Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____
Notice to the Market – 19/20
Establishment of Annual Permitted Revenues (“APR”) for the 2020-2021 cycle
Companhia Paranaense de Energia - COPEL, a company that generates, transmits, distributes and sells power, with shares listed on the B3 (CPLE3, CPLE5, CPLE6), NYSE (ELPVY, ELP) and LATIBEX (XCOP), in compliance with CVM Instruction 358/2002, informs its shareholders and the market in general that, by means of Homologatory Resolution No. 2,725, of July 14, 2020, the Brazilian Electricity Regulatory Agency (“Aneel”) established the Annual Permitted Revenue (“APR” ) for electricity transmission assets for the 2020-2021 cycle, effective from July 1, 2020.
According to the aforementioned resolution, the APRs of the transmission assets of Copel Geração e Transmissão S.A (“Copel GeT”) for the 2020/2021 cycle are now R$777.2 million, of which R$703.4 million correspond to revenue from assets in operation (R$582.9 million in the previous cycle), representing an increase of R$194.3 million (+ 20.7%). The remaining RAP of R$73.8 million, referring to projects under construction, will only be received as of the beginning of the commercial operation of the projects.
Additionally, considering the APRs approved for Specific Purpose Company (“SPC”) in which Copel GeT has an equity interest, the total consolidated value for Copel GeT is now R$1,146.0 million (R$880.5 million in the previous cycle), representing an increase of R$265.5 million (+ 30.2%).
Contract Tariff Review 060/2001
The readjustment in APR at Copel GeT mentioned above includes the result of the periodic tariff review process of Concession Contract No. 060/2001, in accordance with Homologatory Resolution No. 2,715, of June 30, 2020. As a result of this process, the tariff repositioning index of contract no. 060/2001 was 10.16% in relation to the APR in force for the 2018-2019 cycle (Homologatory Resolution no. 2.408 / 2018), with the result of the difference between the RAPs being updated to the base date June 2020 and will be incorporated through the Adjustment Portion (“AP”) in the last 3 years of the cycle, that is, between July 2020 and June 2023, and the adjustment portion related to the 2020-2021 cycle is included in the ratified APR by Homologatory Resolution No. 2,725 / 2020.
RBSE - Remuneration of the Financial Component at the Cost of Equity
As determined by Aneel, as of the 2020/2021 cycle, the remuneration portion of RBSE's financial component will be remunerated at the cost of equity (“Ke”), as provided for in MME Ordinance No. 120/16. The amount not received in the last three cycles (2017-2020) will be incorporated in the next 3 cycles (2020-2023) through AP.
Curitiba, July 15, 2020.
Adriano Rudek de Moura
Chief Financial and Investor Relations Officer
For further information, please contact the Investor Relations team:
ri@copel.com or +55 41 3331-4011
COMPANHIA PARANAENSE DE ENERGIA – COPEL | ||
By: |
/S/ Daniel Pimentel Slaviero
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Daniel Pimentel Slaviero Chief Executive Officer |
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.