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28. OPERATING COSTS AND EXPENSES | 12 Months Ended
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Dec. 31, 2020
Disclosure Of Operating Costs And Expenses [abstract] |
OPERATING COSTS AND EXPENSES |
28. | OPERATING COSTS AND EXPENSES
The operating costs are as follows:
|  | 2020 |  | 2019 (Restated) |  | 2018
Personnel (a) |  |  | 1,276 |  |  |  | 1,272 |  |  |  | 1,410 |
Employees’ and managers’ profit sharing |  |  | 142 |  |  |  | 263 |  |  |  | 77 |
Post-employment benefits (reversals) – Note 24 |  |  | 438 |  |  |  | 408 |  |  |  | 337 |
Materials |  |  | 79 |  |  |  | 91 |  |  |  | 104 |
Outsourced services (b) |  |  | 1,265 |  |  |  | 1,239 |  |  |  | 1,087 |
Energy bought for resale (c) |  |  | 12,111 |  |  |  | 11,286 |  |  |  | 11,084 |
Depreciation and amortization (1) |  |  | 989 |  |  |  | 958 |  |  |  | 835 |
Operating provisions and adjustments for operating losses (d) |  |  | 423 |  |  |  | 2,401 |  |  |  | 466 |
Charges for use of the national grid |  |  | 1,748 |  |  |  | 1,426 |  |  |  | 1,480 |
Gas bought for resale |  |  | 1,083 |  |  |  | 1,436 |  |  |  | 1,238 |
Construction costs (e) |  |  | 1,581 |  |  |  | 1,200 |  |  |  | 897 |
Other operating expenses, net (f) |  |  | 297 |  |  |  | 494 |  |  |  | 405 |
|  |  | 21,432 |  |  |  | 22,474 |  |  |  | 19,420 |
| (1) | Net of PIS/Pasep and Cofins taxes applicable to amortization of the right-of-use assets in the amount of R$2.
For details about the discontinued operating costs and expenses, see Note 32.
a) | Personnel
2020 Programmed Voluntary Retirement Plan (‘PDVP’) On April 2020, the Company approved the Programmed Voluntary Retirement Plan for 2020 (‘the 2020 PDVP’). Those eligible – any employees who had worked with the Company for 25 years or more by December 31, 2020 – are able to join from May 4 to 22, 2020. The program provided the standard legal payments for severance, 50% of the period of notice, an amount equal to 20% of the Base Value of the employee’s FGTS fund, an additional premium equal to 50% of the period of notice plus 20% of the Base Value of the employee’s FGTS fund, as well as the other payments under the legislation. The total amount of R$59 has been recorded as expense related to this program, corresponding to acceptance by 396 employees. In March 2019, has been appropriated as expense, including severance payments, a total of R$21 (155 employees).
b) | Outsourced services
|  | 2020 |  | 2019 |  | 2018
Meter reading and bill delivery |  |  | 127 |  |  |  | 128 |  |  |  | 129 |
Communication |  |  | 71 |  |  |  | 69 |  |  |  | 80 |
Maintenance and conservation of electrical facilities and equipment |  |  | 443 |  |  |  | 404 |  |  |  | 323 |
Building conservation and cleaning |  |  | 108 |  |  |  | 110 |  |  |  | 110 |
Contracted labor |  |  | 9 |  |  |  | 17 |  |  |  | 21 |
Freight and airfares |  |  | 2 |  |  |  | 7 |  |  |  | 7 |
Accommodation and meals |  |  | 9 |  |  |  | 14 |  |  |  | 12 |
Security services |  |  | 19 |  |  |  | 18 |  |  |  | 20 |
Consultant |  |  | 41 |  |  |  | 24 |  |  |  | 16 |
Maintenance and conservation of furniture and utensils |  |  | 6 |  |  |  | 5 |  |  |  | 4 |
Information technology |  |  | 80 |  |  |  | 63 |  |  |  | 59 |
Maintenance and conservation of vehicles |  |  | 2 |  |  |  | 3 |  |  |  | 2 |
Disconnection and reconnection |  |  | 39 |  |  |  | 70 |  |  |  | 62 |
Environmental services |  |  | 10 |  |  |  | 14 |  |  |  | 14 |
Legal services |  |  | 21 |  |  |  | 28 |  |  |  | 27 |
Tree pruning |  |  | 48 |  |  |  | 46 |  |  |  | 28 |
Cleaning of power line pathways |  |  | 75 |  |  |  | 61 |  |  |  | 41 |
Copying and legal publications |  |  | 17 |  |  |  | 21 |  |  |  | 21 |
Inspection of customer units |  |  | 35 |  |  |  | 14 |  |  |  | 10 |
Other expenses |  |  | 103 |  |  |  | 123 |  |  |  | 101 |
|  |  | 1,265 |  |  |  | 1,239 |  |  |  | 1,087 |
c) | Energy purchased for resale
|  | 2020 |  | 2019 |  | 2018
Supply from Itaipu Binacional |  |  | 1,990 |  |  |  | 1,429 |  |  |  | 1,351 |
Physical guarantee quota contracts |  |  | 780 |  |  |  | 715 |  |  |  | 679 |
Quotas for Angra I and II nuclear plants |  |  | 303 |  |  |  | 269 |  |  |  | 267 |
Spot market |  |  | 1,497 |  |  |  | 1,886 |  |  |  | 1,818 |
Proinfa Program |  |  | 318 |  |  |  | 376 |  |  |  | 324 |
‘Bilateral’ contracts |  |  | 333 |  |  |  | 311 |  |  |  | 484 |
Energy acquired in Regulated Market auctions |  |  | 3,334 |  |  |  | 3,021 |  |  |  | 3,346 |
Energy acquired in the Free Market |  |  | 3,977 |  |  |  | 4,098 |  |  |  | 3,871 |
Distributed generation (‘Geração distribuída’) |  |  | 678 |  |  |  | 207 |  |  |  | — |
PIS/Pasep and Cofins credits |  |  | (1,099 | ) |  |  | (1,026 | ) |  |  | (1,056 | )
|  |  | 12,111 |  |  |  | 11,286 |  |  |  | 11,084 |
d) | Operating provision (reversals) and adjustments for operating losses
|  | 2020 |  | 2019 |  | 2018
Estimated losses on doubtful accounts receivables (Note 8) (1) |  |  | 147 |  |  |  | 238 |  |  |  | 264 |
Estimated losses on other accounts receivables (2) |  |  | — |  |  |  | 11 |  |  |  | (4 | )
Estimated losses on accounts receivables from related parties (3) (note 30) |  |  | 37 |  |  |  | 688 |  |  |  | — |
Contingency provisions (reversals) (Note 25) (4) |  |  |  |  |  |  |  |  |  |  |  |
Labor claims |  |  | 46 |  |  |  | 136 |  |  |  | 42 |
Civil |  |  | 43 |  |  |  | 24 |  |  |  | 13 |
Tax (5) |  |  | 75 |  |  |  | 1,228 |  |  |  | (5 | )
Other |  |  | 22 |  |  |  | 12 |  |  |  | 1 |
|  |  | 186 |  |  |  | 1,400 |  |  |  | 51 |
|  |  | 370 |  |  |  | 2,337 |  |  |  | 311 |
Adjustment for losses |  |  |  |  |  |  |  |  |  |  |  |
Put option – RME and LEPSA |  |  | — |  |  |  | — |  |  |  | 48 |
Put option – SAAG (Note 31) |  |  | 53 |  |  |  | 64 |  |  |  | 107 |
|  |  | 53 |  |  |  | 64 |  |  |  | 155 |
|  |  | 423 |  |  |  | 2,401 |  |  |  | 466 |
(1) | The expected losses on receivables are presented as selling expenses in the Statement of Income.
(2) | The estimated losses on other accounts receivable are presented in the consolidated Statement of income as operating expenses.
(3) | Estimated losses on accounts receivable from Renova, as a result of the assessment of the jointly-controlled entity credit risk.
(4) | The provisions for contingencies of the holding company are presented in the consolidated statement of income for the year as operating expenses.
(5) | The provision recognized in 2019 is due to the Company’s reassessment, based on the opinion of its legal advisers, of the probability of loss in legal actions disputing social security contributions on the payments of profit-sharing to its employees from 1999 to 2016. For more information, see note 25.
e) | Construction costs
|  | 2020 |  | 2019 |  | 2018
Personnel and managers |  |  | 83 |  |  |  | 85 |  |  |  | 70 |
Materials |  |  | 775 |  |  |  | 595 |  |  |  | 379 |
Outsourced services |  |  | 598 |  |  |  | 421 |  |  |  | 364 |
Others |  |  | 125 |  |  |  | 99 |  |  |  | 84 |
|  |  | 1,581 |  |  |  | 1,200 |  |  |  | 897 |
f) | Other operating expenses (revenues), net
|  | 2020 |  | 2019 (Restated) |  | 2018
Leasing and rentals |  |  | 11 |  |  |  | 20 |  |  |  | 93 |
Advertising |  |  | 7 |  |  |  | 9 |  |  |  | 19 |
Own consumption of energy |  |  | 24 |  |  |  | 21 |  |  |  | 27 |
Subsidies and donations |  |  | 22 |  |  |  | 40 |  |  |  | 22 |
Onerous concession |  |  | 3 |  |  |  | 3 |  |  |  | 3 |
Insurance |  |  | 25 |  |  |  | 12 |  |  |  | 7 |
CCEE annual charge |  |  | 6 |  |  |  | 6 |  |  |  | 6 |
Net loss (gain) on deactivation and disposal of assets |  |  | 81 |  |  |  | 88 |  |  |  | 7 |
Forluz – Administrative running cost |  |  | 30 |  |  |  | 30 |  |  |  | 28 |
Collection agents |  |  | 86 |  |  |  | 88 |  |  |  | 78 |
Obligations deriving from investment contracts (1) |  |  | 9 |  |  |  | 32 |  |  |  | — |
Taxes and charges |  |  | 7 |  |  |  | 10 |  |  |  | 9 |
Other expenses (2) |  |  | (14 | ) |  |  | 135 |  |  |  | 106 |
|  |  | 297 |  |  |  | 494 |  |  |  | 405 |
| (1) | 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$119 (R$98 on December 31, 2019), of which Cemig is responsible for R$41 (R$32 on December 31, 2019).
| (2) | Includes the impairment loss recognized for intangible asset relating to the authorization for wind power generation granted to Volta do Rio in the amount of R$22.

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