Eletrobras, through its subsidiaries, jointly controlled and affiliated companies, holds several electric power concessions and authorizations on the segment of generation and transmission or participations in SPEs, which perform in the respective segments, whose details, capacity, and maturity dates are listed below:

In September 2020, Law No. 14,052/2020 was published, which amended Law No. 13,203/2015, establishing new conditions for renegotiating the hydrological risk related to the portion of the costs incurred with the GSF, assumed by the holders of the hydroelectric power plants participating in the MRE since 2012, with the worsening of the water crisis.

The purpose of the legal amendment was to compensate the holders of hydroelectric plants participating in the MRE for non-hydrological risks caused by: (i) generation projects called structuring plants, related to the difference between the physical guarantee granted in the motorization phase and the aggregation values of each generating unit motorized in the National Interconnected System (SIN), (ii) restrictions on the flow of energy from the structuring plants due to a delay in starting up or starting up in an unsatisfactory technical condition for the electricity transmission facilities, and (iii) thermoelectric generation that exceeds that by order of merit and import of electric energy without physical guarantee. The compensation will be given upon the extension of the grant, limited to seven years, without having an immediate impact on the Company’s cash flows, calculated based on the values of the parameters applied by the ANEEL.

The ANEEL, through Resolutions No. 2,919/2021 and No. 2,932/2021, ratified the extension of grants for power plants/hydroelectric complexes. The above table describes the power plants/hydroelectric complexes of the controlled companies (Chesf, CGT Eletrosul, Eletronorte, and Furnas) with rights to the extension of grants.

To be eligible for the compensation provided for in Law No. 14,052/2020, holders of hydroelectric plants participating in the MRE must: (i) withdraw from any lawsuit whose object is the exemption or mitigation of hydrological risks related to the MRE, (ii) waive any allegation concerning the right on which the lawsuit is based, and (iii) not have renegotiated the hydrological risk for the respective portion of energy.

Eletrobras’ Management approved the renegotiation of the hydrological risk and formalized the withdrawal of its subsidiary Chesf from lawsuits, whose object was the exemption or mitigation of hydrological risks related to the MRE. The other subsidiaries did not have any lawsuits. See note 33.

The amounts presented by the Electric Energy Trading Chamber (CCEE) that acted as the basis for the extension of grants, were registered in accounting following the determinations of IAS 38 - Intangible Assets, together with IAS 20 - Government Grant and

Assistance, measured at fair value, based on the parameters determined by ANEEL regulations, considering the expected future flows in this new concession period, as well as the compensation values calculated by the CCEE. See notes 21 and 40.

The subsidiary Chesf was the only company in the group with a lawsuit. On August 5, 2021, Chesf made a payment of R$ 1,419,935, in order to settle the related lawsuit. This amount was already recorded as a provision.

Except for the payment made by Chesf, the renegotiation of the hydrological risk did not bring immediate impacts on the Company’s cash flow. The economic benefits related to the extension of the concessions will flow to the cash flow during the extension of the concession term on medium and long term.

(*)	Not examined by the independent auditors; and

(**)	Refers to the number of substations.

3.1 - Concessions to be indemnified

Indemnities after Basic Project - modernization and improvements

Hydraulic Generation:

Law No. 12,783/2013 guaranteed the right of electric energy generation and transmission concessionaires, which extended their concessions, to indemnification for the portion of investments linked to reversible assets not yet amortized or not depreciated, the value of which would be updated until the date of effective payment to the concessionaire.

In January 2019, the ANEEL’s Board of Directors decided to open a Public Hearing No. 003/2019, to collect subsidies and additional information to improve the criteria and procedures for calculating investments in non-amortized and non-depreciated reversible assets, made throughout the generation concessions, extended or not, under Law No. 12,783/2013. Additionally, in October 2019, the analysis of contributions to Public Hearing No. 003/2019 was published in Technical Note No. 096/2019-SRG-SFF-SCG/ANEEL.

In July 2021, through Resolution No. 942/2021 the ANEEL established the calculation criteria and proceedings for the indemnity of investments into non-amortized and non-depreciated reversible assets from concessions extended or not, under the terms of Law No. 12,783/2013, but without mentioning the payment method.

According to ANEEL Resolution No. 942/2021, the concessionaires must prove the completion of investments linked to assets related to the concession that will be returned to the grantor at the end of the concession period based on art. 3 of this Resolution until 365 days after the publication of this Resolution, which may be extended for the same period at the discretion of the ANEEL.

Eletrobras maintained the assets recorded at historical value, at the balance of December 2012, as the basis of those rights which represent a total amount of R $ 1,483,540, as listed below. For more details see note 18.


Modernizations and Improvements
Paulo Afonso I		92,612
Paulo Afonso II		107,093
Paulo Afonso III		66,259
Paulo Afonso IV		20,832
Apolônio Sales		38,250
Luiz Gonzaga		28,174
Xingó		15,150
Boa Esperança		98,759
Pedra		8,067
Funil		12,626
UHE Furnas		514,825
UHE Estreito		480,893
		1,483,540

Thermal Generation:

TPP Santa Cruz is a concession under Contract No. 004/2004. Although its concession expired in 2015, as there was still no communication by the Granting Authority about its extension under the terms of Law No. 12,783/2013 and Decree No. 9,187/2017, it remains in effect until said communication.

As of December 31, 2021, the net value of the TPP Santa Cruz asset is R$ 1,174,576 as follows:


TTP Santa Cruz
Value December 31, 2021		1,457,038
(-) Reduction to the recoverable amount (impairment)		282,462
Netbook value		1,174,576