Docusign Envelope ID: 58F977BF-33CB-4A6D-95E4-764240D68E87
(A free translation of the original in Portuguese)
CPFL Energia S.A.
Parent company and consolidated interim financial statements at September 30, 2025 and report on review REVIEW OF THE COMPANY'S PERFORMANCE IN THE QUARTERComments on the performance are expressed in thousands of Reais, unless otherwise noted.
Analysis of results CPFL Energia (Parent Company)In this quarter, the increase in net profit was R$ 43,208, when compared to the same period of the previous year (R$ 1,308,168, in 2025, and R$ 1,264,960, in 2024), mainly due to the increase in the results from equity interest R$ 24,350 and the decrease in income tax and social contribution expenses R$ 12,842.
COMMENTS ON THE CONSOLIDATED PERFORMANCECompany: CPFL Energia S.A.
Consolidated
3rd Quarter Nine months
2025 | 2024 | Variation | 2025 | 2024 | Variation | ||||||
Gross operating revenue | 16,834,302 | 15,402,520 | 9.3% | 47,345,795 | 44,601,268 | 6.2% | |||||
Electricity sales to final consumers (*) | 8,332,273 | 8,193,914 | 1.7% | 25,305,478 | 26,061,154 | -2.9% | |||||
Electricity sales to wholesaler's (*) | 1,952,328 | 1,877,096 | 4.0% | 4,693,415 | 4,225,569 | 11.1% | |||||
Concession's infrastructure construction revenue | 1,673,701 | 1,516,192 | 10.4% | 4,249,580 | 3,774,793 | 12.6% | |||||
Other operating revenues (*) | 3,487,277 | 2,988,445 | 16.7% | 10,750,120 | 9,071,040 | 18.5% | |||||
Sector financial assets and liabilities | 1,388,724 | 826,872 | 67.9% | 2,347,202 | 1,468,712 | 59.8% | |||||
Deductions from operating revenue | (5,505,161) | (4,548,067) | 21.04% | (14,812,308) | (13,919,106) | 6.4% | |||||
Net operating revenue | 11,329,141 | 10,854,452 | 4.4% | 32,533,487 | 30,682,162 | 6.0% | |||||
Cost of electricity energy services | (5,392,254) | (5,200,036) | 3.7% | (14,976,656) | (13,921,278) | 7.6% | |||||
Electricity purchased for resale | (4,133,878) | (3,902,799) | 5.9% | (11,297,813) | (9,912,401) | 14.0% | |||||
Electricity network usage charges | (1,258,376) | (1,297,237) | -3.0% | (3,678,843) | (4,008,876) | -8.2% | |||||
Operating costs and expenses | (3,449,264) | (3,172,900) | 8.7% | (9,516,173) | (8,889,610) | 7.0% | |||||
Personnel | (583,565) | (563,924) | 3.5% | (1,709,789) | (1,653,854) | 3.4% | |||||
Private pension entity | (8,684) | (27,229) | -68.1% | (26,052) | (100,633) | -74.1% | |||||
Materials | (125,169) | (133,278) | -6.1% | (375,578) | (394,613) | -4.8% | |||||
Third-party services | (267,518) | (265,600) | 0.7% | (784,369) | (764,916) | 2.5% | |||||
Depreciation/amortization | (516,828) | (504,764) | 2.4% | (1,543,182) | (1,475,060) | 4.6% | |||||
Amortization of concession intangibles | (83,032) | (82,039) | 1.2% | (249,344) | (248,202) | 0.5% | |||||
Concession infrastructure construction cost | (1,551,410) | (1,369,358) | 13.3% | (3,935,932) | (3,490,619) | 12.8% | |||||
Other expenses | (313,058) | (226,707) | 38.1% | (891,927) | (761,714) | 17.1% | |||||
Income from electric energy service | 2,487,623 | 2,481,516 | 0.2% | 8,040,658 | 7,871,274 | 2.2% | |||||
Financial result | (738,174) | (742,511) | -0.6% | (2,273,983) | (2,274,442) | 0.0% | |||||
Financial income | 515,101 | 416,673 | 23.6% | 1,365,066 | 1,211,392 | 12.7% | |||||
Financial expenses | (1,253,275) | (1,159,184) | 8.1% | (3,639,049) | (3,485,834) | 4.4% | |||||
Equity interest in subsidiaries, associates and joint ventures | 77,227 | 86,979 | -11.2% | 211,055 | 262,983 | -19.7% | |||||
Result before taxes | 1,826,675 | 1,825,984 | 0.0% | 5,977,730 | 5,859,816 | 2.0% | |||||
Social contribution | (122,016) | (129,836) | -6.0% | (486,100) | (446,367) | 8.9% | |||||
income tax | (328,273) | (364,317) | -9.9% | (1,314,049) | (1,226,208) | 7.2% | |||||
Net income for the period | 1,376,386 | 1,331,831 | 3.3% | 4,177,581 | 4,187,240 | -0.2% | |||||
Net income attributed to controlling shareholders | 1,308,167 | 1,264,960 | 3.4% | 3,983,806 | 3,991,285 | -0.2% | |||||
Net income attributed to non-controlling shareholders | 68,219 | 66,871 | 2.0% | 193,776 | 195,956 | -1.1% | |||||
EBITDA | 3,164,788 | 3,155,380 | 0.3% | 10,044,480 | 9,857,766 | 1.9% |
Reconciliation of Net Income and EBITDA Net income 1,376,386 1,331,831 4,177,581 4,187,240 | ||||
Depreciation and amortization | 599,859 | 586,803 | 1,792,526 | 1,723,262 |
Amortization of asset value | 79 | 82 | 242 | 247 |
Financial result | 738,174 | 742,511 | 2,273,983 | 2,274,442 |
Social contribution | 122,016 | 129,836 | 486,100 | 446,367 |
Income tax | 328,273 364,317 | 1,314,049 1,226,208 | ||
EBITDA | 3,164,788 3,155,380 | 10,044,480 9,857,766 | ||
(*) 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 revenueGross operating revenue in the 3rd quarter of 2025 was R$ 16,834,302, representing an increase of 9.3% (R$ 1,431,783), when compared to the same period of the previous year.
The main factors of this variation were:
Increase of 67.9% (R$ 561,852) in sectoral financial assets and liabilities, due to the higher realization of assets in the 3rd quarter of 2025 R$ 310,234, and the increase in the constitution of assets in the 3rd quarter of 2025 R$ 251,618.
Increase of 16.7% (R$ 498,832) in other operating revenues, mainly due to increases in: (i) TUSD free consumers R$ 256,590 and (ii) low-income subsidies R$ 242,109.
Increase of 10.4% (R$ 157,509) in revenue from construction of concession infrastructure.
Increase of 1.7% (R$ 138,358) in the supply of electricity, due to an increase of 11.4% in average tariffs R$ 852,817; partially offset by a decrease of 8.7% in volume of energy sold R$ 714,458; and
Increase of 4% (R$ 75,232) in the supply of electricity, due to an increase of 28.7% in average tariffs R$ 435,579; partially offset by a decrease of 19.2% in volume of energy sold R$ 360,347.
-
Volume of energy sold
In the 3rd quarter of 2025, the volume of energy billed to captive consumers in the period, including other licensees, decreased by -7.9%, when compared to the same quarter of the previous year.
Residential class consumption represents 61.6% of the total captive market supplied by the distributor and showed an increase of +0.8% in the 3rd quarter of 2025, when compared to the same period of the previous year. This performance is a reflection of the calendar and vegetative effects, added to the economic impacts.
Commercial class consumption represents 14% of the total captive market supplied by the distributor and showed a decrease of -18.8% in the 3rd quarter of 2025, when compared to the same period of the previous year. This performance reflects the migration of captive customers to the free market, in addition to the lower temperatures, when compared to last year, and to the DG effect.
Industrial class consumption represents 4.1% of the total captive market supplied by the distributor and showed a decrease of -39.1% in the 3rd quarter of 2025, when compared to the same period of the previous year. This performance reflects the migration of captive customers to the free market.
The other classes of consumption (rural, public power, public lighting, public service and self-consumption permit holders) participated with 18.7% of the total captive market supplied by the distributor. These classes recorded a decrease of -11.4% in the 3rd quarter of 2025, due to the increase in the number of consumer units with distributed generation and migration of captive customers to the free market.
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 a decrease of 0.6% when compared to the same period of the previous year The variance by class was: residential (0.9%), commercial (-1.9%), industrial (0%) and other classes (-6.4%).
-
Rates
In the 3rd quarter of 2025, the energy supply tariffs charged by the distribution subsidiaries are as follows:
2025
2024
Distributor
Month
RTA / RTP
Effect perceived
by consumers (a)
RTA / RTP
Effect perceived
by consumers (a)
CPFL Paulista
April
(b)
-2.19%
-3.66%
3.91%
1.46%
CPFL Piratininga
October
(c)
10.03%
7.63%
1.33%
3.03%
RGE
June
(d)
2.51%
12.39%
0.00%
0.00%
CPFL Santa Cruz
March
(e)
-3.44%
2.62%
7.02%
5.63%
Represents the average effect perceived by consumers due to the removal of financial components from the tariff base that had been added in the previous tariff adjustment.
On April 29, 2025, ANEEL published Ratification Resolution ("REH") No. 3,452, relating to the annual tariff adjustment (RTA) of the subsidiary CPFL Paulista, which set the average tariff adjustment at -2.19%, with 5.85% corresponding to the economic tariff adjustment and -8.04% corresponding to the financial components. The total average effect to be perceived by consumers is -3.66%.
Since the 2024 tariffs were extended until April 29, 2025, the difference in revenue earned between April 8 and 29, 2025, will be offset in the 2026 tariff process through a sector-specific financial liability.
On October 21, 2025, the RTA was issued for the subsidiary CPFL Piratininga.
On June 18, 2025, ANEEL published Ratification Resolution ("REH") No. 3,473, relating to the annual tariff adjustment (RTA) for the subsidiary CPFL RGE, with an average total impact to be perceived by consumers of 12.39%.
On May 22, 2025, ANEEL published Ratification Resolution ("REH") No. 3,460, relating to the annual tariff adjustment (RTA) for the subsidiary CPFL Santa Cruz, with an average total impact to be perceived by consumers of 2.62%, with an average of 2.61% for high-voltage consumers and an average of 2.62% for low-voltage consumers. The average effect results from: (i) the adjustment of the cost items of Parcels A and B, contributing 1.67% to the average effect; (ii) the inclusion of the financial components determined in the current
adjustment and the removal of the financial components established in the last tariff process, which contributed to a 0.95% variation.
Since the 2024 tariffs were extended until May 21, 2025, the difference in revenue earned between March 22, 2025, and May 21, 2025, will be offset in the 2026 tariff process.
Deductions from operating revenueDeductions in operating revenue, in the 3rd quarter of 2025, were R$ 5,505,161, an increase of 21% (R$ 957,093), when compared to the same quarter of 2024, which was primarily due to:
-
Volume of energy sold
Increase of 36.9% (R$ 567,432) in the Energy Development Account - CDE;
Increase of 6.9% (R$ 114,228) in ICMS on the sale of energy and services; and
Increase of 11.4% (R$ 123,548) in PIS/COFINS/ISS on the sale of energy and services.
Cost of electric energyThe cost of electric energy in this quarter totaled R$ 5,392,254, representing a increase of 3.7% (R$ 192,218) when compared to the same period of the previous year, mainly justified by:
Increase of 5.9% (R$ 231,079) in electricity purchased for resale, justified by the increase of:
(i) 25.5% (R$ 839,452) in the average price; partially offset by the decrease in the volume of energy purchased (ii) 15.6% (R$ 608,373); and
Decrease of 3% (R$ 38,861) in the charges for the use of the transmission and distribution system, mainly due to decrease in: (i) system service charges - ESS (R$ 105,099) and (ii) reserve energy charges (R$ 28,891); partially offset by the increase in (iii) basic network charges (R$ 68,172) and (iv) Itaipu transportation charges (R$ 17,526).
Operating Costs and ExpensesExcluding the cost of building the concession infrastructure, operating costs and expenses in this quarter were R$ 1,897,854, an increase of 5.2% (R$ 94,312) when compared to the same period last year. This variation is mainly due to:
- Personnel: an increase of 3.5% (R$ 19,641), basically due to adjustments in collective bargaining agreements;
- Private pension entity: decrease of 68.1% (R$ 18,545), basically due to the recording of the impacts of the actuarial report of the Group's companies;
- Materials: decrease of 6.1% (R$ 8,109), mainly due to decreases related to replacement materials, conservation, operation and maintenance of lines, networks, machinery, equipment, fleet, tools and offices;
- Services from third parties: an increase of 0.7% (R$ 1,918), mainly due to increases in: (i) transportation and outsourced services R$16,328, (ii) maintenance, cleaning and upkeep services of lines, networks, machinery, equipment, buildings, substations and hardware R$ 2,264; partially offset by the reduction in (iii) audit and consulting services R$ 16,859;
- Depreciation and amortization: an increase of 2.4% (R$ 12,064), basically due to the additions to the asset base in the period, mainly by the Distributors; and
-
Others expenses: increase of 38.1% (R$ 86,351), mainly due to (i) legal and judicial expenses and indemnities R$ 45,528, (ii) provision for AFAC at transmission companies in the comparative period R$ 26,297 and (iii) losses due to disposals and deactivation R$ 18,362; partially offset by the decrease in (iv) provision for doubtful accounts R$ 16,401.
Financial result
The net financial result in this quarter showed net expenses of R$ 738,174, when compared to R$ 742,511 in the same period of 2024, representing a decrease of 0.6% (R$ 4,336). This variation is basically due to:
Increase in financial revenues of 23.6% (R$ 98,428), mainly due to the increases of (i) updating of sectoral financial assets R$ 75,555, (ii) income from financial investments R$ 47,244 and
(iii) increases and late payment fines R$ 24,462; partially offset by the reduction in (iv) updating of tax credits R$ 53,459; and
Increase in financial expenses of 8.1% (R$ 94,091), basically due to increases in: (i) monetary and exchange rate adjustments R$ 112,447 and (ii) debt charges R$ 73,481; partially offset by the reduction in (iii) loan updating R$ 63,232 and (iv) capitalized interest R$15,354.
The decrease of 11.2% (R$ 9,752) in the consolidated equity income refers to the result of equity interests in joint ventures, as follows:
3rd Quarter 2025 3rd Quarter 2024
Epasa | - | 22,756 |
Baesa | (42) | (2,473) |
Chapecoense | 77,305 | 65,762 |
CPFL Transmissão investments | 43 | 1,016 |
Amortization of fair value adjustment of asset | (79) | (82) |
Total | 77,227 | 86,979 |
Social Contribution and Income Tax |
Income tax expenses in the 3rd quarter of 2025 were R$ 450,289 and represented a decrease of 8.9% (R$ 43,864), when compared to that recorded in the same quarter of 2024.
Net Profit and EBITDAAs a result of the factors set forth above, net profit for this quarter was R$ 1,376,386, 3.3% (R$ 44,555) higher, when compared to the same period of 2024.
EBITDA (Net income excluding the effects of depreciation, amortization, financial result, social contribution and income tax) for the 3rd quarter of 2025 was R$ 3,164,788, 0.3% (R$ 9,408) higher, when compared to the same period of 2024.
COMMENTS ON THE PERFORMANCE OF SUBSIDIARIES/AFFILIATES Subsidiary/Affiliate: Companhia Paulista de Força e Luz - CPFLThe 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 Monday, September 30, 2025, 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 Monday, September 30, 2025, 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 Monday, September 30, 2025, 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 Monday, September 30, 2025, filed with the CVM - Brazilian Securities and Exchange Commission.
Subsidiary/Affiliate: Companhia Piratininga de Força e LuzThe subsidiary Companhia Piratininga de Força e Luz is a publicly-held company, and its performance commentary is contained in its Quarterly Information - ITR, dated Monday, September 30, 2025, 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 Monday, September 30, 2025, filed with the CVM - Brazilian Securities and Exchange Commission
Subsidiary: CPFL Comercialização Brasil S.A.Consolidated
3rd Quarter Nine months
2025 | 2024 | Variation | 2025 | 2024 | Variation | ||||||
Gross operating revenue | 1,405,958 | 1,609,436 | -12.6% | 3,995,030 | 3,753,377 | 6.4% | |||||
Electricity sales to final consumers | 276,870 | 294,367 | -5.9% | 799,871 | 819,746 | -2.4% | |||||
Electricity sales to wholesaler's | 534,300 | 659,161 | -18.9% | 1,474,529 | 1,279,140 | 15.3% | |||||
Concession's infrastructure construction revenue | 276,293 | 306,551 | -9.9% | 750,735 | 641,235 | 17.1% | |||||
Other operating revenues | 318,495 | 349,356 | -8.8% | 969,896 | 1,013,256 | -4.3% | |||||
Deductions from operating revenue | (167,900) | (170,502) | -1.5% | (472,171) | (484,958) | -2.6% | |||||
Net operating revenue | 1,238,058 | 1,438,935 | -14.0% | 3,522,858 | 3,268,419 | 7.8% | |||||
Cost of electricity energy services | (749,743) | (848,291) | -11.6% | (2,049,173) | (1,746,188) | 17.4% | |||||
Electricity purchased for resale | (746,700) | (846,574) | -11.8% | (2,041,917) | (1,742,982) | 17.2% | |||||
Electricity network usage charges | (3,043) | (1,717) | 77.2% | (7,256) | (3,206) | 126.3% | |||||
Operating costs and expenses | (323,085) | (265,647) | 21.6% | (892,144) | (734,666) | 21.4% | |||||
Personnel | (39,793) | (41,574) | -4.3% | (125,548) | (129,307) | -2.9% | |||||
Private pension entity | (9,878) | (18,470) | -46.5% | (29,634) | (54,343) | -45.5% | |||||
Materials | (2,476) | (3,563) | -30.5% | (6,219) | (8,068) | -22.9% | |||||
Third-party services | (35,864) | (32,699) | 9.7% | (93,199) | (88,137) | 5.7% | |||||
Depreciation/amortization | (4,431) | (4,655) | -4.8% | (14,123) | (14,530) | -2.8% | |||||
Amortization of concession intangibles | (5,593) | (5,593) | 0.0% | (16,778) | (18,698) | -10.3% | |||||
Concession infrastructure construction cost | (196,909) | (180,687) | 9.0% | (535,807) | (414,442) | 29.3% | |||||
Other expenses | (28,141) | 21,594 | -230.3% | (70,837) | (7,141) | 892.0% | |||||
Income from electric energy service | 165,230 | 324,997 | -49.2% | 581,541 | 787,565 | -26.2% | |||||
Financial result | (136,798) | (129,317) | 5.8% | (381,852) | (306,535) | 24.6% | |||||
Financial income | 25,863 | 31,985 | -19.1% | 64,355 | 93,793 | -31.4% | |||||
Financial expenses | (162,661) | (161,301) | 0.8% | (446,207) | (400,328) | 11.5% | |||||
Equity interest in subsidiaries, associates and joint ventures | 26,700 | 20,249 | 31.9% | 97,333 | 85,161 | 14.3% | |||||
Result before taxes | 55,132 | 215,930 | -74.5% | 297,022 | 566,191 | -47.5% | |||||
Social contribution | (11,188) | (8,476) | 32.0% | (30,163) | (29,874) | 1.0% | |||||
Income tax | (30,448) | (20,932) | 45.5% | (80,991) | (79,780) | 1.5% | |||||
Net income for the period | 13,496 | 186,522 | -92.8% | 185,868 | 456,536 | -59.3% | |||||
Net income attributed to controlling shareholders | 13,565 | 186,037 | -92.7% | 185,767 | 456,324 | -59.3% | |||||
Net income attributed to non-controlling shareholders | (70) | 485 | -114.4% | 101 | 212 | -52.3% | |||||
EBITDA | 202,644 | 356,043 | -43.1% | 712,071 | 907,913 | -21.6% | |||||
Reconciliation of Net Income and EBITDA Net income | 13,496 | 186,522 | 185,868 | 456,536 | |||||||
Depreciation and amortization | 10,023 | 10,247 | 30,900 | 33,228 | |||||||
Amortization of asset value | 691 | 550 | 2,297 | 1,960 | |||||||
Financial result | 136,798 | 129,317 | 381,852 | 306,535 | |||||||
Social contribution | 11,188 | 8,476 | 30,163 | 29,874 | |||||||
Income tax | 30,448 | 20,932 | 80,991 | 79,780 | |||||||
EBITDA | 202,644 | 356,043 | -43.1% | 712,071 | 907,913 |
Gross operating revenue for the 3rd quarter of 2025 was R$ 1,405,958, showing a decrease of R$ 203,479 (12.6%), when compared to the same quarter of 2024.
The main factor behind this variation was:
Decrease in energy supply operations of R$ 124,861 (18.9%), referring to the lower volume of energy resold;
Decrease of R$ 30,259 (9.9%) in investments in the construction of transmission lines and substations of the power transmission companies, especially in relation to concession contract No. 55/2001.
Decrease of R$ 30,861 (8.8%) in other revenues, related to the reduction of the RAP of RBSE's contractual assets due to Aneel's decision (REH 3.464-2025).
Cost of Electric EnergyThe cost of electricity in the 3rd quarter of 2025 was R$ 749,743, a reduction of R$ 98,548 (11.6%), when compared to the same quarter of 2024, basically explained by the reduction in the volume of energy purchased.
Operating Costs and ExpensesOperating cost and expenses for the 3rd quarter of 2025 were R$ 323,085, an increase of R$ 57,438 (21.6%) over the same quarter in 2024.
- Cost of construction of concession infrastructure: Increase of 9% (R$ 16,222), due to an increase in expansion and improvement works for transmission lines and substations;
- Private pension plan: Reduction of 46.5% (R$ 8,592), basically due to the recording of the impacts of the report;
- Others: Increase of 230% (R$ 49,734), mainly due to increase in the provision for labor and tax risks
The financial result recorded in the 3rd quarter of 2025 was R$ 136,798, representing an increase of 5.8% (R$ 7,482), when compared to the same quarter of 2024.
Financial Revenue: Decrease of 19.1% (R$ 6,122), mainly due to the impact of by the reduction in revenues from: (i) updating of CDBs, tax credits and judicial deposits, (ii) discount on the acquisition of ICMS credits, (iii) interest in loans;
Financial Expenses: increase of 0.8% (R$ 1,360), mainly due to new funding, monetary variations and charges on loans in foreign currency.
The equity income calculated in the 3rd quarter of 2025 was R$ 26,700, an increase of R$ 6,451 (31.9%) compared to the same quarter of 2024, mainly by the registration of the equity interest of the investees CPFL Transmissão and CPFL RGE. Net Profit for the Period and EBITDAThe result for the 3rd quarter of 2025 was a profit of R$ 13,496, a decrease of R$ 173,026 (92.8%), when compared to the same quarter of 2024.
EBITDA (Net income before financial results, income tax and social contribution, depreciation, amortization) for the 3rd quarter of 2025 was R$ 202,644, an increase of 43.1%, when compared to the same quarter of 2024, which was R$ 356,043 (information not reviewed by the Independent Auditors).
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. Companhia 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 between0.5 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 PCH).
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: 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.
EBITDA (Earnings Before Interests, Taxes, Depreciation and Amortization) or LAJIDA (Earnings Before Interest, Taxes, Depreciation and Amortization of Deferred Assets): Aevaluation 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: Equivalent Frequency of Interruption per Consumer Unit. Indicates how many times, on average, there was an interruption in the consumer unit in a given month or in the last 12 months.Free Float: The shares of a company that are traded in the organized stock markets.
Holding: (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 governs, among other things, corporations and the rights and duties of their shareholders,directors and officers.
Regulated Market: Market segment in which distribution companies purchase all the electricity needed to supply customers through public auctions. The auction process is administered by ANEEL, either directly or through CCEE, under certain guidelines provided by the MME. Regulated Market is generally considered to be more stable in terms of supply of electricity. MME: Brazilian Ministry of Mines and Energy. Novo Mercado: The B3 (São Paulo Stock Exchange) listing segment comprising companies committed to adopting the highest level of corporate governance and disclosing information over and above that which is determined by the regulations. SDGs: United Nations Sustainable Development Goals, 17 sustainable development goals established by the United Nations and 169 specific targets that apply to all countries and cover abroad range sustainability issues, including poverty, hunger, health, education, climate change, gender equality, water, sanitation, energy, environment and social justice. ONS: National Electric System Operator. A private law corporate entity authorized to carry out coordination and control activities of the electric energy generation and transmission operations in the interconnected systems. Parcel A: Distributors' non-manageable costs, including the cost of electricity purchased for resale, connection and use of transmission system charges and sector charges. Small Hydroelectric Power Plants (SHPs): Hydroelectric plants with an installed capacity of between 3 MW and 30 MW. Granting Power: The Federal Government. Proinfa: Incentive Program for Alternative Electric Energy Sources, under Law 10,438 of April 26, 2002, and subsequent amendments thereto. RAP (Allowed Annual Revenue - AAR): revenue authorized by ANEEL, by Resolution, for making the transmission system facilities available. Annual revenue to which the concessionaire is entitled from the start of commercial operation of the transmission facilities. Basic Network: Transmission installations of the National Interconnected System - SIN, owned by public transmission service concessionaires, with voltage equal or higher than 230 kV, according to Normative Resolution No. 67, of June 8, 2004. Distribution Network: The electricity system that delivers energy to final customers within a concession area. Transmission Network: Network or system for the transmission of electric energy between areas or countries to supply distribution networks. RTA / ATA: annual tariff adjustment. RTE / ETA: extraordinary tariff adjustment. RTP / PTR: periodic tariff review SIN: National Interconnected System. Comprises the Basic Network and other transmission installations connecting generators and distributors in Brazil. Substation: A set of equipment that connects, alters and/or controls the voltage in a transmission and distribution system.Tag along: The right of minority shareholders to sell their shares, at the same price of the controlling shareholders, in the event of the dispose of control.
Transmission: High-voltage lines conducting electricity over long distances with a voltage equal to or higher than 69 kV, connecting substations.TUSD: Tariff for the Use of the Distribution Grid, adjusted annually by Aneel.
Hydroelectric Power Plant or HPP: Generating unit that transforms potential energy from the water accumulated in the reservoir into electricity. Thermoelectric Power Plant or TPP: Generation unit that uses thermal energy from the burningof fuel, such as coal, oil, natural gas, diesel and other hydro carbon as a source of energy to boost the electricity generator.
Biomass Thermoelectric Power Plant: thermoelectric generator that uses the combustion of organic material for energy production.(A free translation of the original in Portuguese)
Report on review of parent company and consolidated interim financial statementsTo the Board of Directors and Stockholders CPFL Energia S.A.
IntroductionWe have reviewed the accompanying interim balance sheet of CPFL Energia S.A. ("Company") as at September 30, 2025 and the related statements of income and comprehensive income for the quarter and nine-month period then ended, and the statements of changes in equity and cash flows for the nine-month period then ended, as well as the accompanying consolidated interim balance sheet of the Company and its subsidiaries ("Consolidated") as at September 30, 2025 and the related consolidated statements of income and comprehensive income for the quarter and nine-month period then ended, and the consolidated statements of changes in equity and cash flows for the nine-month period then ended, and notes, comprising material accounting policies and other explanatory information.
Management is responsible for the preparation and fair presentation of these parent company and consolidated interim financial statements in accordance with the accounting standard CPC 21, Interim Financial Reporting, of the Brazilian Accounting Pronouncements Committee (CPC), and International Accounting Standard (IAS) 34 - Interim Financial Reporting, of the International Accounting Standards Board (IASB). Our responsibility is to express a conclusion on these interim financial statements based on our review.
Scope of reviewWe conducted our review in accordance with Brazilian and International Standards on Reviews of Interim Financial Information (NBC TR 2410 - "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", and ISRE 2410 - "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", respectively). A review of interim information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Brazilian and International Standards on Auditing and consequently did not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
https://www.pwc.com.br
PricewaterhouseCoopers Auditores Independentes Ltda. Av. Bailarina Selma Parada, 505, 11o andar, Conj. 1103, Ed. Sky Galleria, Campinas, SP, Brasil, 13091-605
T: +55 (11) 4004-8000
CPFL Energia S.A.
ConclusionBased on our review, nothing has come to our attention that causes us to believe that the accompanying parent company and consolidated interim financial statements referred to above do not present fairly, in all material respects, the financial position of the Company and of the Company and its subsidiaries as at September 30, 2025, and the parent company financial performance for the quarter and nine-month period then ended and its cash flows for the nine-month period then ended, as well as the consolidated financial performance for the quarter and nine-month period then ended and the consolidated cash flows for the nine-month period then ended, in accordance with CPC 21 and IAS 34.
Other matters - Statements of value addedThe quarterly information referred to above includes the parent company and consolidated statements of value added for the nine-month period ended September 30, 2025. These statements are the responsibility of the Company's management and are presented as supplementary information under IAS 34. These statements have been subjected to review procedures performed together with the review of the quarterly information for the purpose of concluding whether they are reconciled with the interim accounting information and accounting records, as applicable, and if their form and content are in accordance with the criteria defined in the accounting standard CPC 09 - "Statement of Value Added". Based on our review, nothing has come to our attention that causes us to believe that these statements of value added have not been properly prepared, in all material respects, in accordance with the criteria established in this accounting standard, and consistent with the parent company and consolidated interim accounting information taken as a whole.
Campinas, November 5, 2025
PricewaterhouseCoopers Auditores Independentes Ltda. CRC 2SP027613/F-1
Lia Marcela Rusinque Fonseca Contadora CRC 1SP291166/O-4
3
SUMMARY
ASSETS 2
LIABILITIES AND EQUITY 3
STATEMENTS OF INCOME 4
STATEMENT OF COMPREHENSIVE INCOME 5
STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY 6
STATEME NT OF CASH FLOW 7
STATEMENT OF VALUE ADDED 8
( 1 ) OPERATIONS 9
( 2 ) PRESENTATION OF THE INTERIM FINANCIAL STATEMENTS 9
( 3 ) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 10
( 4 ) FAIR VALUE MEASUREMENT 11
( 5 ) CASH AND CASH EQUIVALENTS 11
( 6 ) MARKETABLE SECURITIES 11
( 7 ) CONSUMERS, CONCESSIONAIRES AND LICENSEES 12
( 8 ) EXCLUSION OF ICMS FROM PIS AND COFINS CALCULATION BASE 12
( 9 ) SECTOR FINANCIAL ASSETS AND LIABILITIES 13
DEFERRED TAX ASSETS AND LIABILITIES 14
CONCESSION FINANCIAL ASSET 14
INVESTMENTS 15
CONTRACTUAL ASSETS 16
OTHER ASSETS 16
BORROWINGS 17
DEBENTURES 18
PROVISION FOR TAX, CIVIL AND LABOR RISKS AND ESCROW DEPOSITS 19
OTHER PAYABLES 21
EARNINGS PER SHARE 21
NET OPERATING REVENUE 22
COST OF ELECTRIC ENERGY 24
OTHER OPERATING COSTS AND EXPENSES 25
FINANCIAL INCOME (EXPENSES) 25
SEGMENT INFORMATION 26
RELATED PARTY TRANSACTIONS 26
FINANCIAL INSTRUMENTS 27
EVENTS AFTER THE REPORTING PERIOD 29
1
The accompanying notes are an integral part of these interim financial statements.
2
The accompanying notes are an integral part of these interim financial statements.
3
Docusign Envelope ID: 58F977BF-33CB-4A6D-95E4-764240D68E87
The accompanying notes are an integral part of these interim financial statements
4
Docusign Envelope ID: 58F977BF-33CB-4A6D-95E4-764240D68E87
The accompanying notes are an integral part of these interim financial statements.
5
Docusign Envelope ID: 58F977BF-33CB-4A6D-95E4-764240D68E87
The accompanying notes are an integral part of these interim financial statements.
6
The accompanying notes are an integral part of these interim financial statements.
7
The accompanying notes are an integral part of these interim financial statements.
8
CPFL ENERGIA S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS AT SEPTEMBER 30, 2025 (Amounts in thousands of Brazilian reais - R$, unless otherwise stated) ( 1 ) OPERATIONSCPFL Energia S.A. ("CPFL Energia" or the Company") is a publicly-held corporation incorporated for the principal purpose of operating as a holding company, with equity interests in other companies primarily engaged in electric energy distribution, generation, commercialization and transmission activities in Brazil.
The Company's registered office is located at Rua Jorge Figueiredo Corrêa, nº 1,632, Jardim Professora Tarcília, CEP 13087-397 - Campinas - SP - Brazil.
The Company has direct and indirect interests in subsidiaries and jointly controlled ventures, including 4 distributors, 110 power generation undertakings, 7 transmitters, 4 energy trading and 10 service providers and 4 holding companies/other ventures.
For more information about the operational context, including the Company's actions in relation to Climate Change, please refer to Note 1 of the financial statements for the year ended December 31, 2024.
- Renewals of electricity distribution concessions in Brazil
In June 2025, ANEEL approved, in public board meetings, the requests of CPFL RGE and CPFL Piratininga for the execution of their new Amendments to their Concession Agreements, considering the final draft published in ANEEL Order No. 517/2025, with the objective of promoting the early extension of the concession for an additional thirty (30) years, starting November 6, 2027, for CPFL RGE and October 23, 2028, for CPFL Piratininga. With the approval, ANEEL forwarded the requests for deliberation to the Ministry of Mines and Energy ("MME"), for a final decision and subsequent signing of the new amendment, expected to occur in 2025 for CPFL Piratininga and in the first quarter of 2026 for CPFL RGE, in accordance with the deadlines established in Decree 12,068/2025.
Meanwhile, a Technical Note with a favorable opinion was issued for the administrative process to review CPFL Paulista's request for an extension, awaiting a decision from ANEEL's Board of Directors.
( 2 ) PRESENTATION OF THE INTERIM FINANCIAL STATEMENTS-
Basis of preparation
The individual (parent company) and consolidated interim financial information was prepared and is being presented in accordance with the International Accounting Standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board - IASB, and also based on the rules issued by the Brazilian Securities Commission - (CVM), applicable to the preparation of Quarterly Information (ITR), in accordance with Technical Pronouncement CPC 21 (R1) - Interim Statement.
The Company and its subsidiaries ("The Group") also follows the guidelines of the Accounting Manual of the Brazilian Electricity Sector ("MCSE") and the standards laid down by the Brazilian Electricity Regulatory Agency (Agência Nacional de Energia Elétrica - ANEEL), when these do not conflict with the accounting practices adopted in Brazil and/or International Financial Reporting Standards (IFRS).
Management states that all material information in the interim financial statements has been disclosed and corresponds to what is used in the Group's management.
The interim financial statements were authorized for issue by the Company's Management on November 03, 2025.
-
Basis of measurement
The interim financial statements have been prepared on a historical costs basis, except for the following material items which are measured at each reporting date and recorded in the statements of financial position:
9
i) derivative financial instruments measured at fair value; and ii) non-derivative financial instruments measured at fair value through profit or loss. The classification of the fair value measurement in the level 1, 2 or 3 categories (depending on the degree of observance of the variables used) is presented in Note 26 - Financial Instruments.
-
Use of estimates and judgments
The preparation of the interim financial statements requires the Group's management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
By definition, the accounting estimates may differ from the actual results. Accordingly, the Group's management review the estimates and assumptions on an ongoing basis, based on previous experience and other relevant factors. Adjustments resulting from revisions to accounting estimates are recognized in the period in which the estimates are revised and applied on a prospective basis.
The main accounts that require the adoption of assumptions and estimates and which are subject to a greater degree of uncertainty and may result in a material adjustment should these assumptions and estimates change significantly in subsequent periods, are described in Note 2.3 to the financial statements as of December 31, 2024.
-
Functional currency and presentation currency
The Group's functional currency is the Brazilian Real, and the individual and interim financial statements are presented in thousands of reais. Figures are rounded only after sum-up of the amounts. Consequently, when summed up, the amounts stated in thousands of reais may not tally with the rounded totals.
-
Segment information
The Group's officers use reports to make strategic decisions, segmenting the business into activities of: (i) electric energy distribution ("Distribution"); (ii) electric energy generation ("Generation"); (iii) electric energy transmission ("Transmission"); (iv) energy commercialization ("Commercialization"); (v) service activities ("Services"); and (vi) other activities not listed in the previous items.
-
Information on equity interests
The Group 's equity interests in direct and indirect subsidiaries and joint ventures are described in Note 1 of the financial statements as at December 31, 2024. Except for (i) the companies BAESA, Chapecoense, EPASA (by September 2025), TPAE and ETAU which use the equity method of accounting, and (ii) the noncontrolling interest in the investment stated at cost by the subsidiary Paulista Lajeado (referring to the investment in Investco S.A.) and CPFL Transmissão (referring to the investment in Centrais Elétricas S.A. -Eletrobrás) and CPFL Brasil (referring to the investment in BBCE Balcão Brasileiro de Comercialização de Energia S.A.), all other entities are fully consolidated.
At September 30, 2025 and December 31, 2024, the noncontrolling interests in the consolidated balances refer to interests held by third parties in subsidiaries CERAN, Paulista Lajeado and the not wholly-owned subsidiaries of CPFL Renováveis, TESB and ENERCAN.
- Statement of value added
The Group has prepared the individual and consolidated statements of value added ("DVA") in conformity with technical pronouncement CPC 09 - Statement of Value Added, which are presented as an integral part of the interim financial statements in accordance with accounting practices adopted in Brazil and as supplementary information to the interim financial statements in accordance with IFRS, as this statement is neither provided for nor required by IFRS.
( 3 ) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe Group's interim accounting information was prepared based on the same accounting policies described in Note 3 - Summary of the main accounting policies, disclosed in the financial statements for the year ended December 31, 2024, and has the objective of updating users on the relevant events and transactions that occurred in the period and must be analyzed in conjunction with the financial statements for the year ended December 31, 2024.
10
( 4 ) FAIR VALUE MEASUREMENTThe determination of the fair value of the Group's interim accounting information was carried out as described in Note 4 - Fair Value Measurement, disclosed in the financial statements for the year ended December 31, 2024, and must be analyzed together.
( 5 ) CASH AND CASH EQUIVALENTSParent company Consolidated
September | December | September | December | |||
30,2025 | 31,2024 | 30,2025 | 31,2024 | |||
Bank balances | 500 | 183 | 25,278 | 205,831 | ||
Short-term financial investments | 33,428 | 191,355 | 2,072,760 | 1,767,570 | ||
Overnight investment (a) | - | - | 12,738 | 19,299 | ||
Private credit notes (b) | 7,914 | 191,349 | 1,888,020 | 1,643,441 | ||
Investment funds (c) | 25,514 | 6 | 172,003 | 104,830 | ||
Total | 33,929 | 191,538 | 2,098,038 | 1,973,401 |
Bank account balances, which earn daily interest by investment in repurchase agreements secured on Bank Certificates of Deposit (CDBs) and average interest of 30% on September 30, 2025 of the variation in the Interbank Certificate of Deposit (CDI) (30% of the CDI variation on December 31, 2024).
Short-term investments in: (i) (CDBs) amounting to R$ 1,249,695 (R$ 637,837 in December 31, 2024), and (ii) secured debentures amounting to R$ 638,326 (R$ 1,009,360 on December 31, 2024), all with major financial institutions that operate in the Brazilian financial market, with daily liquidity, short term maturity, low credit risk and interest equivalent, on average, to 100.00% of the CDI (100.4% of the CDI on December 31, 2024).
Represents amounts invested in funds with high liquidity and equivalent remuneration, on average 99.9% of the CDI (99.5% of the CDI on December 31, 2024), having as characteristics post-fixed investments in CDI backed by federal government securities, CDBs, financial bills and committed debentures of large financial institutions with low credit risk and short-term maturity.
(6) MARKETABLE SECURITIES ConsolidatedSeptember
December
30,2025
31,2024
Through investment funds (a)
3,781,728
1,391,363
Direct investment (b)
10,737
182,290
Total
3,792,465
1,573,654
It represents amounts invested in government securities, Financial Bills ("LF") and Financial Treasury Bills ("LFT"), through investment fund quotas, yielding on average 99.9% (99.5% of CDI on December 31, 2024).
It represents mainly direct investments in National Treasury Notes, Series B (NTN-B), with a yield of IPCA + 6% per year. On December 31, 2024, it consisted of securities without immediate liquidity with remuneration equivalent to 102.41% of CDI.
11
(7) CONSUMERS, CONCESSIONAIRES AND LICENSEESPast due Total
Amounts | September | December | |||
Current | coming due | until 90 days | > 90 days | 30,2025 | 31,2024 |
Consumers classes Residential | 1,178,281 | 762,873 | 152,537 | 2,093,691 | 2,151,371 |
Industrial | 158,500 | 52,878 | 90,549 | 301,926 | 286,634 |
Commercial | 259,160 | 96,806 | 69,368 | 425,333 | 473,420 |
Rural | 112,743 | 38,525 | 21,572 | 172,840 | 168,638 |
Public administration | 94,050 | 20,058 | 13,277 | 127,385 | 132,831 |
Public lighting | 118,861 | 7,220 | 3,886 | 129,967 | 119,255 |
Public utilities | 76,364 | 19,210 | 12,291 | 107,865 | 137,396 |
Billed | 1,997,959 | 997,568 | 363,479 | 3,359,007 | 3,469,545 |
Unbilled | 1,502,257 | - | - | 1,502,257 | 1,455,332 |
Financing of consumer's debts | 156,634 | 55,898 | 64,443 | 276,975 | 298,388 |
CCEE transactions | 371,338 | 4,079 | 36,359 | 411,776 | 175,243 |
Concessionaires and licensees | 772,687 | 2,756 | 21,048 | 796,492 | 885,379 |
Others | 51,445 | - | - | 51,445 | 49,683 |
4,852,320 | 1,060,302 | 485,330 | 6,397,951 | 6,333,570 | |
Allowance for doubtful accounts | (471,436) | (449,676) | |||
Total | 5,926,516 | 5,883,894 | |||
Noncurrent | - | - | - | - | - |
Financing of consumer's debts | 108,484 | - | - | 108,484 | 145,981 |
Free energy | 11,239 | - | - | 11,239 | 10,184 |
CCEE transactions | 6,859 | - | - | 6,859 | 30,206 |
126,582 | - | - | 126,582 | 186,371 |
Assets | September 30,2025 | December 31,2024 | ||
Current | ||||
PIS over ICMS | 331,229 | 342,331 | ||
COFINS over ICMS | 1,525,867 | 1,576,796 | ||
Total current | 1,857,096 | 1,919,127 | ||
Noncurrent | ||||
PIS over ICMS | 467,334 | 651,595 | ||
COFINS over ICMS | 2,152,570 | 3,000,918 | ||
Total noncurrent | 2,619,905 | 3,652,513 | ||
Consolidated | ||||
Liabilities - PIS/ COFINS consumers return | September 30,2025 | December 31,2024 | ||
Current | (581,690) | (1,072,326) | ||
Noncurrent | (2,709,898) | (3,864,430) | ||
12 | ||||
On July 22, 2025, ANEEL Public Consultation No. 05/2021 was concluded, and the Agency maintained the interpretation that tax credits must be fully returned to consumers.
On August 14, 2025, the Federal Superior Court (STF) concluded the adjudication of the aforementioned Direct Action of Unconstitutionality ADI n° 7324 and, by a majority vote, partially upheld the request keeping the constitutionality of the Law No. 14,385/2022, and defining that the allocation of refunded undue tax amounts in favor of the consumers, and yet (i) allowing for the deduction of taxes levied on the refund, as well as specific fees incurred by the concessionaires, for the purpose of obtaining the recovery of the undue payment; and (ii) observing the 10-year term, counting from the date of the effective refund of the undue payment to the distributors or the final approval of the compensation made by them. Finally, the Court ruled that overpayments received by consumers acting in good faith will not be subject to recovery.
It is important to note that, based on the opinion of its legal advisors, the Company and its subsidiaries understand that the obligation to reimburse consumers for amounts received due to a lawsuit is limited to the statute of limitations of the 10 years and is awaiting the publication, by STF, of the judgment is awaited for a full understanding of the STF's decision.
Therefore, due to the uncertainties mentioned above, Management believes at this moment, it is not possible to reliably estimate the amount that could be reversed from the liability without the publication of the decision. However, the decision of the Company and the subsidiaries have not recorded any tax credit in their favor so far does not imply any waiver of its rights.
Further details on the exclusion of ICMS from the PIS and COFINS calculation base are described in Note 8.1 of the financial statements as on December 31, 2024.
(9) SECTOR FINANCIAL ASSETS AND LIABILITIESThe breakdown of the balances of sector financial asset and liability and the movement for the year period are as follows:
At December 31,2024 Operating revenue (note 20) Through
Finance result (note 23)
Adjustment for
Consumer
Receipt
At September 30,2025
Deferred Approved Total Constitution
billing
inflation
refunds CDE Eletrobrás Deferred Approved Total
Parcel "A" | 179,225 | (31,635) | 147,590 | 740,684 | 120,931 | 48,777 - | (29,022) | 1,204,512 | (175,555) | 1,028,959 | |||||||||||
CVA (*) | |||||||||||||||||||||
CDE (**) | (97,860) | (29,938) | (127,798) | 539,107 | 28,554 | 11,057 | - | (29,022) | 446,863 | (24,966) | 421,897 | ||||||||||
Electric energy cost | (72,653) | (615,906) | (688,558) | 256,684 | 710,453 | (4,666) | - | - | 468,338 | (194,425) | 273,912 | ||||||||||
ESS and EER (***) | 127,045 | 119,384 | 246,429 | (104,034) | (139,908) | 12,696 | - | - | (63,328) | 78,511 | 15,183 | ||||||||||
Proinfa | (677) | (16,698) | (17,375) | 70,897 | (132) | 4,668 | - | - | 32,755 | 25,302 | 58,057 | ||||||||||
Basic network charges | 204,882 | 320,668 | 525,550 | 146,170 | (409,385) | 28,479 | - | - | 167,743 | 123,070 | 290,813 | ||||||||||
Pass-through from Itaipu | 18,486 | (251,705) | (233,220) | (59,188) | 289,499 | (7,622) | - | - | 75,457 | (85,988) | (10,531) | ||||||||||
Transmission from Itaipu | (5,385) | 50,236 | 44,851 | 9,279 | (42,351) | (220) | - | - | 16,770 | (5,212) | 11,558 | ||||||||||
Neutrality of sector charges | (35,428) | (84,212) | (119,639) | 7,737 | 134,856 | (8,023) | - | - | 106,164 | (91,233) | 14,931 | ||||||||||
Overcontracting | 74,040 | 476,536 | 550,576 | 58,807 | (450,653) | 12,408 | - | - | 171,750 | (613) | 171,137 | ||||||||||
Billed tariff flag | (33,225) | - | (33,225) | (184,775) | - | - | - | - | (218,000) | - | (218,000) | ||||||||||
Other financial components | (452,936) | (689,886) | (1,142,822) | 12,125 | 1,473,466 | 31,898 | (2,135,148) | - | (226,438) | (1,534,043) | (1,760,481) | ||||||||||
PIS/COFINS credit refund | (446,129) | (429,091) | (875,220) | (335,832) | 1,256,042 | - | (1,875,541) | - | (571,563) | (1,258,987) | (1,830,551) | ||||||||||
Postponement of RTA 2024 | 668,905 | - | 668,905 | 526,044 | (95,058) | 128,029 | - | - | 970,104 | 257,817 | 1,227,920 | ||||||||||
Others | (675,712) | (260,795) | (936,508) | (178,087) | 312,482 | (96,131) | (259,607) | - | (624,978) | (532,872) | (1,157,851) | ||||||||||
Total | (273,711) | (721,520) | (995,231) | 752,807 | 1,594,395 | 80,674 | (2,135,148) | (29,022) | 978,075 | (1,709,598) | (731,524) | ||||||||||
Current assets | 393,443 | 674,232 |
Noncurrent assets | 337,522 | 1,234,512 |
Current liabilities | (927,285) | (1,733,198) |
Noncurrent liabilities | (798,912) | (907,070) |
(*) Account for compensation of variations of parcel "A" items | ||
(**) Energy development account (***) System Service Charge ("ESS") and Backup Power Charge ("EER") |
The details of the nature of each sector financial asset and liability are provided in Note 9 to the financial statements on December 31, 2024.
13
( 10 ) DEFERRED TAX ASSETS AND LIABILITIES Composition of tax (debits) and credits ConsolidatedSocial contribution credit / (debit) | September 30,2025 | December 31,2024 | ||
Tax losses carryforwards | 118,943 | 180,876 | ||
Tax benefit of merged intangible | 186,016 | 191,849 | ||
Temporarily nondeductible/taxable differences | (1,045,267) | (1,005,056) | ||
Subtotal | (740,308) | (632,331) | ||
Income tax credit / (debit) Tax losses carryforwards | 331,363 | 504,624 | ||
Tax benefit of merged intangible | 529,046 | 548,872 | ||
Temporarily nondeductible/taxable differences | (2,887,862) | (2,776,617) | ||
Subtotal | (2,027,453) | (1,723,121) | ||
PIS and COFINS credit/ (debit) | ||||
Temporarily nondeductible/taxable differences | (44,364) | (43,052) | ||
Total | (2,812,126) | (2,398,504) | ||
Total tax credit | 238,190 | 266,798 | ||
Total tax debit | (3,050,315) | (2,665,302) | ||
(11) | CONCESSION FINANCIAL ASSET |
The movement below refers to the financial asset of the concession during the period of constitution.
ConsolidatedAt December 31,2024 | 25,209,768 |
Noncurrent | 25,209,768 |
Fair value adjustment | 1,070,082 |
Transfer - contract asset | 2,341,804 |
Transfer - intangible asset | (21,585) |
Disposals | (158,484) |
At September 30,2025 | 28,441,585 |
Current | 28,441,585 |
In the nine months of 2025, the write-offs of R$ 158,484 (R$ 132,958 in the nine months of 2024) refer to both the write-off of the update related to the assets of R$ 76,347 (R$ 68,979 in the nine months of 2024) and to the write-off of the asset of R$ 82,137 (R$ 63,979 in the nine months of 2024).
14
(12) INVESTMENTSParent company Consolidated
Equity method
September 30,2025
December 31,2024
September 30,2025
December 31,2024
By equity method of the subsidiary (and joint venture) | 21,698,454 | 20,359,378 | 386,137 | 577,389 | |||
Fair value of assets, net | 142,348 | 196,863 | 3,486 | 3,974 | |||
Goodwill | 6,054 | 6,054 | - | - | |||
Total | 21,846,856 | 20,562,295 | 389,624 | 581,364 |
The movement, in the parent company, in the balances of investment in subsidiaries is as follows:
Investment December 31,2024
Capital increase (decrease)
/payment of capital
Share of profit (loss) of investees
Other comprehensive income
Corporate restructuring
Dividend and Interest on capital
September 30,2025
CPFL Paulista | 3,055,109 | - | 1,357,287 | (103,239) | - | (627,696) | 3,681,462 | |||||||
CPFL Piratininga | 640,372 | - | 413,673 | (85,000) | - | (326,606) | 642,439 | |||||||
CPFL Santa Cruz | 617,612 | - | 94,340 | - | - | (24,299) | 687,653 | |||||||
CPFL RGE | 4,851,937 | - | 783,438 | (6,582) | - | - | 5,628,793 | |||||||
CPFL Geração | 3,614,428 | - | 793,763 | 6 | (94,819) | (1,044,712) | 3,268,667 | |||||||
CPFL Renováveis | 2,429,457 | - | 372,873 | 6 | 94,819 | (458,639) | 2,438,516 | |||||||
CPFL Jaguari Geração | 81,486 | - | 7,989 | - | - | (5,000) | 84,475 | |||||||
CPFL Brasil | 4,344,907 | - | 185,767 | (1,017) | - | - | 4,529,657 | |||||||
CPFL Paulista | 3,350 | - | 3,314 | - | - | (2,593) | 4,071 | |||||||
CPFL Serviços | 443,809 | 6,214 | 32,432 | - | - | (18,001) | 464,454 | |||||||
CPFL Atende | 15,124 | - | 813 | - | - | (2,000) | 13,937 | |||||||
CPFL Infra | 10,747 | - | 9,624 | - | - | (10,097) | 10,274 | |||||||
CPFL Pessoas | 7,691 | - | 12,064 | - | - | (6,718) | 13,037 | |||||||
CPFL Finanças | 13,419 | - | 21,795 | - | - | (26,262) | 8,952 | |||||||
CPFL Supri | 8,789 | - | 10,633 | - | - | (7,799) | 11,623 | |||||||
CPFL Telecom | 19,674 | - | 1,136 | - | - | (9,451) | 11,359 | |||||||
AUTHI | 10,408 | - | 683 | - | - | (721) | 10,370 | |||||||
Alesta | 186,377 | - | 58,733 | - | - | (61,290) | 183,820 |
Clion 4,681 - 214 - - - 4,895
20,359,378 6,214 4,160,571 (195,826) - (2,631,883) 21,698,454
In accordance with the market announcement issued on March 28, 2025, the subsidiary CPFL Geração entered into a contract in the same month with CPFL Geração had entered into an agreement with Ebrasil Gás e Energia S.A., which has as its object the sale of all common shares held (53.34%) of Centrais Elétricas da Paraíba S.A. - EPASA. The closing of the transaction occurred in June 2025, following the satisfaction of the conditions precedent established in the agreement. EPASA is an independent energy producer with an installed capacity of 342 MW, of which 182 MW is the installed capacity in the equity interest previously held by CPFL Geração. As a result of the transaction, the investment was written off in the amount of R$ 152,899, with a net impact on the income statement of an expense totaling R$ 92,326.
At the Annual and Extraordinary General Meeting held on April 29, 2025, the partial spin-off of CPFL Geração's investment in CPFL Renováveis, corresponding to 1.85% of its stake, was approved. As a result, CPFL Geração's stake in CPFL Renováveis was reduced from 50.85% to 49.00%. The spun-off assets were incorporated by the parent company CPFL Energia, which, consequently, increased its stake from 49.15% to 51.00%. As a result, CPFL Renováveis became a direct subsidiary of CPFL Energia.
15