XML 75 R37.htm IDEA: XBRL DOCUMENT
v3.20.1

30. OPERATING COSTS AND EXPENSES | 12 Months Ended
--- | ---
Dec. 31, 2019
Disclosure Of Operating Costs And Expenses [abstract] |
OPERATING COSTS AND EXPENSES | 30. OPERATING COSTS AND EXPENSES The operating costs are as follows:
|  | 2019 |  |  |  | 2018 |  |  |  | 2017 |
Personnel (a) |  | 1,272 |  |  |  | 1,410 |  |  |  | 1,627 |
Employees’ and managers’ profit sharing |  | 263 |  |  |  | 77 |  |  |  | 5 |
Post-employment benefits (reversals) – Note 26 |  | 408 |  |  |  | 337 |  |  |  | (229 | )
Materials |  | 91 |  |  |  | 104 |  |  |  | 61 |
Raw materials and inputs for production of energy |  | – |  |  |  | – |  |  |  | 10 |
Outsourced services (b) |  | 1,239 |  |  |  | 1,087 |  |  |  | 974 |
Energy bought for resale (c) |  | 11,286 |  |  |  | 11,084 |  |  |  | 10,919 |
Depreciation and amortization (1) |  | 958 |  |  |  | 835 |  |  |  | 850 |
Operating provisions and adjustments for operating losses (d) |  | 2,401 |  |  |  | 466 |  |  |  | 854 |
Charges for use of the national grid |  | 1,426 |  |  |  | 1,480 |  |  |  | 1,174 |
Gas bought for resale |  | 1,436 |  |  |  | 1,238 |  |  |  | 1,071 |
Construction costs (e) |  | 1,200 |  |  |  | 897 |  |  |  | 1,119 |
Other operating expenses, net (f) |  | 499 |  |  |  | 405 |  |  |  | 383 |
|  | 22,479 |  |  |  | 19,420 |  |  |  | 18,818 |
(1) | Net of PIS/Pasep and Cofins taxes applicable to amortization of the right-of-use assets in the amount of R$5.
For details about the discontinued operating costs and expenses, see Note 34. a) Personnel 2019 Programmed Voluntary Retirement Plan (‘PDVP’) On December 2018, the Company launched the Programmed Voluntary Retirement Plan for 2019 (‘the 2019 PDVP’). Those eligible – any employees who had worked with the Company for 25 years or more by December 31, 2018 – were able to join from January 7 to 31, 2019. The program will pay the standard legal payments for severance – including: payment for the period of notice, and especially, an amount equal to the ‘penalty’ payment of 40% of the Base Value of the employee’s FGTS fund, as well as the other payments under the legislation, but with no additional premium. On March 2019 the Company re-launched the 2019 PDVP program, for those joining between April 1 and 10, 2019, with some changes in the requirements for joining, but with the same financial conditions. A total of R$87 has been recorded as expense related to the 2019 PDVP, corresponding to acceptance by 613 employees, R$66 (458 employees) in 2018 and R$21 (155 employees) in 2019. b) Outsourced services
|  | 2019 |  |  |  | 2018 |  |  |  | 2017 |
Meter reading and bill delivery |  | 128 |  |  |  | 129 |  |  |  | 142 |
Communication |  | 69 |  |  |  | 80 |  |  |  | 66 |
Maintenance and conservation of electrical facilities and equipment |  | 404 |  |  |  | 323 |  |  |  | 266 |
Building conservation and cleaning |  | 110 |  |  |  | 110 |  |  |  | 108 |
Contracted labor |  | 17 |  |  |  | 21 |  |  |  | 15 |
Freight and airfares |  | 7 |  |  |  | 7 |  |  |  | 8 |
Accommodation and meals |  | 14 |  |  |  | 12 |  |  |  | 13 |
Security services |  | 18 |  |  |  | 20 |  |  |  | 23 |
Consultant |  | 24 |  |  |  | 16 |  |  |  | 16 |
Maintenance and conservation of furniture and utensils |  | 5 |  |  |  | 4 |  |  |  | 4 |
Information technology |  | 63 |  |  |  | 59 |  |  |  | 62 |
Maintenance and conservation of vehicles |  | 3 |  |  |  | 2 |  |  |  | 2 |
Disconnection and reconnection |  | 70 |  |  |  | 62 |  |  |  | 35 |
Environmental services |  | 14 |  |  |  | 14 |  |  |  | 11 |
Legal services |  | 26 |  |  |  | 25 |  |  |  | 22 |
Legal procedural costs |  | 2 |  |  |  | 2 |  |  |  | 3 |
Tree pruning |  | 46 |  |  |  | 28 |  |  |  | 21 |
Cleaning of power line pathways |  | 61 |  |  |  | 41 |  |  |  | 16 |
Copying and legal publications |  | 21 |  |  |  | 21 |  |  |  | 23 |
Inspection of customer units |  | 14 |  |  |  | 10 |  |  |  | 1 |
Printing of tax invoices and energy bills |  | – |  |  |  | – |  |  |  | 3 |
Other expenses |  | 123 |  |  |  | 101 |  |  |  | 114 |
|  | 1,239 |  |  |  | 1,087 |  |  |  | 974 |
c) Energy purchased for resale
|  | 2019 |  |  |  | 2018 |  |  |  | 2017 |
Supply from Itaipu Binacional |  | 1,429 |  |  |  | 1,351 |  |  |  | 1,243 |
Physical guarantee quota contracts |  | 715 |  |  |  | 679 |  |  |  | 461 |
Quotas for Angra I and II nuclear plants |  | 269 |  |  |  | 267 |  |  |  | 244 |
Spot market |  | 1,886 |  |  |  | 1,818 |  |  |  | 1,498 |
Proinfa Program |  | 376 |  |  |  | 324 |  |  |  | 303 |
‘Bilateral’ contracts |  | 311 |  |  |  | 484 |  |  |  | 385 |
Energy acquired in Regulated Market auctions |  | 3,021 |  |  |  | 3,346 |  |  |  | 3,555 |
Energy acquired in the Free Market |  | 4,098 |  |  |  | 3,871 |  |  |  | 4,283 |
Distributed generation (‘Geração distribuída’) |  | 207 |  |  |  | – |  |  |  | – |
PIS/Pasep and Cofins credits |  | (1,026 | ) |  |  | (1,056 | ) |  |  | (1,053 | )
|  | 11,286 |  |  |  | 11,084 |  |  |  | 10,919 |
d) Operating provision (reversals) and adjustments for operating losses
|  | 2019 |  |  |  | 2018 |  |  |  | 2017 |
Estimated losses on doubtful accounts receivables (Note 8) |  | 238 |  |  |  | 264 |  |  |  | 248 |
Estimated losses on other accounts receivables (1) |  | 11 |  |  |  | (4 | ) |  |  | 27 |
Estimated losses on accounts receivables from related parties (3) (note 32) |  | 688 |  |  |  |  |  |  |  |  |
Contingency provisions (reversals) (Note 27) (2) |  |  |  |  |  |  |  |  |  |  |
Labor claims |  | 136 |  |  |  | 42 |  |  |  | 206 |
Civil |  | 24 |  |  |  | 13 |  |  |  | 27 |
Tax |  | 1,228 |  |  |  | (5 | ) |  |  | 7 |
Environmental |  | (1 | ) |  |  | 1 |  |  |  | – |
Regulatory |  | 1 |  |  |  | (2 | ) |  |  | (3 | )
Other |  | 12 |  |  |  | 2 |  |  |  | (6 | )
|  | 1,400 |  |  |  | 51 |  |  |  | 231 |
|  | 2,337 |  |  |  | 311 |  |  |  | 506 |
Adjustment for losses |  |  |  |  |  |  |  |  |  |  |
Put option – Sonda |  | – |  |  |  | – |  |  |  | 1 |
Put option – RME and LEPSA |  | – |  |  |  | 48 |  |  |  | 231 |
Put option – SAAG (Note 33) |  | 64 |  |  |  | 107 |  |  |  | 116 |
|  | 64 |  |  |  | 155 |  |  |  | 348 |
|  | 2,401 |  |  |  | 466 |  |  |  | 854 |
(1) | The estimated losses on other accounts receivable are presented in the consolidated Statement of income as operating expenses.
(2) | The provisions for contingencies of the holding company are presented in the consolidated statement of income for the year as operating expenses.
(3) | Estimated losses on accounts receivable from Renova, as a result of the assessment of the jointly-controlled entity credit risk, which deteriorated in the current year.
e) Construction costs
|  | 2019 |  |  |  | 2018 |  |  |  | 2017 |
Personnel and managers |  | 85 |  |  |  | 70 |  |  |  | 36 |
Materials |  | 595 |  |  |  | 379 |  |  |  | 550 |
Outsourced services |  | 421 |  |  |  | 364 |  |  |  | 406 |
Others |  | 99 |  |  |  | 84 |  |  |  | 127 |
|  | 1,200 |  |  |  | 897 |  |  |  | 1,119 |
f) Other operating expenses (revenues), net
|  | 2019 |  |  |  | 2018 |  |  |  | 2017 |
Leasing and rentals (1) |  | 20 |  |  |  | 93 |  |  |  | 103 |
Advertising |  | 9 |  |  |  | 19 |  |  |  | 30 |
Own consumption of energy |  | 21 |  |  |  | 27 |  |  |  | 24 |
Subsidies and donations |  | 40 |  |  |  | 22 |  |  |  | 19 |
Onerous concession |  | 3 |  |  |  | 3 |  |  |  | 3 |
Insurance |  | 12 |  |  |  | 7 |  |  |  | 8 |
CCEE annual charge |  | 6 |  |  |  | 6 |  |  |  | 8 |
Net loss (gain) on deactivation and disposal of assets |  | 92 |  |  |  | 7 |  |  |  | 193 |
Forluz – Administrative running cost |  | 30 |  |  |  | 28 |  |  |  | 26 |
Collection agents |  | 88 |  |  |  | 78 |  |  |  | 71 |
Gain on disposal, Taesa |  | – |  |  |  | – |  |  |  | (207 | )
Fine for violation of service continuity standard |  | – |  |  |  | – |  |  |  | 42 |
Obligations deriving from investment contracts (2) |  | 32 |  |  |  | – |  |  |  | – |
Taxes and charges |  | 10 |  |  |  | 9 |  |  |  | – |
Other expenses (3) |  | 136 |  |  |  | 106 |  |  |  | 63 |
|  | 499 |  |  |  | 405 |  |  |  | 383 |
(1) | As from January 1, 2019, the amounts related to leasing and rentals are recognized in accordance with IFRS 16, as shown in notes 2.4 and 21. The Company has operational leasing contracts relating, mainly, to vehicles and buildings used in its operational activities. Their amounts are not material in relation to the total costs of the Company. Actual leasing and rentals expenses are related to remaining leasing arrangements and rentals that do not qualify for recognition under IFRS 16.
(2) | This refers to claims under the agreement made between Aliança Geração, Vale S.A. and Cemig. The action is provisioned at the cost of R$98, of which Cemig is responsible for R$32.
(3) | The losses recorded on assets in progress (canceled works) are net of the reversal of the provisions constituted in prior periods. Includes the adjustment of R$22 for impairment of intangible assets.

X
- Definition Disclosure of operating costs and expenses. + References No definition available. + Details
Name: | cig_DisclosureOfOperatingCostsAndExpensesAbstract
Namespace Prefix: | cig_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of operating costs and expenses. + References No definition available. + Details
Name: | cig_DisclosureOfOperatingCostsAndExpensesExplanatory
Namespace Prefix: | cig_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration