EDP Espirito Santo annual tariff adjustment | edp.com

Pursuant to the terms and for the purposes of the article 17 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council and of article 248-A of the Portuguese Securities code, EDP - Energias de Portugal, S.A. ("EDP") is providing the following information to the market:

The Brazilian electricity regulator, ANEEL, approved a +9.34% annual tariff readjustment index for EDP Espírito Santo, for the period from August 7th 2017 to August 06th 2018. 

Within the annual tariff readjustment process, ANEEL takes into consideration the variation in the costs of the sector companies in the preceding 12 months. The formula includes controllable costs (Parcel B), which are updated by inflation (IGP-M index) and by the X Factor, and non-controllable costs (Parcel A), such as electricity purchased from generators, sector costs and transmission charges, as well as financial adjustments recognized by ANEEL in the Parcel A Items Variation Compensation Account (CVA) and other accounts.

Parcel B was readjusted by -2.52%, considering an IGP-M of -1.33% and an X-Factor of 1.20%, which components are "Pd" (productivity gains) of 1.15%, "T" (trajectory to adequacy of operational costs) of 0.00% and "Q" (incentives to quality) of 0.05%. Furthermore, it is worth to mention the impact of the new tariff for the use of transmission system, set forth through ANNEL's resolution nr. 2.259/2017, which incorporation in transmission costs determined a 6.68% effect on the average tariff increase perceived by consumers.



EDP – Energias de Portugal. S.A.