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14. CONCESSION FINANCIAL AND SECTOR ASSETS AND LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2020

Disclosure Of Financial Assets And Liabilities Of The Concession [abstract]

Schedule of financial assets and liabilities of concession

Concession financial assets		2020				2019 (Restated)				01/01/2019 (Restated)
Concession financial assets related to the infrastructure
Energy distribution concession (14.1)			530				460				396
Gas distribution concession (14.1)			29				24				—
Indemnifiable receivable – Generation (14.2)			816				816				816
Concession grant fee – Generation concessions (14.3)			2,549				2,468				2,409
			3,924				3,768				3,621
Sector financial assets
Amounts receivable from Parcel A (CVA) and Other Financial Components (14.4)			133				882				1,081
Total			4,058				4,650				4,702

Current assets			258				891				890
Non-current assets			3,799				3,759				3,812

Concession sector liabilities		2020				2019
Amounts receivable from Parcel A (CVA) and Other Financial Components (14.4)			231				—
Total			231				—

Current liabilities			231				—
Non-current liabilities			—				—

Schedule of changes in concession financial assets related to infrastructure

The changes in concession financial assets related to infrastructure are as follows:

		Transmission				Generation				Distribution				Gas				Total
Balances at January 1st 2018 (Restated)			—				4,238				371				—				4,609
Amounts received			—				(1,389	)			—				—				(1,389	)
Transfers from PP&E			—				—				27				—				27
Others transfers			—				(1	)			(1	)			—				(2	)
Monetary updating			—				377				—				—				377
Disposals			—				—				(1	)			—				(1	)
Balances at January 1, 2019 (Restated)			—				3,225				396				—				3,621
Amounts received			—				(259	)			—				—				(259	)
Transfers from contract assets			—				—				48				—				48
Transfers from (to) intangible assets			—				—				(1	)			24				23
Monetary updating			—				318				18				—				336
Disposals			—				—				(1	)			—				(1	)
Balances at December 31, 2019 (Restated)			—				3,284				460				24				3,768
Amounts received			—				(266	)			—				—				(266	)
Transfers from contract assets			—								60								60
Transfers from (to) intangible assets			—								(5	)							(5	)
Monetary updating			—				347				15				5				367
Balances at December 31, 2020			—				3,365				530				29				3,924

Schedule of generation indemnity receivable

These balances are recorded as financial assets at fair value through profit or loss, and totaled R$816 on December 31, 2020 and 2019.

Generation plant		Concession expiration date		Installed capacity (MW)				Net balance of assets based on historical cost				Net balance of assets based on fair value (replacement cost)

Lot D
UHE Tress Marias		July 2015			396				71				413
UHE Salto Grande		July 2015			102				11				39
UHE Itutinga		July 2015			52				3				7
UHE Camargos		July 2015			46				8				23
PCH Piau		July 2015			18.01				2				9
PCH Gafanhoto		July 2015			14				1				10
PCH Peti		July 2015			9.4				1				8
PCH Dona Rita		Sep. 2013			2.41				1				1
PCH Tronqueiras		July 2015			8.5				2				12
PCH Joasal		July 2015			8.4				1				8
PCH Martins		July 2015			7.7				2				4
PCH Cajuru		July 2015			7.2				4				4
PCH Paciência		July 2015			4.08				1				4
PCH Marmelos		July 2015			4				1				4
Others
UHE Volta Grande		Feb. 2017			380				26				70
UHE Miranda		Dec. 2016			408				27				23
UHE Jaguara		Aug. 2013			424				40				174
UHE São Simão		Jan. 2015			1,710				2				3
					3,601.70				204				816

Schedule of auction won transferred to related specific purpose companies

The changes in these concession financial assets are as follows:

SPE		Plants		2019				Monetary updating				Amounts received				2020
Cemig Geração Três Marias S.A.		Três Marias			1,402				188				(143	)			1,447
Cemig Geração Salto Grande S.A.		Salto Grande			440				59				(45	)			454
Cemig Geração Itutinga S.A.		Itutinga			165				25				(19	)			171
Cemig Geração Camargos S.A.		Camargos			124				18				(14	)			128
Cemig Geração Sul S.A.		Coronel Domiciano, Joasal, Marmelos, Paciência and Piau			161				26				(20	)			167
Cemig Geração Leste S.A.		Dona Rita, Ervália, Neblina, Peti, Sinceridade and Tronqueiras			110				19				(15	)			114
Cemig Geração Oeste S.A.		Cajurú, Gafanhoto and Martins			66				12				(9	)			69
Total					2,468				347				(265	)			2,550

SPE		Plants		2018				Monetary updating				Amounts received				2019
Cemig Geração Três Marias S.A.		Três Marias			1,370				171				(139	)			1,402
Cemig Geração Salto Grande S.A.		Salto Grande			430				54				(44	)			440
Cemig Geração Itutinga S.A.		Itutinga			161				23				(19	)			165
Cemig Geração Camargos S.A.		Camargos			120				17				(13	)			124
Cemig Geração Sul S.A.		Coronel Domiciano, Joasal, Marmelos, Paciência and Piau			157				24				(20	)			161
Cemig Geração Leste S.A.		Dona Rita, Ervália, Neblina, Peti, Sinceridade and Tronqueiras			107				18				(15	)			110
Cemig Geração Oeste S.A.		Cajurú, Gafanhoto and Martins			64				11				(9	)			66
Total					2,409				318				(259	)			2,468

SPE		Plants		2017				Monetary updating				Amounts received				2018
Cemig Geração Três Marias S.A.		Três Marias			1,330				174				(134	)			1,370
Cemig Geração Salto Grande S.A.		Salto Grande			417				55				(42	)			430
Cemig Geração Itutinga S.A.		Itutinga			156				23				(18	)			161
Cemig Geração Camargos S.A.		Camargos			116				17				(13	)			120
Cemig Geração Sul S.A.		Coronel Domiciano, Joasal, Marmelos, Paciência and Piau			152				24				(19	)			157
Cemig Geração Leste S.A.		Dona Rita, Ervália, Neblina, Peti, Sinceridade and Tronqueiras			103				18				(14	)			107
Cemig Geração Oeste S.A.		Cajurú, Gafanhoto and Martins			63				11				(10	)			64
Total					2,337				322				(250	)			2,409

Schedule of financial assets and financial liabilities with the tariff adjustments

The balance of these sector financial assets and liabilities, which are presented at net value, in assets or liabilities, in accordance with the tariff adjustments that have been authorized, are as follows:

Financial position		2020												2019
Financial position		Amounts ratified by Aneel in the last tariff adjustment				Amounts to be ratified by Aneel in the next tariff adjustments				Total				Amounts ratified by Aneel in the last tariff adjustment				Amounts to be ratified by Aneel in the next tariff adjustments				Total
Assets			84				1,562				1,646				1,286				2,144				3,430
Current assets			84				834				918				1,286				1,269				2,555
Non-current assets			—				728				728				—				875				875

Liabilities			(246	)			(1,498	)			(1,744	)			(882	)			(1,666	)			(2,548	)
Current liabilities			(246	)			(903	)			(1,149	)			(882	)			(1,033	)			(1,915	)
Non-current liabilities			—				(595	)			(595	)			—				(633	)			(633	)

Total current, net			(162	)			(69	)			(231	)			404				236				640
Total non-current, net			—				133				133				—				242				242
Total, net			(162	)			64				(98	)			404				478				882

Financial components		2020												2019
Financial components		Amounts ratified by Aneel in the last tariff adjustment				Amounts to be ratified by Aneel in the next tariff adjustments				Total				Amounts ratified by Aneel in the last tariff adjustment				Amounts to be ratified by Aneel in the next tariff adjustments				Total
Items of ‘Parcel A’
Energy Development Account (CDE) quota			1				—				1				119				29				148
Tariff for use of transmission facilities of grid participants			1				218				219				(18	)			114				96
Tariff for transport of Itaipu supply			—				18				18				9				16				25
Alternative power source program (Proinfa)			—				6				6				11				(6	)			5
ESS/EER System Service/Energy Charges			(1	)			39				38				(161	)			(136	)			(297	)
Energy bought for resale			4				449				453				661				632				1,293

Other financial components
Over contracting of supply (1)			(56	)			165				109				(84	)			216				132
Neutrality of Parcel A			(3	)			110				107				(30	)			(12	)			(42	)
Other financial items			(86	)			(899	)			(985	)			(71	)			(206	)			(277	)
Tariff Flag balances			—				—				—				—				(103	)			(103	)
Excess demand and reactive power			(22	)			(42	)			(64	)			(32	)			(66	)			(98	)
TOTAL			(162	)			64				(98	)			404				478				882

(1)

The wholly-owned subsidiary Cemig D was over contracted in 2017 and 2018 and the gain arising from the sale of the excess of energy in the spot market was provisionally passed through to customers by Aneel in the tariff adjustments of 2018 and 2019, including the portion in excess of the limit of 105% of the regulatory load – thus reducing the tariff that was determined. To establish whether this is a voluntary over contracting, the Company considers that the portion above the regulatory limit will be recovered in the subsequent tariff adjustment. On August 27, 2020, Aneel published the Dispatch 2,508/2020-SRM-SGT, which set new amounts for distributors’ over contracting for the years 2016 and 2017, based on a new valuation criterion established by Aneel Technical Note 97/2020-SRM-SGT – not contained in the regulatory rules which were currently in force. As a result, Cemig D filed an appeal with the Council of Aneel, for the amounts of distribution agents’ over contracting to be reset in accordance with the calculation criteria based on maximum effort contained in Aneel Normative Resolution 453/2011. The Company’s position on this case is reinforced by the fact that the Brazilian Energy Distributors’ Association (Abradee) filed a similar appeal, supported by the opinion of contracted legal advisers. The Company has no expectation of loss in relation to realization of these amounts. The Company recognizes this receivable asset, in the amount of R$222 on December 31, 2020, as ‘Other financial components’ to be ratified. At the reporting date for this financial statements, this matter was pending analysis by Aneel.

Schedule of changes in balances of financial assets and liabilities

Changes in balances of these sector assets and liabilities:

Balance at December 31, 2017			(46	)
Additions			1,638
Amortization			335
Others – R&D Reimbursement			(115	)
Payments from the Flag Tariff Centralizing Account			(794	)
Updating – Selic rate (Note 31)			62
Balance at December 31, 2018			1,080
Additions			724
Amortization			(666	)
Payments from the Flag Tariff Centralizing Account			(361	)
Updating – Selic rate (Note 31)			105
Balance at December 31, 2019			882
Additions			611
Amortization			(156	)
Payments from the Flag Tariff Centralizing Account			(63	)
Receipt funds of “Covid-account” (1)			(1,404	)
Updating – Selic rate (Note 29)			32
Balance at December 31, 2020			(98	)

(1)	The amount received via ‘Covid-account’ will be reversed in a negative financial component in the 2021 or 2022 tariff processes, as detailed in note 1.