Revenue (Tables)

12 Months Ended

Dec. 31, 2023



	2023			2022			2021
Revenue from supply of energy (a)		31,671			30,158			29,619
Revenue from use of the electricity distribution systems (TUSD)		4,417			3,685			3,448
CVA and Other financial components (1) (4)		(213	)		(1,147	)		2,146
Reimbursement of PIS/Pasep and Cofins over ICMS credits to customers- realization (2)		1,909			2,360			1,317
Transmission revenue
Transmission operation and maintenance revenue (b)		373			413			355
Transmission construction revenue (b)		242			407			252
Interest revenue arising from the financing component in the transmission contract asset (b) (Note 14)		524			575			660
Generation indemnity revenue (Note 13.b)		93			47			-
Distribution construction revenue		3,899			3,246			1,852
Adjustment to expectation of cash flow from indemnifiable financial assets of distribution concession		149			39			54
Revenue on financial updating of the Concession Grant Fee (13.b)		412			467			523
Transactions in energy on the CCEE		146			183			1,157
Mechanism for the sale of surplus (c) (13.b)		(4	)		453			453
Supply of gas		4,139			4,529			3,470
Fine for violation of service continuity indicator		(139	)		(94	)		(70	)
PIS/Pasep and Cofins credits to be refunded to consumers (3)		-			(830	)
Advances for services provided		-			-			154
Other operating revenues (d)		2,316			2,658			1,935
Deductions on revenue (e)		(13,084	)		(12,686	)		(13,679	)

Net revenue		36,850			34,463			33,646

(1)

As per GREG/MME Resolution 3, the effect of the water scarcity tariff ‘Flag’, which was in force until April 2022, resulted in a significant reduction of revenue in 2022. Due to the better hydrological conditions, the tariff flag was ‘green’ as from May 2022, and produced no effect in the whole of 2023.

(2)

More information in note 18.

(3)

This is the result of recognition of the effects of Law 14.385/22, which ordered that the amounts of credits of PIS, Pasep and Cofins wrongly charged on the ICMS tax component of electricity bills should be reimbursed in their entirety to the customers of electricity distributors.

(4)

This income derives from the total additions and amortizations shown in note 13.d.

Schedule of Revenue from Energy Supply



	MWh (1)						R$
	2023		2022		2021		2023		2022			2021
Residencial		12,092		11,217		11,186		10,794		10,133			11,124
Industrial		18,088		18,204		16,361		5,903		5,991			5,275
Commercial, services and others		9,469		8,957		8,334		6,314		6,155			5,520
Rural		3,063		3,093		3,975		2,238		2,050			2,566
Public authorities		956		856		729		786		660			583
Public lighting		1,056		1,138		1,226		498		535			718
Public services		1,045		1,400		1,418		744		841			879

Subtotal		45,769		44,865		43,229		27,277		26,365			26,665
Own consumption		30		31		33		-		-			-
Unbilled revenue		-		-		-		166		(189	)		(14	)

		45,799		44,896		43,262		27,443		26,176			26,651

Wholesale supply to other concession holders (1)		17,328		16,777		10,825		4,183		3,894			3,023
Wholesale supply unbilled, net		-		-		-		45		88			(55	)

Total		63,127		61,673		54,087		31,671		30,158			29,619

(1)

Data not audited by external auditors.

(2)

The volume reported does not include the distributed generation market, which corresponded to 3,910,204 MWh in 2023 (2,672,285 MWh in 2022).

(3)

Includes a CCEAR (Regulated Market Sales Contract), ‘bilateral contracts’ with other agents, and the revenues from management of generation assets (GAG) for the 18 hydroelectric plants of Lot D of Auction no 12/2015.

Schedule of Transmission Concession Contract


	2023			2022			2021
Construction and upgrades revenue		242			407			252
Construction and upgrades costs		(172	)		(291	)		(183	)

Margin		70			116			69

Mark-up (%)		40.70	%		39.86	%		37.40	%

Operation and maintenance revenue		373			413			355
Operation and maintenance cost		(292	)		(287	)		(235	)

Margin		81			126			120

Mark-up (%)		27.74	%		43.90	%		50.88	%

Schedule of Other Operating Revenues



	2023		2022		2021
Charged service		21		19		17
Services rendered		85		66		53
Low-income subsidy		401		321		269
subsidy SCEE (1)		129		-		-
subsidy Eletrobras (2)		51		432		-
Tariff flags subsidy		78		290		-
Others subsidies (3)		1,031		962		1,323
Rental and leasing (2)		412		493		211
Contractual indemnities		6		-		27
Other		102		75		35

Total		2,316		2,658		1,935

(1)

Revenue under the Electricity Offsetting System (Sistema de Compensação de Energia Elétrica – SCEE), governing offsetting for distributed generation, released by ANEEL in the 2023 Tariff Review.

(2)

This refers to the amounts injected by Eletrobras or by its subsidiaries under CNPE Resolution 15/2021, passed through to companies holding electricity distribution concessions or permissions.

(3)

This is revenue arising from subsidies applying to tariffs paid by users of distribution service, it includes tariff subsidies applying to tariffs paid by or relating to: supply from incentive-bearing source load; rural supply; nocturnal irrigation; incentive-bearing generation; public services; as well as revenue recognizing subsidies related to the Program to Encourage Voluntary Reduction of Electricity Consumption.

(4)

The amount shown for from January to December 2022 comprises R$ 187 for the debt recognition agreement signed with a major client in June 2022, for use of infrastructure (distribution poles) in the period January 2019 to May 2022.

Schedule of Deduction on Revenue



	2023		2022			2021
Taxes on revenue
ICMS (1)		5,043		4,892			6993
Cofins		3,032		2,948			2842
PIS/Pasep		658		643			618
others		7		5			11

		8,740		8,488			10,464

Charges to the customer
Global Reversion Reserve (RGR)		12		14			15
Energy Efficiency Program (PEE)		74		69			74
Energy Development Account (CDE)		3,949		4,057			2658
Research and Development (R&D)		37		35			34
National Scientific and Technological Development Fund (FNDCT)		53		49			55
Energy System Expansion Research (EPE of MME)		27		25			27
Customer charges - Proinfa alternative sources program		63		77			66
Energy services inspection fee		37		33			35
Royalties for use of water resources		53		54			37
Customer charges - the ‘Flag Tariff’ system		-		(252	)		162
CDE on R&D		16		15			21
CDE on PEE		23		22			31

		4,344		4,198			3,215

Total		13,084		12,686			13,679

(1)

On June 23, 2022, Complementary Law 194 came into force with immediate effect, making changes to the National Tax Code (CTN) and to Complementary Law 87/96 (the ‘Kandir Law’) including: (i) classifying electricity, among other goods, as essential, (ii) prohibiting the setting of rates of ICMS tax for transactions with these goods at a level higher than those of transactions in general, and (iii) removing this tax from electricity transmission and distribution services, and from sector charges linked to electricity operations. In February 2023 judgment was given in Action for Unconstitutionality (Ação Direta de Inconstitucionalidade – ADI) No. 7195, which suspended the effects of Article 3, Sub-item X, of Complementary Law 87/96, as amended by Complementary Law 194/2022, which had excluded transmission and distribution services, and sector charges related to electricity operations, from the calculation base for ICMS tax. Cemig has adjusted its procedures due to this decision.