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18. INTANGIBLE ASSETS (Tables)
 12 Months Ended
Dec. 31, 2020
Disclosure of detailed information about intangible assets [abstract]  
Schedule of composition of intangible assets

The composition of the balance at December 31, 2020 and 2019 is as follow:

 

    2020     2019  
    Historical cost     Accumulated amortization     Residual value     Historical cost     Accumulated amortization     Residual value  
In service                                                
Useful life defined                                                
Temporary easements     13       (4 )     9       12       (4 )     8  
Onerous concession     19       (13 )     6       20       (13 )     7  
Assets of concession (1)     20,781       (9.107 )     11,674       20,039       (8,522 )     11,517  
Others     78       (70 )     8       77       (67 )     10  
      20,891       (9,194 )     11,697       20,148       (8,606 )     11,542  
In progress     113       —         113       82       —         82  
Net intangible assets     21,004       (9,194 )     11,810       20,230       (8,606 )     11,624

 

(1) The rights of authorization to generate wind power granted to the subsidiary Parajuru and Volta do Rio, at the net value of R$128, and of the gas distribution concession, granted to Gasmig, valued at R$412, are classified in the consolidated statement of financial position under intangibles assets and are amortized by the straight-line method, for the period of the concessions.
Schedule of changes in intangible assets

Changes in Intangible assets are as follow:

 

    2019     Additions     Disposals (1)     Amortization     Transfers (2)     2020  
In service                                                
Useful life defined                                                
Temporary easements     8       —         —         —         1       9  
Onerous concession     7       —         —         (1 )     —         6  
Assets of concession     11,517       —         (24 )     (738 )     919       11,674  
Others     10       —         —         (5 )     3       8  
      11,542       —         (24 )     (744 )     923       11,697  
In progress     82       41       —         —         (10 )     113  
Net intangible assets     11,624       41       (24 )     (744 )     913       11,810  
(1) This includes the impairment reversal, in the amount of R$14, recognized in the Income Statement under “Other expenses”, as a result of the test of impairment of intangible assets, relating to the authorization for wind power generation granted to Volta do Rio, on December 31, 2020. More information is available on this note.
(2) The transfers were made between Intangible assets, concession contract assets, financial assets and property, plant and equipment are as follows: (1) R$906 from concession contract assets to intangible assets; (2) R$2 from property, plant and equipment to intangible assets; and (3) R$5 from concession financial asset to intangible assets.
    2018   Additions   Disposals (1)   Amortization   Transfers (2)   2019
In service                                                
Useful life defined                                                
Temporary easements     9       —         —         (1 )     —         8  
Onerous concession     7       —         —         —         —         7  
Assets of concession     10,680       891       (41 )     (698 )     685       11,517  
Others     18       7       —         (5 )     (10 )     10  
      10,714       898       (41 )     (704 )     675       11,542  
In progress     63       36       —         —         (17 )     82  
Net intangible assets     10,777       934       (41 )     (704 )     658       11,624  
(1) This includes the impairment, in the amount of R$22 recognized in the Income Statement under “Other expenses”. The test of impairment of intangible assets, relating to the authorization for wind power generation granted to Volta do Rio, recognized in 2018 as part of the its business combination, arises from non-achievement of the operational performance expected in 2019 for the wind generation assets of the subsidiary. The Value in Use of the assets was calculated based on the projection of future expected cash flows for the operation of the assets of the subsidiary, brought to present value by the weighted average cost of capital defined for the company’s activity, using the Firm Cash Flow (FCFF) methodology.
(2) The transfers were made between Intangible assets, concession contract assets and property, plant and equipment are as follows: (1) R$685 from concession contract assets to intangible assets; (2) (R$4) from intangible assets to property, plant and equipment and; and (3) (R$23) from intangible assets to concession financial assets.
    2017   Assets arising from business combination   Additions   Disposals   Effects of first-time adoption of IFRS 15   Amortization   Transfer to Held for sale   Transfers   2018
In service                                                                        
Useful life defined                                                                        
Temporary easements     10       —         —         —         —         (1 )     —         —         9  
Onerous concession     8       —         —         —         —         (1 )     —         —         7  
Assets of concession     10,435       162       —         (23 )     —         (668 )     —         774       10,680  
Others     17       4       1       —         —         (5 )     (7 )     8       18  
      10,470       166       1       (23 )     —         (675 )     (7 )     782       10,714  
In progress     686       —         33       (4 )     (621 )     —         —         (31 )     63  
Net intangible assets     11,156       166       34       (27 )     (621 )     (675 )     (7 )     751       10,777
Schedule of disclosure of intangible assets principal amortization rates

The main amortization rates, which take into account the useful life that management expects for the asset, and reflect the expected pattern of their consumption, are as follows:

 

Energy   (%)   Administration   (%)
System cable – below 69 KV     6.67     Software     20.00  
System cable – below 69 KV     3.57     Vehicles     14.29  
Structure – Posts     3.57     General equipment     6.25  
Overhead distribution transformer     4.00     Buildings     3.33  
Circuit breaker – up to 69 kV     3.03              
Capacitor bank – up to 69 kV     6.67              
Voltage regulator – up to 69 kV     4.35              
             
Gas   (%)   Administration   (%)
Tubing     3.33     Software     20.00  
Buildings, works and improvements     4.00     Vehicles     20.00  
Improvements in leased properties     10.00     Data processing equipment     20.00  
Machinery and equipment     5.00 a 20.00     Furniture     10.00  

 

The annual average amortization rate is 4.05%. The segregation by activity is as follows:

 

Hydroelectric Generation   Wind Power Generation   Gas   Distribution   Administration
  9.06 %     8.88 %     3.48 %     3.90 %     15.74 %
Schedule of based on the data supplied

Based on the data supplied by CCEE to Aneel, the Company’s plants will have the right to the following periods of extension:

 

Power plant  

Physical Guarantee

 (average MW)

  

Concession extension

 (months)

Emboração     500       23  
Nova Ponte     270       25  
Sá Carvalho     56       22  
Rosal     29       46  
Others (1)     399       —    
                 
(1) Includes 11 power plants, of which 7 are owned by Cemig GT, 1 is owned by Cemig PCH and 3 are owned by Horizontes. The average concession extension in months varies between 1 and 84 months.