XML 93 R72.htm IDEA: XBRL DOCUMENT v3.21.1

31. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Tables)

12 Months Ended

Dec. 31, 2020

Disclosure of detailed information about financial instruments [line items]

Schedule of financial instruments and fair value

The main financial instruments, classified in accordance with the accounting principles adopted by the Company, are as follows:

		Level				2020								2019 (Restated)
						Balance				Fair value				Balance				Fair value
Financial assets
Amortized cost (1)
Marketable securities – Cash investments			2				1,214				1,214				102				102
Accounts receivable from Customers and traders; Concession holders (transmission service)			2				4,534				4,534				4,601				4,601
Restricted cash			2				64				64				12				12
Accounts receivable from the State of Minas Gerais (AFAC)			2				12				12				115				115
Concession financial assets – CVA (Parcel ‘A’ Costs Variation Compensation) Account and Other financial components			3				133				133				882				882
Reimbursement of tariff subsidies			2				88				88				97				97
Low-income subsidy			2				43				43				30				30
Escrow deposits			2				1,056				1,056				2,540				2,540
Concession grant fee – Generation concessions			3				2,549				2,549				2,468				2,468
							9,693				9,693				10,847				10,847
Fair value through profit or loss
Cash equivalents – Cash investments							1,587				1,587				326				326
Marketable securities
Bank certificates of deposit (CDBs)							545				545				—				—
Treasury Financial Notes (LFTs)			1				731				731				94				94
Financial Notes – Banks			2				1,635				1,635				557				557
							4,498				4,498				977				977
Derivative financial instruments (Swaps)			3				2,949				2,949				1,691				1,691
Derivative financial instruments (Ativas and Sonda Put options)			3				3				3				3				3
Concession financial assets – Distribution infrastructure			3				559				559				484				484
Indemnifiable receivable – Generation			3				816				816				816				816
							8,825				8,825				3,971				3,971
							18,518				18,518				14,818				14,818
Financial liabilities
Amortized cost (1)
Loans, financing and debentures			2				(15,020	)			(15,020	)			(14,777	)			(14,777	)
Debt with pension fund (Forluz)			2				(473	)			(473	)			(566	)			(566	)
Deficit of pension fund (Forluz)			2				(540	)			(540	)			(550	)			(550	)
Concessions payable			3				(23	)			(23	)			(20	)			(20	)
Suppliers			2				(2,358	)			(2,358	)			(2,080	)			(2,080	)
Leasing transactions			2				(227	)			(227	)			(288	)			(288	)
Sector financial liabilities			2				(231	)			(231	)			—				—
							(18,872	)			(18,872	)			(18,281	)			(18,281	)
Fair value through profit or loss
Derivative financial instruments (SAAG put options)			3				(536	)			(536	)			(483	)			(483	)
							(536	)			(536	)			(483	)			(483	)
							(19,408	)			(19,408	)			(18,764	)			(18,764	)

(1) On December 31, 2020 and 2019, the book values of financial instruments reflect their fair values.

Schedule of net liabilities in relation to its equity

On December 31, 2020 and 2019, the options values were as follows:

		2020				2019
Put option – SAAG			536				483
Put / call options – Ativas and Sonda			(3	)			(3	)
			533				480

Schedule of changes in value of options

The changes in the value of the options are as follows:

Balance at December 31, 2017			312
Adjustment to fair value			107
Balance at December 31, 2018			419
Adjustment to fair value			64
Balance at December 31, 2019			483
Adjustment to fair value			53
Balance at December 31, 2020			536

Schedule of derivative instruments contracted

This table presents the derivative instruments contracted by Company as of December 31, 2020 and 2019:

											Unrealized gain / loss								Unrealized gain / loss
Assets (1)		Liability (1)		Maturity period		Trade market		Notional amount (2)			Carrying amount 2020				Fair value 2020				Carrying amount 2019				Fair value 2019
US$ exchange variation + Rate (9.25% p.y.)		Local currency + R$ 150.49% of CDI		Interest: Half-yearly Principal: Dec. 2024		Over the counter		US$1,000			1,772				2,110				814				1,235
US$ exchange variation + Rate (9.25% p.y.)		Local currency + R$125.52% of CDI		Interest: Half-yearly Principal: Dec. 2024		Over the counter		US$500			588				839				108				456
											2,360				2,949				922				1,691
Current asset															523								235
Non-current asset															2,426								1,456

1) For the US$1 billion Eurobond issued on December 2017: (i) for the principal, a call spread was contracted, with floor at R$ 3.25/US$ and ceiling at R$ 5.00/US$; and (ii) a swap was contracted for the total interest, for a coupon of 9.25% p.a. at an average rate equivalent to 150.49% of the CDI. For the additional US$500 issuance of the same Eurobond issued on July 2018: (1) a call spread was contracted for the principal, with floor at R$ 3.85/US$ and ceiling at R$ 5.00/US$; and (2) a swap was contracted for the interest, resulting in a coupon of 9.25% p.a., with an average rate equivalent to 125.52% of the CDI rate The upper limit for the exchange rate in the hedge instrument contracted by the Company for the principal of the Eurobonds is R$ 5.00/US$. The instrument matures in December 2024. If the USD/BRL exchange rate is still over R$ 5.00 in December 2024, the company will disburse, on that date, the difference between the upper limit of the protection range and the spot dollar on that date. The Company is monitoring the possible risks and impacts associated with the dollar being valued above R$ 5.00, and assessing various strategies for mitigating the foreign exchange risk up to the maturity date of the transaction. The hedge instrument fully protects the payment of six-monthly interest, independently of the USD/BRL exchange rate.

2) In millions of US$.

Schedule of exposure to exchange rates

This exposure occurs as a result of net assets (liabilities) indexed to variation in interest rates, as follows:

Risk: Exposure to domestic interest rate changes		2020				2019
Assets
Cash equivalents – Cash investments (Note 6) – CDI			1,587				326
Marketable securities (Note 7) – CDI / SELIC			4,125				753
Restricted cash – CDI			64				12
CVA and in tariffs (Note 14) – SELIC			133				882
			5,909				1,973
Liabilities
Loans, financing and debentures (Note 22) – CDI			(2,310	)			(3,773	)
Loans, financing and debentures (Note 22) – TJLP			(73	)			(244	)
Sector financial liabilities (note 14)			(231	)			—
			(2,614	)			(4,017	)
Net assets (liabilities) exposed			3,295				(2,044	)

Schedule of exposure to exchange rates

The Company has made a sensitivity analysis of the effects on its net income arising from increases in rates of 25% and 50% in relation to the ‘probable’ scenario. Fluctuation in the CDI rate accompanies the fluctuation of Selic rate.

Risk: Increase in Brazilian interest rates		2020				2021
		Book value				‘Probable’ scenario Selic 5.50% TJLP 4.87%				‘Possible’ scenario Selic 4.13% TJLP 3.65%				‘Remote’ scenario Selic 2.75% TJLP 2.44%
Assets
Cash equivalents (Note 6)			1,587				1,674				1,653				1,631
Marketable securities (Note 7)			4,125				4,352				4,295				4,238
Restricted cash			64				68				67				66
CVA and Other financial components – SELIC (note 14)			133				140				138				137
			5,909				6,234				6,153				6,072
Liabilities
Loans and financing (Note 22) – CDI			(2,310	)			(2,437	)			(2,405	)			(2,374	)
Loans and financing (Note 22) – TJLP			(73	)			(77	)			(76	)			(75	)
Sector financial liabilities (note 14)			(231	)			(244	)			(241	)			(237	)
			(2,614	)			(2,758	)			(2,722	)			(2,686	)
Net assets (liabilities) exposed			3,295				3,476				3,431				3,386
Net effect of fluctuation in interest rates							181				136				91

Schedule of risk of increase in inflation

This table presents the Company’s net exposure to inflation index:

Exposure to increase in inflation		2020				2019
Assets
Concession financial assets  related to Distribution infrastructure - IPCA (1)			559				484
Receivable from Minas Gerais state government (AFAC) – IGPM (Note 11 and 30)			12				115
Concession Grant Fee – IPCA (Note 14)			2,549				2,468
			3,120				3,067
Liabilities
Loans, financing and debentures – IPCA and IGP-DI (Note 22)			(4,863	)			(4,730	)
Debt with pension fund (Forluz) – IPCA			(473	)			(566	)
Deficit of pension plan (Forluz) – IPCA			(540	)			(550	)
			(5,876	)			(5,846	)
Net assets (liabilities) exposed			(2,756	)			(2,779	)

(1) Portion of the concession financial assets relating to the Regulatory Remuneration Base of Assets ratified by the grantor (Aneel) after the 4^rd tariff review cycle.

The Company has prepared a sensitivity analysis of the effects on its net income arising from an increase in inflation of 25% and 50% in relation to the ‘probable’ scenario.

Risk: increase in inflation		2019				2020
		Amount Book value				‘Probable’ scenario  IPCA 4.53%  IGPM 11.65%				‘Possible’ scenario (25%) IPCA 5.66%  IGPM 14.56%				‘Remote’ scenario (50%)  IPCA 6.80%  IGPM 17.48%
Assets
Concession financial assets  related to Distribution infrastructure – IPCA (1)			559				584				591				597
Accounts receivable from Minas Gerais state government (AFAC) – IGPM index (Note 30)			12				13				14				14
Concession Grant Fee – IPCA (Note 14)			2,549				2,664				2,693				2,722
			3,120				3,261				3,298				3,333
Liabilities
Loans, financing and debentures – IPCA and IGP-DI			(4,863	)			(5,083	)			(5,138	)			(5,194	)
Debt agreed with pension fund (Forluz) – IPCA			(473	)			(494	)			(500	)			(505	)
Deficit of pension plan (Forluz)			(540	)			(564	)			(571	)			(577	)
			(5,876	)			(6,141	)			(6,209	)			(6,276	)
Net liability exposed			(2,756	)			(2,880	)			(2,911	)			(2,943	)
Net effect of fluctuation in IPCA and IGP–M indices							(124	)			(155	)			(187	)

(1) Portion of the Concession financial assets relating to the Regulatory Remuneration Base of Assets ratified by the grantor (Aneel) after the 4^rd tariff review cycle.

Schedule of flow of payments of the company's obligations for debt agreed, financings and debentures for floating and fixed rates including the interest specified in contracts

The flow of payments of the Company’s obligation to suppliers, debts with the pension fund, loans, financing and debentures, at floating and fixed rates, including future interest up to contractual maturity dates, is as follows:

		Up to 1 month				1 to 3 months				3 months to 1 year				1 to 5 years				Over 5 years				Total
Financial instruments at (interest rates):
- Floating rates
Loans, financing and debentures			79				1,291				1,638				12,845				1,842				17,695
Onerous concessions			—				1				2				11				14				28
Debt with pension plan (Forluz) (Note 24)			13				25				115				406				—				559
Deficit of the pension plan (FORLUZ) (Note 24)			6				11				51				295				522				885
			98				1,328				1,806				13,557				2,378				19,167
- Fixed rate
Suppliers			2,138				218				2				—				—				2,358
			2,236				1,546				1,808				13,557				2,378				21,525

Schedule of credit exposure

Banks that exceed these thresholds are classified in three groups, in accordance with their equity value, plus a specific segment comprising those whose credit risk is associated only with federal government, and within this classification, limits of concentration by group and by institution are set:

Group		Equity		Limit per bank (% of equity)*
Federal Risk (FR)		-		10%
A1		Over R$ 3.5 billion		Between 6% and 9%
A2		R$ 1.0 billion to R$ 3.5 billion		Between 5% and 8%
A3		R$ 400 to R$ 1.0 billion		Between 0% and 7%

Schedule of net liabilities in relation to its equity

This table shows comparisons of the Company’s net liabilities and its Equity on December 31, 2020 and 2019:

		2020				2019  (Restated)
Total liabilities			36,605				34,423
(–) Cash and cash equivalents			(1,680	)			(536	)
(–) Restricted cash			(64	)			(12	)
Net liabilities			34,861				33,875
Total equity			17,478				16,103
Net liabilities / equity			1.99				2.10

Fair value hedges [member]

Disclosure of detailed information about financial instruments [line items]

Schedule of fair value of derivative hedge instrument

Company has measured the effects on its net income of reduction of the estimated fair value for the ‘probable’ scenario, analyzing sensitivity for the risks of interest rates, exchange rates and volatility changes, by 25% and 50%, as follows:

		Base scenario Dec. 31, 2020				‘Probable’   scenario:				‘Possible’ scenario exchange rate depreciation and interest rate increase 25%				‘Remote’ scenario:   exchange rate depreciation and interest rate increase 50%
Swap (asset)			6,996				6,616				5,866				5,147
Swap (liability)			(5,607	)			(5,519	)			(5,595	)			(5,668	)
Option / Call spread			1,560				1,708				1,019				338
Derivative hedge instrument			2,949				2,805				1,290				(183	)

Interest rate risk [member]

Disclosure of detailed information about financial instruments [line items]

Schedule of estimation of company interest rate

This exposure occurs as a result of net assets (liabilities) indexed to variation in interest rates, as follows:

Risk: Exposure to domestic interest rate changes		2020				2019
Assets
Cash equivalents – Cash investments (Note 6) – CDI			1,587				326
Marketable securities (Note 7) – CDI / SELIC			4,125				753
Restricted cash – CDI			64				12
CVA and in tariffs (Note 14) – SELIC			134				882
			5,910				1,973
Liabilities
Loans, financing and debentures (Note 22) – CDI			(2,310	)			(3,773	)
Loans, financing and debentures (Note 22) – TJLP			(73	)			(244	)
Sector financial liabilities (note 14)			(231	)			—
			(2,614	)			(4,017	)
Net assets (liabilities) exposed			3,296				(2,044	)

The Company has made a sensitivity analysis of the effects on its net income arising from increases in rates of 25% and 50% in relation to the ‘probable’ scenario. Fluctuation in the CDI rate accompanies the fluctuation of Selic rate.

Risk: Increase in Brazilian interest rates		2020				2021
		Book value				‘Probable’ scenario Selic 5.50%  TJLP 4.87%				‘Possible’ scenario  Selic 4.13% TJLP 3.65%				‘Remote’ scenario  Selic 2.75%  TJLP 2.44%
Assets
Cash equivalents (Note 6)			1,587				1,674				1,653				1,631
Marketable securities (Note 7)			4,125				4,352				4,295				4,238
Restricted cash			64				68				67				66
CVA and Other financial components – SELIC (note 14)			134				141				140				138
			5,910				6,235				6,155				6,073
Liabilities
Loans and financing (Note 22) – CDI			(2,310	)			(2,437	)			(2,405	)			(2,374	)
Loans and financing (Note 22) – TJLP			(73	)			(77	)			(76	)			(75	)
Sector financial liabilities (note 14)			(231	)			(244	)			(241	)			(237	)
			(2,614	)			(2,758	)			(2,722	)			(2,686	)
Net assets (liabilities) exposed			3,296				3,477				3,433				3,387
Net effect of fluctuation in interest rates							181				137				91

X

- Definition

Disclosure of derivative financial instruments contracted [text block]

+ References

No definition available.

+ Details

Name:	cig_DisclosureOfDerivativeFinancialInstrumentsContractedExplanatory
Namespace Prefix:	cig_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Disclosure Of Detailed Information On Risk Of Increase In Inflation.

+ References

No definition available.

+ Details

Name:	cig_DisclosureOfDetailedInformationOnRiskOfIncreaseInInflationExplanatory
Namespace Prefix:	cig_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of effect of changes in foreign exchange rates gain loss explanatory.

+ References

No definition available.

+ Details

Name:	cig_DisclosureOfEffectOfChangesInForeignExchangeRatesGainLossExplanatory
Namespace Prefix:	cig_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of the credit risk exposure. Credit risk exposure is the credit risk inherent in an entity’s financial assets and commitments to extend credit.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 7
-IssueDate 2020-01-01
-Paragraph 35M
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2020-en-r&anchor=para_35M&doctype=Standard
-URIDate 2020-01-01

+ Details

Name:	ifrs-full_DisclosureOfCreditRiskExposureExplanatory
Namespace Prefix:	ifrs-full_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of detailed information about hedges.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Note Expiry date 2021-01-01
-Name IFRS
-Number 7
-IssueDate 2020-01-01
-Paragraph 22
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2017-en-b&anchor=para_22&doctype=Standard&book=b
-URIDate 2020-01-01

+ Details

Name:	ifrs-full_DisclosureOfDetailedInformationAboutHedgesExplanatory
Namespace Prefix:	ifrs-full_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for the effect of changes in foreign exchange rates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 21
-IssueDate 2020-01-01
-Section Disclosure
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=21&code=ifrs-tx-2020-en-r&doctype=Standard&dita_xref=IAS21_g51-57_TI
-URIDate 2020-01-01

+ Details

Name:	ifrs-full_DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory
Namespace Prefix:	ifrs-full_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of the fair value of financial instruments. [Refer: Financial instruments, class [member]; At fair value [member]]

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Name IAS
-Number 1
-IssueDate 2020-01-01
-Paragraph 10
-Subparagraph e
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2020-en-r&anchor=para_10_e&doctype=Standard
-URIDate 2020-01-01

+ Details

Name:	ifrs-full_DisclosureOfFairValueOfFinancialInstrumentsExplanatory
Namespace Prefix:	ifrs-full_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of financial instruments by type of interest rate. [Refer: Financial instruments, class [member]]

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Name IFRS
-Number 7
-IssueDate 2020-01-01
-Paragraph 39
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2020-en-r&anchor=para_39&doctype=Standard
-URIDate 2020-01-01

+ Details

Name:	ifrs-full_DisclosureOfFinancialInstrumentsByTypeOfInterestRateExplanatory
Namespace Prefix:	ifrs-full_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Line items represent concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes of the table.

+ References

No definition available.

+ Details

Name:	ifrs-full_DisclosureOfFinancialInstrumentsLineItems
Namespace Prefix:	ifrs-full_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of financial liabilities. [Refer: Financial liabilities]

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 7
-IssueDate 2020-01-01
-Paragraph 7
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2020-en-r&anchor=para_7&doctype=Standard
-URIDate 2020-01-01

+ Details

Name:	ifrs-full_DisclosureOfFinancialLiabilitiesExplanatory
Namespace Prefix:	ifrs-full_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of information about the methods, inputs and assumptions used for measuring obligations for returns, refunds and other similar obligations in contracts with customers.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 15
-IssueDate 2020-01-01
-Paragraph 126
-Subparagraph d
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=15&code=ifrs-tx-2020-en-r&anchor=para_126_d&doctype=Standard
-URIDate 2020-01-01

+ Details

Name:	ifrs-full_DisclosureOfInformationAboutMethodsInputsAndAssumptionsUsedForMeasuringObligationsForReturnsRefundsAndOtherSimilarObligationsExplanatory
Namespace Prefix:	ifrs-full_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for the change in a redemption prohibition that leads to a transfer between financial liabilities and equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRIC
-Number 2
-IssueDate 2020-01-01
-Section Disclosure
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRIC&num=2&code=ifrs-tx-2020-en-r&doctype=Standard&dita_xref=IFRIC02_g13-13_TI
-URIDate 2020-01-01

+ Details

Name:	ifrs-full_DisclosureOfRedemptionProhibitionTransferBetweenFinancialLiabilitiesAndEquityExplanatory
Namespace Prefix:	ifrs-full_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of summary quantitative data about the entity's exposure to risks arising from financial instruments. This disclosure shall be based on the information provided internally to key management personnel of the entity, for example, the entity’s board of directors or chief executive officer. [Refer: Financial instruments, class [member]; Key management personnel of entity or parent [member]]

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 7
-IssueDate 2020-01-01
-Paragraph 34
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2020-en-r&anchor=para_34_a&doctype=Standard
-URIDate 2020-01-01

+ Details

Name:	ifrs-full_SummaryQuantitativeDataAboutEntitysExposureToRisk
Namespace Prefix:	ifrs-full_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Details

Name:	ifrs-full_TypesOfHedgesAxis=ifrs-full_FairValueHedgesMember
Namespace Prefix:
Data Type:	na
Balance Type:
Period Type:

X

- Details

Name:	ifrs-full_TypesOfHedgesAxis=ifrs-full_InterestRateRiskMember
Namespace Prefix:
Data Type:	na
Balance Type:
Period Type: