SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of October, 2016
Commission File Number 1-14668
COMPANHIA PARANAENSE DE ENERGIA
(Exact name of registrant as specified in its charter)
Energy Company of Paraná
(Translation of Registrant's name into English)
Rua Coronel Dulcídio, 800
80420-170 Curitiba, Paraná
Federative Republic of Brazil
(5541) 3222-2027
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F ___X___ Form 40-F _______
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 – IR 21/16
Total Energy Sold by Copel grows 7.9% in 3Q16
This report analyzes the performance of Copel’s electricity market between July and September 2016, as well as in the nine first months of the year compared with the amounts recorded in the same period of 2015.
Total Energy Sold
Total energy sold by Copel in all markets, comprising the sales of Copel Distribuição, Copel Geração e Transmissão and the Wind Farm Complexes, came to 11,235 GWh in the third quarter of 2016, 7.9% higher than in the same period last year.
The following table shows Copel’s total electricity sales broken down between Copel Distribuição, Copel Geração e Transmissão and the Wind Farm Complexes:
| | | | | | | | | | |
| | Number of Customers /
Agreements | | Energy Sold (GWh) |
| | |
| | Sep-15 | Sep-16 | Var. % | | 3Q15 | 3Q16 | Var. % | 9M15 | 9M16 | Var. % |
| Copel DIS | | | | | | | | | | |
| Captive Market | 4.391.770 | 4.464.005 | 1,6 | | 5.809 | 5.287 | (9,0) | 18.031 | 17.124 | (5,0) |
| Concessionaries and Licensees | 4 | 4 | - | | 176 | 151 | (14,2) | 527 | 485 | (8,0) |
| CCEE (MCP) | - | - | - | | 202 | 1.250 | 518,8 | 377 | 2.250 | 496,8 |
| Total Copel DIS | 4.391.774 | 4.464.009 | 1,6 | | 6.187 | 6.688 | 8,1 | 18.935 | 19.859 | 4,9 |
| Copel GeT | | | | | | | | | | |
| CCEAR (Copel DIS) | 1 | 1 | - | | 48 | 38 | (20,8) | 170 | 115 | (32,4) |
| CCEAR (other concessionaries) | 40 | 39 | (2,5) | | 1.057 | 793 | (25,0) | 3.333 | 2.677 | (19,7) |
| Free Customers | 28 | 27 | (3,6) | | 998 | 965 | (3,3) | 2.963 | 2.778 | (6,2) |
| Bilateral Agreements ¹ | 52 | 33 | (36,5) | | 1.683 | 1.937 | 15,1 | 5.085 | 5.796 | 14,0 |
| CCEE (MCP) ² | - | - | - | | 139 | 512 | 268,3 | 1.807 | 1.395 | (22,8) |
| Total Copel GeT | 121 | 100 | (17,4) | | 3.925 | 4.245 | 8,2 | 13.358 | 12.761 | (4,5) |
| Wind Farms | | | | | | | | | | |
| CCEAR (other concessionaries) | 112 | 112 | - | | 212 | 212 | - | 553 | 629 | 13,7 |
| CER | 3 | 3 | - | | 90 | 90 | - | 179 | 268 | 49,7 |
| Total Wind Farms | 115 | 115 | - | | 302 | 302 | - | 732 | 897 | 22,5 |
| | | | | | | | | | |
| Total Copel Consolidated | 4.392.010 | 4.464.224 | 1,6 | | 10.414 | 11.235 | 7,9 | 33.025 | 33.517 | 1,5 |
Note: Not considering the energy from MRE (Energy Relocation Mechanism).
¹ Includes Short Term Sales Agreements.
² Assured Power allocated in the period, does not consider the impact of the GSF.
CCEE: Electric Power Trade Chamber / CCEAR: Energy Purchase Agreements in the Regulated Market / MCP: Short Term Market / CER: Agreements Reserve Energy. | | | |
| | | |
| | | |
Notice to the Market – IR 21/16
Copel’s Consolidated Market
Electricity Sales to Final Consumers
Electricity sales to final consumers, comprising Copel Distribuição’s sales in the captive market and Copel Geração e Transmissão sales in the free market, fell by 8.1% in the third quarter of 2016.
The table below breaks down energy sales by consumption segment:
| | | | | | | |
| Segment | Market | Energy Sold (GWh) |
|
| 3Q15 | 3Q16 | Var. % | 9M15 | 9M16 | Var. % |
| Residential | | 1.656 | 1.675 | 1,1 | 5.239 | 5.208 | (0,6) |
| Industrial | Total | 2.749 | 2.339 | (14,9) | 8.126 | 7.379 | (9,2) |
| Captive | 1.754 | 1.374 | (21,7) | 5.172 | 4.604 | (11,0) |
| Free | 995 | 965 | (3,0) | 2.954 | 2.775 | (6,1) |
| Commercial | Total | 1.311 | 1.160 | (11,5) | 4.168 | 3.864 | (7,3) |
| Captive | 1.308 | 1.160 | (11,3) | 4.159 | 3.862 | (7,1) |
| Free | 3 | - | - | 9 | 2 | (77,8) |
| Rural | | 505 | 488 | (3,4) | 1.708 | 1.654 | (3,2) |
| Other | | 586 | 591 | 0,8 | 1.754 | 1.796 | 2,4 |
| Energy Supply | | 6.807 | 6.253 | (8,1) | 20.995 | 19.901 | (5,2) |
Copel Distribuição
Captive Market
Copel Distribuição’s captive market energy sales totaled 17,124 GWh between January and September 2016, 5.0% down year-on-year, mainly due to the industrial and commercial segments, as a result of the economic slowdown and the migration of customers to the free market.
In 3Q16, energy consumption in the captive market fell by 9.0%, to 5,288 GWh. The highlight was the residential segment, which recorded growth for the second consecutive quarter compared to 2015.
The following table shows captive market trends by consumption segment:
| Number of Customers | | Energy sold (GWh) |
| | Sep-15 | Sep-16 | Var. % | | 3Q15 | 3Q16 | Var. % | 9M15 | 9M16 | Var. % |
| Residential | 3.501.313 | 3.580.622 | 2,3 | | 1.656 | 1.675 | 1,1 | 5.239 | 5.208 | (0,6) |
| Industrial | 89.551 | 83.683 | (6,6) | | 1.754 | 1.374 | (21,7) | 5.172 | 4.604 | (11,0) |
| Commercial | 373.827 | 380.354 | 1,7 | | 1.308 | 1.160 | (11,3) | 4.159 | 3.862 | (7,1) |
| Rural | 369.905 | 361.982 | (2,1) | | 505 | 487 | (3,4) | 1.708 | 1.654 | (3,2) |
| Other | 57.174 | 57.364 | 0,3 | | 585 | 591 | 1,1 | 1.753 | 1.796 | 2,5 |
| Captive Market | 4.391.770 | 4.464.005 | 1,6 | | 5.808 | 5.288 | (9,0) | 18.031 | 17.124 | (5,0) |
The residential segment consumed 1,675 GWh between July and September 2016, up by 1.1%, mainly as a result of the 2.3% increase in the number of customers. Average consumption fell by 1.1% over 3Q15 to 156 KWh per customer, due to lower temperatures this year, which reduced the use of cooling
Notice to the Market – IR 21/16
devices, and the rationalization of energy consumption, as a result of the current economic scenario that has diminished household income. Year-to-date consumption came to 5,208 GWh, equivalent to 30.4% of the captive market, totaling 3,580,622 consumers.
| Average Consumption (KWh) |
| | 3Q15 | 3Q16 | Var. % | 9M15 | 9M16 | Var. % |
| Residential | 158 | 156 | (1,1) | 166 | 162 | (2,8) |
Industrial consumption declined by 21.7% in 3Q16 to 1,374 GWh, as a result of the economic slowdown and the migration of customers to the free market. In the third quarter, 139 customers moved from the captive market to the free market, corresponding to period consumption of around 331.9 GWh. In the first nine months, 192 customers moved to the free market, reducing captive market volume by 470.7 GWh. The sectors with the biggest impact on this decline were pulp and paper, rubber and plastic products, food and vehicle manufacturing. In the year through September, the industrial segment consumed 4,604 GWh, closing the month with 83,683 consumers, equivalent to 26.9% of Copel’s captive market. Excluding the customer migration effect, industrial consumption fell by 2.7% and 1.9% in 3Q16 and 9M16, respectively.
The commercial segment consumed 1,160 GWh in 3Q16, 11.3% down on 3Q15, chiefly due to the economic scenario, which reduced retail sales volume in the state of Paraná, the deterioration of the job market and the reduction in the population’s income. This segment was also affected by the migration of 78 customers to the free market in 3Q16 and 124 customers year-to-date, corresponding to 60.6 and 103.8 GWh, respectively. At the end of September 2016, this segment accounted for 22.5% of the captive market, totaling 380,354 customers. Excluding the customer migration impact, commercial consumption declined 6.7% and 4.6% in 3Q16 and 9M16, respectively.
Rural consumption fell 3.4% year-on-year in the third quarter to 487 GWh. At the end of September 2016, this segment represented 9.7% of Copel’s captive market, totaling 361,982 customers.
Other segments (government, public lighting, public services and own consumption) consumed 591 GWh in 3Q16, 1.1% up year-on-year, accounting for 10.5% of the captive market and totaling 57,364 consumers at the close of September.
Notice to the Market – IR 21/16
Grid Market (TUSD)
Copel Distribuição’s grid market, comprising the captive market, concessionaires and licensees in the state of Paraná, and all free consumers in the Company’s concession area, fell by 1.9% in the third quarter of 2016, as shown in the following table:
| | Number of Customers /
Agreements | | Energy Sold (GWh) |
| |
| | Sep-15 | Sep-16 | Var. % | | 3Q15 | 3Q16 | Var. % | 9M15 | 9M16 | Var. % |
| Captive Market | 4.391.770 | 4.464.005 | 1,6 | | 5.808 | 5.287 | (9,0) | 18.031 | 17.124 | (5,0) |
| Concessionaries and Licensees | 6 | 6 | - | | 188 | 163 | (13,1) | 569 | 524 | (7,9) |
| Free Customers ¹ | 127 | 447 | 252,0 | | 1.006 | 1.418 | 40,9 | 3.058 | 3.580 | 17,1 |
| Grid Market | 4.391.903 | 4.464.458 | 1,7 | | 7.002 | 6.868 | (1,9) | 21.658 | 21.228 | (2,0) |
| ¹ All free customers served by Copel GeT and other suppliers at the Copel DIS concession area. | | | | | | | |
Curitiba, October 25, 2016.
Luiz Eduardo da Veiga Sebastiani
Chief Financial and Investor Relations Officer
For further information, please contact the Investor Relations team:
ri@copel.com or (41) 3222-2027
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| COMPANHIA PARANAENSE DE ENERGIA – COPEL |
| | |
| By: | /S/ Luiz Fernando Leone Vianna
| |
| | Luiz Fernando Leone Vianna
Chief Executive Officer | |
FORWARD-LOOKING STATEMENTS
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.
