companies and the dates of the next Rate Reviews (RT) are as follows:

Net Remuneration Base (BRL) - Amounts in R$ million

Prices at the Rate Review date

Distribution company 1st Cycle 2nd Cycle 3rd Cycle 4th Cycle
Energisa Minas Gerais 148.6 170.8 218.3 308.0
Energisa Nova Friburgo 42.4 56.5  69.2 95.0
Energisa Sergipe 233.0 328.6 497.6 797.3
Energisa Borborema 32.6 41.0 67.0 117.7
Energisa Paraíba 370.1 508.2 827.3 1,318.4
Energisa Mato Grosso 490.8 1,032.8 1,693.5 3,459.8
Energisa Mato Grosso do Sul 600.3 835.7 1,152.6 1,864.5
Energisa Tocantins 179.0 238.9  257.1 596.2
Energisa Sul-Sudeste 203.1 296.4 320.3 491.5
Ceron 226.1 335.6 382.6 -
Eletroacre 83.3 171.9 230.2 -
Total 2,609.3 4,016.4 5,715.7 9,048.4
WACC 17.07 %  15.08 % 11.36 % 12.26 %

Dates and technical notes of the rate reviews

1st to 5th Cycle

Distribution company 1st Cycle 2nd Cycle(2) 3rd Cycle(3) 4th Cycle(4) 5th Cycle(1)
Energisa Minas Gerais jun/04 jun/08 jun/12 jun/16 jun/21
Energisa Nova Friburgo jun/04 jun/08 jun/12 jun/16 jun/21
Energisa Sergipe apr/03 apr/08 apr/13 apr/18 apr/23
Energisa Borborema feb/05 feb/09 feb/13 feb/17 feb/21
Energisa Paraíba ago/05 ago/09 ago/13 ago/17 ago/21
Energisa Mato Grosso apr/03 apr/08 apr/13 apr/18 apr/23
Energisa Mato Grosso do Sul apr/03 apr/08 apr/13 apr/18 apr/23
Energisa Tocantins jul/04 jul/08 jul/12 jul/16 jul/20
Energisa Sul-Sudeste may/04 may/08 may/12 may/16 jul/21
Ceron nov/05 nov/09 nov/13    
Eletroacre nov/05 nov/05 nov/13    

WACC - Before tax
(1) BRL not ratified by ANEEL, distribution companies have not yet had the rate review in the cycle. 
(2) Technical notes of the distribution companies of the 2nd Cycle Rate Review.
(3) Technical notes of the distribution companies of the 3rd Cycle Rate Review.
(4) Technical notes of the distribution companies of the 4th Cycle Rate Review.


Rate Reviews and Annual Adjustments between 2016 and 2018

The tariff revisions and annual adjustments which took place between 2016 and 2018 resulted in an increase in Parcel B of 11.1% over the previous date (D-1) in the rate review applied, reaching R$ 5,109.8 million. The growth in Parcel B for companies entering the 4th Cycle was primarily influenced by the intensification and rate recognition of the investments performed.

Parcel B

(R$ million)

Distribution company

DRA (1)

DRP (2)
(R$ million)
Energisa Minas Gerais 219.7 223.1 3.4 + 1.5 Annual Adjustment
Energisa Nova Friburgo 45.9 47.2 1.3 + 2.8 Annual Adjustment
Energisa Sergipe 369.4 394.4 25.0 + 6.8 4CRTP
Energisa Borborema 78.3 83.3 + 5,0 + 6.4 Annual Adjustment
Energisa Paraíba 638.4 682.6 44.2 + 6.9 Annual Adjustment
Energisa Mato Grosso 1,103.4 1,374.5 271.1 + 24.6 4CRTP
Energisa Mato Grosso do Sul 704.8 826.8 122.0 + 17.3 4CRTP
Energisa Tocantins 470.2 497.3 27.1 + 5.8 Annual Adjustment
Energisa Sul-Sudeste 381.2 383.5 2.3 + 0.6 Annual Adjustment
Ceron 381.9 392.7 10.8 + 2.8 Annual Adjustment
Eletroacre 205.7 204.4 (1.3) - 0.6 Annual Adjustment
Total 4,598.9 5,109.8 510.9 + 11.1  

(1) DRA - Previous Reference Date: defined as the date the last rate process ratified by Aneel is effective from, be it an adjustment or rate review, which includes the costs incurred and revenue earned in the twelve months relating to the rate process.
(2) DRP - Processing Reference Date: the DRP is defined as the date the rate process under analysis to be ratified by Aneel is effective from, be it an adjustment or rate review, which includes the costs and revenue projected for the twelve months relating to the rate process.

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