Aneel approves Enel Distribuição Rio tariff adjustment

Published on Wednesday, 13 March 2019

  • New values come into force on March 15th.
  •  The main factors influencing the increase were energy purchases and sector charges.

 

Niterói, March 12th 2019 – The Brazilian Electricity Regulatory Agency (Agência Nacional de Energia Elétrica - Aneel) approved this Tuesday (12th) Enel Distribuição Rio’s tariff adjustment. The low-voltage customer adjustment, the majority of which are residential clients, was 9.72%, and for medium- and high-voltage customers, mainly industries and large retailers, the approved index was 9.65%. The adjustment will be 9.70% on average and comes into force on March 15th.

The main factors influencing the increase were energy purchases and sector charges. These factors, which are defined by law and regulation and not managed by the company, together represent 4.76% of this year’s tariff adjustment. Of the total adjustment, the share stemming from the energy distribution activity corresponded to just 0.69%.

Energy purchases were impacted by the high costs of energy generation in Brazil, as hydroelectric reservoirs remain low, as well as the increase in energy costs from the Itaipu plant due to a rise in exchange rates variation. Meanwhile, the increase in sector charges is due to higher expenditure and subsidies built into the Energy Development Account (Conta de Desenvolvimento Energético - CDE), a fund managed by the Government to pay for some tariff subsidies.

Energy tariffs are defined by Aneel based on federal laws and regulations and contain costs that are not under Enel’s responsibility such as: taxes, sector charges, energy generation and transmission costs. These amounts are collected by the distributor through the energy tariff and transferred to the generation and transmission companies as well as to the Federal Government.

In the last two years alone, the company has invested around 1.8 billion BRL. This investment has already contributed to the improvement of the System average interruption duration index (SAIDI) by 37% in the period between December 2016 and December 2018. The System Average Interruption Frequency (SAIFI) also improved by 35% in the same period.

About Enel Distribuição Rio

Enel Distribuição Rio, a subsidiary of Italian multinational Enel, serves 66 municipalities in the state of Rio de Janeiro, covering 73% of the state’s territory, an area of 32,188 km². The Metropolitan Region of Niterói and São Gonçalo and the towns of Itaboraí and Magé represent the largest concentration of the 3.1 million customers served by the company. The distributor also develops a Social Responsibility programme, based on the sustainability tripod, which includes social, economic and environmental aspects.

Enel S.p.A. provides for the dissemination to the public of regulated information by using SDIR NIS, managed by BIt Market Services, a London Stock Exchange Group's company, with registered office at Milan, Piazza degli Affari, 6. For the storage of regulated information made available to the public, Enel S.p.A. has adhered, as from July 1st, 2015 to the authorized mechanism denominated “NIS-Storage”, available at the address www.emarketstorage.com, managed by the above mentioned BIt Market Services S.p.A. and authorized by CONSOB with the resolution No. 19067 of November 19th, 2014. From May 19th 2014 to June 30th 2015 Enel S.p.A. used the authorized mechanism for the storage of regulated information denominated “1Info”, available at the address www.1info.it, managed by Computershare S.p.A. with registered office in Milan and authorized by CONSOB with resolution No. 18852 of April 9th, 2014

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