Considering the financial adjustments included in the last period's tariffs (non-recurring items), which are associated to the recovery of tariff differences incurred in the past, the current tariff readjustment results in an effective average tariff increase of 3.20% to be applied to Enersul's tariffs from April 2007.

Within an annual tariff readjustment process, ANEEL recognizes in the tariffs of the distribution companies the pass-through of some cost components incurred in the previous twelve months, namely i) the annual change in non-controllable costs ("Parcela A") and ii) the adjustment of the controllable costs ("Parcela B") to inflation (IGP-M) corrected by an X Factor. In addition, the regulator also recognizes financial adjustments, which usually correspond to the recovery, for a twelve months period, of the non-controllable costs incurred in the past that were not covered through the tariffs.

Additionally, in this last tariff readjustment, ANEEL made a new deferral of the last part of the 2003 tariff repositioning, amounting to R$56.4 million (which would correspond to 6.26% of the current readjustment) to be received in the tariff revision that will occur in April 2008.


EDP - Energias de Portugal, S.A.