CPFL Public Use
REVIEW OF THE COMPANY'S PERFORMANCE IN THE QUARTER
Comments on the performance are expressed in thousands of Reais, unless otherwise noted.
Analysis of results
CPFL Energia (Parent Company)
In this quarter, the decrease in net profit was R$ 137,938, when compared to the same period of the previous year (R$ 1,050,949, in 2024 and R$ 1,188,887, in 2023), mainly due to the decrease in results from equity interests R$ 152,455, partially offset by the decrease in income tax and social contribution expenses of R$ 13,712.
CPFL Public Use
COMMENTS ON THE CONSOLIDATED PERFORMANCE
Company: CPFL Energia S.A. | ||||||
Consolidated | ||||||
2nd Quarter | 1st Semester | |||||
2024 | 2023 | Variation | 2024 | 2023 | Variation | |
Gross operating revenue | 14,211,856 | 13,646,275 | 4.1% | 29,198,748 | 27,056,752 | 7.9% |
Electricity sales to final consumers (*) | 8,383,560 | 7,814,789 | 7.3% | 17,867,239 | 16,163,650 | 10.5% |
Electricity sales to wholesaler's (*) | 1,179,025 | 1,262,805 | -6.6% | 2,348,474 | 2,552,818 | -8.0% |
Concession's infrastructure construction revenue | 1,235,580 | 1,146,774 | 7.7% | 2,258,601 | 2,071,777 | 9.0% |
Other operating revenues (*) | 2,972,475 | 2,956,469 | 0.5% | 6,082,595 | 5,833,950 | 4.3% |
Sector financial assets and liabilities | 441,216 | 465,438 | -5.2% | 641,840 | 434,557 | 47.7% |
Deductions from operating revenue | (4,549,921) | (4,257,358) | 6.9% | (9,371,039) | (7,828,595) | 19.7% |
Net operating revenue | 9,661,935 | 9,388,917 | 2.9% | 19,827,710 | 19,228,157 | 3.1% |
Cost of electricity energy services | (4,392,338) | (4,176,941) | 5.2% | (8,721,242) | (8,553,156) | 2.0% |
Electricity purchased for resale | (3,020,022) | (3,006,835) | 0.4% | (6,009,602) | (6,144,274) | -2.2% |
Electricity network usage charges | (1,372,315) | (1,170,106) | 17.3% | (2,711,640) | (2,408,882) | 12.6% |
Operating costs and expenses | (3,087,605) | (2,797,603) | 10.4% | (5,716,709) | (5,349,505) | 6.9% |
Personnel | (562,952) | (531,778) | 5.9% | (1,089,930) | (1,022,960) | 6.5% |
Private pension entity | (39,239) | (48,728) | -19.5% | (73,403) | (92,659) | -20.8% |
Materials | (141,802) | (113,447) | 25.0% | (261,334) | (238,269) | 9.7% |
Third-party services | (278,584) | (247,871) | 12.4% | (499,316) | (463,533) | 7.7% |
Depreciation/amortization | (488,466) | (475,835) | 2.7% | (970,296) | (935,135) | 3.8% |
Amortization of concession intangibles | (82,041) | (80,164) | 2.3% | (166,163) | (160,410) | 3.6% |
Concession infrastructure construction cost | (1,148,709) | (1,090,781) | 5.3% | (2,121,260) | (2,005,002) | 5.8% |
Other expenses | (345,812) | (209,000) | 65.5% | (535,006) | (431,538) | 24.0% |
Income from electric energy service | 2,181,993 | 2,414,373 | -9.6% | 5,389,758 | 5,325,495 | 1.2% |
Financial result | (715,999) | (685,329) | 4.5% | (1,531,931) | (1,236,424) | 23.9% |
Financial income | 378,121 | 490,196 | -22.9% | 794,719 | 1,019,636 | -22.1% |
Financial expenses | (1,094,120) | (1,175,526) | -6.9% | (2,326,650) | (2,256,059) | 3.1% |
Equity interest in subsidiaries, associates and joint ventures | 84,464 | 83,544 | 1.1% | 176,005 | 163,058 | 7.9% |
Result before taxes | 1,550,458 | 1,812,588 | -14.5% | 4,033,832 | 4,252,129 | -5.1% |
Social contribution | (119,629) | (150,851) | -20.7% | (316,531) | (362,055) | -12.6% |
income tax | (330,522) | (414,783) | -20.3% | (861,892) | (992,445) | -13.2% |
Net income for the period | 1,100,307 | 1,246,954 | -11.8% | 2,855,409 | 2,897,629 | -1.5% |
Net income attributed to controlling shareholders | 1,050,949 | 1,188,887 | -11.6% | 2,726,325 | 2,782,907 | -2.0% |
Net income attributed to non-controlling shareholders | 49,358 | 58,067 | -15.0% | 129,084 | 114,722 | 12.5% |
EBITDA | 2,836,984 | 3,054,060 | -7.1% | 6,702,387 | 6,584,389 | 1.8% |
Reconciliation of Net Income and EBITDA | ||||||
Net income | 1,100,307 | 1,246,954 | 2,855,409 | 2,897,629 | ||
Depreciation and amortization | 570,507 | 555,998 | 1,136,459 | 1,095,545 | ||
Amortization of asset value | 20 | 145 | 164 | 290 | ||
Financial result | 715,999 | 685,329 | 1,531,931 | 1,236,424 | ||
Social contribution | 119,629 | 150,851 | 316,531 | 362,055 | ||
Income tax | 330,522 | 414,783 | 861,892 | 992,445 | ||
EBITDA | 2,836,984 | 3,054,060 | 6,702,387 | 6,584,388 |
- For the purpose of presenting the performance comment, the reclassification of revenue from network availability to captive consumers was not carried out -
TUSD
Gross operating revenue
Gross operating revenue in the 2nd quarter of 2024, was R$ 14,211,856, representing an increase of 4.1% (R$ 565,580), when compared to the same period of the previous year.
The main factors of this variation were:
- Increase of 7.3% (R$ 568,771) in the supply of electricity, due to the increase of: (i) 3.5%, in average tariffs (R$ 285,645) and (ii) 3.6%, in the volume of energy sold (R$ 283,127);
- Increase of 7.7% (R$ 88,806) in revenue from construction of concession infrastructure;
- Increase of 0.5% (R$ 16,006) in other operating revenues, mainly due to increases in: (i) low- income subsidies R$ 104,300 and (ii) TUSD free consumers R$ 61,702; partially offset by the reduction in (iii) restatement of the financial assets of the concession R$ 133,237;
- Decrease of 6.6% (R$ 83,781) in the supply of electricity, mainly due to a decrease in the volume sold, of 24.6% (R$ 310,223); partially offset by the increase in average tariffs, of
23.8% (R$ 226,443), due to the change in the mix of contracts; and
CPFL Public Use
- Decrease of 5.2% (R$ 24,223) in sector financial assets and liabilities, due to the higher constitution of liabilities in the 2nd quarter of 2024 (R$ 304,348); partially offset by the increase in realization of assets in the 2nd quarter of 2024 (R$ 280,125).
- Volume of energy sold
In the 2nd quarter of 2024, the volume of energy billed to captive consumers in the period, including other licensees, increased by +4.6%, when compared to the same quarter of the previous year.
Residential class consumption represents 56.2% of the total captive market supplied by the distributor and showed an increase of +11.2% in the 2nd quarter of 2024, when compared to the same period of the previous year. This performance reflects the effect of higher temperatures and mass of income, when compared to the same period of the previous year, offsetting the negative effects of distributed generation.
Commercial class consumption represents 17.3% of the total captive market supplied by the distributor and showed an increase of +0.8% in the 2nd quarter of 2024, when compared to the same period of the previous year. This performance reflects the effect of higher temperatures and better CAGED (General Register of Employed and Unemployed Persons), when compared to the same period of the previous year, offsetting the negative effects of distributed generation and migration of captive customers to the free market.
Industrial class consumption represents 7.4% of the total captive market supplied by the distributor and showed a decrease of -17.2% in the 2nd quarter of 2024, when compared to the same period of the previous year. This performance reflects the increase in migrations of captive customers to the free market.
The other classes of consumption (rural, public power, public lighting, public service and licensees) participated with 19.2% of the total captive market supplied by the distributor. The consumption of these classes increased of +0.9% in the 2nd quarter of 2024, due to the results in the rural classes (increase of +7.5%), low rainfall in relation to the same period in 2023, and public power (increase of +14.4%), reflecting the higher temperatures for the period, when compared to 2023.
Regarding the volume of energy sold and transported in the concession area, which impacts both the billed supply (captive market) and the TUSD charge (free market), there was an increase of
+6.3% when compared to the same period of the previous year The variance by class was: residential (+11.2%), commercial (+11.0%), industrial (+1.5%) and other classes (+3.2%).
- Rates
In the 2nd quarter of 2024, the energy supply tariffs charged by the distribution subsidiaries are as follows:
2024 | 2023 | ||||
Effect perceived | Effect perceived | ||||
Distributor | Month | RTA / RTPby consumers (a) | RTA / RTPby consumers (a) | ||
CPFL Paulista | April | 3.91% | 1.46% | 3.36% | 4.89% |
CPFL Piratininga | October | (b) | (b) | -0.73% | -4.37% |
RGE | June | (c) | (c) | 1.67% | 1.10% |
CPFL Santa Cruz | March | 7.02% | 5.63% | 5.65% | 9.02% |
- Represents the average effect perceived by the consumer, as a result of the elimination from the tariff base of financial components that had been added in the prior tariff adjustment.
- The respective readjustments for 2024 have not yet occurred.
CPFL Public Use
- On June 18, 2024, ANEEL published Ratifying Resolution ("REH") No. 3,335, extending the validity of the Energy Tariffs (TE) and the Tariffs for the Use of the Distribution System (TUSD) of the subsidiary RGE, for the period from June 19 to August 18, 2024.
Deductions from operating revenue
Deductions from operating revenue, in the 2nd quarter of 2024, were R$ 4,549,921, an increase of 6.9% (R$ 292,563), when compared to the same quarter of 2023, which was primarily due to:
- Increase of 10% (R$ 159,116) in ICMS on the sale of energy and services;
- Increase of 5.8% (R$ 85,493) in the Energy Development Account - CDE; and
- Increase of 5% (R$ 47,348) in PIS/COFINS/ISS on the sale of energy and services.
Cost of electric energy
The cost of electric energy in this quarter totaled R$ 4,392,338, representing an increase of 5.2% (R$ 215,397) when compared to the same period of the previous year, mainly justified by:
- Increase of 17.3% (R$ 202,209) in the charges for the use of the transmission and distribution system, mainly due to increases in: (i) charges for the basic network (R$ 176,345) and (ii) charges for transportation of Itaipu (R$ 32,050); and
- Increase of 0.4% (R$ 13,188) in electricity purchased for resale, justified by the increase of:
- 8.6% (R$ 239,440) in the average price; partially offset by the reduction of 7.5% (R$ 226,253) in the volume of energy purchased.
Operating Costs and Expenses
Excluding the cost of building the concession infrastructure, operating costs and expenses in this quarter were R$ 1,938,896, an increase of 13.6% (R$ 232,074) when compared to the same period last year. This variation is mainly due to:
- Other expenses: increase of 65.5% (R$ 136,813), mainly due to (i) losses resulting from disposal and deactivation of R$ 55,059, of which R$ 49,004 related to climate impacts in Rio Grande do Sul, (ii) PCLD of R$ 45,565 and (iii) legal, judicial and indemnity expenses of R$ 14,572;
- Personnel: an increase of 5.9% (R$ 31,174), basically due to adjustments in collective bargaining agreements;
- Services from third parties: increase of 12.4% (R$ 30,713), mainly due to the climate impacts in Rio Grande do Sul (R$ 42,008);
- Materials: increase of 25% (R$ 28,354), mainly due to an increase related to the replacement, conservation and maintenance of lines, networks, buildings, machinery, equipment and tools and to the climate impacts in Rio Grande do Sul;
- Depreciation and amortization: an increase of 2.7% (R$ 12,631), mainly due to the additions to the asset base in the period, mainly by the Distributors; and
- Private pension entity: decrease of 19.5% (R$ 9,489), basically due to the recording of the impacts of the actuarial report of the Group's companies.
Financial result
The net financial result in this quarter showed net expenses of R$ 715,999, when compared to R$ 685,329 in the same period of 2023, representing an increase of 4.5% (R$ 30,670). This variation is basically due to:
- Decrease in financial income of 22.9% (R$ 112,075), mainly due to decreases in (i) income from financial investments R$ 58,197, (ii) restatement of tax credits and judicial deposits R$
CPFL Public Use
26,190, (iii) monetary and exchange rate adjustments R$ 12,900 and (iv) discount on the acquisition of ICMS credit R$ 9,810; and
- Decrease in financial expenses of 6.9% (R$ 81,406), mainly due to the decrease of: (i) monetary and exchange rate adjustments, net of derivatives R$ 103,598, (ii) updating of the exclusion of ICMS from the PIS/COFINS base of R$ 78,411 and (iii) restatement of loan with parent company SGBP R$ 18,999; partially offset by the increase in (iv) debt charges of R$ 109,693.
Equity Equivalence
The increase of 1.1% (R$ 920) in the consolidated equity income refers to the result of equity interests in joint ventures, as follows:
2nd Quarter 2024 | 2nd Quarter 2023 | |
Epasa | 21,785 | 19,608 |
Baesa | 2,121 | 871 |
Chapecoense | 60,034 | 63,176 |
CPFL Transmissão investments | 544 | 34 |
Amortization of fair value adjustment of asset | (20) | (145) |
Total | 84,464 | 83,544 |
Social Contribution and Income Tax
Income tax expenses in the 2nd quarter of 2024 were R$ 450,151 and showed a decrease of 20.4% (R$ 115,483), when compared to that recorded in the same quarter of 2023.
Net Profit and EBITDA
As a result of the factors set forth above, net profit for this quarter was R$ 1,100,307, 11.8% (R$ 146,647) lower, when compared to the same period of 2023.
EBITDA (Net income excluding the effects of depreciation, amortization, financial result, social contribution and income tax) for the 2nd quarter of 2024 was R$ 2,836,984, 7.1% (R$ 217,077) lower, when compared to the same period of 2023.
CPFL Public Use
COMMENTS ON THE PERFORMANCE OF SUBSIDIARIES/AFFILIATES
Subsidiary/Affiliate: Companhia Paulista de Força e Luz - CPFL
The subsidiary Companhia Paulista de Força e Luz - CPFL is a publicly-held company, and its performance commentary is contained in its Quarterly Information - ITR, dated June 30, 2024, filed with the CVM - Brazilian Securities and Exchange Commission.
Subsidiary/Affiliate: CPFL Geração de Energia S.A.
The subsidiary CPFL Geração de Energia S.A. is a publicly-held company, and its individual and consolidated performance commentary is contained in its Quarterly Information - ITR, dated June 30, 2024, filed with the CVM - Brazilian Securities and Exchange Commission.
Subsidiary/Affiliate: CPFL Transmissão S.A.
The subsidiary CPFL Transmissão S.A. is a publicly-held company, and its individual and consolidated performance commentary is contained in its Quarterly Information - ITR, dated June 30, 2024, filed with the CVM - Brazilian Securities and Exchange Commission.
Subsidiary/Affiliate: CPFL Energias Renováveis S.A.
The subsidiary CPFL Energias Renováveis S.A. is a publicly-held company, and its consolidated performance commentary is contained in its Quarterly Information - ITR, dated June 30, 2024, filed with the CVM - Brazilian Securities and Exchange Commission.
Subsidiary/Affiliate: Companhia Piratininga de Força e Luz
The subsidiary Companhia Piratininga de Força e Luz is a publicly-held company, and its performance commentary is contained in its Quarterly Information - ITR, dated June 30, 2024, filed with the CVM - Brazilian Securities and Exchange Commission.
Subsidiary/Affiliate: RGE Sul Distribuidora de Energia S.A.
The subsidiary RGE Sul Distribuidora de Energia S.A. is a publicly-held company, and its performance commentary is contained in its Quarterly Information - ITR, dated June 30, 2024, filed with the CVM - Brazilian Securities and Exchange Commission.
CPFL Public Use
Subsidiary: CPFL Comercialização Brasil S.A.
Consolidated | ||||||
2nd Quarter | 1st Semester | |||||
2024 | 2023 | Variation | 2024 | 2023 | Variation | |
Gross operating revenue | 1,148,992 | 1,092,028 | 5.2% | 2,143,941 | 2,126,017 | 0.8% |
Electricity sales to final consumers | 269,540 | 323,692 | -16.7% | 525,379 | 644,381 | -18.5% |
Electricity sales to wholesaler's | 329,156 | 281,131 | 17.1% | 619,979 | 574,004 | 8.0% |
Concession's infrastructure construction revenue | 216,556 | 158,448 | 36.7% | 334,684 | 239,334 | 39.8% |
Other operating revenues | 333,740 | 328,757 | 1.5% | 663,899 | 668,297 | -0.7% |
Deductions from operating revenue | (157,517) | (162,167) | -2.9% | (314,457) | (323,813) | -2.9% |
Net operating revenue | 991,476 | 929,861 | 6.6% | 1,829,484 | 1,802,204 | 1.5% |
Cost of electricity energy services | (494,404) | (484,097) | 2.1% | (897,898) | (989,663) | -9.3% |
Electricity purchased for resale | (493,840) | (483,303) | 2.2% | (896,409) | (988,129) | -9.3% |
Electricity network usage charges | (565) | (793) | -28.8% | (1,489) | (1,533) | -2.9% |
Operating costs and expenses | (281,249) | (229,938) | 22.3% | (469,020) | (419,282) | 11.9% |
Personnel | (46,612) | (41,923) | 11.2% | (87,733) | (85,029) | 3.2% |
Private pension entity | (17,936) | (17,802) | 0.8% | (35,873) | (31,295) | 14.6% |
Materials | (7,368) | (1,407) | 423.6% | (4,505) | (2,322) | 94.0% |
Third-party services | (31,361) | (22,648) | 38.5% | (55,438) | (43,707) | 26.8% |
Depreciation/amortization | (4,599) | (6,948) | -33.8% | (9,875) | (14,468) | -31.7% |
Amortization of concession intangibles | (5,593) | (8,473) | -34.0% | (13,106) | (16,947) | -22.7% |
Concession infrastructure construction cost | (151,947) | (102,910) | 47.7% | (233,756) | (173,395) | 34.8% |
Other expenses | (15,834) | (27,827) | -43.1% | (28,734) | (52,119) | -44.9% |
Income from electric energy service | 215,822 | 215,826 | 0.0% | 462,567 | 393,260 | 17.6% |
Financial result | (89,074) | (67,985) | 31.0% | (177,218) | (141,547) | 25.2% |
Financial income | 30,196 | 36,437 | -17.1% | 61,808 | 62,451 | -1.0% |
Financial expenses | (119,270) | (104,422) | 14.2% | (239,026) | (203,998) | 17.2% |
Equity interest in subsidiaries, associates and joint ventures | 18,262 | 30,554 | -40.2% | 64,912 | 74,328 | -12.7% |
Result before taxes | 145,010 | 178,395 | -18.7% | 350,261 | 326,041 | 7.4% |
Social contribution | (9,574) | (13,311) | -28.1% | (21,399) | (25,751) | -16.9% |
Income tax | (26,520) | (36,701) | -27.7% | (58,848) | (70,921) | -17.0% |
Net income for the period | 108,916 | 128,383 | -15.2% | 270,015 | 229,368 | 17.7% |
Net income attributed to controlling shareholders | 108,781 | 128,205 | -15.2% | 270,287 | 228,836 | 18.1% |
Net income attributed to non-controlling shareholders | 135 | 178 | -24.4% | (273) | 532 | -151.2% |
EBITDA | 244,992 | 262,678 | -6.7% | 551,870 | 500,724 | 10.2% |
Reconciliation of Net Income and EBITDA | ||||||
Net income | 108,916 | 128,383 | 270,015 | 229,368 | ||
Depreciation and amortization | 10,191 | 15,422 | 22,981 | 31,415 | ||
Amortization of asset value | 716 | 877 | 1,410 | 1,722 | ||
Financial result | 89,074 | 67,985 | 177,218 | 141,547 | ||
Social contribution | 9,574 | 13,311 | 21,399 | 25,751 | ||
Income tax | 26,520 | 36,701 | 58,848 | 70,921 | ||
EBITDA | 244,992 | 262,678 | -6.7% | 551,870 | 500,724 |
Gross Operating Revenue
Gross operating revenue for the 2nd quarter of 2024 was R$ 1,148,992, increase of R$ 56,964 (5.2%), when compared to the same quarter of 2023.
The main factors of this variation were:
- Increase of R$ 58,107 (36.7%) related to revenue from construction of concession infrastructure, due to expansion and improvement works.
Cost of Electric Energy
The cost of electricity in the 2nd quarter of 2024 was R$ 494,404, increase of R$ 10,308 (2.1%), when compared to the same quarter of 2023, basically explained by the volume of energy purchased.
Operating Costs and Expenses
Operating cost and expenses for the 2nd quarter of 2024 was R$ 281,249, increase of 22.3% (R$ 51,311) over the same quarter in 2023.
- Cost of construction of concession infrastructure: Increase of 47.7% (R$ 49,037), duly explained in the revenue, due to expansion and improvement works.
- Personnel: Increase of 11.2% (R$ 4,689), mainly explained by the effects of salaries and overtime (R$ 5,121), offset in part by the reduction in expenses with layoffs, (R$ 192) and training
(R$ 30).
CPFL Public Use
- Materials: Increase of R$ 5,961 due to expenses with purchasing maintenance materials and inputs from CPFL Transmissão.
- Third Party Services: Increase of 38.5% (R$ 8,713) explained by expenses with maintenance and conservation of buildings (R$ 4,178) and maintenance of network lines and substations (R$ 3,940).
- Depreciation/Amortization: Reduction of 33.8% (R$ 2,349), justified by the recognition of depreciation and amortization expenses for the period.
- Other: Reduction of 43.1%, mainly represented by decrease in legal and judicial expenses (R$ 14,432), partially offset by the increase in expenses related to losses on disposals (R$ 1,441) and marketing expenses (R$ 1,004).
Financial Result
The financial result recorded in the 2nd quarter of 2024 was R$ 89,074, representing an increase of 31.0% (R$ 21,090), when compared to the same quarter of 2023.
Financial Revenue: Decrease of 17.1% (R$ 6,241), basically explained by (i) monetary and exchange rate updates (R$ 9,220), partially offset by PIS/COFINS on interest on equity (R$ 2,248).
Financial Expenses: Increase of 14.2% (R$ 14,848), mainly justified by (i) debt charges (R$ 75,639), partially offset by (ii) monetary and exchange rate updates (R$ 34,098) and (iii) derivatives (R$ 30,690).
The equity result calculated in the 2nd quarter of 2024 was R$ 18,262, a decrease of R$ 12,292 (40.2%), mainly explained by the recognition of the equity interest of the investee RGE Sul.
Net Profit for the Period and EBITDA
The result for the 2nd quarter of 2024 was a profit of R$ 108,916, decrease of R$ 19,467 (15.2%), when compared to the same quarter of 2023.
EBITDA (Net income before financial results, income tax and social contribution, depreciation, amortization) for the 2nd quarter of 2024 was R$ 244,992, increase of 6.7%, when compared to the same quarter of 2023, which was R$ 262,678 (information not reviewed by the Independent Auditors).
CPFL Public Use
GLOSSARY OF TERMS IN THE ELECTRICITY SECTOR
ACL: Free Contracting Environment. Segment of the market comprising the purchase of electric power by deregulated agents (such as Free Consumers and electric power traders).
ACR: Regulated Contracting Environment. Segment of the market comprising the purchase by distributing companies, by means of bids and other mechanisms provided by Aneel.
ANEEL: National Electric Energy Agency.
Annual General Meeting (AGM): mandatory annual meeting of the Company's shareholders
called by the Board of Directors, in order to: (a) acknowledge the management accounts; (b) analyze and vote on the Company's financial statements;(c) decide on the allocation of net profit;(d) distribution of dividends; and (e) elect the Board of Directors and the Fiscal Council.
B3 - B3 S.A. - Brasil, Bolsa, Balcão: São Paulo Stock Exchange.
BNDES: National Bank of Economic and Social Development.
Installed Capacity: Maximum amount of energy that can be delivered by a particular generating unit on a full continuous charge basis under specific conditions as designated by the manufacturer.
CCEE: Energy Trading Chamber.
CDE: Energy Development Account, instituted by Law No. 10,438 of April 26, 2002, and subsequent amendments thereto. A fund managed by CCEE to foster electricity development in general and its production from alternative energy sources in particular, as well as the universalization of energy services in Brazil. All concessionaires contribute to this fund.
Company or CPFL Energia: CPFL Energia S.A. or the group of companies comprising CPFL Energia and its subsidiaries.
Consumer: An individual or legal entity that requests power supply from a concessionaire, assuming the responsibility of paying the bills and complying with other obligations determined by ANEEL.
Captive Consumer: Consumer who can only buy energy from the utility that operates in the network to which it is connected.
Final Consumer: Consumer who uses electricity to meet their own needs.
Free Consumer: Consumers, with contracted demand equal or higher than 2 MW, who are supplied by generators or traders through bilateral contracts signed within the ACL (Free Contracting Environment). These consumers still have to pay the distributor where it is located for the use of the distribution system.
Special Free Consumer: Special category of free consumers, with contracted demand between
0.5 MW and 2 MW (or a set of high voltage units in the same submarket that together total demand greater than 0.5 MW), who are entitled to purchase energy in the free market only from incentivized sources (solar, wind, biomass or SPH).
CVA: Graphic account to which the variations between realized values and the values considered in the pass-through of costs to final consumers in revisions and tariff adjustments of distributors are attributed. The expenses considered in the CVA are: Purchase of energy, transport from Itaipu, Basic Network contract and sector charges.
CVM: Brazilian Securities and Exchange Commission.
DEC / SAIDI: System Average Interruption Duration Index, measured by the average duration of power interruptions in hours per consumer in a given period, normally a month or last 12 months. Equivalent Duration of Interruption per Consumer Unit. Indicates the number of hours on average that a consumer is without power during a period, usually monthly or in the last 12 months.
Distribution: Electricity system that delivers energy to final consumers within a concession area.
Dividend Yield: The amount of dividends paid by the company divided by the current share price.
CPFL Public Use
EBITDA (Earnings Before Interests, Taxes, Depreciation and Amortization) or (Earnings Before Interest, Taxes, Depreciation and Amortization of Deferred Assets): A evaluation element that measures a company's operating cash flow before it is impacted by financial charges, depreciation and taxes.
Assured Energy or Physical Guarantee: Fixed amount of energy of a power plant, established by the granting power in the concession agreements. It represents the amount of energy available for sale in that enterprise.
Bylaws: Bylaws of the Company.
FEC / SAIFI: System Average Interruption Frequency Index, measured by the average number of power interruptions in hours per consumer in a given period.
Free Float: The shares of a company that are traded in the organized stock markets.
Holding: (1) (1) A company whose main activity is to retain a controlling stake in one or more other companies; (2) A company which retains a controlling stake in one or more other companies and also controls these companies' managerial and business policies.
IBrX-100: Brazil Index is an index that measures the return on a theoretical portfolio composed by 100 stocks selected among B3's most actively traded securities, in terms of number of trades and financial value. The component stocks are weighted according to the outstanding shares' market value.
IBOV- Bovespa Index: The main indicator of the Brazilian stock market's average performance. IBOV's relevance comes from the fact that it reflects the variation of B3's most traded stocks.
ICO2 - Carbon Efficient Index: Comprises the shares of companies participating in the IBrX- 100 index that have agreed to join this initiative, by adopting transparent practices with respect to their greenhouse gas emissions (GHGs). It takes into account, for weighting the shares of the component companies, their degree of efficiency in GHG emissions, in addition to the free float of each one.
IDIV - Dividend Index: It is a total return index and is intended to be the indicator of the average performance of the quotations of the assets that stood out in terms of investor remuneration, in the form of dividends and interest on equity.
IEE - Electric Power Index: It was launched in August 1996 to measure the performance of the electric power sector. In this sense, the index is an instrument that makes possible the performance analysis of portfolios specialized in the electric power sector.
IFRS - International Financial Reporting Standards: the International Accounting Standards, which seek for a standard accepted in many countries in order to facilitate the comparability of information between companies in different countries. In Brazil, IFRS was implemented in 2010.
IGC - Special Corporate Governance Stock Index: is designed to measure the return of a theoretical portfolio composed of shares of companies with a good level of corporate governance. Such companies must be traded on the Novo Mercado or be classified in Levels 1 or 2 of B3.
IGP-M: General Market Price Index, released by Fundação Getúlio Vargas.
Quarterly Information (ITR): Accounting report that companies must periodically submit to the CVM - Brazilian Securities and Exchange Commission.
IPCA: Extended Consumer Price Index, calculated by IBGE.
ISE - Corporate Sustainability Index: Designed to measure the return on a portfolio composed of shares of companies highly committed to social responsibility and corporate sustainability, and also to promote good practices in the Brazilian corporate environment.
ITAG: Special Tag Along Stock Index, designed to measure the return of a theoretical portfolio composed of shares of companies which offer, in case of control sale, better conditions to minority shareholders than those required by law.
Itaipu: Itaipu Binacional, a hydroelectric power plant owned in equal parts by Brazil and Paraguay.
Brazilian Corporate Law: Federal Law No. 6,404, promulgated on December 15, 1976, which