EDP's Press Release on CPI's Final Report on Excessive Income Payment | edp.com

1. There is a positive development in the final version of the report, in relation to the preliminary version, in particular with regard to the non-consideration of erroneous conclusions on the Hydric Public Domain (DPH), as well as the recognition of the competence of the European Commission in the analyses of this matter, expressed in the several decisions of this entity which focused on the same.

2. However, like the position already adopted in the light of the preliminary version of the CPIPREPE report, EDP rejects the various recommendations and conclusions of the Final Report concerning this company, and reaffirms the absence of so-called "excessive rents."

3. The lack of consensus in voting the approval of the Final Report shows that the conclusions and recommendations are not recognized by all parties involved in the CPIPREPE. In fact, the report strongly reflects the views of its rapporteur and not what went on at CPIPPREPE.

4. The Final Report retains several inaccuracies and irregularities already found in the preliminary report, disregarding the content of hundreds of audit hours, advice of reputed experts, as well as objective and grounded documentation and studies that were presented to CPIPREPE by several stakeholders which, if considered, would lead to the complete revision of its conclusions and recommendations.

5. The Final Report adequately situates in 1995 and 1996 the basis and framework of the legislation of the National Electric Sector, but disregards the economic and shareholder context, in which successive decisive policy decisions for the sector have been taken, over more than two decades, which leads to distorted conclusions and unacceptable recommendations.

6. In particular, the Final Report does not draw the proper consequences of the fact that the State has always been EDP's largest shareholder (holding 100% of the capital in 1995 and more than 25% in 2012) and, simultaneously, the law maker, setting the rules for the industry in general, and for the company in particular.

7. The Final Report recommends several amendments to the existing legal framework with retroactive effects, contrary to the most elementary principles of a Rule of Law. The document does not take into account that it was in the context, and with the framework in force at every moment, that economic agents took their decisions, namely investment. Inttending to change the applicable regime with retroactive effects is unacceptable, it calls into question the investors' confidence, in particular those who participated in the various phases of EDP's privatization, and Portugal's credibility towards the necessary economic agents and markets, which is crucial to the effort for the indispensable ongoing energy transition.

8. In addition, it is regretted that the Final Report would challenge proceedings, allowing for several conclusive comments to be inserted on matters that are currently the subject of judicial investigation, thus grossly contradicting the principle of separation of powers.

9. Since its inception, EDP has recognized the importance of CPIPREPE, considering that its constitution was an opportunity for full clarification of a complex and media-focused matter, which has been the subject of disinformation campaigns. However, in view of the Final Report's content, EDP regrets that an opportunity has been missed to treat this matter objectively and factually, contributing to its full clarification.

10. EDP will not fail to maintain a rigorous, transparent and cooperative stance in the uncompromising defense of all its shareholders, employees, customers and other stakeholders, in strict compliance with the law and contracts in force.