
	2023							2022
	Historical cost		Accumulated amortization			Residual value		Historical cost		Accumulated amortization			Residual value
In service
Useful life defined
Temporary easements		15		(7	)		8		15		(6	)		9
Onerous concession		14		(10	)		4		14		(10	)		4
Assets of concession		25,217		(10,933	)		14,284		23,813		(10,258	)		13,555
Assets of concession - GSF		1,031		(334	)		697		1,032		(200	)		832
Others		139		(79	)		60		92		(77	)		15

		26,416		(11,363	)		15,053		24,966		(10,551	)		14,415
In progress		196		-			196		206		-			206

Net intangible assets		26,612		(11,363	)		15,249		25,172		(10,551	)		14,621

Changes in Intangible assets are as follow:


	2022		Additions		Disposals			Amortization			Transfers (1)			2023
In service
Useful life defined
Temporary easements		9		-		-			(1	)		-			8
Onerous concession		4		-		-			-			-			4
Assets of concession		13,555		3		(81	)		(914	)		1,721			14,284
Assets of concession - GSF		832		-		-			(135	)		-			697
Others		15		26		(10	)		(5	)		34			60

		14,415		29		(91	)		(1,055	)		1,755			15,053
In progress		206		158		(3	)		-			(165	)		196

Net intangible assets		14,621		187		(94	)		(1,055	)		1,590			15,249


	2021		Additions		Disposals			Amortization			Transfers (1)			2022
In service
Useful life defined
Temporary easements		10		-		-			(1	)		-			9
Onerous concession		5		-		-			(1	)		-			4
Assets of concession		11,807		-		(57	)		(817	)		2,622			13,555
Assets of concession - GSF		966		-		-			(134	)		-			832
Other		4		13		-			(3	)		1			15

		12,792		13		(57	)		(956	)		2,623			14,415
In progress		161		106		-			-			(61	)		206

Net intangible assets		12,953		119		(57	)		(956	)		2,562			14,621


	2020		Additions		Disposals			Amortization			Transfers (1)			2021
In service
Useful life defined
Temporary easements		9		-		-			(1	)		2			10
Onerous concession		6		-		-			(1	)		-			5
Assets of concession		11,674		-		(23	)		(757	)		913			11,807
Assets of concession - GSF		-		1,032		-			(66	)		-			966
Other		8		-		-			(4	)		-			4

		11,697		1,032		(23	)		(829	)		915			12,792
In progress		113		51		-			-			(3	)		161

Net intangible assets		11,810		1,083		(23	)		(829	)		912			12,953

(1)

The main transfers were made between concession contract assets to Intangible assets: in 2022 of R$2,448 (R$902 in 2021).

The energy and gas distribution infrastructure assets already in service and that will be fully amortized during the concession term are recorded as intangible assets. Assets linked to the infrastructure of the concession that are still under construction are posted initially as contract assets, as detailed in Note 14.

Under the regulations of the energy segment, property, plant and equipment used in the distribution concession are linked to these services, and cannot be withdrawn, disposed of, assigned or provided in guarantee without the prior express authorization of the Grantor.

ReH 2,919/2021 ratified the amounts of the right to compensation for the São Simão, Jaguara, Miranda and Volta Grande plants, which were owned by the Company during the period indicated in Law 14,052/2020 for compensation, but this Law does not specify how this will be carried out in the event of the absence of debts with the Union related to the concession regime determined in the Law. The amounts calculated are:

On December 21, 2023, the Company sent correspondence to the Ministry of Mines and Energy - MME, requesting recognition of the absence of a mechanism for compensation, in the hypothesis mentioned above, as well as the updating of the amounts contained in ReH No. 2,919/2021 and their conversion into an agreement to extend the terms of certain power plants under the Company's concession, under the terms of Law No. 14,052/2020.

Considering that there is no legal provision on how to compensate for non-hydrological risks and the Company's right depends on the occurrence of uncertain future events, which are not entirely under its control, the contingent assets relating to the plants listed in the table above were not recognized.

In compliance with the legal determinations contained in Copam Normative Decision 217/2017, the company's power plants and its subsidiaries have been going through the process of obtaining and renewing operating licenses.

The following facilities have obtained operating licenses: HPP Irapé, HPP Salto Grande, EOL Volta do Rio and HPP Pai Joaquim. Expenditure on environmental conditions, related to legal and regulatory requirements after the start-up of the projects, was estimated and recognized against intangible assets. The estimated costs of environmental conditions were brought to present value considering the incremental rate, taking into account the term of up to 10 years of the operating licenses, the period in which the asset will be amortized.

The Santa Luzia HPP, Jacutinga HPP, Salto Voltão HPP, Salto do Passo Velho HPP, Xicão HPP and Pissarrão HPP also obtained operating licenses, but no provisions were made for the costs of environmental conditions, since these plants are classified as assets held for sale.

In addition, the Luiz Dias HPP and Salto Moraes HPP also obtained operating licenses. Expenses related to legal and regulatory requirements after the projects come into operation are being calculated and estimated for provisioning against intangible assets in 2024.

These mainly include assets relating to the service concession contracts described above and software. They are measured at total acquisition cost, less amortization expenses and accumulated impairment losses, when applicable.

Any gain or loss resulting from the derecognition of intangible assets, corresponding to the difference between their book value and the net sale value, is recognized in the income statement.

The portion of the concession assets that will be fully amortized during the concession is classified as an intangible asset and amortized over the term of the concession contract, as provided for in IFRIC 12 - Concession Contracts.

Under the terms of Law 13.203/2015 and subsequent amendments, the hydrological risk was renegotiated, establishing the right to reimbursement for the costs incurred with the GSF, assumed by the owners of the hydroelectric plants participating in the Energy Reallocation Mechanism (MRE) between 2012 and 2017.

The procedure adopted by ANEEL for this compensation was to extend the grant periods for these plants. The company therefore recognized an intangible asset representing this right to extend the concessions.

On initial recognition, the fair value of the right to extend the concession was estimated individually for each plant, using the revenue approach, which converts future values into a single current value, discounted by the rate of return approved by management for the energy generation activity, reflecting current market expectations in relation to future values.

The useful life of the assets that make up property, plant and equipment and intangible assets has been adjusted to the new remaining term of the concession, i.e. the term of the extension of the right to grant the concession has been added to the originally agreed term. Thus, amortization is carried out using the straight-line method until the end of the new concession term.

The annual amortization rates take into account the expected useful life of the assets and reflect their expected consumption pattern and are reviewed annually by management.

The Company and its subsidiaries have not identified any indications of impairment of their intangible assets.