Energias do Brasil SA and subsidiaries - EDP no Brasil | Investidores

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
average tariff readjustment in electric energy bills was 10.01%, being 9.49% for low voltage consumers and 11.18% for
high voltage consumers. Furthermore, as of August 7, 2009, after the end of the recovery process of the liabilities
associated with the Extraordinary Tariff Adjustment - RTE, the application of the percentages of 2.9% for residential and
rural consumers and Public Lighting, and of 7.9% for the other consumers, came to an end. The tariffs of application,
considering these facts, were ratified through Homologatory Resolution nº 860 of August 4, 2009.
In the tariff readjustment process, ANEEL considered the variation of costs that the companies experienced over the
course of the previous twelve months. The calculation formula includes manageable costs, which are subject to the
incidence of IGP-M adjusted by X Factor and non-manageable costs, such as electricity purchased from generators, Fuel
Consumption Account (“CCC”), Global Reversal Reserve (“RGR”), inspection rate and transmission charges, besides
financial adjustments recognized by ANEEL in the Installment A Items Variation Account (“CVA”) and other instruments.
The breakdown of the adjustment, applied in 2009 to the subsidiary Escelsa, is demonstrated below:
• Installment A with 8.34%, 4.83% relative to the purchase of energy, 1.49% relative to sector charges and 1.64%
relative to transmission charges;
• Installment B with 0.38%; and
• Financial items with 6.78%, which include the adjustments resulting from the conclusion of the process of the 2nd
Periodic Tariff Review of the subsidiary Escelsa, communicated on October 6, 2009.
4.2.2 - Periodic tariff review of 2007 and Tariff adjustment of 2009 - subsidiary Bandeirante
2007 Tariff review
At an Ordinary Public Meeting of Senior Management held on October 6, 2009, ANEEL permanently ratified, through
Homologatory Resolution nº 889, of October 6, 2009, the second periodic tariff review of the subsidiary Bandeirante
(period of October 2007 to October 2011), pursuant to methodology established by Normative Resolution 338/2008.
The main changes introduced by ANEEL, in view of what it had established temporarily in 2007 and 2008, are:
(i) The amounts recognized as costs included in the Company of Reference in 2007 previously assigned in R$263
million, were altered and ratified to R$247 million. ANEEL had disclosed a value of the Company of Reference of R$235
million on 7/13/2009, as a result of Public Inquiry nº 047/2009;
(ii) Xe Component of X Factor, an index used in the calculation of the annual tariff readjustments, goes from 0.74% to
1.01%; and
(iii) Percentage of Unrecoverable Losses of Income, goes from 0.50% to 0.60% of the pre-tax income (with taxes).
These alterations are retroactive to October 23, 2007 and the values of the Gross and Net Regulatory Remuneration
Bases are maintained.
Having computed all the effects, the tariff review index, approved by ANEEL, is-9.79%, substituting the temporary
amount, set in October 2007, of-8.80%. Accordingly, the subsidiary Bandeirante recorded the amount of R$35,194 in this
quarter, reducing the net income for the year in Operating Income as a counter entry to Current Liabilities in Tariff
Repayment, referring to the period from October 2007 to September 2009.
2009 Tariff Readjustment
The Brazilian Electricity Regulatory Agency - ANEEL, in a public meeting of the board of executive officers that took
place on October 20, 2009, approved the average annual tariff readjustment of 5.46%, to be applied to the tariffs of the
subsidiary Bandeirante, as from October 23, 2009, with 3.11% relating to the annual economic tariff readjustment and
2.35% referring to the pertinent financial components, which, having computed the effect of the financial items removed
from the base, of 4.44%, correspond to an average impact of 1.02% to be perceived by captive consumers.
ANEEL has informed that high and low voltage consumers will have different average adjustments, as shown in the
following table, of 0.33% for low voltage consumers and of 2.00% for high voltage consumers.
In the annual tariff readjustment process, provided for in the Concession Contract, ANEEL considers the variation of
costs that the companies experienced over the course of the previous twelve months. ANEEL has informed that high and
low voltage consumers will have different average adjustments, as shown in the following table, of 0.33% for low voltage
consumers and of 2.00% for high voltage consumers.
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