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Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2022
Financial Instruments  
Schedule of fair value of financial instruments
             
        12.31.2022   12.31.2021
  Note Level Book value Fair value Book value Fair value
Financial assets            
Fair value through profit or loss            
Cash and cash equivalents (a) 5 1  2,678,457  2,678,457  3,472,845  3,472,845
Bonds and securities (b) 6 1  -  - 14,571 14,571
Bonds and securities (b) 6 2 431,056 431,056 346,487 346,487
Accounts receivable - distribution concession (c) 9.1 and 9.2 3  1,442,819  1,442,819  1,433,734  1,433,734
Accounts receivable - generation concession (c) 9.4 3 68,642 68,642 102,220 102,220
Derivatives fair value - forward contracts (d) 11 3  -  - 2,907 2,907
Fair value in the purchase and sale of power (d) 11 3  1,081,758  1,081,758 855,775 855,775
Other temporary investments (e)   1 15,372 15,372 14,072 14,072
Other temporary investments (e)   2 10,247 10,247 5,913 5,913
       5,728,351  5,728,351  6,248,524  6,248,524
Amortized cost            
Collaterals and escrow accounts (a)     157 157 182 182
Collateral and escrow deposits - STN      -  - 142,764 115,643
Trade accounts receivable (a) 7    3,451,869  3,451,869  4,515,426  4,515,426
Sectorial financial assets (a) 8   381,398 381,398 767,480 767,480
Accounts receivable - concessions - bonus from             
the grant (g) 9.3   766,832 866,653 730,851 828,673
       4,600,256  4,700,077  6,156,703  6,227,404
Fair value through other comprehensive income            
 Certified Emission Reductions - CERs (j) 29.4   10,295 10,295  -  -
      10,295 10,295  -  -
Total financial assets     10,338,902 10,438,723 12,405,227 12,475,928
Financial liabilities            
Fair value through profit or loss            
Fair value in the purchase and sale of power (d) 27 3 738,703 738,703 545,468 545,468
      738,703 738,703 545,468 545,468
Amortized cost            
Sectorial financial liabilities (a) 8   483,255 483,255 293,179 293,179
ICMS installment payment (f) 12.2.4   48,320 43,419  -  -
Special Tax Regularization Program - Pert (f)  12.2   404,075 340,025 421,694 361,080
PIS and Cofins to be refunded to consumers (a) 12.2.1    1,995,158  1,995,158  3,326,795  3,326,795
Accounts payable to suppliers (a) 19    2,215,470  2,215,470  2,710,984  2,710,984
Loans and financing (f) 20    4,694,957  4,171,789  3,738,269  3,313,645
Debentures (h) 21    7,887,077  7,688,396  8,240,769  8,240,769
Accounts payable related to concession (i) 25   937,542  1,051,710 903,959  1,009,867
      18,665,854 17,989,222 19,635,649 19,256,319
Total financial liabilities     19,404,557 18,727,925 20,181,117 19,801,787
Different levels are defined as follows:
Level 1: Obtained from quoted prices (not adjusted) in active markets for identical assets and liabilities;
Level 2: obtained through other variables in addition to quoted prices included in Level 1, which are observable for the assets or liabilities;  
Level 3: obtained through assessment techniques which include variables for the assets or liabilities, which however are not based on observable market data.

Determining fair values

a)Equivalent to their respective book values due to their nature and terms of realization.
b)Fair value is calculated based on information made available by the financial agents and the market values of the bonds issued by the Brazilian government
c)Financial assets with fair values ​​similar to book values ​​(Note 4.4).
d)The fair values of assets and liabilities are equivalent to their book values (Note 4.15).
e)Investments in other companies, stated at fair value, which is calculated according to the price quotations published in an active market, for assets classified as level 1 and determined in view of the comparative assessment model for assets classified as level 2.
f)The cost of the highest value of the last funding carried out by the Company, CDI + spread of 1.22%, is used as a basic assumption for the discount of the expected payment flows.
g)Receivables related to the concession agreement for providing electricity generation services under quota arrangements, having their fair value calculated by expected cash inflows, discounted at the rate established by Aneel auction notice 12/2015 (9.04%).
h)Calculated according to the quotation of the last trade in the secondary market through the average price of the Unit Price - PU on December 31, 2022, obtained from the Brazilian Association of Financial and Capital Market Entities - Anbima.
i)The actual pre-tax discount rate of 8.65% p.a. was used, compatible with the rate estimated by the Company for long-term projects.
j)Financial assets with fair values ​​similar to book values ​​(Note 4.2).
Credit risk is the risk of the Company incurring losses due to a customer or counterparty in a financial instrument, resulting from failure in complying with their contractual obligations.
   
     
Exposure to credit risk 12.31.2022 12.31.2021
Cash and cash equivalents (a) 2,678,457 3,472,845
Bonds and securities (a) 431,056 361,058
Pledges and restricted deposits linked (a)  157 142,946
Trade accounts receivable (b) 3,451,869 4,515,426
Sectorial financial assets (c) 381,398 767,480
Accounts receivable - distribution concession (c) 1,442,819 1,433,734
Accounts receivable - concessions - bonus from the grant (d) 766,832 730,851
Accounts receivable - generation concessions (e) 68,642 102,220
Other temporary investments (f) 25,619 19,985
  9,246,849 11,546,545

a)The Company manages the credit risk of its assets in accordance with the Management’s policy of investing virtually all of its funds in federal banking institutions. As a result of legal and/or regulatory requirements, in exceptional circumstances the Company may invest funds in prime private banks.

 

b)Risk of losses resulting from difficulties to receive amounts billed to customers related to internal and external factors. To mitigate this type of risk, the Company manages its accounts receivable, detecting the classes of consumers most likely to default, implementing specific collection policies and suspending the supply and/or recording of energy and the provision of service, as established in contract and regulatory standards.
c)Management considers the risk of this credit to be reduced, since the agreements signed guarantee the unconditional right to receive cash at the end of the concession to be paid by the Granting Authority, corresponding to the costs and investments not recovered through the tariff.
d)Management considers the risk of such credit to be low, as the contract for the sale of energy by quotas guarantees the receipt of an Annual Generation Revenue - RAG, which includes the annual amortization of this amount during the concession term.
e)For the generation concession assets, Aneel published Normative Resolution 596/2013, which deals with the definition of criteria for calculating the New replacement value (Valor novo de reposição – VNR), for the purposes of indemnification. In July 2021, Normative Resolution No. 942/2021 was published, regulating the calculation of these amounts through the presentation of appraisal reports to be prepared by accredited companies. In August 2022, Copel filed with Aneel the assessment reports related to the residual values, with a base date of July 2015, for the HPP Governador Parigot de Souza - GPS and HPP Mourão - MOU, which are awaiting inspection and subsequent validation by the regulatory agency. Management's expectation of indemnification for these assets supports recoverability of the balances recorded.
f)Risk arising from the possibility of the Company incurring losses due to stock market volatility. This type of risk involves external factors and is being managed through periodic assessments of the variations in the market.
Schedule of liquidity risk
               
    Less than 1 to 3 3 months 1 to 5 Over  
   Interest (a)   1 month  months   to 1 year  years   5 years   Total
12.31.2022              
Loans and financing Note 20 39,138  176,621  474,493  3,593,649  2,481,487  6,765,388
Debentures Note 21 95,407  42,366  1,928,303  6,695,007  2,333,033  11,094,116
Accounts payable related  Rate of return +            
to concession IGP-M and IPCA 9,674  19,371  87,865 508,869  2,258,292  2,884,071
Accounts payable to suppliers -  1,919,501  206,735  23,031 66,203 -  2,215,470
PIS and Cofins to be refunded              
to consumers Note 12.2.1  - -  387,721  1,365,327  357,912  2,110,960
Special Tax Regularization Program - Pert  Selic 4,776  9,665  45,279 282,820  170,426 512,966
ICMS installment payment Selic 874  1,767  8,259 46,722 -  57,622
Sectorial financial liabilities Selic 36,543  74,240  353,022 59,037 - 522,842
Lease liability Note 26 8,146  15,893  67,566 174,725  364,729 631,059
     2,114,059  546,658  3,375,539 12,792,359  7,965,879  26,794,494
(a) Effective interest rate - weighted average.
Schedule of sensitivity analysis of foreign currency risk
         
.   Baseline  Projected scenarios
Foreign exchange risk Risk 12.31.2022 Probable Scenario 1 Scenario 2
.          
Financial liabilities          
Suppliers          
Itaipu USD appreciation (284,930) (1,764) (73,437)  (145,111)
Acquisition of gas USD appreciation (93,696)  (580) (24,149)  (47,718)
           
    (378,626) (2,344) (97,586)  (192,829)
Schedule of gains (losses) on operations with derivative financial instruments
         
.   Baseline  Projected scenarios
Interest rate risk and monetary variation Risk 12.31.2022 Probable Scenario 1 Scenario 2
.          
Financial assets          
Bonds and securities Low CDI/SELIC 431,056  53,883  40,433  26,942
Collaterals and escrow accounts Low CDI/SELIC 157  19  14  10
Sectorial financial assets Low Selic 381,398  47,675  35,756  23,837
Accounts receivable - concessions Low IPCA  2,209,651  127,718  95,788  63,859
Accounts receivable - generation concessions Undefined (a)  68,642  - - -
     3,090,904  229,295  171,991  114,648
Financial liabilities          
Loans and financing          
Banco do Brasil High CDI  (751,673) (93,959) (117,449) (140,939)
Banco Itaú High CDI (1,037,946) (129,743) (162,179) (194,615)
BNDES High TJLP (1,712,943) (120,787) (150,983) (181,180)
BNDES High IPCA  (389,801) (22,530) (28,163) (33,796)
Banco do Nordeste High IPCA  (718,835) (41,549) (51,936) (62,323)
Banco do Brasil - BNDES Transfer High TJLP (60,720)  (4,282) (5,352) (6,422)
Other No risk (23,039)  - - -
Debentures High CDI/SELIC (4,953,884) (619,235) (774,044) (928,853)
Debentures High IPCA (2,841,725) (164,252) (205,315) (246,378)
Debentures High TJLP (91,468)  (6,450) (8,062) (9,675)
Sectorial financial liabilities High Selic  (483,255) (60,407) (75,509) (90,610)
ICMS installment payment High Selic (48,320)  (6,040) (7,550) (9,060)
Special Tax Regularization Program - Pert  High Selic  (404,075) (50,509) (63,137) (75,764)
Accounts payable related to concession High IGP-M  (874,187) (40,213) (50,266) (60,319)
Accounts payable related to concession High IPCA (63,355)  (3,662) (4,577) (5,493)
.   (14,455,226)  (1,363,618) (1,704,522)  (2,045,427)
(a) Risk assessment still requires ruling by the Concession grantor.
Indicators and penalties
     
Year Indicator Criteria Penalties
From 2021 Economic - financial efficiency in the base year Capital Increase (a)
Limitation on distribution of dividends and interest on capital
Restrictive regime for contracts with related parties
2 consecutive years Concession termination
Quality Indicators in the base year Results plan
2 consecutive years Limitation on distribution of dividends and interest on capital
3 consecutive years Concession termination
(a) Within 180 days from the end of each fiscal year, in the totality of the insufficiency that occurs to reach the Minimum Economic and Financial Sustainability Parameter.
Schedule of targets set
           
      Quality - limits Quality - performed
Year Economic and Financial Management Realized DECi FECi  DECi  FECi 
2021 {Net Debt / [EBITDA (-) QRR ≥ 0]} ≤ 1 / (1,11 * Selic)  Achieved  9.29 6.84 7.20 4.76
Year Economic and Financial Management Realized DEC  FEC  DEC  FEC 
2022 {Net Debt / [EBITDA (-) QRR ≥ 0]} ≤ 1 / (1,11 * Selic) - 9.19 6.80 7.98 5.29
Net Debt: Gross Debt deducted from Financial Assets, with the exception of Financial Assets and Financial Liabilities in administrative or judicial discussion. The accounts that make up the Gross Debt and Financial Assets are defined in the attachment VIII to Aneel Resolution No 948/2021.
QRR: Regulatory Reinstatement Share or Regulatory Depreciation Expense. This value will be the one defined in the last Periodic Tariff Review, updated by the variation of the Regulatory Portion B and calculated on a pro rata basis.
Recurring EBITDA: Earnings Before Interest (Financial Result), Taxes (Income Taxes), Depreciation and Amortization.
Targets for Copel Distribuion from 2016 to 2020
     
. Purchase  Sale
2023  606,571  645,966
2024  752,615  810,145
2025  742,114  794,957
2026  738,024  734,063
2027  673,274  620,858
2028 to 2040 4,130,827 4,577,941
  7,643,425 8,183,930
Schedule of deadline for manifestation
       
  Assets  Liabilities Net
Current 288,419 (244,064) 44,355
Noncurrent 793,339 (494,639) 298,700
  1,081,758 (738,703) 343,055
Schedule of sensitivity analysis on the power purchase and sale transactions in the active market
         
  Price Baseline  Projected scenarios
  variation 12.31.2022 Probable Scenario 1 Scenario 2
           
Unrealized gains (losses) on energy purchase and sale operations  Increase   343,055 343,055  369,579  396,104
         
  Decrease   343,055 343,055  316,528  290,003
Schedule of capital monitored by index
     
  12.31.2022 12.31.2021
Loans and financing 4,650,363  3,678,444
Debentures  7,803,855  8,147,617
(-) Cash and cash equivalents (2,678,457) (3,472,845)
(-) Bonds and securities (current) (93)  (16,121)
(-) Bonds and securities (noncurrent) - debt contract guarantees (290,602)  (237,183)
(-) Collaterals and escrow accounts STN  -  (142,764)
Adjusted net debt 9,485,066  7,957,148
Net income from continuing operations 1,149,321  3,859,045
Equity in earnings of investees (478,577)  (366,314)
Deferred IRPJ and CSLL (628,389) 790,406
Provision for IRPJ and CSLL  429,267 469,226
Financial expenses (income), net 1,966,037 327,361
Depreciation and amortization 1,300,982  1,082,539
Hydrological Risk Renegotiation - GSF  - (1,570,543)
Provision for allocation of PIS and Cofins credits  810,563 -
(-/+) Impairment  84,387  (134,854)
Ebitda from discontinued operations  -  1,872,381
Adjusted ebitda 4,633,591  6,329,247
Adjusted net debt/Adjusted ebitda 2.05  1.26
Debt to equity ratio
     
Indebtedness 12.31.2022 12.31.2021
Loans and financing  4,694,957  3,738,269
Debentures  7,887,077  8,240,769
(-) Cash and cash equivalents (2,678,457) (3,472,845)
(-) Bonds and securities  (431,056)  (361,058)
Net debt  9,472,521  8,145,135
Equity  21,131,225  22,175,235
Debt to equity ratio  0.45  0.37