Cover
Cover | 12 Months Ended |
Dec. 31, 2019shares | |
Cover [Abstract] | |
Entity Registrant Name | ENERGY CO OF MINAS GERAIS |
Entity Central Index Key | 0001157557 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2019 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Incorporation, State or Country Code | D5 |
Entity a Well-known Seasoned Issuer | Yes |
Entity a Voluntary Filer | No |
Entity Reporting Status Current | Yes |
Entity Interactive Data Current | Yes |
Document Shell Company Report | false |
Document Annual Report | true |
Document Transition Report | false |
Entity Filer Category | Large Accelerated Filer |
Document Accounting Standard | International Financial Reporting Standards |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 487,614,213 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2019 |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
CURRENT | ||
Cash and cash equivalents | R$ 536 | R$ 891 |
Marketable securities | 740 | 704 |
Receivables from customers and traders and concession holders - Transport of electricity | 4,524 | 4,092 |
Concession financial assets | 1,080 | 1,071 |
Concession contract assets | 172 | 131 |
Recoverable taxes | 99 | 124 |
Income tax and social contribution tax credits | 621 | 387 |
Dividends receivables | 186 | 120 |
Restricted cash | 12 | 91 |
Inventories | 39 | 36 |
Public lighting contribution | 165 | 148 |
Advances to suppliers | 40 | 7 |
Reimbursement of tariff subsidies payments | 97 | 91 |
Low-income customer subsidy | 30 | 30 |
Derivative financial instruments | 235 | 69 |
Others | 304 | 358 |
Current assets before assets classified as held for sale | 8,880 | 8,350 |
Assets classified as held for sale | 1,258 | 19,446 |
TOTAL CURRENT | 10,138 | 27,796 |
NON-CURRENT | ||
Marketable securities | 13 | 109 |
Advances to suppliers | 87 | |
Receivables from customers and traders and concession holders - Transport of electricity | 77 | 81 |
Recoverable taxes | 6,349 | 242 |
Income tax and social contribution tax recoverable | 228 | 6 |
Deferred income tax and social contribution tax | 2,430 | 2,147 |
Escrow deposits | 2,540 | 2,502 |
Derivative financial instruments | 1,456 | 744 |
Accounts receivable from the State of Minas Gerais | 115 | 246 |
Concession financial assets | 4,851 | 4,927 |
Concession contract assets | 1,833 | 1,598 |
Investments - Equity method | 5,400 | 5,235 |
Property, plant and equipment | 2,450 | 2,662 |
Intangible assets | 11,624 | 10,777 |
Leasing - right-of-use assets | 277 | |
Others | 145 | 696 |
TOTAL NON-CURRENT | 39,788 | 32,059 |
TOTAL ASSETS | 49,926 | 59,855 |
CURRENT | ||
Suppliers | 2,080 | 1,801 |
Regulatory charges | 457 | 514 |
Profit sharing | 212 | 79 |
Taxes payable | 359 | 410 |
Income tax and social contribution tax | 134 | 112 |
Interest on equity and dividends payable | 744 | 864 |
Loans, financing and debentures | 2,747 | 2,198 |
Payroll and related charges | 200 | 284 |
Public lighting contribution | 252 | 281 |
Post-employment obligations | 288 | 253 |
Lease liabilities | 85 | |
Advances from customers | 79 | |
Others | 355 | 247 |
Current liabilities before liabilities held for sale | 7,913 | 7,122 |
Liabilities directly associated to assets held for sale | 16,272 | |
TOTAL CURRENT | 7,913 | 23,394 |
NON-CURRENT | ||
Regulatory charges | 147 | 179 |
Loans, financing and debentures | 12,030 | 12,574 |
Taxes payable | 1 | 29 |
Deferred income tax and social contribution tax | 661 | 728 |
Provisions | 1,888 | 641 |
Post-employment obligations | 6,421 | 4,736 |
Pasep and Cofins taxes to be refunded to customers | 4,193 | 1,124 |
Derivative financial instruments | 483 | 419 |
Lease liabilities | 203 | |
Others | 95 | 92 |
TOTAL NON-CURRENT | 26,122 | 20,522 |
TOTAL LIABILITIES | 34,035 | 43,916 |
EQUITY | ||
Share capital | 7,294 | 7,294 |
Capital reserves | 2,250 | 2,250 |
Profit reserves | 8,750 | 6,362 |
Equity valuation adjustments | (2,407) | (1,327) |
Deemed cost of property, plant and equipment | 586 | 611 |
Accumulated other comprehensive income | (2,993) | (1,938) |
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT | 15,887 | 14,579 |
NON-CONTROLLING INTERESTS | 4 | 1,360 |
TOTAL EQUITY | 15,891 | 15,939 |
TOTAL LIABILITIES AND EQUITY | R$ 49926 | R$ 59855 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONTINUING OPERATIONS | |||
NET REVENUE | R$ 25390 | R$ 22266 | R$ 21712 |
COST OF ENERGY AND GAS | |||
Energy purchased for resale | (11,286) | (11,084) | (10,919) |
Charges for use of the national grid | (1,426) | (1,480) | (1,174) |
Gas purchased for resale | (1,436) | (1,238) | (1,071) |
Cost of purchased energy sold | (14,148) | (13,802) | (13,164) |
Personnel | (1,002) | (1,098) | (1,270) |
Materials | (74) | (81) | (73) |
Outsourced services | (1,043) | (913) | (759) |
Depreciation and amortization | (815) | (761) | (787) |
Operating provisions, net | (1,214) | (40) | (226) |
Infrastructure construction cost | (1,200) | (897) | (1,119) |
Others | (102) | (85) | (90) |
Other costs | (5,450) | (3,875) | (4,324) |
TOTAL COST | (19,598) | (17,677) | (17,488) |
GROSS PROFIT | 5,792 | 4,589 | 4,224 |
OPERATING EXPENSES | |||
Selling expenses | (238) | (264) | (248) |
General and administrative expenses | (642) | (672) | (763) |
Operating provisions | (950) | (167) | (353) |
Other operating (expenses) income, net | (1,051) | (640) | 34 |
Operating expense | (2,881) | (1,743) | (1,330) |
Share of profit (loss), net, of affiliates and jointly-controlled entities | 125 | (104) | (252) |
Dividends declared by investee classified as held for sale | 73 | ||
Remeasurement of previously held equity interest in subsidiaries acquired | (119) | ||
Impairment loss on investments | (127) | ||
Income before finance income (expenses) and taxes | 3,109 | 2,496 | 2,642 |
Finance income | 3,207 | 1,706 | 804 |
Finance expenses | (1,847) | (2,224) | (1,800) |
Income before income tax and social contribution tax | 4,469 | 1,978 | 1,646 |
Current income tax and social contribution tax | (1,454) | (583) | (446) |
Deferred income tax and social contribution tax | (111) | (16) | (198) |
Net income for the year from continuing operations | 2,904 | 1,379 | 1,002 |
DISCONTINUED OPERATIONS | |||
Net income after tax for the year from discontinued operations | 224 | 363 | |
NET INCOME FOR THE YEAR | 3,128 | 1,742 | 1,002 |
Equity holders of the parent | |||
Net income from continuing operations | 2,903 | 1,378 | 1,001 |
Net income from discontinued operations | 224 | 322 | |
Net income for the year attributed to equity holders of the parent | 3,127 | 1,700 | 1,001 |
Non-controlling interests | |||
Net income from continuing operations | 1 | 1 | 1 |
Net income from discontinued operations | 41 | ||
Net income from Non-controlling interests | 1 | 42 | 1 |
NET INCOME FOR THE YEAR | R$ 3128 | R$ 1742 | R$ 1002 |
Preferred Shares [Member] | |||
Non-controlling interests | |||
Basic and diluted earnings per preferred share - R$ | R$ 2.14 | R$ 1.17 | R$ 0.84 |
Basic and diluted earnings per preferred share from continuing operations - R$ | 1.99 | 0.95 | 0.84 |
Basic and diluted earnings per preferred share from discontinued operations - R$ | 0.15 | 0.22 | |
Common Shares [Member] | |||
Non-controlling interests | |||
Basic and diluted earnings per common share - R$ | 2.14 | 1.17 | 0.37 |
Basic and diluted earnings per common share from continuing operations - R$ | 1.99 | 0.95 | 0.37 |
Basic and diluted earnings per common share from discontinued operations - R$ | R$ 0.15 | R$ 0.22 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of comprehensive income [abstract] | |||
NET INCOME FOR THE YEAR | R$ 3128 | R$ 1742 | R$ 1002 |
Items not to be reclassified to profit or loss in subsequent periods | |||
Post retirement liabilities-remeasurement of obligations of the defined benefit plans | (1,599) | (702) | (394) |
Income tax and social contribution tax on restatement of defined benefit plans | 544 | 239 | 133 |
Equity gain (loss) on other comprehensive income in subsidiary and jointly-controlled entity | (3) | ||
Other comprehensive income that will not be reclassified to profit or loss, net of tax | (1,055) | (463) | (264) |
Items that may be reclassified to the profit or loss in subsequent periods | |||
Equity gain (loss) on other comprehensive income of subsidiaries and jointly-controlled entities, relating to fair value of financial asset and conversion of transactions outside Brazil | (38) | ||
Other comprehensive income that will be reclassified to profit or loss, net of tax | (38) | ||
COMPREHENSIVE INCOME FOR THE YEAR | 2,073 | 1,279 | 700 |
Total of comprehensive income for the year attributed to: | |||
Equity holders of the parent | 2,072 | 1,237 | 699 |
Non - controlling interests | 1 | 42 | 1 |
COMPREHENSIVE INCOME FOR THE YEAR | R$ 2073 | R$ 1279 | R$ 700 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - BRL (R$) R$ in Millions | Share Capital [Member] | Subscription of shares to be capitalized [Member] | Capital reserve [Member] | Profits reserves [Member] | Equity valuation adjustments [Member] | Retained earnings [member] | Equity attributable to owners of parent [Member] | Non-controlling interests [Member] | Total |
Beginning balance at Dec. 31, 2016 | R$ 6294 | R$ 1925 | R$ 5200 | R$ 489 | R$ 12930 | R$ 4 | R$ 12934 | ||
Expired dividends of previous years | |||||||||
Subscription of shares, to be capitalized | 1,215 | 1,215 | 1,215 | ||||||
NET INCOME FOR THE YEAR | 1,001 | 1,001 | 1 | 1,002 | |||||
Remeasurement of obligations of the defined benefit plans, net of taxes | (261) | (261) | (261) | ||||||
Equity gain (loss) on other comprehensive income in subsidiary and jointly-controlled entity | (41) | (41) | (41) | ||||||
Realization of PP&E deemed cost | (46) | 28 | (18) | (18) | |||||
Appropriation of Net income for the year | |||||||||
Tax incentives reserve | 1 | (1) | |||||||
Proposed dividends | (500) | (500) | (500) | ||||||
Additional dividends proposed, Non-controlling interests | (1) | (1) | |||||||
Retained earnings reserve | 528 | (528) | |||||||
Ending balance at Dec. 31, 2017 | 6,294 | 1,215 | 1,925 | 5,729 | (837) | 14,326 | 4 | 14,330 | |
Beginning balance, previously presented | 6,294 | 1,215 | 1,925 | 5,729 | (837) | 14,326 | 4 | 14,330 | |
First time adoption of IFRS 9 and IFRS 15 | (157) | (157) | (157) | ||||||
Proposed dividends from prior years | (127) | (127) | (127) | ||||||
Expired dividends of previous years | 42 | 42 | 8 | ||||||
Subscription of shares, to be capitalized | 110 | 110 | 110 | ||||||
Non-controlling interests | 1,314 | 1,314 | |||||||
Subscription of capital | 1,000 | (1,000) | |||||||
Goodwill on subscription of shares | (325) | 325 | |||||||
NET INCOME FOR THE YEAR | 1,700 | 1,700 | 42 | 1,742 | |||||
Remeasurement of obligations of the defined benefit plans, net of taxes | (463) | (463) | (463) | ||||||
Realization of PP&E deemed cost | (27) | 42 | 15 | 15 | |||||
Appropriation of Net income for the year | |||||||||
Tax incentives reserve | 9 | (9) | |||||||
Proposed dividends | (867) | (867) | (867) | ||||||
Retained earnings reserve | 751 | (751) | |||||||
Unrealized profit reserve | 835 | ||||||||
Ending balance at Dec. 31, 2018 | 7,294 | 2,250 | 6,362 | (1,327) | 14,579 | 1,360 | 15,939 | ||
Expired dividends of previous years | |||||||||
Non-controlling interests | (1,357) | (1,357) | |||||||
NET INCOME FOR THE YEAR | 3,127 | 3,127 | 1 | 3,128 | |||||
Remeasurement of obligations of the defined benefit plans, net of taxes | (1,055) | (1,055) | (1,055) | ||||||
Realization of PP&E deemed cost | (25) | 25 | |||||||
Appropriation of Net income for the year | |||||||||
Tax incentives reserve | 18 | (18) | |||||||
Proposed dividends | (764) | (764) | (764) | ||||||
Retained earnings reserve | 1,535 | (1,535) | |||||||
Unrealized profit reserve | 835 | (835) | 835 | ||||||
Ending balance at Dec. 31, 2019 | R$ 7294 | R$ 2250 | R$ 8750 | R$ 2407 | R$ 15887 | R$ 4 | R$ 15891 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) - R$ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of changes in equity [abstract] | |||
Statutory dividends per share | R$ 0.52 | R$ 0.59 | R$ 0.51 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOW FROM OPERATIONS | |||
Net income for the year from continuing operations | R$ 2904 | R$ 1379 | R$ 1002 |
Net income for the year from discontinuing operations | 224 | 363 | |
Net income for the year | 3,128 | 1,742 | 1,002 |
Adjustments to reconcile net income to net cash flows: | |||
Non-controlling interests | (1) | (42) | (1) |
Deferred income tax and social contribution tax | 111 | 16 | 198 |
Depreciation and amortization | 958 | 850 | 850 |
Loss on write-off of net residual value of unrecoverable concession financial assets, concessional contract asset, PP&E and Intangible assets | 130 | 61 | 48 |
Impairment of concession contract assets and intangible assets | 24 | 42 | |
Gain on sale of investments | (197) | ||
Adjustment to Remuneration Assets Base - BRR for transmission assets | (75) | ||
Share of (gain) loss, net, of subsidiaries and joint ventures | (125) | 104 | 252 |
Dividends declared by investee classified as held for sale | (73) | ||
Remeasurement of previously held equity interest in subsidiaries acquired | 119 | ||
Impairment loss on Investments | 127 | ||
Generation Indemnity Revenue | (55) | (271) | |
Remeasuring of concession financial and concession contract assets | (507) | (585) | (753) |
Interest and monetary variation | 1,190 | 1,207 | 1,498 |
Recovery of PIS/Pasep and Cofins taxes credits over ICMS | (2,952) | ||
Exchange variation on loans | 226 | 582 | 56 |
Reversal of monetary updating on Advance for Future Capital Increase - AFAC | (239) | ||
Tax Amnesty Program (PRCT) | 283 | ||
Appropriation of transaction costs | 38 | 33 | 67 |
Provisions for operating losses | 2,401 | 466 | 854 |
Provision for reimbursement for suspension of energy supply - Renova | (60) | ||
Net gain on derivative instruments at fair value through profit or loss | (998) | (893) | 32 |
CVA (Parcel A items Compensation) Account and Other financial components in tariff adjustments | (58) | (1,973) | (988) |
Post-employment obligations | 464 | 405 | (164) |
Others | (22) | 12 | |
Working capital adjustments | 3,934 | 2,158 | 2,452 |
(Increase) / decrease in assets | |||
Receivables from customers and traders and Concession holders - Transport of electricity | (666) | (391) | (818) |
Accounts Receivable from the State of Minas Gerais | 46 | ||
CVA and Other financial components in tariff adjustments | 362 | 909 | 586 |
Recoverable taxes | (12) | 38 | 10 |
Income tax and social contribution tax credits | (71) | 615 | 385 |
Escrow deposits | 11 | (109) | (4) |
Dividends received from investees | 283 | 311 | 354 |
Concession contract and financial assets | 373 | 1,704 | 398 |
Advances to suppliers | 54 | 29 | (116) |
Others | (28) | 48 | 649 |
Total (increase) / decrease in assets | 306 | 3,154 | 1,490 |
Increase (decrease) in liabilities | |||
Suppliers | 279 | (553) | 403 |
Taxes payable | (162) | (291) | (248) |
Income tax and social contribution tax payable | 1,433 | (6) | 14 |
Payroll and related charges | (84) | 77 | (18) |
Regulatory charges | (89) | (70) | (73) |
Advances from customers | (81) | (153) | 52 |
Post-employment obligations | (343) | (307) | (282) |
Derivative financial instruments - Put options | (555) | (830) | |
Others | 4 | (165) | (357) |
Total increase (decrease) in liabilities | 957 | (2,023) | (1,339) |
Cash generated by operating activities | 5,197 | 3,289 | 2,603 |
Interest paid on loans and financing | (1,265) | (1,290) | (1,797) |
Interest paid on leasing contracts | (5) | ||
Income tax and social contribution tax paid | (1,767) | (650) | (226) |
Cash inflows from settlement of derivatives instruments | 100 | 37 | |
Net cash flows from continuing operating activities | 2,260 | 1,386 | 580 |
Net cash flows used in discontinued operating activities | (224) | (378) | |
NET CASH FLOWS FROM OPERATING ACTIVITIES | 2,036 | 1,008 | 580 |
INVESTING ACTIVITIES | |||
Marketable securities | 80 | 276 | (4) |
Restricted cash | 79 | 15 | 261 |
Investments | |||
Acquisition of equity investees | (109) | (38) | |
Capital contributions in investees | (38) | (241) | (254) |
Cash arising from business combination | 71 | ||
Disposal of investments | 766 | ||
Loans to related parties | (7) | ||
Property, plant and equipment | (70) | (77) | (83) |
Intangible assets and contract assets - gas and distribution of energy infrastructure | (1,857) | (801) | (1,034) |
Net cash flows used in continuing investment activities | (1,813) | (866) | (386) |
Net cash flows from discontinued investment activities | 625 | 655 | |
NET CASH FLOWS USED IN INVESTING ACTIVITIES | (1,188) | (211) | (386) |
FINANCING ACTIVITIES | |||
Subscription of shares, to be capitalized | 1,215 | ||
Proceeds from Loans, financings and debentures | 4,477 | 2,990 | 3,308 |
Interest on capital and dividends paid | (701) | (509) | (540) |
Capital increase | 110 | ||
Borrowing costs | (11) | ||
Payment of loans, financing and debentures | (4,883) | (3,527) | (4,131) |
Payment of principal portion of lease liabilities | (96) | ||
NET CASH FLOWS USED IN FINANCING ACTIVITIES | (1,203) | (936) | (159) |
Net (decrease) increase in cash and cash equivalents for the year | (355) | (139) | 35 |
Cash and cash equivalents at the beginning of the year | 891 | 1,030 | 995 |
Cash and cash equivalents at the end of the year | R$ 536 | R$ 891 | R$ 1030 |
1. OPERATING CONTEXT
1. OPERATING CONTEXT | 12 Months Ended |
Dec. 31, 2019 | |
Operating Context | |
OPERATING CONTEXT | 1. OPERATING CONTEXT a) The Company Companhia Energética de Minas Gerais (´Parent company’ or ‘Holding company’) is a listed corporation, with shares traded on the São Paulo Stock Exchange) (‘B3’) at Corporate Governance Level 1; through ADRs on the New York Stock Exchange (‘NYSE’); and on the stock exchange of Madrid (‘Latibex’). The Company is a state-controlled mixed capital company controlled by the State of Minas Gerais. It is domiciled in Brazil, with head office at Avenida Barbacena 1200, Belo Horizonte, Minas Gerais. It operates exclusively as a holding company, with subsidiaries and investments in affiliates or jointly-controlled entities (collectively refer to as ‘Cemig’ or the ‘Company’), which are engaged in the construction and operation of infrastructure used in the generation, transformation, transmission, distribution and sale of energy, and also activities in the various fields of energy sector, for the purpose of commercial operation. Cemig has equity interests in the following subsidiaries, jointly-controlled entities and affiliates, all of which principal activities are: construction and operation of systems of production, distribution and sale of energy and gas (information in MWh has not been audited by the external auditors): Investments Classification Description SUBSIDIARIES: Cemig Geração e Transmissão S.A. (‘Cemig GT’ or ‘Cemig Geração e Transmissão’) Subsidiary Wholly-owned subsidiary engaged in the energy generation and transmission services. Its shares are listed in Brazil, but are not actively traded. Cemig GT has interests in 83 power plants (76 of which are hydroelectric, 6 are wind power, 1 is a thermal plant and 1 is solar), of which 45 are controlled by Cemig GT, and associated transmission lines, most of which are part of the Brazilian national generation and transmission grid system, with total installed generation capacity of 3,235 MW (information not reviewed by the external auditors). Cemig Baguari Subsidiary Corporation engaged in the production and sale of energy as an independent power producer and in interests in investees or joint operations that are engaged in the production and sale of energy in future projects. Cemig Geração Três Marias S.A. Subsidiary Corporation engaged in the production and sale of energy as public service concession holder, by commercial operation of the Três Marias Hydroelectric Plant, and sale and trading of energy in the Free Market. This subsidiary has installed capacity of 396 MW, and guaranteed offtake level of 239 MW average. Investments Classification Description Cemig Geração Salto Grande S.A. Subsidiary Corporation engaged in the production and sale of energy as public service concession holder, by commercial operation of the Salto Grande Hydroelectric Plant, and sale and trading of energy in the Free Market. This subsidiary has installed capacity of 102 MW, and guaranteed offtake level of 75 MW average. Cemig Geração Itutinga S.A. Subsidiary Corporation engaged in the production and sale of energy as public service concession holder, by commercial operation of the Itutinga Hydroelectric Plant, and sale and trading of energy in the Free Market. This subsidiary has installed capacity of 52 MW, and guaranteed offtake level of 28 MW average. Cemig Geração Camargos S.A. Subsidiary Corporation engaged in the production and sale of energy as public service concession holder, by commercial operation of the Camargos Hydroelectric Plant, and sale and trading of energy in the Free Market. This subsidiary has installed capacity of 46 MW, and guaranteed offtake level of 21 MW average. Cemig Geração Sul S.A. Subsidiary Corporation engaged in the production and sale of energy as public concession holder, by commercial operation of the Coronel Domiciano, Marmelos, Joasal, Paciência and Piau Small Hydroelectric Plants, and trading in energy in the Free Market. Aggregate installed generation capacity is 39.53 MW; guaranteed offtake level of 27.42 MW average. Cemig Geração Leste S.A. Subsidiary Corporation engaged in the production and sale of energy as public concession holder, by operation of the Dona Rita, Sinceridade, Neblina, Ervália, Tronqueiras and Peti Small Hydroelectric Plants, and trading in energy in the Free Market. Aggregate installed generation capacity of these plants is 35.16 MW; guaranteed offtake level of 18.64 MW average. Cemig Geração Oeste S.A. Subsidiary Corporation engaged in the production and sale of energy as public service concession holder, by commercial operation of the Gafanhoto, Cajuru and Martins Small Hydroelectric Plants, and sale and trading of energy in the Free Market. It has aggregate installed capacity of 28.90 MW, and guaranteed offtake level of 11.21 MW average. Rosal Energia S.A. (‘Rosal’) Subsidiary Corporation that holds the concession to generate and sell energy, operating the Rosal Hydroelectric Plant, on the border between the states of Rio de Janeiro and Espírito Santo. Sá Carvalho S.A. (‘Sá Carvalho’) Subsidiary Corporation that holds the concession to generate and sell energy, operating the Sá Carvalho Hydroelectric Plant. Horizontes Energia S.A. (‘Horizontes’) Subsidiary Corporation that is classified as an independent power producer operating the Machado Mineiro and Salto do Paraopeba Hydroelectric Plants in Minas Gerais; and the Salto do Voltão and Salto do Passo Velho Hydroelectric Plants, in the state of Santa Catarina. Cemig PCH S.A. (‘PCH’) Subsidiary Corporation that is classified as an independent power producer operating the Pai Joaquim hydroelectric power plant. Cemig Comercializadora de Energia Incentivada S.A. Subsidiary Corporation engaged in the production and sale as independent thermal generation power producer, in future projects. Cemig Trading S.A. (‘Cemig Trading’) Subsidiary Corporation engaged in trading and intermediation of energy. Empresa de Serviços e Comercialização de Energia Elétrica S.A. Subsidiary Corporation engaged in the production and sale of energy as an independent power producer, in future projects. Cemig Geração Poço Fundo Subsidiary Corporation engaged in the production and sale of energy, as an independent producer, through construction and operation of the hydroelectric power plant Poço Fundo, located in Machado river, in the State of Minas Gerais. Investments Classification Description Central Eólica Praias de Parajuru S.A. (‘Central Eólica Praias de Parajuru’) Subsidiary Corporation engaged in the production and sale of energy at the wind power plant of the same name in the northeastern Brazilian state of Ceará. Central Eólica Volta do Rio S.A. (‘Central Eólica Volta do Rio’) Subsidiary Corporation engaged in the production and sale of energy at the wind power plant of the same name in Acaraú, northeastern Brazilian state of Ceará. Cemig Distribuição S.A. (‘Cemig D’ or ‘Cemig Distribuição’) Subsidiary Wholly owned subsidiary, whose shares are listed in Brazil but are not actively traded; engaged in the distribution of energy through networks and distribution lines throughout almost the whole of Minas Gerais State. Companhia de Gás de Minas Gerais (‘Gasmig’) Subsidiary Corporation engaged in the acquisition, transportation and distribution of combustible gas or sub-products and derivatives, through a concession for the distribution of gas in the State of Minas Gerais. Cemig Geração Distribuída Subsidiary Wholly owned subsidiary engaged in: building and maintaining projects and equipment associated with energy efficiency and micro- and mini- distributed generation; providing consultancy and studies for distributed generation projects and equipment, for subscription to systems for customers to supply to the grid as generators, and technical, regulatory and economic feasibility analyses for these purposes. Efficientia S.A. (‘Efficientia’) Subsidiary Corporation that provides energy efficiency and optimization services and energy solutions through studies and execution of projects; and services of operation and maintenance of energy supply facilities. JOINTLY-CONTROLLED ENTITIES Guanhães Energia S.A. (‘Guanhães Energia’) Jointly-controlled entity Corporation engaged in the production and sale of energy through building and commercial operation of the following Small Hydro Plants: Dores de Guanhães, Senhora do Porto and Jacaré, in the county of Dores de Guanhães; and Fortuna II, in the county of Virginópolis, in Minas Gerais. LightGer S.A. (‘LightGer’) Jointly-controlled entity Corporation classified as independent power producer, formed to build and operate the Paracambi Small Hydro Plant (or PCH), on the Ribeirão das Lages river in the county of Paracambi, Rio de Janeiro State. Usina Hidrelétrica Itaocara S.A. (‘UHE Itaocara’) Jointly-controlled entity Corporation, comprising the partners of the UHE Itaocara Consortium, formed by Cemig GT and Itaocara Energia (of the Light group), responsible for construction of the Itaocara I Hydroelectric Plant. Axxiom Soluções Tecnológicas S.A. (‘Axxiom’) Jointly-controlled entity Unlisted corporation, providing technology and systems solutions for operational management of public service concession holders, including companies operating in energy, gas, water and sewerage, and other utilities. Jointly controlled by Light (51%) and Cemig (49%). Hidrelétrica Cachoeirão S.A. (‘Cachoeirão’) Jointly-controlled entity Production and sale of energy as an independent power producer, through the Cachoeirão hydroelectric power plant located at Pocrane, in the State of Minas Gerais. Hidrelétrica Pipoca S.A. (‘Pipoca’) Jointly-controlled entity Independent production of energy, through construction and commercial operation of the Pipoca Small Hydro Plant (SHP, or Pequena Central Hidrelétrica – PCH), on the Manhuaçu River, in the municipalities of Caratinga and Ipanema, in Minas Gerais State. Retiro Baixo Energética S.A. (‘RBE’) Jointly-controlled entity Corporation that holds the concession to operate the Retiro Baixo Hydroelectric Plant, on the Paraopeba River, in the São Francisco river basin, in the municipalities of Curvelo and Pompeu, in Minas Gerais. Amazônia Energia Participações S.A (‘Amazônia Energia’) Jointly-controlled entity Special-purpose company created by Cemig GT (74.50% ownership) and Light (25.50%), for acquisition of an equity interest of 9.77% in Norte Energia S.A. (‘Nesa’), the company holding the concession for the Belo Monte Hydroelectric Plant, on the Xingu River, in the Northern Brazilian State of Pará. Aliança Norte Energia Participações S.A. (‘Aliança Norte’) Jointly-controlled entity Special-purpose company created by Cemig GT (49% ownership) and Vale S.A. 51%, for acquisition of an equity interest of 9% in Norte Energia S.A. (‘Nesa’), the company holds the concession for the Belo Monte Hydroelectric Plant, on the Xingu River, in the Northern Brazilian State of Pará. Baguari Energia S.A. (‘Baguari Energia’) Jointly-controlled entity Corporation engaged in the construction, operation, maintenance and commercial operation of the Baguari Hydroelectric Plant, through participation in the UHE Baguari Consortium (Baguari Energia 49%, Neoenergia 51%), on the Doce river in Governador Valadares, Minas Gerais. Renova Energia S.A. (‘Renova Energia’) Jointly-controlled entity Listed company engaged in the development, construction and operation of plants generating power from renewable sources – wind power, small hydro plants (SHPs), and solar energy; trading of energy; and related activities. Aliança Geração de Energia S.A. (‘Aliança’) Jointly-controlled entity Unlisted company created by Cemig GT and Vale S.A. as a platform for consolidation of generation assets held by the two parties in generation consortia, and investments in future generation projects. For their shares, the two parties subscribed the following generation plant assets: Porto Estrela, Igarapava, Funil, Capim Branco I, Capim Branco II, Aimorés, and Candonga. With these assets Aliança has total installed generation capacity, in operation, of 1,257 MW (physical offtake guarantee 668 MW average). It also has other generation projects. Vale and Cemig GT respectively hold 55% and 45% of the total capital. Transmissora Aliança de Energia Elétrica S.A. (‘TAESA’) Jointly-controlled entity Corporation engaged in the construction, operation and maintenance of energy transmission facilities in 18 states of Brazil through direct and indirect equity interests in investees Companhia de Transmissão Centroeste de Minas (‘Centroeste’) (1) Jointly-controlled entity Corporation engaged in the construction, operation and maintenance of the Furnas-Pimenta transmission line – part of the national grid. Investments Classification Description Affiliated Company Madeira Energia S.A. (‘Madeira’) Affiliated company Corporation engaged in the construction and commercial operation of the Santo Antônio Hydroelectric Plant, through its subsidiary Santo Antônio Energia S.A., in the basin of the Madeira river, in the State of Rondônia. Ativas Datacenter S.A. (‘Ativas’) Affiliated entity Corporation engaged in the supply of IT and communication infrastructure services, including physical hosting and related services for medium-sized and large corporations. FIP Melbourne (Usina de Santo Antônio) Affiliated entity Investment fund managed by Banco Modal S.A., whose objective is to seek appreciation of capital invested through acquisition of shares, convertible debentures or warrants issued by listed or unlisted companies, and/or other assets. This fund held 83% of the share capital of SAAG Investimentos S.A. (‘SAAG’), the objects of which are to own equity in Madeira Energia S.A. (‘Mesa’). Affiliated Company held for sale: Light S.A. (‘Light’) Affiliated entity Listed company engaged in the following activities: energy generation, transmission, trading, distribution, and related services; and holding direct or indirect interest in companies engaged in similar activities. (1) On January 13, 2020, the Company concluded the acquisition of 49% of the share capital held by Eletrobras in Centroeste, becoming the sole owner of the investee since then. For more details see Note 18 – Investments. Investments in which the Company exercises joint control it does so through Shareholders’ agreements entered into with the other shareholders of the investment. See further information on the subsidiaries, jointly-controlled entities and affiliates in Notes 3 and 18; and on transactions between related parties in Note 32. Management has assessed the capacity of the Company to continue as a going concern, and believes that its operations will generate sufficient future cash flows to enable continuity of its businesses. In addition, Management is not aware of any material uncertainties that could generate significant doubts about its ability to continue as a going concern. Therefore, these financial statements are prepared on a going concern basis. Disposal of interest and control of Light On July 17, 2019, Light completed a public offering for initial and secondary distribution of its nominal, book-entry common shares without par value, all free of any liens or encumbrances, carried out in accordance with the procedures of Brazilian Securities Commission (CVM) Instruction 476 of January 16, 2009. In the Public Offering, Light placed: (i) 100,000,000 new shares (‘the Primary Offering’), consequently increasing its share capital; and (ii) 33,333,333 shares owned by the Company at the price of R$ 18.75 per share. With the settlement of the restricted offering, the Company’s equity interest in the total share capital of Light was reduced from 49.99% to 22.58%, limiting its voting rights in Shareholders’ Meetings and, as a result, its ability to direct the relevant activities of the investee. Thus, as from that date, the Company no longer has power that gives it control of this investee. In accordance with IFRS 10 – Consolidated financial statements, the investee is no longer considered a subsidiary, and therefore it is no longer consolidated. Since the Company continues to have a firm commitment to dispose of the remaining interest in Light, the investment continues to be classified as an asset held for sale, in accordance with IFRS 5 – Non-current assets held for sale, and discontinued operations. For more details please see Note 34. |
2. BASIS OF PREPARATION
2. BASIS OF PREPARATION | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of initial application of standards or interpretations [abstract] | |
BASIS OF PREPARATION | 2. BASIS OF PREPARATION 2.1 Statement of compliance The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). Company’s management certifies that all relevant and material information in financial statements is being disclosed, which is used by management in its administration of the Company. On May 22, 2020, the Company’s Audit Committee authorized the issuance of the consolidated financial statements as of December 31, 2019 and 2018 and for the years ended December 31, 2019, 2018 and 2017. 2.2 Basis of measurement The consolidated financial statements were prepared on a historical cost basis, except in the case of certain financial instruments and assets as held for sale which are measured at fair value and fair value less costs to sell, in accordance with the standards applicable, as detailed in Note 33 and 34, respectively. Functional currency and presentation currency The consolidated financial statements are presented in Reais, which is the functional currency of the Company and its subsidiaries, joint ventures and affiliates, and all amounts are rounded to the nearest million, except when otherwise indicated. Transactions in foreign currency were converted to Reais at the exchange rate as of the transaction date. Balances of monetary assets and liabilities denominated in foreign currency are translated to Reais at the exchange rates at the reporting date. Foreign exchange gains and losses resulting from the settlement or translation of assets and liabilities denominated in foreign currency are recorded in finance income and cost in the consolidated statement of income. 2.3 Use of estimates and judgments Preparation of the consolidated financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenues and expenses. Uncertainties about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of assets or liabilities affected in future periods. Estimates and assumptions are periodically reviewed, using as a reference both historical experience and any significant change in scenarios that could affect the Company’s financial position or results of operations. Revisions in relation to accounting estimates are recognized in the period in which the estimates are reviewed, and in any future periods affected. The principal estimates and judgments that have a signficiant effect in the amounts recognized in the financial statements are as follows: • Adjustments for loss on doubtful accounts – Note 8; • Amounts to be refunded to customers – Note 10; • Deferred income tax and social contribution tax – Note 11; • Financial assets and liabilities of the concession – Note 16; • Concession contract assets – Note 17; • Investments – Note 18; • Property, plant and equipment (“PP&E”) and useful life of assets – Note 19; • Intangible assets and useful life of assets – Note 20; • Leasing transaction – Note 21; • Employee post-employment obligations –Note 26; • Provisions – Note 27; • Unbilled revenue – Note 29; • Financial instruments measurement and fair value measurement – Note 33; • Assets held for sale measurement – Note 34. The settlement of the transactions involving those estimates may result in amounts that are significantly different from those recorded in the financial statements due to the uncertainty inherent to the estimation process. The Company reviews its significant estimates at least annually. 2.4 New accounting standards, interpretation or revisions of accounting standards, applied for the first time in 2019 The Company has applied, for the first time, new accounting standards that became effective for annual periods beginning January 1, 2019 or later, as described below: IFRS 16 – Leases IFRS 16, establishes principles for recognition, measurement, presentation and disclosure of leasing transactions and requires that lessees account all the leasing transactions in accordance with a single balance sheet model, similar to the accounting of finance leases. At the leasing operation beginning date, the lessee recognizes a liability to make the payments (a lease liability) and an asset, representing the right of use the subject asset during the period of the leasing (a right-of-use asset). Lessees are required to recognize separately the interest expenses from the lease liability and the depreciation or amortization expense of the right-of-use asset. Lessees are also required to revalue the lease liability when certain events occur (for example, change in the period of leasing, a change in the future payments of the leasing as a result of a change in an index, or a rate used to determine such payments). In general, the lessee will recognize the amount of the revaluation of the lease liability as an adjustment to the right-of-use asset. The Company has performed an analysis of the initial adoption of IFRS 16 in their financial statements as from January 1, 2019, and elected to apply the recognition exemptions for short-term leases (contracts that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option), and leases for which the underlying asset is of low value. The Company adopted IFRS 16 using the modified retrospective method, therefore, prior periods information are not comparative. The Company carried out an assessment of impacts of the initial adoption of IFRS 16 , which affect the following contracts: • Leasing of commercial real estate used for serving customers; • Leasing of buildings used as administrative headquarters; • Leasing of commercial vehicles used in operations. The right-of-use asset was assigned at the same value as the lease liability on the initial adoption date. The impacts of adoption of IFRS 16, on January 1, 2019 are as follows: Consolidated Right-of-use assets 342 Lease liabilities – Obligations referring to operational leasing agreements (342 ) IFRIC 23 – Uncertainty on treatment of taxes on profit The interpretation addresses the accounting of income taxes when tax treatments involve uncertainty affecting application of IAS 12– Income taxes. • Whether the entity considers uncertain tax treatments separately. • The assumptions that the entity makes about examination of the tax treatments by taxation authorities. • How an entity determines taxable profit (tax loss), tax bases, unused tax credits and tax rates. • How the entity considers changes of facts and circumstances. The entity determines whether to consider each uncertain tax treatment separately or together with one or more uncertain tax treatments based on an approach that better predicts the resolution of the uncertainty. The interpretation is in effect for annual periods starting on or after January 1, 2019. The Company has adopted the interpretation as from the date of coming into effect and have analyzed the tax treatments adopted which could generate uncertainties in the calculation of income taxes and which might potentially expose the Company to material risks of loss. The conclusion of these analyses is that none of the significant positions adopted by the Company has been changed in relation to expectation of losses due to any questioning or challenge by the tax authorities. Amendments of accounting standards, effective as from January 1, 2019 Amendments to IAS 28, Long-term interests in affiliates and joint ventures: IAS 12 Income Taxes: Amendments to IAS 19 – Employee benefits: Several other amendments and interpretations applied for the first time in 2019 do not have a significant impact on the consolidated financial statements of the Company. 2.5 Standards issued but not yet effective The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below. The Company intends to adopt these new and amended standards and interpretations, if applicable, when they become effective. Amendments to IFRS 3, Definition of a Business: Amendments to IAS 1 and IAS 8, Definition of Material: IFRS 17 Insurance Contracts: 2.6 Summary of significant accounting policies The significant accounting policies described below have been applied consistently to all the periods presented in the consolidated financial statements, except for the practices which were applied prospectively as from 2019, in accordance with the standards and regulations described in Item 2.1 – Compliance statement. The accounting policies relating to Company’s present operations that require judgment and the use of specific valuation criteria are the following: a) Financial instruments Financial instruments are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other comprehensive income (OCI), and fair value through profit or loss, depending on the financial asset’s contractual cash flow characteristics and the Company’s business model for managing them. Fair value through profit or loss: Valor Novo de Reposição This category also include cash equivalents, marketable securities not classified at amortized cost, derivative financial instruments and indemnities receivable from the generation assets. Cash and cash equivalents comprise cash at banks and on hand and short-term highly liquid deposits, subject to an insignificant risk of changes in value, maintained to carry out the Company’s short-term cash management. The disclosures about the main assumptions used in fair value measurement are summarized in the respective notes. Derivative financial instruments (Swap transactions and call spread): Derivative financial instruments (Put options) Amortized cost: CVA Other financial components Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate (EIR). b) Receivables from customers, traders and power transport concession holders Accounts receivable from customers, traders and power transport concession holders are initially recognized at the sales value and subsequently measured at amortized cost. These receivables are stated including sales tax and net of withholding taxes, which are recognized as recoverable taxes. In order to estimate future losses on receivables, the Company adopted a simplified approach, considered that the accounts receivable from customers do not have significant financial components, and calculated the expected loss considering the historical average of non-collection over the total billed in each month (based on the last 24 months of billing), segregated by type of customer and projected for the next 12 months, taking into account the age of maturity of invoices, including those not yet due and unbilled. In 2019, the Company changed the assumption applied for the calculation of the historic percentages of default in the provision matrix, from 12 to 24 months, with the aim of enhancing the estimation method, based on studies of its customers’ debt behavior after more than 12 and 24 months from the due date, using the existing collection tools. See note°8. The expected losses for overdue accounts of customers that renegotiated their debt is measured based on the maturity date of the original invoice, despite the new terms negotiated. Expected losses are fully recognized for accounts overdue for more than 12 months. Expected losses for invoices unbilled, not yet due or less than 12 months past due are measured according to the potential default events, or losses of credit expected for the whole life of a financial instrument, if the credit risk has significantly increased since its initial recognition. For large customers, the provision for doubtful receivables is recorded based on estimates by Management, in an amount sufficient to cover probable losses. The main criteria used by the Company are: (i) customers with significant open balances, the receivable balance is analyzed based on the debt history, negotiations in progress, and asset guarantees; and (ii) for large customers, an individual analysis of the debtors and the initiatives in progress to realize the receivables. c) Investments in affiliates and jointly-controlled entities The Company has investments in affiliates and jointly-controlled entities. The considerations made in determining significant influence or joint control are similar to those necessary to determine control over subsidiaries. These investments are accounted using the equity method and are initially recognized at acquisition cost, equivalent to the consideration transferred measured at fair value at the acquisition date. The investments of the Company includes the intangible assets representing the right to commercial operation of the regulated activity identified in the process of allocation of the price for acquisition of the affiliates and jointly-controlled entities. Those intangible assets relating to the affiliates and jointly-controlled entities are included in the carrying amount of the investment and are amortized by the straight-line method, during the period of the concessions. After application of the equity method, the Company determines whether it is necessary to recognize an impairment loss on its investment in its affiliates or jointly-controlled entities. At each reporting date, the Company determines whether there is objective evidence that the investment in the affiliates or jointly-controlled entities is impaired. If there is such evidence, the investment carrying amount is subject to impairment testing. d) Business combinations Business combinations are accounted for using the acquisition method of accounting. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date at fair value, as well as the amount of any non-controlling interests. Goodwill is initially measured at cost, as the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests and any previous interest held over the net identifiable assets acquired and liabilities assumed. In the process of allocating the purchase price for of the acquisition of subsidiaries that is a concession holder, the fair value relating to the identifiable right to commercial operation of the regulated activity is recognized as intangible assets with a finite useful life. When a business combination is carried out in stages (“step-acquisition method”), the interest previously held by the Company in its investee is remeasured at the fair value at the acquisition date and the corresponding gain or loss, if any, is recognized in the statement of income. e) Concession assets Concession infrastructure under construction are initially recorded as contract assets, in accordance with IFRS 15 and IFRIC 12, considering that the Company is entitled to consideration for performance completed to date, and, only when the construction phases ends, has the right to charge for the services provided to customers or receive an indemnity at the end of the concession period for assets not yet amortized. In accordance with IFRS 15 and IFRIC 12, construction revenues equivalent to new infrastructure are initially recorded as contract assets, measured at construction cost plus margin (which, for the construction business, is deemed as zero). Construction cost include borrowing costs. Energy and Gas Distribution segment The portion of the infrastructure to be amortized during the concession period is recorded as an intangible asset, as provided for in IFRIC 12 – Concession contracts, and subsequently measured at cost less amortization. The main amortization rates, which take into account the useful life that management expects for the intangible asset, and reflect the expected pattern of their consumption, are presented in Note 20. The Company recognizes a financial asset for the residual value of the infrastructure at the end of the concession, representing an unconditional right to receive cash or another financial asset directly from the grantor. The financial assets is subsequently measured at the estimated fair value. Transmission segment: Consideration monthly received is allocated to revenue related to the operation and maintenance service and to the collection of the contract asset related to the construction service based on their relative fair value. Costs of expansion and upgrades of the infrastructure are recorded as contract assets. Due to the acceptance of the terms of renewal of the old transmission concessions, part of the transmission assets of the concessions terminated on December 31, 2012, is subject of reimbursement by the granting authority, and a financial asset was recognized corresponding to the estimated indemnity to be received over a period of eight years. Generation segment f) Intangible assets Intangible assets are mainly comprised of the intangible assets related to the service concession contracts as described in topic (e) above as well as software. Intangible assets are stated at cost, less amortization, and any accumulated impairments when applicable. Any gain or loss arising on derecognition of an intangible asset, calculated as the difference between the net disposal proceeds and the carrying amount of the asset, is included in the statement of income when the asset is derecognized. g) Property, plant and equipment Property, plant and equipment are stated at the cost, including deemed cost (upon initial application of IFRSs) and capitalized borrowing costs, less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, or in certain circumstances, the concession term, whatever is shorter. Depreciation rates are shown in Note 19. Any gain or loss arising on derecognition of a property, plant and equipment, calculated as the difference between the net disposal proceeds and the carrying amount of the asset, is included in the statement of income when the asset is derecognized. h) Impairment In assessing impairment of financial assets, the Company uses historical trends of the probability of default, timing of recovery and the amounts of loss incurred, adjusted to reflect management’s judgment as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. Additionally, management revises, annually, the carrying amount of non-financial assets, for the purpose of assessing if there is any indication, such as events or changes in the economic, operational or technological conditions that an asset may be impaired. If any indication exists, or when annual impairment testing of an asset is required, the Company estimates the asset´s recoverable amount. The recoverable amount of an asset or cash generating unit is defined as the higher between its value in use and its fair value less costs to sell. When the carrying amount of an asset or cash generating unit exceeds its recoverable amount, an impairment loss is recognized, adjusting the carrying amount of the asset or cash generating unit to its recoverable value. i) Employee benefits The liability recorded in the consolidated statement of financial position related the Company’s retirement benefit pension plan obligations, is the greater of: (a) the amount to be paid in accordance with the terms of the pension plan for amortization of the actuarial obligations, and (b) the present value of the actuarial obligation, as calculated by a qualified actuary, less the fair value of the plan’s assets, and adjusted for unrecognized actuarial gains and losses. Expenses related to the debt agreed upon with the pension trust fund were recorded in finance income (expenses), because they represent financial interest and inflation adjustment. Other expenses related to the pension fund were recorded as operating expenses. The Company offers post-employment healthcare benefits to its employees as well as life insurance for active and retired employees. The expected costs of these benefits are accrued over the period of employment using the same accounting methodology that is used for defined benefit pension plans. These obligations are measured annually by a qualified independent actuary. Actuarial gains and losses arising as a result of changes in actuarial assumptions are recognized in other comprehensive income. Short-term benefits to employees: j) Income tax and social contribution tax Current Advances, or tax credits, are presented as current or non-current assets, in accordance with the expected date of their realization at the balance sheet date, when the tax amounts are duly calculated and offset against advances made. Deferred Deferred tax is recognized for temporary differences between the carrying amount of an asset or liability in the statement of financial position and its tax base at the reporting date. Deferred tax liabilities are recognized for unused tax loss carryforwards and all taxable temporary differences, except for the situations listed below. Deferred tax assets are recognized for all the deductible temporary differences, except for the situations listed below, to the extent that it is probable that future taxable profit will be available for the temporary differences to be offset. These taxes are measured at the tax rates that are expected to apply in the year when the asset is recovered or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. The follow exemptions apply to the deferred tax recognition: When the deferred tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. The carrying amount of deferred income tax and social contribution tax assets is reviewed at each reporting date, and are reduced to the extent that is no longer probable. that sufficient taxable profit will be available to allow the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. k) Government grants Government grants are recognized when there is reasonable assurance that the grant will be received, and all attached conditions will be complied with. The Company has operations in an area incentivized by SUDENE and recognize its right to a 75% reduction in income tax, including the 10% additional. Such tax incentives, in the form of exemption or reduction of income tax, comply with the concept of government grants and are recognized as income on a systematic basis over the periods that the related income tax expense for which it is intended to compensate, is recorded Given the legal restriction on the profit distribution corresponding to the tax incentive, the Company maintains the amount related to the incentive granted in a tax incentive reserve. In addition, the Company receives amounts from the Energy Development Account (CDE) as reimbursement for subsidies on tariffs granted to users of the public energy distribution service. These amounts are recognized as revenue in the income statement in a monthly basis, at the moment that the Company acquire the right of receive them. l) Non-current assets classified as held for sale and discontinued operations The Company classify non-current assets as held for sale when their carrying amount will be recovered, principally, through a sale transaction rather than through continuous use. This condition is met only when the asset (or group of assets) is available for immediate sale in its current condition subject only to usual and customary terms for the sale of the asset (or group of assets) and its sale is considered highly probable. Management must be committed to the sale which is expected to be completed within one year from the date of classification. Assets held for sale are measured at the lower of its carrying amount and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an asset, excluding finance expenses and income tax expenses. Fixed assets (PP&E) and Intangible assets are not depreciated or amortized as long as they are classified as held for sale. Assets and liabilities classified as held for sale are presented separately as current items in the Statement of financial position. Dividends received from jointly-controlled entities and affiliates, classified as held for sale, are recognized in the Income statement, in view of the discontinuation of measurement by the equity method, under IFRS 5. A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and: • Represents a separate major line of business or geographical area of operations • Is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or • Is a subsidiary acquired exclusively with a view to resale. Discontinued operations are excluded from the reported profit from continuing operations, and are presented as a single amount, after taxes, based on discontinued operations, in the statement of income. Additional disclosures are presented in Note 34. All the other notes to the financial statements include amounts for continuing operations, except when otherwise stated. m) Revenue recognition Through December 31, 2017, revenue was measured at fair value of the consideration received or receivable, less any estimates or refunds and other similar deductions. As from January 1, 2018 in general, revenue from contracts with customers is recognized when the performance obligation is satisfied, at an amount that reflects the consideration to which the Company expects to be entitled in exchange for the goods or services transferred, which must be allocated to that performance obligation. The revenue is recognized only when it is probable that the Company will collect the consideration to which it is entitled in exchange for the goods or services transferred to the customer, considering the customer’s ability and intention to pay that amount of consideration when it is due. Revenues from the sale of energy are measured based on the energy supplied and the tariffs specified in the terms of the contract or in effect in the market. Revenues from supply of energy to final customers are recorded when the delivery has taken place. The billing is carried out monthly. Unbilled supply of energy, from the period between the last billing and the end of each month, is estimated based on the supply contracted and on the volume of energy delivered but not yet billed. Historically, the differences between the estimated amounts and the actual revenues recognized are not significant. Revenues from use of the distribution system (TUSD) received by the Company from other concession holders and other customers that use the distribution network are recognized in the period in which the services are provided. Unbilled retail supply of energy, from the period between the last measured consumption, according to the schedules specified in the concession regulation, and the end of each month is estimated based on the billing from the previous month or the contractual amount. Historically, the differences between the estimated amounts and the actual revenues recognized are not significant. Construction revenue – Corresponds to the performance obligation to build the transmission and distribution infrastructure during the construction phase; Revenues from transmission concession services are recognized in the Statement of income monthly and include: • Operation and maintenance revenue arising from costs incurred and necessary to comply with the performance obligation of operation and maintenance specified in the transmission concession contract, after termination of the construction phase; • Revenue from remuneration of the contract asset recognized, recorded as transmission concession gross revenue in statement income The services provided include charges for connection and other related services; the revenues are recognized when the services are rendered. The ‘Parcel A’ revenue and other financial components Note 16 Any adjustment of expected cash flows from the concession financial asset of the energy distribution concession contract is presented as operating revenue, together with the other revenues related to the energy distribution services. n) Finance income and expenses Finance income is mainly comprised of interest income on funds invested, monetary adjustments on overdue receivables and interest income on other financial assets. Interest income is recognized in the Statement of income using the effective interest method. Finance expenses include interest expense on borrowings; and foreign exchange and monetary adjustments on borrowing costs of debt, financings and debentures. Interest expense on the Company’s borrowings that is not capitalized is recognized in the Statement of income using the effective interest method. o) Cash dividends A liability to pay a dividend is recognized when the distribution is authorized or is enforced by law or Company's bylaws and the distribution is no longer at the discretion of the Company. p) Segment reporting The operating results of all operating segments for which discrete financial information is available, are reviewed regularly by the Company’s CEO, to make decisions about resources to be allocated to the segment, and to assess its performance. Segment results that are reported to the CEO include items directly attributable to the segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the Company’s headquarters) and head office expenses. Segment capital expenditure is the total cost incurred during the year to acquire concession financial assets, intangible assets, concession contract assets and property, plant and equipment. q) Leases As from January 1, 2019, Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. Company recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets. Right-of-use assets: Company recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated amortization and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are amortized on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as described in Note 21. If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, amortization is calculated using the estimated useful life of the asset. Lease liabilities: At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lea |
3. PRINCIPLES OF CONSOLIDATION
3. PRINCIPLES OF CONSOLIDATION | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of subsidiaries [abstract] | |
PRINCIPLES OF CONSOLIDATION | 3. PRINCIPLES OF CONSOLIDATION The year end of the financial statements of subsidiaries and jointly-controlled entities is the same as Cemig’s year end. Accounting practices are applied uniformly in line with those used by Cemig. The following subsidiaries are included in the consolidated financial statements: Subsidiary Form of 2019 Form of 2018 Direct Indirect Direct Indirect Cemig Geração e Transmissão Consolidation 100.00 – Consolidation 100.00 – Cemig Distribuição Consolidation 100.00 – Consolidation 100.00 – Gasmig Consolidation 99.57 – Consolidation 99.57 – Cemig Geração Distribuída (Usina Térmica Ipatinga) Consolidation 100.00 – Consolidation 100.00 – Efficientia Consolidation 100.00 – Consolidation 100.00 – Luce Empreendimentos e Participações S.A. (1) Consolidation – – Consolidation 100.00 – Rio Minas Energia e Participações (1) Consolidation – – Consolidation 100.00 – Light (2) Assets classified as held for sale 22.58 – Consolidation 26.06 23.93 LightGer(3) Equity method – 49.00 Consolidation – 74.49 Guanhães (3) Equity method – 49.00 Consolidation – 74.49 Axxion (4) Equity method 49.00 – Consolidation 49.00 25.49 UHE Itaocara (3) Equity method – 49.00 Consolidation – 74.49 (1) Merged with Cemig on April 24, 2019. (2) With the settlement of the restricted offering, on July 17 th th th (3) On December 31, 2018, the Company holds indirect equity interests in LightGer, Guanhães and Itaocara, of 74.49% and 49%, held through Cemig GT, and 25.49%, held through Light. As from the cessation of control of Light, the Company no longer holds control of these investees and the remaining indirect interest through Cemig GT is, from that date, measured by the equity method in the consolidated financial statements, in accordance with IAS 28. For more information, see Notes 18 and 34. (4) On December 31, 2018 the Company holds direct and indirect interests (through Light) in Axxiom of 49% and 25.49%, respectively. As from the cessation of control of Light, the Company no longer holds control of these investees and the remaining direct interest is, from that date, measured by the equity method in the consolidated financial statements, in accordance with IAS 28. For more information, see Notes 18 and 34 a) Subsidiaries, jointly-controlled and affiliated entities The financial statements of subsidiaries are included in the consolidated financial statements as from the date on which control is obtained, until the date on which control ceases. The assets, liabilities and profit (loss) of the subsidiaries are consolidated using full consolidation. The accounting policies of the subsidiaries and jointly-controlled entities are aligned with the policies adopted by the Company. The Company controls an investee when its existing rights give it the current ability to direct the relevant activities of the investee. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. When the Company loses controls of an investee, it derecognizes the assets and liabilities of the former subsidiary from the consolidated statement of financial position, at the date when control is lost. Any investment retained in the former subsidiary is recognized at its fair value and any resulting difference is recognized as gain or loss in the statement of income. Jointly-controlled and affiliated entities are accounted for under the equity method. b) Consortia The Company recognizes the proportional interest in assets, liabilities, and profits (losses) of consortium operations, since these investments are considered to be ‘joint operations’ in accordance with the requirements of IFRS 11. c) Transactions eliminated in consolidation Intra-group balances and transactions, and any unrealized gains and losses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealized gains arising from transactions with investee companies accounted for under the equity method are eliminated against the investment in proportion to the Company’s equity interests in the investee. Unrealized losses are eliminated in the same way as unrealized gains are eliminated, but only up to the point at which there is no evidence of impairment. |
4. CONCESSIONS AND AUTHORIZATIO
4. CONCESSIONS AND AUTHORIZATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Concessions And Authorizations | |
CONCESSIONS AND AUTHORIZATIONS | 4. CONCESSIONS AND AUTHORIZATIONS Cemig, through its subsidiaries, holds the following concessions or authorizations: Company holding concession or Concession or authorization Expiration POWER GENERATION Hydroelectric plants Emborcação (1) Cemig GT 07/1997 07/2025 Nova Ponte (1) Cemig GT 07/1997 07/2025 Santa Luzia (1) Cemig GT 07/1997 02/2026 Sá Carvalho (1) Sá Carvalho 01/2004 12/2024 Rosal (1) Rosal Energia 01/1997 05/2032 Mineiro (1) Salto Voltão (1) Salto Paraopeba (1) Salto do Passo Velho (1) Horizontes Energia Resolution 331/2002 07/2025 10/2030 10/2030 10/2030 PCH Pai Joaquim (1) Cemig PCH Authorizing Resolution 377/2005 04/2032 Irapé (1) Cemig GT 14/2000 02/2035 Queimado (Consórcio) (1) Cemig GT 06/1997 01/2033 Salto Morais (1) Cemig GT 02/2013 07/2020 Rio de Pedras (1) Cemig GT 02/2013 09/2024 Luiz Dias (1) Cemig GT 02/2013 08/2025 Poço Fundo (1) Cemig GT 02/2013 08/2025 São Bernardo (1) Cemig GT 02/2013 08/2025 Xicão (1) Cemig GT 02/2013 08/2025 Três Marias (2) Cemig Geração Três Marias 08/2016 01/2046 Salto Grande (2) Cemig Geração Salto Grande 09/2016 01/2046 Itutinga (2) Cemig Geração Itutinga 10/2016 01/2046 Camargos (2) Cemig Geração Camargos 11/2016 01/2046 Coronel Domiciano, Joasal, Marmelos, Paciência and Piau (2) Cemig Geração Sul 12/2016 and 13/2016 01/2046 Dona Rita, Ervália, Neblina, Peti, Sinceridade and Tronqueiras (2) Cemig Geração Leste 14/2016 and 15/2016 01/2046 Cajurú, Gafanhoto and Martins (2) Cemig Geração Oeste 16/2016 01/2046 Thermal plants Igarapé (1) (5) Cemig GT 07/1997 08/2024 Wind power plants Central Geradora Eólica Praias de Parajuru (3) Parajuru Resolution 526/2002 09/2032 Central Geradora Eólica Volta do Rio (3) Volta do Rio Resolution 660/2001 01/2031 POWER TRANSMISSION National grid (4) Cemig GT 006/1997 01/2043 Substation – SE Itajubá (4) Cemig GT 79/2000 10/2030 ENERGY DISTRIBUTION (6) Cemig D 002/1997 003/1997 004/1997 005/1997 12/2045 GAS DISTRIBUTION (6) (7) Gasmig State Law 11,021/1993 01/2053 * Cemig has grants for hydroelectric generation with potential of 5MW or less, and thus under Law 9074/95, these are dispensed from concession, permission or authorization, and do not have a final concession date. (1) Generation concession contracts that are not within the scope of IFRIC 12, whose infrastructure assets are recorded as PP&E since the concession grantor does not have control over whom the service is provided to as the output is being sold mainly in the Free Market (‘ACL’). (2) Generation concession contracts within the scope of IFRIC 12, under which Cemig has the right to receive cash and therefore, recognizes a concession financial assets. (3) This refers to concessions, given by the process of authorization, for generation, as an independent power producer, of wind power, sold under the Proinfa program. The assets tied to the right of commercial operation are recorded in PP&E. The rights of authorization of commercial operation that are classified as an Intangible. (4) These refer to transmission concession contracts, for which a contract asset was recognized upon the application of IFRS 15, for being subject to satisfaction of performance obligations. (5) On December 6, 2019, Aneel suspended Igarapé Plant commercial operation upon Cemig GT’s claim for early termination of its concession contract. (6) Concession contracts that are within the scope of IFRIC 12 and under which the concession infrastructure assets are recorded under the intangible and financial assets bifurcation model, and in compliance with IFRS 15, the infrastructure under construction has been classified as a contract asset. Despite the segregation of distribution concession contract into four regions of State of Minas Gerais, its terms and conditions are the same. (7) On September 19, 2019, Gasmig executed with the State of Minas Gerais, as Granting Authority, the Third Amendment to the Concession Agreement, assuring Gasmig the extension of its concession term until 2053. For further information, please see Note 20 – Intangible Assets. Generation concessions In the generation business, the Company sells energy: (1) Through auctions, to distributors to meet the demands of their captive markets; and (2) To free customers in the free market ( Ambiente de Contratação Livre In the free market, energy is traded by the generation concession holders, small hydro plants (PCHs, or SHPs), self-producers, traders, and importers of energy. There is also revenue from the spot market, which remunerates agents for de-contracted energy, which is settled at the Spot Price (PLD). Transmission concessions Under the transmission concession contracts, the Company, through its subsidiaries, is authorized to charge a Tariff for use of the Transmission System ( Tarifa de Uso do Sistema de Transmissão Receitas Anuais Permitidas The payment for use of transmission service also applies to generation provided by the Itaipu Binacional. However, due to the legal characteristics of that plant, the corresponding charges are assumed by the holders of distribution concessions that hold quotas of its output. Onerous concessions When obtaining the concessions for construction of certain generation projects, the Company is required to make payments to the regulator over the period of the contract or for up to 5 years upon signature of the concession contract for plants with installed capacity between 1 and 50 MW, as compensation for the right to operate them. The information on the concessions and the amounts to be paid are as follows: Project Nominal value in Present value in Period of the concession Updating indexer Irapé 33 15 03/2006 – 02/2035 IGPM Queimado (Consortium) 8 4 01/2004 – 12/2032 IGPM Salto Morais – – 06/2013 – 07/2020 IPCA Rio de Pedras – – 06/2013 – 09/2024 IPCA Various Small Hydro Plants (*) (1) – – 06/2013 – 08/2025 IPCA (*) SHPs, with installed capacity less than 50 MW: Luiz Dias, Poço Fundo, São Bernardo and Xicão. (1) Under Aneel Resolution 467/2011 the power plants with total installed generation capacity of 1 to 50 MW must pay Aneel for five years, starting on the date that the concession contract is signed. The power plants contracts of Salto Morais, Rio de Pedras, Luis Dias, Poço Fundo, São Bernardo and Xicão were signed in 06/2013, completing five years in 2018, therefore, they didn’t make any payments in 2019. The concessions fee are paid monthly to the grantor for an amount that changes over time. These payments are recorded as an intangible asset, representing a right to operate the concession and to charge users through the concession period, they are recorded as from the date of signature of the contracts at the present value of the future payment obligations. The amounts paid to the grantor in 2019, the nominal value and the present value of the amounts to be paid in the next 12 months, are as follows: Project Interest, % Amounts paid Amounts to be Irapé 100.00 2 2 Queimado (Consortium) 82.50 1 1 The rate used by the Company to discount the above liabilities to its present value, was 12.50%, and represents the average cost of funding in normal conditions on the date the concession contract was entered into. Distribution concessions The Company operates the concession for the distribution of energy in the greater part of the State of Minas Gerais, which expires in December 2045. According to the concession contract, all assets and facilities that are used in the provision of the distribution service and which have been constructed by the concession holder are considered part of the assets of the related concession and must be returned to the grantor at the end of the contract. Cemig is entitled to receive a payment for the residual value of the infrastructure assets at the end of the concession contract taking into consideration the amounts involved and the timing when they became part of the infrastructure. The Company is not subject to make any payments to the grantor in order to operate the distribution concessions, but is required to comply with certain quality standards and make infrastructure investments. The concession contracts and the Brazilian legislation establish a mechanism of maximum prices that allows for three types of adjustments to tariffs: (i) an annual tariff adjustment; (ii) periodic review of tariffs; and (iii) extraordinary reviews. Each year the Company has the right to request for the annual adjustment, the purpose of which is to be compensated the effects of inflation on the tariffs, and to allow for certain changes in costs that are outside the Company’s control to be passed through to customers – for example the cost of energy purchased for resale and sector charges including charges for the use of the transmission and distribution facilities. Also, the regulator performs a Periodic Review of tariffs every five years, which aims to make adjustments due to changes in the Company’s costs, and to establish a factor based on scale gains, which will be applied in the annual tariff adjustments, for the purpose of sharing such gains with the Company’s customers. The Company also has the right to request an extraordinary review of tariffs in the event that any unforeseen development significantly affects the economic-financial equilibrium of the concession. The Periodic Review and the Extraordinary Review are subject, to a certain degree, to the discretion of the regulator, although there are pre-established provisions for each revision cycle. Under the distribution concession contracts, the Company is authorized to charge customers a tariff consisting of two components: (i) A component related to costs of energy purchased for resale, charges for use of the transmission grid and charges for use of the distribution system that are not under its control (‘Parcel A costs’); and (ii) a portion relating to operating costs (‘Parcel B costs’). Fifth Amendment to concession contract On December 21, 2015, the Company signed, with the Mining and Energy Ministry, the Fifth Amendment to its concession contracts, extending its energy distribution concessions for an additional 30 years, starting January 1, 2016. The principal characteristics and terms of the Amendment are as follows: • The annual tariff adjustment will occur on May 28 of each year, starting in 2016; with the adjustment provisions specified in the previous concession contract remained unchanged. For the subsequent tariff adjustments the rules set for in Clause 6 of the Amendment will be applied. • Limitation of in the distribution of dividends and/or payment of Interest on Equity to the minimum established by law, in the envent of non-compliance with the annual indicators for outages (DECi and FECi) for two consecutive years, or three times in a period of five years, until the regulatory parameters are restored. • There is a requirement for injections of capital from the controlling shareholder in an amount sufficient to meet the minimum conditions for economic and financial sustainability. • Subject to the compliance of efficiency criteria related to continuity of supply and the economic and financial management to guarantee the concession’s operations as follows: (i) for five years starting January 1, 2016, any non-compliance for two consecutive years, or non-compliance with any of the conditions at the end of five years, will result in cancelation of the concession contract; (ii) starting January 1, 2021, any non-compliance for three consecutive years with the criteria of efficiency in continuity of supply, or for two consecutive years with the criteria of efficiency in economic and financial management, will result in proceedings to establish expiration of the concession. The criteria of efficiency in economic and financial management are as follows: • Operational cash generation (–) QRR¹ (–) interest on the debt 2 • Ebitda 3 • [Ebitda (–) QRR] ≥ 0 (by the end of 2018, maintained in 2019 and 2020); • {Net debt 4 • {Net debt / [Ebitda (–) QRR]} ≤ 1 / (111% of the Selic rate) (by the end of 2020). 1. QRR = ‘Regulatory reintegration quota’, or Regulatory depreciation expense. 2. Net debt x 111% of the Selic rate. 3. Calculated according to the method defined by the regulator (Aneel), contained in distribution concession contract. 4. Gross debt, less financial assets. The Company was in compliance with the above criteria as of December 31, 2019. Gas distribution concessions The concessions for distribution of natural gas are granted by each Brazilian state. In the state of Minas Gerais the tariffs for natural gas are set by the regulator, the State’s Economic Development Secretariat, by market segment. The tariffs is comprised of a portion for the cost of gas and a portion for the distribution of gas. Each quarter the tariffs are adjusted to pass through the cost of gas, and once a year they are adjusted to update the portion allocated to cover the costs relating to the provision of the distribution service – remuneration of invested capital and to cover all the operating, commercial and administrative expenses of the concession holder. In addition to these adjustments, there are periodic reviews of tariffs. The first periodic review of tariff, referred to the 2018-22 cycle, was concluded in 2019. These reviews may occurr every five years from the end of the first cycle, to evaluate the changes in the costs of the Gasmig and update the tariffs. The concession contract also specifies the possibility of an extraordinary review of tariffs if any event occurs that puts the economic-financial balance of the concession at risk. On December 14, 2018, the Minas Gerais State Department for Economic, Scientific, Technological and Higher Education Development (‘Sedectes’) or (‘the Grantor’ and actually ‘Sede’) presented a study, prepared by Fundação Getulio Vargas On September 19, 2019 the Company signed, with the State of Minas Gerais as Grantor, the third amendment to the concession contract for distribution of natural gas in the State of Minas Gerais, which represents conclusion of the process of economic-financial rebalancing of the concession contract, upon payment of a grant fee of R$852, updated from January 1, 2019 to the date of payment, by the DI (Interbank Deposit) rate. This guarantees maintenance of Gasmig’s concession period up to 2053. On September 26, 2019, Gasmig issued Commercial Promissory Notes, in a single series, in the amount of R$850, with maturity in 12 months and interest at 107% of the DI rate, without guarantee or surety. The proceeds of this issuance were used on September 26, 2019, to pay the concession grant fee, updated by the variation in the DI rate from January 1, 2019, in a total amount of R$891. Also under the third amendment to the concession contract, the total value paid for the compensatory grant fee will be added to the Company’s Remuneration Base of Assets, and considered in the process of tariff review by the grantor as an intangible asset to be amortized until the end of the concession period, producing immediate effect in terms of setting and review of tariffs. |
5. OPERATING SEGMENTS
5. OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of operating segments [abstract] | |
OPERATING SEGMENTS | 5. OPERATING SEGMENTS The operating segments of the Company reflect their management and their organizational structure, used to monitoring its results. The tables below show segment information for 2019, 2018 and 2017: INFORMATION BY SEGMENT AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2019 DESCRIPTION ENERGY GAS OTHER ELIMINATIONS TOTAL GENERATION TRANSMISSION DISTRIBUTION SEGMENT ASSETS 14,749 4,113 25,616 2,689 3,887 (1,128 ) 49,926 INVESTMENTS IN SUBSIDIARIES AND JOINTLY–CONTROLLED ENTITIES 4,133 1,237 – – 30 – 5,400 INVESTMENTS IN AFFILIATES CLASSIFIED AS HELD FOR SALE – – 1,258 – – – 1,258 ADDITIONS TO THE SEGMENT 102 221 936 934 9 – 2,202 CONTINUING OPERATIONS NET REVENUE 6,882 714 15,919 1,858 324 (307 ) 25,390 COST OF ENERGY AND GAS Energy bought for resale (3,841 ) – (7,517 ) – – 72 (11,286 ) Charges for use of the national grid (190 ) – (1,459 ) – – 223 (1,426 ) Gas bought for resale – – – (1,436 ) – – (1,436 ) Total (4,031 ) – (8,976 ) (1,436 ) – 295 (14,148 ) OPERATING COSTS AND EXPENSES Personnel (208 ) (115 ) (869 ) (46 ) (34 ) – (1,272 ) Employees’ and managers’ profit sharing (36 ) (27 ) (183 ) – (17 ) – (263 ) Post–employment obligations (50 ) (38 ) (276 ) – (44 ) – (408 ) Materials (17 ) (6 ) (63 ) (2 ) (3 ) – (91 ) Outsourced services (125 ) (45 ) (1,016 ) (20 ) (40 ) 7 (1,239 ) Depreciation and amortization (210 ) (5 ) (652 ) (86 ) (5 ) – (958 ) Operating provisions (reversals) (975 ) (134 ) (1,102 ) (2 ) (188 ) – (2,401 ) Construction costs – (221 ) (936 ) (43 ) – – (1,200 ) Other operating expenses, net (176 ) (20 ) (298 ) (10 ) 5 (499 ) Total cost of operation (1,797 ) (611 ) (5,395 ) (209 ) (331 ) 12 (8,331 ) OPERATING COSTS AND EXPENSES (5,828 ) (611 ) (14,371 ) (1,645 ) (331 ) 307 (22,479 ) Equity in earnings of unconsolidated investees, net (88 ) 214 – – (1 ) – 125 Dividends declared by investee classified as held for sale – – 73 – – – 73 OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) 966 317 1,621 213 (8 ) – 3,109 Finance income 1,282 98 1,535 21 271 – 3,207 Finance expenses (1,035 ) (115 ) (632 ) (46 ) (19 ) – (1,847 ) INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX 1,213 300 2,524 188 244 – 4,469 Income tax and social contribution tax (551 ) (36 ) (806 ) (47 ) (125 ) – (1,565 ) NET INCOME FROM CONTINUING OPERATIONS 662 264 1,718 141 119 – 2,904 DISCONTINUED OPERATIONS NET INCOME AFTER TAX FROM DISCONTINUED OPERATIONS – – 224 – – – 224 NET INCOME (LOSS) FOR THE YEAR 662 264 1,942 141 119 – 3,128 Equity holders of the parent 662 264 1,942 140 119 – 3,127 Non–controlling interests – – – 1 – – 1 662 264 1,942 141 119 – 3,128 The following is a breakdown of the revenue of the Company by activity: 2019 ENERGY GAS OTHER ELIMINATIONS TOTAL GENERATION TRANSMISSION DISTRIBUTION Revenue from supply of energy 7,038 – 19,967 – – (77 ) 26,928 Revenue from Use of Distribution Systems (the TUSD charge) – – 2,746 – – (24 ) 2,722 CVA Other financial components – – 58 – – – 58 Transmission concession revenue – 703 – – – (199 ) 504 Transmission construction revenue – 220 – – – – 220 Transmission assets - indemnity revenue – 156 – – – – 156 Distribution construction revenue – – 937 43 – – 980 Adjustment to expectation of cash flow from Financial assets of distribution concession to be indemnified – – 18 – – – 18 Gain on inflation updating of Concession Grant Fee 318 – – – – – 318 Transactions in energy on the CCEE 439 – (7 ) – – – 432 Supply of gas – – – 2,298 – – 2,298 Fine for violation of continuity indicator – – (58 ) – – – (58 ) PIS/Pasep and Cofins taxes credits over ICMS 414 – 830 – 184 – 1,428 Other operating revenues 81 27 1,469 – 152 (7 ) 1,722 Sector / Regulatory charges reported as Deductions from revenue (1,408 ) (392 ) (10,041 ) (483 ) (12 ) – (12,336 ) Net operating revenue 6,882 714 15,919 1,858 324 (307 ) 25,390 INFORMATION BY SEGMENT AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2018 DESCRIPTION ENERGY GAS TELECOM* OTHER ELIMINATIONS TOTAL GENERATION TRANSMISSION DISTRIBUTION SEGMENT ASSETS 14,671 3,862 37,840 1,822 10 2,607 (957 ) 59,855 INVESTMENTS IN SUBSIDIARIES AND JOINTLY–CONTROLLED ENTITIES 4,055 1,163 – – – 17 – 5,235 ADDITIONS TO THE SEGMENT 559 96 856 70 9 – – 1,590 CONTINUING OPERATIONS NET REVENUE 6,374 675 13,757 1,619 – 134 (293 ) 22,266 COST OF ENERGY AND GAS Energy bought for resale (3,917 ) – (7,238 ) – – – 71 (11,084 ) Charges for use of the national grid (216 ) – (1,463 ) – – – 200 (1,480 ) Gas bought for resale (1,238 ) (1,238 ) Total (4,133 ) – (8,701 ) (1,238 ) – – 271 (13,802 ) OPERATING COSTS AND EXPENSES Personnel (230 ) (108 ) (965 ) (60 ) (18 ) (29 ) – (1,410 ) Employees’ and managers’ profit sharing (10 ) (7 ) (51 ) – – (10 ) – (77 ) Post–employment obligations (46 ) (27 ) (224 ) – – (41 ) – (337 ) Materials (39 ) (4 ) (58 ) (2 ) (1 ) – – (104 ) Outsourced services (123 ) (40 ) (880 ) (20 ) (9 ) (30 ) 15 (1,087 ) Depreciation and amortization (164 ) – (595 ) (74 ) (1 ) (1 ) – (835 ) Operating provisions (reversals) (107 ) (12 ) (332 ) 2 1 (18 ) – (466 ) Construction costs – (96 ) (757 ) (45 ) – – – (897 ) Other operating expenses, net (65 ) (17 ) (203 ) (13 ) (3 ) (109 ) 7 (405 ) Total cost of operation (784 ) (311 ) (4,065 ) (212 ) (31 ) (238 ) 22 (5,618 ) OPERATING COSTS AND EXPENSES (4,917 ) (311 ) (12,766 ) (1,450 ) (31 ) (238 ) 293 (19,420 ) Equity in earnings of unconsolidated investees, net (353 ) 231 33 – (1 ) (14 ) – (104 ) Remeasurement of previously held equity interest in subsidiaries acquired 80 – (52 ) – – (147 ) – (119 ) Impairment of investments (127 ) – – – – – – (127 ) OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) 1,057 595 972 169 (32 ) (265 ) – 2,496 Finance income 1,113 61 434 84 1 13 – 1,706 Finance expenses (1,536 ) (5 ) (621 ) (38 ) (5 ) (19 ) – (2,224 ) INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX 634 651 785 215 (36 ) (271 ) – 1,978 Income tax and social contribution tax (276 ) (122 ) (217 ) (53 ) 12 57 – (599 ) NET INCOME (LOSS) FROM CONTINUING OPERATIONS 358 529 568 162 (24 ) (214 ) – 1,379 DISCONTINUED OPERATIONS NET INCOME AFTER TAX FROM DISCONTINUED OPERATIONS 11 – 62 – 290 – – 363 NET INCOME (LOSS) FOR THE YEAR 369 529 630 162 266 (214 ) – 1,742 Equity holders of the parent 361 529 599 161 266 (216 ) – 1,700 Non–controlling interests 8 – 31 1 – 2 – 42 369 529 630 162 266 (214 ) – 1,742 (*) On March 31, 2018 Cemig Telecom assets and liabilities were merged into the Company. The following is a breakdown of the revenue of the Company by activity: ENERGY GAS OTHER ELIMINATIONS TOTAL 2018 GENERATION TRANSMISSION DISTRIBUTION Revenue from supply of energy 7,065 – 17,885 – – (78 ) 24,872 Revenue from Use of Distribution Systems (the TUSD charge) – – 2,067 – – (22 ) 2,045 CVA Other financial components – – 1,973 – – – 1,973 Transmission concession revenue – 589 – – – (178 ) 411 Transmission construction revenue – 96 – – – – 96 Transmission assets – indemnity revenue – 250 – – – – 250 Generation assets – indemnity revenue 55 – – – – – 55 Distribution construction revenue – – 757 45 – – 802 Adjustment to expectation of cash flow from Financial assets of distribution concession to be indemnified – – – – – – – Gain on inflation updating of Concession Grant Fee 321 – – – – – 321 Transactions in energy on the CCEE 217 – – – – 217 Supply of gas – – – 1,995 – – 1,995 Fine for violation of continuity indicator – – (44 ) – – – (44 ) Other operating revenues 82 29 1,345 – 144 (15 ) 1,585 Sector / Regulatory charges reported as Deductions from revenue (1,366 ) (288 ) (10,226 ) (421 ) (11 ) – (12,312 ) Net operating revenue 6,374 676 13,757 1,619 133 (293 ) 22,266 INFORMATION BY SEGMENT AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2017 ENERGY TELECOMS GAS OTHER ELIMINATIONS TOTAL DESCRIPTION GENERATION TRANSMISSION DISTRIBUTION SEGMENT ASSETS 14,366 3,955 20,021 347 2,000 1,582 (32 ) 42,239 INVESTMENTS IN SUBSIDIARIES AND JOINTLY–CONTROLLED ENTITIES 4,723 1,122 1,918 – – 29 – 7,792 ADDITIONS TO THE SEGMENT 308 25 1,083 47 56 1 – 1,520 NET REVENUE 7,190 777 12,312 127 1,482 112 (288 ) 21,712 COST OF ENERGY AND GAS Energy bought for resale (4,209 ) – (6,783 ) – – – 73 (10,919 ) Charges for use of the national grid (353 ) – (1,002 ) – – – 181 (1,174 ) Gas bought for resale – – – – (1,071 ) – – (1,071 ) Operational costs, total (4,562 ) – (7,785 ) – (1,071 ) – 254 (13,164 ) OPERATING COSTS AND EXPENSES Personnel (281 ) (106 ) (1,123 ) (20 ) (56 ) (41 ) – (1,627 ) Employees’ and managers’ profit sharing (1 ) – (3 ) – – (1 ) – (5 ) Post–employment obligations 39 19 180 – – (9 ) – 229 Materials (11 ) (4 ) (43 ) – (2 ) (1 ) – (61 ) Raw materials and inputs for production of energy (10 ) – – – – – – (10 ) Outsourced services (127 ) (31 ) (785 ) (28 ) (17 ) (16 ) 30 (974 ) Depreciation and amortization (176 ) – (567 ) (35 ) (71 ) (1 ) – (850 ) Operating provisions (reversals) (139 ) (10 ) (469 ) (1 ) (2 ) (233 ) – (854 ) Construction costs – (25 ) (1,045 ) – (49 ) – – (1,119 ) Other operating expenses, net (117 ) (11 ) (408 ) (23 ) (15 ) 187 4 (383 ) Total cost of operation (823 ) (168 ) (4,263 ) (107 ) (212 ) (115 ) 34 (5,654 ) OPERATING COSTS AND EXPENSES (5,385 ) (168 ) (12,048 ) (107 ) (1,283 ) (115 ) 288 (18,818 ) OPERATING INCOME BEFORE EQUITY GAINS (LOSSES) AND FINANCE INCOME (EXPENSES) 1,805 609 264 20 199 (3 ) – 2,894 Equity in earnings of unconsolidated investees, net (519 ) 234 42 (2 ) – (7 ) – (252 ) Finance income 226 9 397 3 49 120 – 804 Finance expenses (1,161 ) (3 ) (815 ) (15 ) (43 ) 237 – (1,800 ) INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX 351 849 (112 ) 6 205 347 – 1,646 Income tax and social contribution tax (257 ) (189 ) 31 (3 ) (71 ) (155 ) – (644 ) NET INCOME (LOSS) FOR THE YEAR 94 660 (81 ) 3 134 192 – 1,002 OTHER COMPREHENSIVE INCOME Items that will not be reclassified to profit or loss Post retirement liabilities – restatement of obligations of the defined benefit plans, net of taxes (47 ) (23 ) (145 ) – – (46 ) – (261 ) Equity gain (loss) on Other comprehensive income in subsidiary and jointly–controlled entity, net of tax – – – – – (3 ) – (3 ) (47 ) (23 ) (145 ) – – (49 ) – (264 ) Items that may be reclassified to profit or loss Equity gain on Other comprehensive income, in subsidiary and jointly–controlled entity, relating to fair value of financial asset available for sale, net of tax (34 ) – – – – (4 ) – (38 ) (34 ) – – – – (4 ) – (38 ) COMPREHENSIVE INCOME FOR THE YEAR 13 637 (226 ) 3 134 139 – 700 Equity holders of the parent 13 637 (226 ) 3 133 139 – 699 Non–controlling interests – – – – 1 – – 1 13 637 (226 ) 3 134 139 – 700 The following is a breakdown of the revenue of the Company by activity: ENERGY TELECOMS GAS OTHER ELIMINATIONS TOTAL 2017 GENERATION TRANSMISSION DISTRIBUTION Revenue from supply of energy 7,340 – 16,442 – – (81 ) 23,701 Revenue from Use of Distribution Systems (the TUSD charge) – – 1,643 – – – (32 ) 1,611 CVA Other financial components – – 988 – – – – 988 Transmission concession revenue – 519 – – – – (148 ) 371 Transmission construction revenue – 25 – – – – – 25 Transmission assets - indemnity revenue – 373 – – – – – 373 Generation assets - indemnity revenue 271 – – – – – – 271 Distribution construction revenue – – 1,045 – 49 – – 1,094 Adjustment to expectation from reimbursement of distribution concession financial assets – – 9 – – – – 9 Gain on inflation updating of concession grant fee 317 – – – – – – 317 Transactions in energy on the CCEE 860 – – – – – – 860 Supply of gas – – – – 1,759 – – 1,759 Other operating revenues 37 9 1,175 168 1 120 (26 ) 1,484 Sector / Regulatory charges reported as Deductions from revenue (1,430 ) (167 ) (9,177 ) (41 ) (327 ) (9 ) – (11,151 ) Net operating revenue 7,395 759 12,125 127 1,482 111 (287 ) 21,712 For further details of operating revenue, see Note 29. |
6. CASH AND CASH EQUIVALENTS
6. CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2019 | |
Cash and cash equivalents [abstract] | |
CASH AND CASH EQUIVALENTS | 6. CASH AND CASH EQUIVALENTS 2019 2018 Bank accounts 210 108 Cash equivalents Bank certificates of deposit (CDBs) (1) 290 555 Overnight (2) 36 228 326 783 536 891 (1) Bank Certificates of Deposit Certificados de Depósito Bancário Certificados de Depósito Inter-bancário Câmara de Custódia e Liquidação (2) Overnight Note 33 provides information in relation to the exposure of the Company to interest rate risks, and a sensitivity analysis of their effects on financial assets and liabilities. |
7. MARKETABLE SECURITIES
7. MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of investment securities [abstract] | |
MARKETABLE SECURITIES | 7. MARKETABLE SECURITIES 2019 2018 Investments Current Financial Notes (LFs) – Banks (1) 645 435 Treasury Financial Notes (LFTs) (2) 94 254 Debentures (3) – 11 Others 1 4 740 704 Non–current Financial Notes (LFs) – Banks (1) 11 109 Debentures 2 – 13 109 753 813 (1) Bank Financial Notes ( Letras Financeiras (2) Treasury Financial Notes (LFTs) (3) Debentures Note 33 provides a classification of these marketable securities. Investments in marketable securities of related parties are shown in Note 32. |
8. RECEIVABLES FROM CUSTOMERS,
8. RECEIVABLES FROM CUSTOMERS, TRADERS AND POWER TRANSPORT CONCESSION HOLDERS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of trade and other receivables [abstract] | |
RECEIVABLES FROM CUSTOMERS, TRADERS AND POWER TRANSPORT CONCESSION HOLDERS | 8. RECEIVABLES FROM CUSTOMERS, TRADERS AND POWER TRANSPORT CONCESSION HOLDERS Balances not yet due Up to 90 days past due More than 91 up to 360 days past due More than 361 days past due 2019 2018 Billed supply 1,396 707 431 596 3,130 2,989 Unbilled supply 1,204 – – – 1,204 1,048 Other concession holders – wholesale supply – 32 15 – 47 47 Other concession holders – wholesale supply, unbilled 204 – – – 204 282 CCEE (Power Trading Chamber) – – 386 – 386 166 Concession Holders – power transport 80 20 6 81 187 180 Concession Holders – power transport, unbilled 253 – – – 253 212 (–) Provision for doubtful receivables (171 ) (12 ) (38 ) (589 ) (810 ) (751 ) 2,966 747 800 88 4,601 4,173 Current assets 4,524 4,092 Non–current assets 77 81 The Company’s exposure to credit risk related to customers and traders is provided in Note 33. The allowance for doubtful accounts is considered to be sufficient to cover any potential losses in the realization of accounts receivable, and the breakdown by type of customers is as follows: 2019 2018 Residential 131 137 Industrial 197 172 Commercial, services and others 161 189 Rural 32 33 Public authorities 201 119 Public lighting 2 6 Public services 31 27 Charges for use of the network (TUSD) 55 68 810 751 Changes in the allowance for doubtful accounts in 2019, 2018 and 2017 are as follows: Balance at December 31, 2016 660 Additions, net 248 Write-off (340 ) Balance at December 31, 2017 568 Effect of adoption of IFRS 9 on Jan. 1, 2018 150 Additions, net (Note 30 d) 264 Write-off (231 ) Balance at December 31, 2018 751 Additions, net (Note 30 d) 238 Disposals (179 ) Balance at December 31, 2019 810 In 2019, as a result of changes in assumptions of allowance for doubtful accounts computation presented in note 2.7 b), the expected percentage of loss in relation to the distribution segment receivable from energy supply decreased reducing the allowance for doubtful accounts by an amount of R$46 as of December 31, 2019. Advances from customers The Company receives advance payments for the sale of energy from certain customers. Advance payments related to services not yet provided are as follows: Balance at December 31, 2017 233 Additions 50 Energy supplied (215 ) Inflation adjustment (Note 31) 11 Balance at December 31, 2018 79 Energy supplied (80 ) Inflation adjustment (Note 31) 1 Balance at December 31, 2019 – Revenues from advanced sales of energy supply was recognized in the Statement of income only upon the actual supply of energy |
9. RECOVERABLE TAXES
9. RECOVERABLE TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of recoverable taxes [abstract] | |
RECOVERABLE TAXES | 9. RECOVERABLE TAXES 2019 2018 Current ICMS (VAT) 65 80 PIS/Pasep 3 4 Cofins 7 21 Others 24 19 99 124 Non-current ICMS (VAT) 277 240 PIS/Pasep 1,102 – Cofins 4,968 – Others 2 2 6,349 242 6,448 366 The ICMS (VAT) credits that are reported in non-current assets arise mainly from acquisitions of property, plant and equipment, and intangible assets, and can be offset against taxes payable in the next 48 months. The transfer to non-current is made in accordance with management's best estimate of the amounts which will likely be realized after 2020. Credits of PIS/Pasep and Cofins generated by the acquisition of machinery and equipment can be offset immediately. The credits of PIS/Pasep and Cofins taxes recorded as non-current assets refer to the amounts paid for these taxes including ICMS tax in their basis of calculation. For more information see Note 10. |
10. PIS_PASEP AND COFINS TAXES
10. PIS/PASEP AND COFINS TAXES CREDITS OVER ICMS - FINAL COURT JUDGMENT | 12 Months Ended |
Dec. 31, 2019 | |
Pispasep And Cofins Taxes Credits Over Icms - Final Court Judgment | |
PIS/PASEP AND COFINS TAXES CREDITS OVER ICMS - FINAL COURT JUDGMENT | 10. PIS/PASEP AND COFINS TAXES CREDITS OVER ICMS – FINAL COURT JUDGMENT On July 16, 2008, the Company and its wholly-owned subsidiaries Cemig GT and Cemig D filed an Ordinary Action for a declaration that it was unconstitutional to include the ICMS value added tax within the taxable amount for calculation of PIS/Pasep and Cofins; and for recognition of its right to offsetting of amounts unduly paid for the 10 years prior to the action being filed, with monetary updating by the Selic rate. In July 2008 the Company and the wholly-owned subsidiaries above referred obtained an interim injunction, and from that time, made escrow deposits into court relating to the inclusion of ICMS tax amounts in the basis for calculation of PIS/Pasep and Cofins taxes. The Company maintained this procedure from August 2008 to August 2011, and from then on, although they continued to challenge the basis of calculation in the courts, opted to pay the taxes monthly. In October 2017, the Federal Supreme Court (STF) published its Joint Judgment on the Extraordinary Appeal, in the form that creates overall precedent, in favor of the Company’s argument. In 2017, based on the opinion of its legal advisors, the Company reversed the provision related to the escrow deposits made from 2008 to 2011, and also recognized a liability for reimbursement to their customers of the distribution segment. On May 8, 2019 the Regional Federal Appeal Court of the First Region passed final judgment – against which there is no appeal – on the Ordinary Action, in favor of the Company and its wholly-owned subsidiaries Cemig D and Cemig GT, and recognizing their right to exclude the ICMS amounts from the calculation basis of PIS/Pasep and Cofins taxes, backdated as from five years prior to the action initial filing – that is, from July 2003. On June 11, 2019, following judgment against which there is no further appeal, the subsidiaries Cemig D and Cemig GT applied for release of the escrow deposits amounting R$1.377 as of December 31, 2019. On February 13, 2020, the escrow deposits were released for an amount of R$1,382, including monetary update. Of this amount, R$1,155 will be restituted to customers of the distribution segment, after Aneel specifies the mechanisms and criteria for such reimbursement. The Company is also entitled to recover the overpaid tax for the period after August 2011, when the company ceased to make the escrow deposits. Final court judgment has also been given, against which there is no further appeal, in favor of similar actions filed by Cemig’s wholly-owned subsidiaries Sá Carvalho, Cemig Geração Distribuída, Cemig Geração Poço Fundo S.A. (previously denominated UTE Barreiro S.A.) and Horizontes Energia S.A.. Based on the opinion of its legal advisers, the Company believes that a portion of the credits to be received should be refunded to its customers of the distribution segment, considering a maximum period for calculation of the reimbursement of 10 years. Thus, the Company has recorded a liability corresponding to the credits to be refunded to its customers, which comprises the period of the last 10 years, from June 2009 to May 2019, net of PIS/Pasep and Cofins taxes over monetary updating. The amounts will be refunded to customers of the distribution segment as from the date when the tax credits are in fact offset and the mechanisms and criteria for the reimbursement will be discussed with Aneel. The Company has two ways to recover the tax credit: (i) offsetting of the amount receivable against amounts payable of PIS/Pasep and Cofins taxes, monthly, within the five-year period specified by the relevant law of limitation; or (ii) receipt of specific credit instruments ‘ precatórios The credits of the Company’s wholly-owned subsidiaries will be offset, to accelerate recovery. For the Parent company itself, the priority will be given to receipt of the credits through precatório letters of credit, since the Parent company does not make enough monthly payments of PIS/Pasep and Cofins taxes to enable offsetting. Shown below are the accounting effects relating to the recognition of the PIS/Pasep and Cofins taxes credits, including their monetary updating by the Selic rate, and the amounts to be refunded to customers at December 31, 2019: PIS/Pasep and Cofins taxes credits Parent Cemig D Cemig GT Other subsidiaries (4) Total Effects on the statement of financial position Recoverable taxes (July/2003 to May/2019) 490 4.926 626 28 6,070 Amounts to be refunded to customers (1) – (3,038 ) – – (3,038 ) Taxes payable (2) (4 ) (45 ) (6 ) – (55 ) Income tax and social contribution tax (165 ) (627 ) (211 ) (9 ) (1,012 ) Equity 321 1,216 409 19 1,965 Effects on net income Recovery of PIS/Pasep and Cofins taxes credits – Other operating revenues (3) 184 830 397 17 1,428 Finance income (5) 306 1,034 229 11 1,580 PIS/Pasep and Cofins taxes charged on financial revenues (5) (4 ) (21 ) (6 ) – (31 ) Income tax and social contribution tax (165 ) (627 ) (211 ) (9 ) (1,012 ) 321 1,216 409 19 1,965 (1) Amounts t o be refunded to customers on the PIS/Pasep and Cofins taxes credits for Cemig D, recognized in 2019. The total amount to be restituted to customers presented in the consolidated Statements of Financial Position, as Pasep and Cofins taxes to be refunded to customers – Note 23, is R$ 4,193. The difference of R$ 1,155 is due to the constitution of a liability corresponding to the reversal of the provision related to the escrow deposits made from 2008 to 2011, recorded in 2017. (2) PIS/Pasep and Cofins taxes on the financial revenues comprising the monetary updating of the tax credits that have been recognized. These taxes applicable to the credits to be refunded to customers reduce their total, without effects in the Statement of income. (3) This refers to the credits recognized in operating profit of 2019, amounting R$ 3,826, net of the amounts to be refunded to customers, of R$ 2,398. (4) This refers to the credits recognized by the wholly-owned subsidiaries Sá Carvalho, Cemig Geração Distribuída, Cemig Geração Poço Fundo S.A. (previously denominated UTE Barreiro S.A.) and Horizontes Energia S.A.. (5) It includes financial updating from the date of credits recognition until December 31, 2019, net of PIS/Pasep and Cofins taxes on finance income, in the amounts o R$25. As a result of the court decision, amounts of ICMS tax were no longer included in the calculation basis of PIS/Pasep and Cofins taxes in the billing to the distribution segment customers as from June 2019, representing an average reduction of approximately 1% in the invoice amount. On May 12, 2020, the Brazilian tax authority ( Receita Federal |
11. INCOME AND SOCIAL CONTRIBUT
11. INCOME AND SOCIAL CONTRIBUTION TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of income and social contribution taxes [abstract] | |
INCOME AND SOCIAL CONTRIBUTION TAXES | 11. INCOME AND SOCIAL CONTRIBUTION TAXES a) Income tax and social contribution tax recoverable The balances of income tax and social contribution tax refer to tax credits in the corporate income tax returns of previous years and to advance payments which will be offset against federal taxes eventually payable. 2019 2018 Income tax 608 253 Social contribution tax 241 140 849 393 Current 621 387 Non-current 228 6 The balances of income tax and social contribution tax posted in non-current assets arise from advanced payments required by tax law and withholding taxes, which the expectation of offsetting is greater than 12 months. b) Income tax and social contribution tax payable The balances of income tax and social contribution tax recorded in current liabilities refer mainly to the taxes owed by the subsidiaries which report by the Real Profit method and have opted to make monthly payments based on estimated revenue, and also by the subsidiaries that have opted for the Presumed Profit method, in which payments are made quarterly. 2019 2018 Current Income tax 99 83 Social contribution tax 35 29 134 112 c) Deferred income tax and social contribution tax The Company has deferred taxed assets from unused tax loss carryforwards, negative base for the social contribution tax, and deductible temporary differences, at the statutory rates applicable to each legal entity in Brazil of 25% (for Income tax) and 9% (for the social contribution tax), as follows: 2019 2018 Deferred tax assets Tax loss carryforwards 116 373 Provisions for contingencies 544 218 Impairment on investments 660 882 Fair value of derivative financial instruments (PUT SAAG) 164 143 Operating provisions 66 39 Provisions for profit sharing 72 25 Post-employment obligations 2,090 1,477 Estimated provision for doubtful receivables 283 279 Onerous concession 8 8 Others 25 27 Total 4,028 3,471 Deferred tax liabilities Funding cost (16 ) (25 ) Deemed cost (232 ) (239 ) Acquisition costs of equity interests (503 ) (501 ) Borrowing costs capitalized (166 ) (168 ) Taxes on revenues not redeemed – Presumed Profit accounting method (1 ) (5 ) Adjustment to expectation of cash flow – Concession assets (761 ) (804 ) Adjustment to fair value: Swap/Gains (575 ) (277 ) Others (5 ) (33 ) Total (2,259 ) (2,052 ) Total, net 1,769 1,419 Total assets 2,430 2,147 Total liabilities (661 ) (728 ) The changes in deferred income tax and social contribution tax were as follows: Consolidated Balance at December 31, 2016 1,215 Effects allocated to net profit from continuing operation (198 ) Effect allocated to other comprehensive income 133 Effects allocated to equity Variations in deferred tax assets and liabilities (14 ) Balance at December 31, 2017 1,136 Effects allocated to net profit from continuing operations (16 ) Effect allocated to other comprehensive income 239 Effects allocated to Equity First-time adoption of IFRS 9 – effects allocated to equity 51 Reversal of deemed cost 18 Transfer to assets held for sale (3 ) Variations in deferred tax assets and liabilities (3 ) Deferred taxes arising from business combination (3 ) Balance at December 31, 2018 1,419 Effect allocated to other comprehensive income 544 Effects allocated to net profit from continuing operations (111 ) Effects allocated to net profit from discontinuing operations (note 34) (85 ) Others 2 Balance at December 31, 2019 1,769 On March 19, 2020, the Board of Directors meeting approved the Company’s estimated future taxable profits forecast. This forecast was also submitted for examination by the Fiscal Council in the same date. The Company estimated that the balance of deferred tax asset as of December 31, 2019 will be recovered, as follows: Consolidated 2020 659 2021 571 2022 571 2023 572 2024 571 2025 to 2027 659 2028 to 2029 425 4,028 d) Reconciliation of income tax and social contribution tax effective rate This table reconciles the statutory income tax (rate 25%) and social contribution tax (rate 9%) with the current income tax expense in the Statement of income: 2019 2018 2017 Profit before income tax and social contribution tax 4,469 1,978 1,646 Income tax and social contribution tax – nominal expense (34%) (1,520 ) (672 ) (560 ) Tax effects applicable to: Gain (loss) in subsidiaries by equity method 8 (61 ) (129 ) Interest on Equity 136 71 – Gain on dilution of an equity interest – – 8 Non-deductible contributions and donations (13 ) (6 ) (6 ) Tax incentives 66 29 11 Tax credits not recognized – (1 ) – Effects from subsidiaries taxed based on gross revenues 89 89 81 Non-deductible penalties (135 ) (12 ) (14 ) Impairment of accounts receivable from related parties (234 ) Excess reactive power and demand – – (2 ) Others 38 (36 ) (33 ) Income tax and social contribution tax – effective expense (1,565 ) (599 ) (644 ) Current tax (1,454 ) (583 ) (446 ) Deferred tax (111 ) (16 ) (198 ) (1,565 ) (599 ) (644 ) Effective rate 35.03 % 30.30 % 39.13 % |
12.RESTRICTED CASH
12.RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Restricted Cash And Cash Equivalents [abstract] | |
RESTRICTED CASH | 12. RESTRICTED CASH Restricted cash of R$12 (R$91 on December 31, 2018), refers to funds used as guarantee for power purchase agreement and other regulatory and financial obligations. |
13. ACCOUNTS RECEIVABLE FROM TH
13. ACCOUNTS RECEIVABLE FROM THE STATE OF MINAS GERAIS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of accounts receivables [abstract] | |
ACCOUNTS RECEIVABLE FROM THE STATE OF MINAS GERAIS | 13. ACCOUNTS RECEIVABLE FROM THE STATE OF MINAS GERAIS The Company has accounts receivable from the State of Minas Gerais, arising from return of an administrative deposit made for a dispute on the rate of inflation and other adjustment to be applied to an advance for future capital increase (‘AFAC’), made in prior years, which was the subject of a debt recognition agreement. The agreement provided for payment by the Minas Gerais State in 12 consecutive monthly installments, each updated by the IGP–M index up to the date of actual payment, the first to become due on November 10, 2017. The agreement states that, in the event of arrears or default by the State in payment of the agreed consecutive monthly installments, Cemig is authorized to retain dividends or Interest on Equity distributable to the State in proportion to the State’s equity interest, for as long as the arrears and/or default continues. Considering the reference in the previous paragraph, on June 28, 2019 and December 27, 2019, the Company withheld an amount of R$18 and R$130, respectively, corresponding to the dividends that would have been payable to Minas Gerais State on that dates. The balance receivable on December 31, 2019, R$115 (R$246 on December 31, 2018), was classified as Non-current asset, as a result of the delays in installments past due since January 2018. Management believes that it will not suffer losses on these receivables, as the amounts due are subject to the guarantees mentioned above, which the Company intends to execute in the event of default of the amount agreed in the debt recognition agreement. |
14. ESCROW DEPOSITS
14. ESCROW DEPOSITS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of escrow deposits [abstract] | |
ESCROW DEPOSITS | 14. ESCROW DEPOSITS 2019 2018 Labor claims 355 335 Tax contingencies Income tax on Interest on Equity 29 28 PIS/Pasep and Cofins taxes (1) 1,448 1,402 Donations and legacy tax (ITCD) 53 51 Urban property tax (IPTU) 79 87 Finsocial tax 40 38 Income tax and social contr. tax on indemnity for employees’ ‘Anuênio’ benefit (2) 282 275 Income tax withheld at source on inflationary profit 9 8 Contribution tax effective rate (3) 18 18 ICMS (VAT) credits on PP&E 39 38 Others (4) 92 118 2,089 2,063 Others Regulatory 43 53 Third party 11 9 Customer relations 7 6 Court embargo 12 12 Others 23 24 96 104 2,540 2,502 (1) This refers to escrow deposits in the action challenging the constitutionality of inclusion of ICMS value added tax within the taxable amount for calculation of PIS/Pasep and Cofins taxes. On February 13, 2020 Company’s wholly-owned subsidiaries Cemig D and Cemig GT escrow deposits were released, totaling R$1,382, comprising monetary update. The expectation is that the escrow deposits from the others wholly-owned subsidiaries will be received as their judicial claims reach the final judgement. See more details in Note 10 – PIS/Pasep and Cofins taxes credits over ICMS – Final court judgement. (2) See more details in Note 27 – Provisions under the section relating to the ‘Anuênio indemnity’. (3) Escrow deposit in the legal action challenging an infringement claim relating to application of social contribution tax to amounts of cultural and artistic donations and sponsorship, expenses on punitive fines, and taxes with liability suspended. (4) Includes escrow deposits from legal actions related to INSS and PIS/Pasep and Cofins taxes |
15. REIMBURSEMENT OF TARIFF SUB
15. REIMBURSEMENT OF TARIFF SUBSIDIES | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of reimbursement rights [abstract] | |
REIMBURSEMENT OF TARIFF SUBSIDIES | 15. REIMBURSEMENT OF TARIFF SUBSIDIES Subsidies on tariffs charged to users of distribution services – TUSD and EUST (Charges for Use of the Transmission System) are refunded to distributors through the funds from the Energy Development Account (CDE). In 2019, the amount recognized as subsidies revenues was R$1,097 (R$953 in 2018 and R$ 842 in 2017). Of such amounts, Cemig D has a receivable of R$94, as of December 31, 2019 (R$ 82 in 2018) and Cemig GT has a receivable of R $3 (R$9 in 2018) in current assets. |
16. CONCESSION FINANCIAL AND SE
16. CONCESSION FINANCIAL AND SECTOR ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Financial Assets And Liabilities Of The Concession [abstract] | |
Concession Financial and Sector Assets and Liabilities | 16. CONCESSION FINANCIAL AND SECTOR ASSETS AND LIABILITIES Concession financial assets 2019 2018 Energy distribution concession (16.1) 460 396 Gas distribution concession (16.1) 24 – Indemnifiable receivable – Transmission (16.2) 1,281 1,296 Indemnifiable receivable – Generation (16.3) 816 816 Concession grant fee – Generation concessions (16.4) 2,468 2,409 5,049 4,917 Concession sector assets 2019 2018 Amounts receivable from Parcel A (CVA) and Other Financial Components (16.5) 882 1,081 Total 5,931 5,998 Current assets 1,080 1,071 Non-current assets 4,851 4,927 The changes in concession financial assets related to infrastructure are as follows: Transmission Generation Distribution Gas Total Balances at December 31, 2016 2,287 2,800 216 — 5,303 Additions 25 — — — 25 Transfers of indemnity – plants not renewed — 1,082 — — 1,082 Amounts received (264 ) (232 ) — — (496 ) Transfers between PP&E, Financial assets and Intangible assets 2 — 146 — 148 Monetary updating 224 317 — — 541 Adjustment of expectation of cash flow from the Concession financial assets 54 — 9 — 63 Disposals (2 ) — — — (2 ) Adjustment of BRR of Transmission Assets 149 — — — 149 Adjustment on indemnities of plants not renewed (Ministerial Order 291) – including financial updating — 271 — — 271 Balances at December 31, 2017 2,475 4,238 371 — 7,084 Effects of first-time adoption of IFRS 15 (1,092 ) — — — (1,092 ) Amounts received (249 ) (1,389 ) — — (1,638 ) Transfers from PP&E — — 27 — 27 Others transfers — (1 ) (1 ) — (2 ) Monetary updating 162 377 — — 539 Disposals — — (1 ) — (1 ) Balances at December 31, 2018 1,296 3,225 396 — 4,917 Amounts received (181 ) (259 ) — — (440 ) Transfers from contract assets 44 — 48 — 92 Transfers from (to) intangible assets — — (1 ) 24 23 Monetary updating 122 318 18 — 458 Disposals — — (1 ) — (1 ) Balances at December 31, 2019 1,281 3,284 460 24 5,049 16.1 Distribution - Financial assets The energy and gas distribution concession contracts are within the scope of IFRIC 12. The financial assets under these contracts refer to the investments made in infrastructure that will be paid by grantor at the end of the concession period. These financial assets are measured at fair value through profit or loss. 16.2 Transmission – Indemnifiable receivable On August 16, 2016, the regulator approved the amount of R$ 892 as of November 2012, for the portion of the residual value of assets to be indemnified to the Company relating to the infrastructure not yet amortized nor depreciated nor yet refunded by the Grantor, related to the concession contracts renewed under Law 12,783/2013 . The amount of the receivable, updated to December 31, 2019, of R$1,281 (R$1,296 on December, 31, 2018), for which only passage of time is required for their payment, is classified as a financial asset, at amortized cost, in accordance with IFRS 9, as follows: · Portion of remuneration and depreciation unpaid since the extensions of concessions An amount of R$ 833 (R$937 in 2018), corresponding to the portion of remuneration and depreciation unpaid from the date of the extension of the concessions until the tariff adjustment of 2017, which is inflation adjusted using the IPCA (Expanded National Customer Price) index and bears interest at the weighted average cost of capital of the transmission segment as defined by the regulator for the periodic tariff review, to be paid over a period of eight years through the RAP, since July of 2017. · Residual Value of transmission assets – injunction awarded to industrial customers On April 10, 2017, a preliminary injunction was granted to the Brazilian Large Free Customers’ Association ( Associação Brasileira de Grandes Consumidores Livres Associação Técnica Brasileira das Indústrias Automáticas de Vidro Associação Brasileira dos Produtores de Ferroligas e de Silicio Metálico The preliminary injunction was partial, with effects related to suspension of the inclusion in the customer tariffs paid by these associations of the portion of the indemnity corresponding to the capital cost remuneration, included since the date of extension of the concessions – amounting to R$448 at December 31, 2019 (R$359 at December 31, 2018), inflation-adjusted by the IPCA index. In compliance with the court decision, the Regulator, presented a new calculation, excluding the amounts that refer to the capital cost remuneration. The Company believes that this is a provisional decision, and that its right to receive such amount is enforceable by law, so no adjustment to the amount recorded at December 31, 2019 is necessary. 16.3 Generation – Indemnity receivable As from August 2013, with the extinction of the concession for various plants operated by Company under Concession Contract 007/1997, it has a right to receive an amount corresponding to the residual value of the infrastructure assets, as specified in the concession contract. These balances are recorded as financial assets at fair value through profit or loss, and totaled R$ 816 on December 31, 2019 and 2018. Generation plant Concession expiration date Installed capacity Net balance of assets based on Net balance of assets based on fair Lot D UHE Três Marias July 2015 396 71 413 UHE Salto Grande July 2015 102 11 39 UHE Itutinga July 2015 52 3 7 UHE Camargos July 2015 46 8 23 PCH Piau July 2015 18.01 2 9 PCH Gafanhoto July 2015 14 1 10 PCH Peti July 2015 9.4 1 8 PCH Dona Rita Sep. 2013 2.41 1 1 PCH Tronqueiras July 2015 8.5 2 12 PCH Joasal July 2015 8.4 1 8 PCH Martins July 2015 7.7 2 4 PCH Cajuru July 2015 7.2 4 4 PCH Paciência July 2015 4.08 1 4 PCH Marmelos July 2015 4 1 4 Others UHE Volta Grande Feb. 2017 380 26 70 UHE Miranda (1) Dec. 2016 408 27 23 UHE Jaguara (1) Aug. 2013 424 40 174 UHE São Simão (1) Jan. 2015 1,710 2 3 3,601.70 204 816 (1) Investments made after the Jaguara, São Simão and Miranda plants came into operation, in the amounts of R$174, R$3 and R$23, respectively, are recorded as concession financial assets, and the determination of the final amounts to be paid to the Company is in a process of discussion with Aneel (the regulator). Company does not expect losses in realization of these amounts. On August 31, 2018 the Company received indemnity, of R$ 1,139 for the basic plan construction of the São Simão Miranda As specified by the regulator (Aneel), the valuation reports that support the amounts to be received by the Company in relation to the residual value of the plants, previously operated by Company, that were included in Lot D and for the Volta Grande In 2019, Publicc Hearing 003/2019 was opened to obtain inputs on improvement of the criteria and procedures for calculation of investments in assets returnable to the Grantor, not yet amortized or not depreciated, of generation concessions (whether extended or not), under Law 12,783/2013 and a Technical Note 096/2019 related to this matter was published on September 30, 2019. However the Normative Resolution has not yet been voted on by the Council of Aneel. The Company does not expect losses in realization of these amounts. 16.4 Concession grant fee – Generation concessions The concession grant fee paid by the Company for a 30-year concession contracts, related to 18 hydroelectric plants, as an amount of R$ 2,216. The amount of the concession fee was recognized as a financial asset measured at amortized cost, as the Company has an unconditional right to receive the amount paid, updated by the IPCA Index and remuneratory interest (the total amount of which is equal to the internal rate of return on the project), during the period of the concession. The changes in these concession financial assets are as follows: SPE Plants 2018 Monetary updating Amounts received 2019 Cemig Geração Três Marias S.A. Três Marias 1,370 171 (139 ) 1,402 Cemig Geração Salto Grande S.A. Salto Grande 430 54 (44 ) 440 Cemig Geração Itutinga S.A. Itutinga 161 23 (19 ) 165 Cemig Geração Camargos S.A. Camargos 120 17 (13 ) 124 Cemig Geração Sul S.A. Coronel Domiciano, Joasal, Marmelos, Paciência and Piau 157 24 (20 ) 161 Cemig Geração Leste S.A. Dona Rita, Ervália, Neblina, Peti, Sinceridade and Tronqueiras 107 18 (15 ) 110 Cemig Geração Oeste S.A. Cajurú, Gafanhoto and Martins 64 11 (9 ) 66 Total 2,409 318 (259 ) 2,468 SPE Plants 2017 Monetary updating Amounts received 2018 Cemig Geração Três Marias S.A. Três Marias 1,330 174 (134 ) 1,370 Cemig Geração Salto Grande S.A. Salto Grande 417 55 (42 ) 430 Cemig Geração Itutinga S.A. Itutinga 156 23 (18 ) 161 Cemig Geração Camargos S.A. Camargos 116 17 (13 ) 120 Cemig Geração Sul S.A. Coronel Domiciano, Joasal, Marmelos, Paciência and Piau 152 24 (19 ) 157 Cemig Geração Leste S.A. Dona Rita, Ervália, Neblina, Peti, Sinceridade and Tronqueiras 103 18 (14 ) 107 Cemig Geração Oeste S.A. Cajurú, Gafanhoto and Martins 63 11 (10 ) 64 Total 2,337 322 (250 ) 2,409 SPE Plants 2016 Monetary updating Amounts received 2017 Cemig Geração Três Marias S.A. Três Marias 1,283 172 (125 ) 1,330 Cemig Geração Salto Grande S.A. Salto Grande 403 54 (40 ) 417 Cemig Geração Itutinga S.A. Itutinga 150 23 (17 ) 156 Cemig Geração Camargos S.A. Camargos 112 17 (13 ) 116 Cemig Geração Sul S.A. Coronel Domiciano, Joasal, Marmelos, Paciência, Piau 147 23 (18 ) 152 Cemig Geração Leste S.A. Dona Rita, Ervália, Neblina, Peti, Sinceridade, Tronqueiras 99 17 (13 ) 103 Cemig Geração Oeste S.A. Cajurú, Gafanhoto, Martins 60 11 (8 ) 63 Total 2,254 317 (234 ) 2,337 Of the energy produced by these plants, 70% is sold in the Regulated Market (ACR) and 30% in the Free Market (ACL). Sector assets and liabilities 16.5 Account for compensation of variation of parcel A items (CVA) and Other financial components Cemig D concession contract guarantees that, in the event of termination of the concession contract, for any reason, the remaining balances (assets and liabilities) of any shortfall in payment or reimbursement through the tariff must also be paid by the grantor. The balances on (i) the CVA ( Compensation for Variation of Parcel A items Other financial components The balance of these sector financial assets and liabilities, which are presented at net value, in assets or liabilities, in accordance with the tariff adjustments that have been authorized, are as follows: 2019 2018 Financial position Amounts ratified by Aneel in the last tariff adjustment Amounts to be ratified by Aneel in the next tariff adjustments Total Amounts ratified by Aneel in the last tariff adjustment Amounts to be ratified by Aneel in the next tariff adjustments Total Assets 1,286 2,144 3,430 1,184 2,545 3,729 Current assets 1,286 1,269 2,555 1,184 1,505 2,689 Non-current assets – 875 875 – 1,040 1,040 Liabilities (882 ) (1,666 ) (2,548 ) (1,140 ) (1,509 ) (2,649 ) Current liabilities (882 ) (1,033 ) (1,915 ) (1,140 ) (902 ) (2,042 ) Non-current liabilities – (633 ) (633 ) – (607 ) (607 ) Total current, net 404 236 640 44 603 647 Total non-current, net – 242 242 – 433 433 Total, net 404 478 882 44 1,036 1,080 2019 2018 Financial components Amounts ratified by Aneel in the last tariff adjustment Amounts to be ratified by Aneel in the next tariff adjustments Total Amounts ratified by Aneel in the last tariff adjustment Amounts to be ratified by Aneel in the next tariff adjustments Total Items of ‘Parcel A’ Energy Development Account (CDE) quota 119 29 148 1 220 221 Tariff for use of transmission facilities of grid participants (18 ) 114 96 24 (6 ) 18 Tariff for transport of Itaipu supply 9 16 25 2 16 18 Alternative power source program (Proinfa) 11 (6 ) 5 3 5 8 ESS/EER System Service/Energy Charges (161 ) (136 ) (297 ) (246 ) (287 ) (533 ) Energy bought for resale 661 632 1,293 667 1,402 2,069 Other financial components Over contracting of supply (1) (84 ) 216 132 (204 ) (13 ) (217 ) Neutrality of Parcel A (30 ) (12 ) (42 ) 53 (15 ) 38 Other financial items (71 ) (206 ) (277 ) (236 ) (212 ) (448 ) Tariff Flag balances (2) - (103 ) (103 ) - (11 ) (11 ) Excess demand and reactive power (32 ) (66 ) (98 ) (21 ) (62 ) (83 ) TOTAL 404 478 882 43 1,037 1,080 (1) The wholly-owned subsidiary Cemig D was over contracted in 2017 and 2018 and the gain arising from the sale of the excess of energy in the spot market was provisionally passed through to customers by Aneel in the tariff adjustments of 2018 and 2019, including the portion in excess of the limit of 105% of the regulatory load – thus reducing the tariff that was determined. To establish whether this is a voluntary over contracting, the Company considers that the portion above the regulatory limit will be recovered in the subsequent tariff adjustment, when Aneel approves them. The Company has no expectation of loss in relation to realization of these amounts. The Company recognizes this right, in the amount of R$ 216,852, as ‘Other financial components’, to be approved by Aneel in the next forthcoming tariff adjustments. (2) Billing arising from the ‘Flag’ Tariff System (see below) not yet approved by the regulator (Aneel). Changes in balances of these sector assets and liabilities: Balance at December 31, 2016 (407 ) Additions 811 Amortization 177 Payments from the Flag Tariff Centralizing Account (586 ) Updating – Selic rate (Note 31) (41 ) Balance at December 31, 2017 (46 ) Additions 1,638 Amortization 335 Others – R&D Reimbursement (115 ) Payments from the Flag Tariff Centralizing Account (794 ) Updating – Selic rate (Note 31) 62 Balance at December 31, 2018 1,080 Additions 724 Amortization (666 ) Payments from the Flag Tariff Centralizing Account (361 ) Updating – Selic rate (Note 31) 105 Balance at December 31, 2019 882 Payments from the Flag Tariff Centralizing Account The ‘Flag Account’ ( Conta Centralizadora de Recursos de Bandeiras Tarifárias Conta Bandeira Pass-through of funds from the Flag Account in 2019 totaled R$361 (R$794 in 2018 and R$586 in 2017) and were recognized as a partial realization of the CVA receivable previously constituted. |
17. CONCESSION CONTRACT ASSETS
17. CONCESSION CONTRACT ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [abstract] | |
CONCESSION CONTRACT ASSETS | 17. CONCESSION CONTRACT ASSETS Under IFRS 15 – Revenue from contracts with customers 2019 2018 Distribution – Infrastructure assets under construction 740 518 Gas – Infrastructure assets under construction 68 82 Transmission – Assets reincorporated into the assets remuneration base 348 492 Transmission – Assets remunerated by tariff 849 637 2,005 1,729 Current 172 131 Non-current 1,833 1,598 Changes in concession contract assets are as follows: Transmission Distribution Gas Total Balances at December 31, 2017 – – – – Effects of adoption of IFRS 15 1,092 532 90 1,714 Additions 96 727 70 893 Inflation adjustment 88 – – 88 Adjustment to expected contract cash flow from the concession 13 – – 13 Amounts received (161 ) – – (161 ) Transfers to financial assets – (27 ) – (27 ) Transfers to intangible assets – (672 ) (78 ) (750 ) Transfers from PP&E 1 – 1 Impairment (42 ) (42 ) Balances at December 31, 2018 1,129 518 82 1,729 Additions 221 903 43 1,167 Inflation adjustment 34 – – 34 Adjustment to expected contract cash flow from the concession 15 – – 15 Amounts received (154 ) – – (154 ) Disposals (4 ) – (2 ) (6 ) Transfers to financial assets (44 ) (48 ) – (92 ) Transfers to intangible assets – (630 ) (55 ) (685 ) Impairment – (3 ) – (3 ) Balances at December 31, 2019 1,197 740 68 2,005 The amount of additions in the period ended December 31, 2019 includes R$21 of borrowing costs, as presented in Note 24. On December 31, 2019 the Company recorded an additional impairment of certain assets in progress, totaling R$29 (R$42 on December 31, 2018) and a reversal of impairment amounting to R$26 recorded in prior years. The Company has not identified any evidence of impairment of its other contract assets with finite useful life. The Company doesn’t have any contract asset with indefinite useful life. Energy and gas distribution activities In accordance with IFRS 15 – Revenue from contracts with customers The transmission activity The transmission concession infrastructure is classified as contract assets, considering the performance obligations during the period of the concession, represented by construction, operation, maintenance and availability of the transmission lines. The above mentioned assets are as follows: Assets reincorporated into the assets remuneration base The remaining balance of the indemnity for transmission, due to acceptance of the terms of Law 12,783/13, of R$ 348, at December 31, 2019 (R$ 492 at December 31, 2018) was incorporated into the Assets Remuneration Base and will be received for the remaining period of their useful life through the Annual Permitted Revenue (RAP), whilst the services of operation and maintenance are rendered. Transmission – Assets remunerated by tariff - In the periods between tariff reviews, the revenues associated with the improvements and upgrades of facilities are provisional. They are then ultimately determined in the review immediately subsequent to the start of commercial operation of the facilities; this review then has effect starting on the date when commercial operations begin. At December 31, 2019, the receivable amounts to R$849 (R$637 on December 31, 2018). The construction of infrastructure grants to the operator a right to receive consideration due to performance obligations represented by the construction, which is not unconditional until the satisfaction of performance obligations related to the operation and maintenance of the transmission lines. The revenue and costs related to construction of these assets are recognized in the statement of income as expenditures incurred. |
18. INVESTMENTS
18. INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about investment property [abstract] | |
INVESTMENTS | 18. INVESTMENTS Control 2019 2018 Hidrelétrica Cachoeirão Jointly-controlled 54 49 Guanhães Energia (1) Jointly-controlled 131 – Hidrelétrica Pipoca Jointly-controlled 31 31 Retiro Baixo Jointly-controlled 180 171 Aliança Norte (Belo Monte plant) Jointly-controlled 671 664 Madeira Energia (Santo Antônio plant) Affiliated 167 270 FIP Melbourne (Santo Antônio plant) Affiliated 385 470 Lightger (1) Jointly-controlled 128 – Baguari Energia Jointly-controlled 157 162 Aliança Geração Jointly-controlled 1,192 1,217 Amazônia Energia (Belo Monte plant) Jointly-controlled 1,028 1,013 Taesa Jointly-controlled 1,213 1,143 Ativas Data Center Affiliated 16 16 UFV Janaúba Geração de Energia Elétrica Distribuída Affiliated 10 9 Companhia de Transmissão Centroeste de Minas Jointly-controlled 24 20 Axxiom Soluções Tecnológicas (1) Jointly-controlled 13 – Total of investments 5,400 5,235 Itaocara – equity deficit (2) Jointly-controlled (22 ) – Total 5,378 5,235 (1) With the cessation of control of Light, the remaining equity interest in these investees was recognized as an investment in affiliate or jointly-controlled entities, and measured by the equity method, in accordance with IFRS 10. For more details please see Notes 1 and 34. (2) On December 31, 2019, the investee has negative net equity. Thus, after reducing the accounting value of its interest to zero, the Company recognized the provision for losses to the extent of its obligations , in the amount of R$22, resulting from contractual obligations assumed with the jointly-controlled entity and the other shareholders. The Company’s investees that are not consolidated are jointly-controlled entities, with the exception of the interests in the affiliates ‘Santo Antônio’ power plant, UFV Janaúba Geração de Energia Elétrica Distribuída and Ativas Data Center. As per Note 1, on July 17, 2019 the Company ceased to control Light, which has been classified as an investment held for sale, in Current assets, as per Note 34. a) Right to exploitation of the regulated activity In the process of allocating the purchase price for of the acquisition of the jointly-controlled subsidiaries and affiliates, a valuation was made for the intangible assets relating to the right to operate the infrastructure. These assets are presented together with the acquisition cost of the investments in the previous table. These assets will be amortized over the remaining period of the concessions on a straight-line basis. Changes in these assets are as follows: Investees 2016 Amortization Written off 2017 Additions Amortization Written off 2018 Amortization 2019 Taesa 288 (13 ) (86 ) 189 – (9 ) – 180 (9 ) 171 Retiro Baixo 29 (1 ) – 28 6 (2 ) – 32 (1 ) 31 Central Eólica Praias de Parajuru (1) 19 (1 ) (1 ) 17 – (2 ) (15 ) – – – Central Eólica Volta do Rio (1) 14 (1 ) (2 ) 11 – (1 ) (10 ) – – – Central Eólica Praias de Morgado (1) 27 (2 ) (1 ) 24 – (2 ) (22 ) – – – Madeira Energia (Santo Antônio plant) 157 (6 ) – 151 – (6 ) (127 ) 18 (1 ) 17 Lightger – – – – 84 – – 84 (3 ) 81 Light 209 (23 ) – 186 – (20 ) (166 ) – – – Aliança Geração 428 (25 ) – 403 – (25 ) – 378 (25 ) 353 Aliança Norte (Belo Monte plant) 57 (2 ) – 55 – (2 ) – 53 (2 ) 51 Lepsa 49 (6 ) (43 ) – – – – – – – RME 48 (4 ) – 44 20 (5 ) (59 ) – – – Total 1,325 (84 ) (133 ) 1,108 110 (74 ) (399 ) 745 (41 ) 704 (1) As from 2018 the investees Central Eólica Praias de Parajuru Central Eólica Volta do Rio b) This table shows the changes in investments in subsidiaries, jointly-controlled entities and affiliates: Investee 2018 Gain (loss) by equity method (Income statement) Remeasurement of equity interest held in subsidiaries after loss of control Dividends Additions / acquisitions Others 2019 Companhia de Transmissão Centroeste de Minas 20 4 – – – – 24 Axxiom Soluções Tecnológicas – – 4 – 9 – 13 Lightger – – 128 – – – 128 Guanhães Energia – – 131 – – – 131 Usina Hidrelétrica Itaocara S.A. – (50 ) 5 – 23 22 – Hidrelétrica Pipoca 31 4 – (4 ) – – 31 Madeira Energia (Santo Antônio plant) 270 (103 ) – – – – 167 FIP Melbourne (Santo Antônio plant) 470 (85 ) – – – – 385 Hidrelétrica Cachoeirão 49 11 – (6 ) – – 54 Baguari Energia 162 22 – (27 ) – – 157 Amazônia Energia (Belo Monte plant) 1,013 15 – – – – 1,028 Aliança Norte (Belo Monte plant) 664 6 – – 1 – 671 Ativas Data Center 16 – – – – – 16 Taesa 1,143 210 – (141 ) – 1 1,213 Aliança Geração 1,217 78 – (103 ) – – 1,192 Retiro Baixo 171 12 – (3 ) – – 180 UFV Janaúba Geração de Energia Elétrica Distribuída 9 1 – – – – 10 Total of investments 5,235 125 268 (284 ) 33 23 5,400 Itaocara – equity deficit – – – – – (22 ) (22 ) Total 5,235 125 268 (284 ) 33 1 5,378 Investee 2017 Gain (loss) by equity method (Income statement) Remeasurement of previously held equity interest in subsidiaries acquired (step–acquisition) Dividends Additions / acquisitions Disposals Reclassification to held for sale Others 2018 Companhia de Transmissão Centroeste de Minas 21 5 – (6 ) – – – – 20 Light (1) 1,534 19 (231 ) (8 ) – – (1,255 ) (59 ) – RME (1) 383 3 (52 ) (1 ) 104 – (326 ) (111 ) – Axxiom Soluções Tecnológicas (1) 12 (7 ) – – – – (4 ) (1 ) – Lightger (1) 41 3 84 (2 ) – – (126 ) – – Guanhães Energia (1) 25 30 – – 57 – (112 ) – – Usina Hidrelétrica Itaocara S.A. (1) 4 (4 ) – – 5 – (5 ) – – Hidrelétrica Pipoca 26 7 – (2 ) – – – – 31 Madeira Energia (Santo Antônio plant) (2) (4) 535 (163 ) – – 25 – – (127 ) 270 FIP Melbourne (Santo Antônio plant) (4) 582 (139 ) – – 27 – – – 470 Hidrelétrica Cachoeirão 58 10 – (19 ) – – – – 49 Baguari Energia 148 28 – (15 ) – – – 1 162 Central Eólica Praias de Parajuru (3) 60 (6 ) 21 – 74 (3 ) – (146 ) – Central Eólica Volta do Rio (3) 68 (16 ) 59 – 92 (22 ) – (181 ) – Central Eólica Praias de Morgado (3) 51 (15 ) – – – (12 ) – (24 ) – Amazônia Energia (Belo Monte plant) 867 80 – – 69 – – (3 ) 1,013 Aliança Norte (Belo Monte plant) 577 44 – – 43 – – – 664 Ativas Data Center 17 (1 ) – – – – – – 16 Taesa (1) 1,101 225 – (208 ) – – – 25 1,143 Renova 282 (282 ) – – – – – – – Aliança Geração 1,242 65 – (90 ) – – – – 1,217 Retiro Baixo 158 10 – (3 ) 6 – – – 171 UFV Janaúba Geração de Energia Elétrica Distribuída – – – – 9 – – – 9 Total of investments 7,792 (104 ) (119 ) (354 ) 511 (37 ) (1,828 ) (626 ) 5,235 (1) Others arises from first adoption of the new accounting standards on January 1, 2018, recognized by the investees directly in equity without inclusion in the Income statement. The column Reclassification to held for sale Non-current assets held for sale (2) Due to the result of analysis of impairment indication, due to the recurring losses incurred by Madeira, a provision was recognized for loss of part of the residual added value of the investment in Madeira, to limit its balance to the minimum value of the excess of future economic benefits arising from use of the net fixed asset on December, 31, 2018, using the nominal WACC of 9.59% as the discount rate. The provision is presented in the statement of income for the year ended December 31, 2018 as Impairment loss on Investments (3) Arising from the business combination between the Company and Energimp. The rights to exploitation of the regulated activity are classified in the consolidated statement of financial position under Intangible. (4) In October 2018 the Company subscribed capital increases in Mesa and FIP Melbourne, of R$25 and R$26, respectively. These funds were entirely applied in capital contributions to Santo Antônio Energia S.A. (‘Saesa’ or ‘ Santo Antônio 2016 Gain (loss) by equity method (Income statement) Gain (loss) by equity method (Other comprehensive income) Dividends Additions / acquisitions Disposals Others 2017 Companhia Transleste de Transmissão 22 5 – (7 ) – (20 ) – – Companhia Transudeste de Transmissão 21 3 – (12 ) – (12 ) – – Companhia Transirapé de Transmissão 24 4 – (6 ) – (22 ) – – Companhia de Transmissão Centroeste de Minas 21 5 – (5 ) – – – 21 Light (1) 1,070 35 (3 ) – – – 432 1,534 Axxiom Soluções Tecnológicas 19 (7 ) – – – – – 12 Lepsa (1) 344 – (2 ) – – – (342 ) – RME 339 7 (2 ) – 38 – 1 383 Hidrelétrica Cachoeirão 50 10 – (3 ) – – 1 58 Guanhães Energia (2) – (13 ) – – 97 – (59 ) 25 Hidrelétrica Pipoca 32 2 – (8 ) – – – 26 Madeira Energia (Santo Antônio plant) 644 (109 ) – – – – – 535 FIP Melbourne (Santo Antônio plant) 677 (95 ) – – – – – 582 Lightger 42 2 – (3 ) – – – 41 Baguari Energia 162 17 – (30 ) – – (1 ) 148 Central Eólica Praias de Parajuru 63 (1 ) – – – – (2 ) 60 Central Eólica Volta do Rio 81 (12 ) – – – – (1 ) 68 Central Eólica Praias de Morgado 60 (8 ) – – – – (1 ) 51 Amazônia Energia (Belo Monte plant) 781 1 – – 85 – – 867 Ativas Data Center 18 (2 ) – – – – 1 17 Taesa (3) 1,583 216 – (183 ) – (515 ) – 1,101 Renova 689 (390 ) (34 ) – 18 – (1 ) 282 Usina Hidrelétrica Itaocara S.A. 3 (2 ) – – 3 – – 4 Aliança Geração 1,319 72 – (149 ) – – – 1,242 Aliança Norte (Belo Monte plant) 527 (2 ) – – 51 – 1 577 Retiro Baixo 162 10 – (14 ) – – – 158 Total of investments 8,753 (252 ) (41 ) (420 ) 292 (569 ) 29 7,792 Guanhães Energia – equity deficit (2) (59 ) – – – – – 59 – Total 8,694 (252 ) (41 ) (420 ) 292 (569 ) 88 7,792 (1) On November 30, 2017 the Company acquired all Lepsa’s shares, and therefore as from that date on it consolidates that company in its financial statements. Lepsa’s sole asset is its holdings in the share capital of Light. Hence, the Company no longer presents the investment that it previously held at Lepsa in its consolidated statement, presenting only the interest in Light. (2) Equity deficit reversed through injection of capital. (3) On November 2017 the Company sold part of its equity interest in the jointly-controlled entity Taesa. The Company sold 34 million Units of Taesa at the price of R$ 21.10 per Unit. With the sale, the Company’s holding in the share capital of Taesa was reduced from 31.54% to 21.68%. The shares that were sold are not part of the controlling shareholding block of Taesa, and as a result Cemig continues to be in the controlling block of Taesa. Changes in dividends receivable are as follows: 2019 2018 Opening balances 119 77 Dividends proposed by investees 285 354 Dividends proposed by investee classified as held for sale 73 Withholding income tax on Interest on equity (8 ) (7 ) Amounts received (283 ) (304 ) Ending balances 186 120 c) Main information on the subsidiaries, jointly-controlled entities and affiliates, not adjusted for the percentage represented by the Company’s ownership interest: 2019 2018 2017 Investee Number of shares Cemig interest % Share capital Equity Cemig interest % Share capital Equity Cemig interest % Share capital Equity Cemig Geração e Transmissão 2,896,785,358 100.00 2,600 5,136 100.00 2,600 4,980 100.00 1,838 4,794 Madeira Energia (Santo Antônio plant) 12,034,025,147 15.51 10,620 3,705 15.51 10,620 4,657 18.13 9,547 5,327 Hidrelétrica Cachoeirão 35,000,000 49.00 35 110 49.00 35 100 49.00 35 118 Guanhães Energia 548,626,000 49.00 549 268 49.00 396 228 49.00 331 51 Hidrelétrica Pipoca 41,360,000 49.00 41 63 49.00 41 63 49.00 41 53 Baguari Energia (1) 26,157,300,278 69.39 187 227 69.39 187 234 69.39 187 214 Central Eólica Praias de Parajuru 71,834,843 100.00 72 89 100.00 72 80 49.00 71 89 Central Eólica Volta do Rio 138,867,440 100.00 139 58 100.00 139 84 49.00 117 116 Central Eólica Praias de Morgado – – – – – – – 49.00 53 54 Lightger 79,078,937 49.00 79 95 49.00 79 86 49.00 79 83 Aliança Norte (Belo Monte plant) 41,893,675,837 49.00 1,208 1,266 49.00 1,206 1,247 49.00 1,119 1,066 Amazônia Energia (Belo Monte plant) (1) 1,322,597,723 74.50 1,323 1,380 74.50 1,322 1,359 74.50 1,230 1,163 Aliança Geração 1,291,582 45.00 1,291 1,858 45.00 1,291 1,858 45.00 1,291 1,858 Retiro Baixo 225,350,000 49.90 225 300 49.90 223 278 49.90 223 258 Renova (1) (2) 41,719,724 36.23 2,961 (1,091 ) 36.23 2,919 (76 ) 36.23 2,919 780 Usina Hidrelétrica Itaocara S.A. (6) 69,282,514 49.00 69 (45 ) 49.00 22 10 49.00 11 8 Cemig Ger.Três Marias S.A. 1,291,423,369 100.00 1,291 1,408 100.00 1,291 1,396 100.00 1,291 1,392 Cemig Ger.Salto Grande S.A 405,267,607 100.00 405 446 100.00 405 440 100.00 405 440 Cemig Ger. Itutinga S.A. 151,309,332 100.00 151 184 100.00 151 179 100.00 151 171 Cemig Geração Camargos S.A. 113,499,102 100.00 113 136 100.00 113 132 100.00 113 130 Cemig Geração Sul S.A. 148,146,505 100.00 148 179 100.00 148 176 100.00 148 168 Cemig Geração Leste S.A. 100,568,929 100.00 101 127 100.00 101 121 100.00 101 116 Cemig Geração Oeste S.A. 60,595,484 100.00 61 73 100.00 61 70 100.00 61 69 Rosal Energia S.A. 46,944,467 100.00 47 128 100.00 47 125 100.00 47 107 Sá Carvalho S.A. 361,200,000 100.00 37 124 100.00 37 94 100.00 37 103 Horizontes Energia S.A. 39,257,563 100.00 39 57 100.00 39 55 100.00 39 53 Cemig PCH S.A. 45,952,000 100.00 46 98 100.00 46 93 100.00 36 97 Cemig Geração Poço Fundo S.A. (3) 1,402,000 100.00 1 4 100.00 17 18 100.00 17 18 Empresa de Serviços de Comercialização de Energia Elétrica S.A. 486,000 100.00 – 28 100.00 – 27 100.00 – 18 Cemig Comercializadora de Energia Incentivada S.A. 1,000,000 100.00 1 3 100.00 1 3 100.00 1 2 Cemig Trading S.A. 1,000,000 100.00 1 31 100.00 1 28 100.00 1 29 Cemig Distribuição (4) 2,359,113,452 100.00 5,372 4,708 100.00 2,772 4,642 100.00 2,772 3,737 Light 303,934,060 22.58 4,051 5,983 26.06 2,226 3,389 26.06 2,226 3,462 TAESA 1,033,496,721 21.68 3,042 4,927 21.68 3,042 4,572 21.68 3,042 4,347 Cemig Telecom – – – – – – – 100.00 292 247 Ativas Data Center 456,540,718 19.60 182 82 19.60 182 84 – – – Gasmig 409,255,483 99.57 665 988 99.57 665 1,001 99.57 665 1,224 Cemig Geração Distribuída 174,281 100.00 – 11 100.00 0 3 100.00 0 5 LEPSA (5) – – – – 100.00 406 447 100.00 406 456 RME (5) – – – – 100.00 403 423 75.00 403 453 Efficientia 15,121,845 100.00 15 17 100.00 15 18 100.00 6 7 Companhia de Transmissão Centroeste de Minas 28,000,000 51.00 28 47 51.00 28 39 51.00 28 40 Axxiom Soluções Tecnológicas 58,365,000 49.00 58 27 49.00 47 17 49.00 47 24 (1) Jointly-control under a Shareholders’ Agreement. (2) In view of Renova’s negative net equity, the Company reduced to zero the carrying value of its equity interests in this investee, at December 31, 2018. (3) The Extraordinary General Meeting of Shareholders held on August 29, 2019 approved changes to the bylaws of the subsidiary, changing its name and its corporate objects. With the alteration, the name of Usina Termelétrica Barreiro S.A. was changed to Cemig Geração Poço Fundo S.A. (4) An Extraordinary General Shareholders’ Meeting held on August 7, 2019 approved increase in the share capital of Cemig D by R$2,600, through subscription of funds from Advances for Future Capital Increase (AFACs), paid in by the Company, without issuance of new shares. (5) These investees were merged on April 24, 2019. (6) On December 31, 2019, the investee has equity deficit. Thus, after reducing the accounting value of its interest to zero, the Company recognized the provision for losses to the extent of its obligations , in the amount of R$22, resulting from contractual obligations assumed with the jointly-controlled entity and the other shareholders. The Company has indirect equity interests in the following investees: 2019 2018 Direct interest % Indirect interest % Direct interest % Indirect interest % Amazônia 74.50 % 5.76 % 74.50 % 12.46 % Renova (1) 36.23 % – 36.23 % 8.39 % LightGer 49.00 % 11.52 % 49.00 % 24.92 % Guanhães 49.00 % 11.52 % 49.00 % 24.92 % Axxion 49.00 % 11.52 % 49.00 % 24.92 % UHE Itaocara 49.00 % 11.52 % 49.00 % 24.92 % Light 22.58 % – 26.06 % 22.80 % (1) On October 15, 2019, Light sold the totality of its shares in the jointly-controlled entity Renova to CG I Fundo de Investimento em Participações The main balances for the affiliated and jointly-controlled entities, at December 31, 2019, 2018 and 2017, are as follows: 2019 Centroeste Ativas Data Center Taesa Axxiom Soluções Tecnológicas Hidrelétrica Cachoeirão Hidrelétrica Pipoca Retiro Baixo Aliança Norte Assets Current 29 33 3,568 34 35 11 68 1 Cash and cash equivalents 27 8 83 7 30 2 56 1 Non-current 35 107 7,662 26 82 89 343 1,266 Total assets 64 140 11,230 60 117 100 411 1,267 Liabilities Current 6 24 996 28 7 11 34 1 Loans and financings – Current 3 13 10 8 – 7 14 – Non-current 11 34 5,307 5 – 26 77 – Loans and financings – Non-Current 8 31 4,159 – – 26 68 – Equity 47 82 4,927 27 110 63 300 1,266 Total liabilities 64 140 11,230 60 117 100 411 1,267 Statement of income Net sales revenue 17 83 1,795 53 38 30 70 – Cost of sales (5 ) (75 ) (574 ) (54 ) (17 ) (15 ) (30 ) – Depreciation and amortization (1 ) (18 ) (5 ) (2 ) (3 ) (3 ) (9 ) – Gross profit (loss) 12 8 1,221 (1 ) 21 15 40 – General and administrative expenses (2 ) (7 ) (122 ) (11 ) – – (4 ) (2 ) Finance income 2 – 97 – 1 – 3 – Finance expenses (2 ) (3 ) (356 ) (2 ) – (3 ) (8 ) – Operational profit (loss) 10 (2 ) 840 (14 ) 22 12 31 (2 ) Share of (loss) profit, net, of subsidiaries and joint ventures – – 306 – – – – 19 Income tax and social contribution tax (1 ) – (144 ) 5 (2 ) (1 ) (3 ) – Net income (loss) for the year 9 (2 ) 1,002 (9 ) 20 11 28 17 Comprehensive income (loss) for the year 9 (2 ) 1,002 (9 ) 20 11 28 17 2019 Amazônia Energia Madeira Energia Baguari Energia Renova Lightger Guanhães Energia Aliança Geração Assets Current – 750 60 21 87 11 935 Cash and cash equivalents – 78 9 5 69 5 435 Non-current 1,380 21,680 187 2,309 124 419 2,409 Total assets 1,380 22,430 247 2,330 211 430 3,344 Liabilities Current 1 1,177 16 2,928 53 27 610 Loans and financings – Current – 73 – 1,507 9 12 161 Non-current – 17,548 4 493 63 136 876 Loans and financings – Non-Current – 10,925 – 55 63 127 276 Equity 1,379 3,705 227 (1,091 ) 95 267 1,858 Total liabilities 1,380 22,430 247 2,330 211 430 3,344 Statement of income Net sales revenue – 3,198 68 98 50 51 1,103 Cost of sales – (2,508 ) (23 ) (66 ) (27 ) (38 ) (681 ) Depreciation and amortization – (869 ) (9 ) (9 ) (11 ) (14 ) (151 ) Gross profit (loss) – 690 45 32 23 13 422 General and administrative expenses – (99 ) – (660 ) (2 ) (5 ) (31 ) Finance income – 131 4 3 4 1 39 Finance expenses – (1,683 ) (1 ) (448 ) (7 ) (9 ) (90 ) Operational profit (loss) – (961 ) 48 (1,073 ) 18 – 340 Share of (loss) profit, net, of subsidiaries and joint ventures 20 – 66 – – Income tax and social contribution tax – 10 (16 ) (7 ) (3 ) (2 ) (111 ) Net income (loss) for the year 20 (951 ) 32 (1,014 ) 15 (2 ) 229 Comprehensive income (loss) for the year 20 (951 ) 32 (1,014 ) 15 (2 ) 229 2018 Centroeste Ativas Data Center Taesa Hidrelétrica Cachoeirão Hidrelétrica Retiro Baixo Aliança Norte Assets Current 19 17 1,927 23 12 47 – Cash and cash equivalents – 1 21 18 4 36 – Non-current 36 106 6,689 85 95 354 1,247 Total assets 55 123 8,616 108 107 401 1,247 Liabilities Current 6 23 647 8 11 32 – Loans and financings – Current 3 9 11 – 7 14 – Non-current 10 16 3,397 – 33 91 – Loans and financings – Non-Current 10 13 410 – 33 82 – Equity 39 84 4,572 100 63 278 1,247 Total liabilities 55 123 8,616 108 107 401 1,247 Statement of income Net sales revenue 14 70 1,635 50 29 71 – Cost of sales (1 ) (72 ) (362 ) (29 ) (12 ) (29 ) – Depreciation and amortization – – – (3 ) (3 ) (10 ) – Gross profit (loss) 13 (2 ) 1,273 21 17 42 – General and administrative expenses – (16 ) (144 ) – – (4 ) (3 ) Finance income 1 – 63 1 – 2 1 Finance expenses (3 ) (3 ) (274 ) – (4 ) (11 ) (1 ) Operational profit (loss) 11 (21 ) 918 22 13 29 (3 ) Share of (loss) profit, net, of subsidiaries and joint ventures – – 301 – – – 97 Income tax and social contribution tax (1 ) – (147 ) (2 ) (1 ) (3 ) – Net income (loss) for the year 10 (21 ) 1,072 20 12 26 94 Comprehensive income (loss) for the year 10 (21 ) 1,072 20 12 26 94 2018 Amazônia Energia Madeira Energia Baguari Energia Renova Aliança Geração Assets Current – 618 44 1,738 791 Cash and cash equivalents – 69 8 15 381 Non-current 1,360 22,453 201 891 2,440 Total assets 1,360 23,071 245 2,629 3,231 Liabilities Current 1 1,281 7 2,195 564 Loans and financings – Current – 53 – 349 168 Non-current – 17,134 5 510 809 Loans and financings – Non-Current – 10,220 – 64 348 Equity 1,359 4,656 233 (76 ) 1,858 Total liabilities 1,360 23,071 245 2,629 3,231 Statement of income Net sales revenue – 3,006 74 710 984 Cost of sales – (2,689 ) (31 ) (834 ) (599 ) Depreciation and amortization – (887 ) (9 ) (10 ) (153 ) Gross profit (loss) – 317 43 (124 ) 385 General and administrative expenses (1 ) (195 ) – (458 ) (31 ) Finance income 2 128 3 3 33 Finance expenses (2 ) (1,881 ) (1 ) (320 ) (89 ) Operational profit (loss) (1 ) (1,631 ) 45 (899 ) 298 Share of (loss) profit, net, of subsidiaries and joint ventures 105 – – 49 – Income tax and social contribution tax (1 ) (112 ) (4 ) (6 ) (100 ) Net income (loss) for the year 103 (1,743 ) 41 (856 ) 198 Comprehensive income (loss) for the year 103 (1,743 ) 41 (856 ) 198 2017 Centroeste RME Light Taesa Axxiom Aliança Itaocara Lightger Amazônia Energia Aliança Assets Current 56 2 4,137 1,947 46 1 5 51 – 706 Cash and cash equivalents 17 1 270 57 3 – 5 1 – 540 Non-current 1 451 10,807 6,108 11 1,065 11 142 1,163 2,593 Total assets 57 453 14,944 8,055 57 1,066 16 193 1,163 3,299 Liabilities Current 4 – 5,493 645 29 – 1 31 – 511 Suppliers – – – – 1 – 1 20 – – Loans and financings – Current 3 – 1,395 9 5 – – – – 98 Non-current 13 – 6,019 3,062 4 – 7 79 – 930 Equity 40 453 3,432 4,348 24 1,066 8 83 1,163 1,858 Total liabilities 57 453 14,944 8,055 57 1,066 16 193 1,163 3,299 Statement of income Net sales revenue 15 – 11,315 1,077 43 – – 42 – 930 Cost of sales (4 ) – (8,869 ) (198 ) (55 ) – (4 ) (28 ) – (560 ) Depreciation and amortization (1 ) – (493 ) (1 ) (2 ) – – (11 ) – (123 ) Gross profit (loss) 11 – 2,446 879 (12 ) – (4 ) 14 – 370 General and administrative expenses – (1 ) (1,071 ) (122 ) (7 ) (1 ) – (2 ) (1 ) 4 Finance income 2 16 100 70 1 – – 4 2 28 Finance expenses (2 ) – (977 ) (292 ) (1 ) – – (9 ) – (73 ) Operational profit (loss) 11 15 498 535 (19 ) (1 ) (4 ) 7 1 329 Share of (loss) profit, net, of subsidiaries and joint ventures – – (199 ) 168 – – – – – – Income tax and social contribution tax (1 ) – (175 ) (55 ) 6 – – (3 ) – (114 ) Net income (loss) for the year 10 15 124 648 (13 ) (1 ) (4 ) 4 1 215 Comprehensive income (loss) for the year 10 15 124 648 (13 ) (1 ) (4 ) 4 1 215 2017 Hidrelétrica Cachoeirão Baguari Energia Guanhães Energia Madeira Energia Hidrelétrica Pipoca Retiro Baixo Renova Central Eólica Central Eólica Central Eólica Assets Current 51 29 8 557 15 23 144 41 11 16 Cash and cash equivalents 46 5 4 55 6 14 25 35 7 5 Non-current 87 209 223 23,593 95 366 2,786 121 136 233 Total assets 138 238 231 24,150 110 389 2,930 162 147 249 Liabilities Current 10 18 25 2,030 18 27 1,751 26 90 126 Suppliers 1 10 12 203 6 3 259 1 2 1 Non-current 10 6 155 16,793 39 104 399 47 3 7 Equity 118 214 51 5,327 53 258 780 89 54 116 Total liabilities 138 238 231 24,150 110 389 2,930 162 147 249 Statement of income Net sales revenue 39 64 – 2,971 29 67 734 21 14 22 Cost of sales (17 ) (37 ) – (1,858 ) (18 ) (34 ) (677 ) (16 ) (17 ) (28 ) Depreciation and amortization (4 ) (9 ) – (838 ) (3 ) (10 ) (10 ) (10 ) (10 ) (17 ) Gross profit (loss) 22 27 – 1,113 11 33 57 5 (3 ) (6 ) General and administrative expenses – – (10 ) (817 ) (1 ) – (942 ) (2 ) (1 ) (3 ) Provision for loss – – – – – – – – – – Financial income 4 6 1 115 2 3 12 3 2 3 Finance expenses (2 ) – (16 ) (1,551 ) (5 ) (11 ) (470 ) (6 ) (8 ) (12 ) Operational profit (loss) 24 33 (25 ) (1,140 ) 7 25 (1,343 ) – (10 ) (18 ) Share of (loss) profit, net, of subsidiaries and joint ventures – – – – – – 96 – – – Income tax and social contribution tax (3 ) (11 ) – 49 (2 ) (3 ) 107 – (1 ) (3 ) Net income (loss) for the year 21 22 (25 ) (1,091 ) 5 22 (1,140 ) – (11 ) (21 ) Comprehensive income (loss) for the year 21 22 (25 ) (1,091 ) 5 22 (1,140 ) – (11 ) (21 ) Madeira Energia S.A. (‘MESA’) and FIP Melbourne MESA is the parent company of Santo Antônio Energia S.A (‘SAESA’), whose objects are operation and maintenance of the Santo Antônio On December 31, 2019 MESA reported a loss of R$951 (R$1,743 on 2018) and current liabilities in excess of current assets by R$427 (R$663 on 2018). Hydroelectric plants project finances structurally present negative net working capital in the first years of operation, because they are built using high levels of financial leverage. On the other hand, they have firm long term contracts for energy supply as support and guarantee of payment of their debts. To balance the situation of negative working capital, in addition to its long-term sale contracts that ensure regularity in its operational cash flow, MESA benefits from its debt reprofiling, that adjusted its debt repayments flow to its cash generation capacity, so that the investee does not depend on additional investment from the shareholders. Arbitration proceedings In 2014, Cemig GT and SAAG Investimentos S.A. (SAAG), a vehicle through which Cemig GT holds an indirect equity interest in MESA, opened arbitration proceedings, in the Market Arbitration Chamber, challenging the following: (a) the approved increase in the capital of MESA of approximately R$ 678 partially to be allocated to payment of the claims by the Santo Antonio Construction Consortium (‘CCSA’) The arbitration judgment recognized the right of Cemig GT and SAAG in full, and ordered the annulment of the acts being impugned. As a consequence of this decision, MESA reversed the impairment , To resolve the question of the liability of the CCSA consortium to reimburse the costs of re-establishment of the collateral and use of the contractual limiting factor, the affiliated company opened arbitration proceedings with the International Chamber of Commerce (ICC) against CCSA, which are in progress. This process is confidential under the Arbitration Regulations of the ICC. Cemig GT and SAAG Investimentos S.A. applied to the judiciary for provisional remedy prior to the arbitration proceeding, to suspend the effects of the capital increase approved by an Extraordinary General Meeting of Shareholders of Mesa held on August 28, 2018. This process is confidential under the Arbitration Regulations of the Market Arbitration Chamber. Renova Energia S.A. - court-supervised reorganization (‘Renova’) On December 31, 2019, the jointly-controlled investee Renova, reported a consolidated loss of R$1,014 (R$856 on 2018 and R$ 1,139 on 2017), accumulated losses of R$ 4,010 (R$3,051 on 2018), current liabilities in excess of current assets by R$ 2,907 (R$ 458 on 2018), an equity deficit of R$1,091 (R$76 on 2018) and negative gross margin and needs to obtain capital to comply with its commitments, including those for construction of wind and solar power plants. These events or conditions indicate the existence of relevant uncertainty that may raise significant doubt about its ability to continue as a going concern as of December 31, 2019. However, in view of the investee’s equity deficit, the Company reduced the carrying value of its equity interests in Renova, at December 31, 2018, to zero and no further losses have been recognized, considering the non-existence of any legal or constructive obligations to the investee. Additionally, considering the worsening of Renova’s financial conditions and a potencial application for court-supervised reorganization, the Company recorded, since June 30, 2019, an impairment of the receivables with the jointly-controlled entity in the amount of R$ 688 on December 31, 2019. Change in control of Renova On October 15, 2019, Light sold, for R$1.00, the totality of its shares held in the jointly-controlled entity Renova, equivalent in total to 17.17% of the share capital of investee, to CG I Fundo de Investimento em Participações Multiestratégia. Additionally, Lightcom Comercializadora de Energia S.A. signed an Assignment Agreement through which it assigned all the credits held against Renova to CG I. With the expiry of the period specified in the Shareholders’ Agreement of Renova, the Company did not exercise its right of first refusal nor its right of joint sale, and thus there has been no change in its direct equity interest in Renova. Application by Renova for court-supervised reorganization On October 16, 2019, the second State of São Paulo Bankruptcy and I Court-Supervised Reorganization Court granted court-supervised reorganization petition applied by Renova, and by the other companies of the group (‘the Renova Group’), and determined, among other measures, the following: (i) Appointment of an independent company to act as judicial administrator.; (ii) Suspension of actions and executions against the companies of the Renova Group for 180 days, under Article 6 of Law 11,101/2005; (iii) Presentation of accounts by the 30th of each month, while the court-supervised reorganization proceedings continue, on penalty of the controlling shareholders of the companies of the Renova Group being removed, and replaced by administrator, under Article 52, IV, of Law 11,101/2005; (iv) Waiver to present tax debt clearance certificates so that the companies of the Renova Group can carry on with their activities; and (v) Order to publish a list of creditors, with 15 day term for presentation of qualifications and/or divergences of credits in relation to the court-supervised reorganization. On December 17, 2019, Renova filed its court-supervised reorganization plan, which has to be approved by the General Meeting of Creditors according with the terms and conditions established by Law 11,101/2005. The jointly-controlled entity is in the process of discussing such plan and until the present date has not measured the possible effects on its accounting balances. In this context, Renova signed with the Company Debtor in Possession (DIP) loan agreements in the total amount of R$37, comprising R$17 in 2019 and R$20 on January 28, 2020. The funds of these loans, made under specific rules of court-supervised reorganization proceedings, are necessary to support the expenses of maintaining the activities of Renova, and were authorized by the second State of São Paulo Bankruptcy and Court-supervised Reorganization Court. They are guaranteed by a fiduciary assignment of shares in a company owning assets of a wind power project owned by Renova, and they also have priority of receipt in the court-supervised reorganization process. Additionally, Company made an Advance for Future Capital Increase to Renova, of R$5, on October 25, 2019. On May 2,2020, the State of Sao Paulo Bankruptcy and Court-supervised Reorganization Court issued a decision ordering that the DIP loan, in the total amount of R$37 million, with asset guarantee, already constituted and registered, would be subscribed as a capital increase in Renova, Company has filed a Motion for clarification and based on the opinion of its legal advisors , has classified the chance of loss in the action as ‘possible and limited to the total amount of the DIP loan. On March 20, 2020, the Board of Directors of Renova approved acceptance of a binding offer made by ARC Capital Ltda. (‘ARC’), jointly with G5 Administradora de Recursos Ltda. (‘G5’), and XP Vista Asset Management Ltda. (‘XP’) for financing to conclude the works of Phase A of the Alto Sertão III Considering the non-existence of any legal or constructive obligations to the investee, the Company has concluded that the granted of court-supervised reorganization filed by Renova does not have any additional impact in its financial statements. Amazônia Energia S.A. and Aliança Norte Energia S.A. Amazônia Energia and Aliança Norte are shareholders of Norte Energia S.A. (‘NESA’), which holds the concession to operate the Belo Monte On December 31, 2019 NESA presents negative net working capital of R$ 3,309, and will spend further amounts on projects specified in its concession contract, even after conclusion of the construction and full operation of the Belo Monte Hydroelectric Plant. According to the estimates and projections, the negative net working capital, and the future demands for investments in the hydroelectric plant, will be supported by revenues from future operations and/or raising of bank loans. On September, 2015, NESA was awarded a preliminary injunction ordering the regulator to ‘abstain, until hearing of the application for an injunction made in the original case, from applying to Appellant any penalties or sanctions in relation to the Belo Monte Hydroelectric Plant not starting operations on the date established in the original timetable for the project, including those specified in an the regulator (Aneel) Normative Resolution 595/2013 and in the Concession Contract for the Belo Monte Hydroelectric Plant’. The legal advisors of NESA have classified the probability of loss as ‘possible’ and estimated the potential loss on Decem |
19. PROPERTY, PLANT AND EQUIPME
19. PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | 19. PROPERTY, PLANT AND EQUIPMENT 2019 2018 Historical cost Accumulated depreciation Net value Historical cost Accumulated depreciation Net value In service Land 248 (19 ) 229 231 (16 ) 215 Reservoirs, dams and watercourses 3,280 (2,200 ) 1,080 3,282 (2,132 ) 1,150 Buildings, works and improvements 1,092 (818 ) 274 1,114 (800 ) 314 Machinery and equipment 2,598 (1,869 ) 729 2,773 (1,919 ) 854 Vehicles 20 (18 ) 2 32 (27 ) 5 Furniture and utensils 14 (11 ) 3 16 (12 ) 4 7,252 (4,935 ) 2,317 7,448 (4,906 ) 2,542 In progress 133 – 133 120 – 120 Net property, plant and equipment 7,385 (4,935 ) 2,450 7,568 (4,906 ) 2,662 Changes in PP&E are as follows: 2018 Additions Disposals Depreciation Transfers / capitalizations (2) 2019 In service Land (1) 215 – – (3 ) 17 229 Reservoirs, dams and watercourses 1,150 – (4 ) (80 ) 14 1,080 Buildings, works and improvements 314 – (5 ) (19 ) (16 ) 274 Machinery and equipment 854 – (81 ) (78 ) 34 729 Vehicles 5 – – (3 ) – 2 Furniture and utensils 4 – (1 ) – – 3 2,542 (91 ) (183 ) 49 2,317 In progress 120 70 (12 ) – (45 ) 133 Net property, plant and equipment 2,662 70 (103 ) (183 ) 4 2,450 (1) Certain land sites linked to concession contracts and without provision for reimbursement are amortized in accordance with the period of the concession. (2) Balances of R$ 4 were transferred between Intangible assets and concession contract assets and PP&E. 2017 Additions Disposals Depreciation Transfer to Held for sale Adjustment for business combination Transfers / capitalizations 2018 In service Land (1) 211 – – (2 ) – – 6 215 Reservoirs, dams and watercourses 1,234 – (2 ) (82 ) – – – 1,150 Buildings, works and improvements 331 – – (19 ) – – 2 314 Machinery and equipment 874 – (9 ) (70 ) (256 ) 296 19 854 Vehicles 3 – (2 ) – – 4 5 Furniture and utensils 3 – – – – – 1 4 2,656 – (11 ) (175 ) (256 ) 296 32 2,542 In progress 106 77 (22 ) (41 ) 120 Net property, plant and equipment 2,762 77 (33 ) (175 ) (256 ) 296 (9 ) 2,662 (1) Certain land sites linked to concession contracts and without provision for reimbursement are amortized in accordance with the period of the concession. 2016 Additions Jaguara, Miranda and Volta Grande Plants (1) Disposals Depreciation Transfers / capitalizations 2017 In service Land 279 – (61 ) (1 ) (6 ) – 211 Reservoirs, dams and watercourses 1,761 – (441 ) (4 ) (85 ) 3 1,234 Buildings, works and improvements 418 – (69 ) – (20 ) 2 331 Machinery and equipment 1,172 – (305 ) (5 ) (93 ) 105 874 Vehicles 4 – – – (1 ) – 3 Furniture and utensils 3 – – – – – 3 3,637 – (876 ) (10 ) (205 ) 110 2,656 In progress 138 83 (17 ) – (98 ) 106 Net property, plant and equipment 3,775 83 (876 ) (27 ) (205 ) 12 2,762 Depreciation rates, which take into consideration the expected useful life of the assets, are revised annually by Management and are as follows: Generation (%) Administration (%) Reservoirs, dams and watercourses 2 Software 20 Buildings – Machine room 2 Vehicles 14.29 Buildings – Other 3.33 IT equipment in general 16.67 Generator 3.33 General equipment 6.25 Water turbine 2.5 Buildings – Other 3.33 Pressure tunnel 3.13 Command station, panel and cubicle 3.57 Town planning and improvements 3.33 The average annual depreciation rate for the year 2019 is 3.13% (3.72% in 2018 and 3.14% in 2017). The segregation by activity is as follows: Hydroelectric Generation Thermoelectric Generation Wind Power Generation Administration 2.83 4.13 4.87 8.29 The Company has not identified any evidence of impairment of its Property, plant and equipment assets. The generation concession contracts provide that at the end of each concession the grantor must determine the amount to be indemnified to the Company for the residual value. Management believes that the amounts ultimately received will be higher than the historical residual value. The residual value of the assets is the residual balance of the assets at the end of the concession contract which will be transferred to the grantor at the end of the concession contract and for which Cemig is entitled to receive in cash. For contracts under which Cemig does not have a right to receive such amounts or there is uncertainty related to collection of the amounts, such as in the case of thermal generation and hydroelectric generation as an independent power producer, no residual value is recognized, and the depreciation rates are adjusted so that all the assets are depreciated within the concession term. |
20. INTANGIBLE ASSETS
20. INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [abstract] | |
INTANGIBLE ASSETS | 20. INTANGIBLE ASSETS The composition of the balance at December 31, 2019 and 2018 is as follow: 2019 2018 Historical cost Accumulated amortization Residual value Historical cost Accumulated amortization Residual value In service Useful life defined Temporary easements 12 (4 ) 8 11 (3 ) 8 Onerous concession 20 (13 ) 7 19 (12 ) 7 Assets of concession (1) 20,039 (8,522 ) 11,517 18,674 (7,994 ) 10,680 Others 77 (67 ) 10 85 (66 ) 19 20,148 (8,606 ) 11,542 18,789 (8,075 ) 10,714 In progress 82 – 82 63 – 63 Net intangible assets 20,230 (8,606 ) 11,624 18,852 (8,075 ) 10,777 (1) The rights of authorization to generate wind power granted to the subsidiary Parajuru Volta do Rio Changes in Intangible assets are as follow: 2018 Additions Disposals (2) Amortization Transfers (1) 2019 In service Useful life defined Temporary easements 9 – – (1 ) – 8 Onerous concession 7 – – – – 7 Assets of concession 10,680 891 (41 ) (698 ) 685 11,517 Others 18 7 – (5 ) (10 ) 10 10,714 898 (41 ) (704 ) 675 11,542 In progress 63 36 – – (17 ) 82 Net intangible assets 10,777 934 (41 ) (704 ) 658 11,624 (1) The transfers were made between Intangible assets, concession contract assets and property, plant and equipment are follows: (1) R$685 from concession contract assets to intangible assets; (2) (R$4) from intangible assets to property, plant and equipment and; and (3) (R$23) from intangible assets to concession financial assets. (2) This includes the impairment, in the amount of R$ 22 recognized in the Income Statement under “Other expenses”. The test of impairment of intangible assets, relating to the authorization for wind powergeneration granted to Volta do Rio, recognized in 2018 as part of the its business combination, arises from non- achievement of the operational performance expected in 2019 for the wind generation assets of the subsidiary. The Value in Use of the assets was calculated based on the projection of future expected cash flows for the operation of the assets of the subsidiary, brought to present value by the weighted average cost of capital defined for the company’s activity, using the Firm Cash Flow (FCFF) methodology. 2017 Assets arising from business combination Additions Disposals Effects of first-time adoption of IFRS 15 Amortization Transfer to Held for sale Transfers 2018 In service Useful life defined Temporary easements 10 – – – – (1 ) – – 9 Onerous concession 8 – – – – (1 ) – – 7 Assets of concession 10,435 162 – (23 ) – (668 ) – 774 10,680 Others 17 4 1 – – (5 ) (7 ) 8 18 10,470 166 1 (23 ) – (675 ) (7 ) 782 10,714 In progress 686 – 33 (4 ) (621 ) – – (31 ) 63 Net intangible assets 11,156 166 34 (27 ) (621 ) (675 ) (7 ) 751 10,777 2016 Additions Disposals Amortization Transfers (1) 2017 In service Useful life defined Temporary easements 10 – – – – 10 Onerous concession 9 – – (1 ) – 8 Assets of concession 9,248 – (11 ) (638 ) 1,836 10,435 Others 18 – – (7 ) 6 17 9,285 – (11 ) (646 ) 1,842 10,470 In progress 1,535 1,105 (8 ) – (1,946 ) 686 Net intangible assets 10,820 1,105 (19 ) (646 ) (104 ) 11,156 (1) Balances transferred to financial assets. Concession assets 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. On September 19, 2019 the third amendment to the concession contract for gas distribution of the subsidiary Gasmig was signed, replacing the contractual obligation to build the gas pipeline to serve the Nitrogenated Fertilizer Unit (UFN-V), to be built by Petrobras in the Minas Triangle region, by the payment of a concession grant fee of R$891. This amendment extended the period of Gasmig’s concession contract to 2053. The grant fee was paid on September 26, 2019. The amount will be added to the Remuneration Base of Assets of Gasmig, to be considered in the process of tariff review by the Grantor as an intangible asset to be amortized until the end of the concession contract, producing immediate effects in terms of setting and review of tariffs. The amount of additions in 2019 includes R$2 (R$4 in 2018 and R$ 71 in 2017) of borrowing costs, as presented in Note 24. The intangible asset easements, onerous concessions, assets of concession, and others, are amortized by the straight-line method taking into account the consumption pattern of these rights. The main amortization rates, which take into account the useful life that management expects for the asset, and reflect the expected pattern of their consumption, are as follows: Energy (%) Administration (%) System cable – below 69 KV 6.67 Software 20.00 System cable – below 69 KV 3.57 Vehicles 14.29 Structure – Posts 3.57 General equipment 6.25 Overhead distribution transformer 4.00 Buildings 3.33 Circuit breaker – up to 69 kV 3.03 Capacitor bank – up to 69 kV 6.67 Voltage regulator – up to 69 kV 4.35 Gas (%) Administration (%) Tubing 3.33 Software 20.00 Buildings, works and improvements 4.00 Vehicles 20.00 Improvements in leased properties 10.00 Data processing equipment 20.00 Machinery and equipment 5.00 a 20.00 Furniture 10.00 The annual average amortization rate is 4.01%. The segregation by activity is as follows. Hydroelectric Generation Wind Power Generation Gas Distribution Administration 19.74 16.90 2.87 3.88 16.03 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 Regulator. |
21. LEASING TRANSACTIONS
21. LEASING TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Leasing Transactions | |
LEASING TRANSACTIONS | 21. LEASING TRANSACTIONS As mentioned in Note 2.4, as from January 1, 2019, IFRS 16 – Leases The Company has made an assessment on its contracts and recognized a right to use and a lease liability for the following contracts which contain a lease: • Leasing of commercial real estate used for serving customers; • Leasing of buildings used as administrative headquarters; • Leasing of commercial vehicles used in operations. The Company has elected to use the recognition exemptions for lease contracts that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option (short-term leases), and lease contracts for which the underlying asset is of low value (low-value assets). Thus, these leasing agreements are recognized as an expense in the income statement on the straight-line basis, over the period of the leasing. Their effects on net income from January to December 2019 were immaterial. The discount rates were obtained by reference to the Company’s incremental borrowing rate, based on the debts contracted by the Company and through quotations with potential financial institutions. a) Right-of-use assets The right-of-use assets were valued at cost, corresponding to the amount of the initial measurement of the lease liabilities, and amortized on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. The breakdown of the balance for each type of asset identified is as follows: Dec. 31, 2019 Jan 1, 2019 Real estate property 206 238 Vehicles 71 104 277 342 Changes in the right-of-use assets are as follows: Real estate Vehicles Total January 1, 2019 238 104 342 Addition 28 4 32 Disposals (contracts terminated) (13 ) - (13 ) Amortization (1) (37 ) (39 ) (76 ) Remeasurement (2) (10 ) 2 (8 ) Balances at December 31, 2019 206 71 277 (1) Amortization of the right-of-use assets is recognized in the Income Statement is net of use of the credits of PIS, Pasep and Cofins taxes on leasing payments ofR$5. (2) The Company has identified events giving rise to modifications of their principal contracts. When occurred, the lease liabilities adjustments are recognized in counterpart of the right-of-use assets. b) Lease liabilities The liability for leasing agreements was measured at the present value of lease payments to be made over the lease term, discounted at the Company’s incremental borrowing rate. The changes in the lease liabilities are as follows: 2019 January 1, 2019 (1) 342 Addition 32 Disposals (contracts terminated) (13 ) Accrued interest (2) 36 Payment of principal portion of lease liability (96 ) Payment of interest (5 ) Remeasurement (3) (8 ) Balances at December 31, 2019 288 Current liabilities 85 Non-current liabilities 203 (1) The Company’s incremental borrowing rate applied to the lease liability recognized in the statement of financial position on the date of the initial application varied between 7.96% p.a. and 10.64% p.a., depending on the leasing contract period, and 13.17% p.a., respectively, for contracts with maturities of up to two years, two to five years and longer than five years. The rates applied to the contracts entered into during 2019 were 6.87% p.a., 7.33% p.a. and 8.08% p.a., for contracts with maturities, respectively, of up to three years, three to four years, and over four years. To determine the incremental borrowing rate, the Company used as a reference quotations obtained from financial institutions, these being a function of the Company’s credit risk, and market conditions on the date of contracting. (2) Financial expenses recognized in the income statement are net of PIS/Pasep and Cofins taxes credits on lease payments in the amounts of R$2. (3) The Company identified events that give rise to modifications of their principal contracts. When occurred, the lease liabilities adjustments are recognized in counterpart of the right-of-use assets. The potential right to recovery of PIS/Pasep and Cofins taxes embedded in the leasing consideration, according to the periods specified for payment, is as follows: Cash flow Nominal Adjusted to present value Consideration for the leasing 704 288 Potential PIS/Pasep and Cofins (9.25%) 56 18 The cash flows of the contracts containing a lease are, in their majority, indexed to the IPCA inflation index on an annual basis. Below is an analysis of maturity of lease contracts: 2020 86 2021 58 2022 26 2023 26 2024 26 2025 at 2045 482 Undiscounted values 704 Embedded interest (416 ) Lease liabilities 288 |
22. SUPPLIERS
22. SUPPLIERS | 12 Months Ended |
Dec. 31, 2019 | |
Current raw materials and current production supplies [abstract] | |
SUPPLIERS | 22. SUPPLIERS 2019 2018 Energy on spot market – CCEE 401 139 Charges for use of energy network 145 122 Energy purchased for resale 764 775 Itaipu Binacional 243 268 Gas purchased for resale 143 124 Materials and services 384 373 2,080 1,801 |
23. TAXES PAYABLE AND AMOUNTS T
23. TAXES PAYABLE AND AMOUNTS TO BE REFUNDED TO CUSTOMERS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of taxes, income tax and social contribution tax [abstract] | |
TAXES PAYABLE AND AMOUNTS TO BE REFUNDED TO CUSTOMERS | 23. TAXES PAYABLE AND AMOUNTS TO BE REFUNDED TO CUSTOMERS 2019 2018 Current ICMS 112 168 COFINS 135 146 PASEP 29 32 INSS 25 23 Others (1) 58 41 359 410 Non-current COFINS 1 25 PASEP - 4 1 29 360 439 Amounts to be refunded to customers Non-current PASEP/COFINS 4,193 1,124 4,193 1,124 (1) This includes the withholding income tax on Interest on equity paid in January 2020, in accordance with the tax legislation. The amounts of PIS/Pasep and Cofins taxes to be refunded to customers refer to the credits to be received by the Company following the court judgment which excluded ICMS tax amounts from the basis for calculation of those taxes. For further information see Note 10. |
24. LOANS, FINANCING AND DEBEN
24. LOANS, FINANCING AND DEBENTURES | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure loans financings and debentures [abstract] | |
LOANS, FINANCING AND DEBENTURES | 24. LOANS, FINANCING AND DEBENTURES Principal maturity Annual financial cost % Currency 2019 2018 Financing source Current Non–current Total Total FOREIGN CURRENCY Banco do Brasil: Various Bonds (1) (4) 2024 Diverse US$ 2 16 18 26 Eurobonds (2) 2024 9.25% US$ 46 6,046 6,092 5,856 (–)Transaction costs – (19 ) (19 ) (21 ) (±) Interest paid in advance (3) – (30 ) (30 ) (34 ) Debt in foreign currency 48 6,013 6,061 5,827 BRAZILIAN CURRENCY Banco do Brasil S.A.(4) (11) 2022 146.50% of CDI R$ – – – 503 Caixa Econômica Federal (4) (11) 2022 146.50% of CDI R$ – – – 627 Caixa Econômica Federal (5) 2021 TJLP + 2.50% R$ 61 – 61 56 Caixa Econômica Federal (6) 2022 TJLP + 2.50% R$ 118 – 118 108 Eletrobrás (4) 2023 UFIR + 6.00% at 8.00% R$ 11 9 20 33 Large customers (4) 2024 IGP–DI + 6.00% R$ 3 2 5 5 Sonda (7) 2021 110.00% of CDI R$ – 49 49 46 Promissory Notes – 9th Issue – Single series (4) (11) 2019 151.00% of CDI R$ – – – 426 Promissory Notes – 1st Issue – Single series (8) 2020 107.00% of CDI R$ 875 – 875 – (–) FIC Pampulha – Marketable securities of subsidiary companies (9) (3 ) – (3 ) (25 ) (–)Transaction costs – – – (13 ) Debt in Brazilian currency 1,065 60 1,125 1,766 Total of loans and financings 1,113 6,073 7,186 7,593 Debentures – 3th Issue – 2nd Series (2) 2019 IPCA + 6.00% R$ – – – 156 Debentures – 3th Issue – 3rd Series (2) 2022 IPCA + 6.20% R$ 396 692 1,088 1,049 Debentures – 6th Issue – 2nd Series (2) 2020 IPCA + 8.07% R$ 17 – 17 33 Debentures – 7th Issue – Single series (2) (12) 2021 140.00% of CDI R$ 289 289 578 1,023 Debentures – 3th Issue – 2nd Series (4) 2021 IPCA + 4.70% R$ 568 541 1,109 1,596 Debentures – 3th Issue – 3rd Series (4) 2025 IPCA + 5.10% R$ 42 949 991 957 Debentures – 5th Issue – Single Series (4) (11) 2022 146.50% of CDI R$ – – – 1,580 Debentures – 6th Issue – Single Series (4) (11) 2020 CDI + 1.75% R$ – – – 551 Debentures – 7th Issue – 1st Series (4) 2024 CDI + 0.45% R$ 275 1,890 2,165 – Debentures – 7th Issue – 2nd Series (4) 2026 IPCA + 4.10% R$ 3 1,517 1,520 – Debentures – 4th Issue – 1st Series (8) 2022 TJLP+1.82% R$ 12 19 31 125 Debentures – 4th Issue – 2nd Series (8) 2022 Selic + 1,82% R$ 5 9 14 – Debentures – 4th Issue – 3th Series (8) 2022 TJLP + 1,82% R$ 12 22 34 – Debentures – 4th Issue – 4th Series (8) 2022 Selic + 1,82% R$ 5 10 15 – Debentures – 6th Issue – Single series (8) 2019 116.50% of CDI R$ – – – 50 Debentures – 7th Issue – Single series (8) 2023 CDI + 1.50% R$ 20 60 80 100 (–) Discount on the issuance of debentures (10) – (22 ) (22 ) – (–) Transaction costs (10 ) (19 ) (29 ) (41 ) Total, debentures 1,634 5,957 7,591 7,179 Total 2,747 12,030 14,777 14,772 (1) Net balance of the Restructured Debt comprising bonds at par and discounted, with balance of R$ 182, less the amounts given as Deposits in guarantee, with balance of R$ 164. Interest rates vary – from 2 to 8% p.a.; six-month Libor plus spread of 0.81% to 0.88% p.a. (2) Cemig Geração e Transmissão; (3) Advance of funds to achieve the yield to maturity agreed in the Eurobonds contract. (4) Cemig Distribuição; (5) Central Eólica Praias de Parajuru; (6) Central Eólica Volta do Rio; (7) Arising from merger of Cemig Telecom. (8) Gasmig; (9) FIC Pampulha has financial investments in marketable securities issued by subsidiaries of the Company. For more information on this fund, see Note 32. (10) Discount on the sale price of the 2nd series of the Seventh issue of Cemig Distribuição. (11) The funds incorporated into the cash position of Cemig D as a result of the distribution of its Seventh Issue of non-convertible debentures, on July 22, 2019, enabled full prepayment of the debtor balances of: the Ninth Issue of Promissory Notes, with final maturity in October 2019; the Sixth Issue of Non- convertible Debentures, with final maturity in June 2020; the Fifth Issue of Non-convertible Debentures, maturing at the end of June 2022; and Bank Credit Notes with final maturities in June 2022. These prepayments, made on July 24, 2019, total R$3,644 including principal, interest and charges. These initiatives have balanced the cash flow and improved the Company’s credit quality. The changes in the new debt profile consisted of extinction of existing contracts and signature of new contracts. The accounting effects of the transactions are reflected in accordance with IFRS 09. (12) On July 24, 2019 Cemig GT made extraordinary amortization of its Seventh Issue of Non-convertible ventures, in the amount of R$125, with final maturity in December 2021. The debentures issued by the subsidiaries are non-convertible; there are no agreements for renegotiation, nor debentures held in treasury. There are early maturity clauses for cross-default in the event of non-payment by Cemig GT or by the Company, of any pecuniary obligation with individual or aggregate value greater than R$ 50. On September 26, 2019, Gasmig Issued of Commercial Promissory Notes, in a single series, in the amount of R$850, with maturity at 12 months and remunerative interest at 107% of the DI rate, without guarantee or surety. The proceeds from this issue were used in their entirety for payment of the concession grant fee for the gas distribution concession contract on September 26, 2019. For more information please see Note 20. Funding raised This table provides the totals of funds raised in 2019, 2018 and 2017: Financing source 2019 Signature date Principal maturity Annual financial Amount BRAZILIAN CURRENCY Debentures – 7th Issue – 1st Series (1) July, 2019 2024 CDI + 0.454% 2,160 Debentures – 7th Issue – 2nd Series (1) July, 2019 2026 4.10% of IPCA 1,500 Promissory Notes – 1st Issue (2) September, 2019 2020 107.00% of CDI 850 (-)Transactions costs (10 ) (-)Discount on the issuance of debentures (3) (23 ) Total raised 4,477 (1) Cemig Distribuição (2) Gasmig (3) Discount on the sale price of the 2nd series of the debentures issued by Cemig Distribuição. Financing source 2018 Signature date Principal maturity Annual financial Amount FOREIGN CURRENCY Eurobonds (1) July, 2018 2024 9.25% 1,946 (-) Transactions costs (8 ) (±)Interest paid in advance (2) 10 1,948 BRAZILIAN CURRENCY Promissory Notes – 9th Issue - Single Series (3) May, 2018 2019 151% of CDI 400 (-)Transactions costs (4 ) Debentures – Debentures (4) August, 2018 2023 CDI + 1.50% 100 Debentures – 6th Issue – Single Series (5) December, 2018 2020 CDI + 1.75% 550 (-)Transactions costs (4 ) 1,042 Total raised 2,990 (1) In July 2018, Cemig GT completed financial settlement of an additional tranche to its initial Eurobond issue completed on December 5, 2017. The new tranche, of US$ 500, which brought the total of the issuance to R$ 1.946 billion, has half-yearly coupon of 9.25% p.a., with maturity of the principal in 2024. (2) Advance of funds to achieve the yield to maturity agreed in the Eurobonds contract. (3) In May 2018 Cemig D made its 9 th (4) In August 2018 Gasmig completed its 7th debenture issue, with maturity at 5 years, paying CDI + 1.50%, with annual amortization from August 2019. (5) In December 2018 the 6 th Financing source 2017 Signature date Principal maturity Annual financing cost – % Amount (*) Foreign currency Eurobonds 12/05/2017 2024 9.25% 3,252 (–) Transaction costs (*) (16 ) Interest paid in advance (*) (48 ) Brazilian currency Debentures (1) 11/04/2013 2022 CDI + 0.74% 34 Debentures (2) 04/22/2017 2019 128.50% of CDI 26 Debentures – 5th Issue, single series (3) 12/14/2017 2022 146.50% of CDI 1,575 (–) Transaction costs (3) (11 ) Total raised 4,812 (*) Includes taxes without cash effect, of R$ 10. (1) Subscription by BNDESPar of Gasmig’s 4 th (2) Cemig Telecom (merged into Company in 2018) completed its second issue of non-convertible debentures in May 2017 with real guarantees and additional surety, in a single series, to roll over debt and strengthen cash position. (3) On December 14, 2017 CemigTelecom made its 5 th 5th Guarantees The guarantees of the debt balance on loans and financing, on December 31, 2019, were as follows: 2019 Promissory notes and Sureties 9,247 Guarantee and Receivables 3,652 Receivables 310 Shares 609 Unsecured 959 TOTAL 14,777 The composition of loans, financing and debentures, by currency and index, with the respective amortization, is as follows: 2020 2021 2022 2023 2024 2025 2026 Total Currency US dollar 48 – – – 6,062 – – 6,110 Total, currency denominated 48 – – – 6,062 – – 6,110 Index IPCA (1) 1,027 881 588 237 237 996 759 4,725 UFIR/RGR (2) 11 3 3 3 – – – 20 CDI (3) 1,465 907 570 560 271 – – 3,773 URTJ/TJLP (4) 202 21 21 – – – – 244 IGP-DI (5) 2 1 1 1 – – – 5 Total by index 2,707 1,813 1,183 801 508 996 759 8,767 (-)Transaction costs (11 ) (10 ) (1 ) (1 ) (19 ) (3 ) (3 ) (48 ) (±)Interest paid in advance – – – – (30 ) – – (30 ) (-) Discount – – – – – (11 ) (11 ) (22 ) Overall total 2,744 1,803 1,182 800 6,521 982 745 14,777 (1) Expanded National Customer Price (IPCA) Index. (2) Fiscal Reference Unit (Ufir / RGR). (3) CDI: Interbank Rate for Certificates of Deposit. (4) Interest rate reference unit (URTJ) / Long-Term Interest Rate (TJLP) (5) IGP-DI (‘General – Domestic Availability’) Price Index. The principal currencies and index used for monetary updating of loans and financings had the following variations: Currency Accumulated change in 2019, % Accumulated change in 2018, % Indexer Accumulated change in 2019, % Accumulated change in 2018, % US dollar 4.02 17.13 IPCA 4.31 3.75 CDI 5.97 6.40 TJLP (20.20 ) (0.29 ) The changes in loans, financing and debentures are as follows: Balance at December 31, 2016 15,179 Loans and financing obtained 3,363 (–) Transaction costs (1) (16 ) (–) Interest paid in advance (1) (48 ) Financing obtained, net 3,299 Transaction costs (2) (11 ) Monetary variation 109 Exchange rate variation 59 Financial charges provisioned 1,537 Amortization of transaction cost 67 Financial charges paid (1,749 ) Amortization of financing (4,131 ) Subtotal 14,359 FIC Pampulha: Marketable securities of subsidiary companies 39 Balance at December 31, 2017 14,398 Liabilities arising from business combination 163 Initial balance for consolidation purposes 14,561 Loans and financing obtained 2,996 (–) Transaction costs (16 ) Interest paid in advance 10 Financing obtained, net 2,990 Monetary variation 134 Exchange rate variation 582 Financial charges provisioned 1,287 Amortization of transaction cost 33 Financial charges paid (1,290 ) Amortization of financing (3,527 ) Subtotal 14,770 FIC Pampulha: Marketable securities of subsidiary companies 2 Balance at December 31, 2018 14,772 Loans and financing obtained 4,510 (–) Transaction costs (10 ) (-) Discount in the issues of securities (23 ) Financing obtained, net 4,477 Monetary variation 142 Exchange rate variation 226 Financial charges provisioned 1,250 Amortization of transaction cost 38 Financial charges paid (1,265 ) Amortization of financing (4,883 ) Subtotal 14,757 FIC Pampulha: Marketable securities of subsidiary companies 20 Balance at December 31, 2019 14,777 (1) Includes taxes with no cash effect, of R$10. (2) Transaction costs arising from the 5th issue of debentures by Cemig D, which was subscribed by transfer of the debentures of the 4th issue – thus there was no cash effect in the Company. Borrowing costs, capitalized Costs of loans directly related to acquisition, construction or production of an asset which necessarily requires a significant time to be concluded for the purpose of use or sale are capitalized as part of the cost of the corresponding asset. All other costs of loans are recorded as finance costs in the period in which they are incurred. Costs of loans include interest and other costs incurred by the Company in relation to the loan. The subsidiaries Cemig D and Gasmig considered the costs of loans and financing linked to construction in progress as construction costs of intangible and concession contract assets , as follows: 2019 2018 2017 Costs of loans and financing 1,250 1,287 1,604 Financing costs on intangible assets and contract assets (1) (Notes 17 and 20) (23 ) (30 ) (71 ) Net effect in Profit or loss 1,227 1,257 1,533 (1) The average capitalization rate p.a. in 2019 was 6.79% (9.64% in 2018 and 14.28% in 2017). The amounts of the capitalized borrowing costs have been excluded from the statement of cash flows, in the additions to cash flow of investment activities, as they do not represent an outflow of cash for acquisition of the related asset. Restrictive covenants The Company has contracts with financial covenants as follows: Title - Security Covenant Ratio required – Issuer Ratio required Cemig (guarantor) Ratio required – Parajuru and Volta do Rio Compliance required 7th Debentures Issue Cemig GT (1) Net debt / (Ebitda + Dividends received) The following or less: 4.5 in 2019 3.0 in 2020 2.5 in 2021 The following or less: 3.5 in 2019 3.0 in 2020 2.5 in 2021 — Semi-annual and annual Eurobonds Cemig GT (2) Net debt / Ebitda adjusted for the Covenant The following or less: 4.5 on Dec. 31, 2019 4.5 on June 30, 2020 3.0 on Dec. 31, 2020 3.0 on June 30, 2021 2.5 on/after Dec. 31, 2021 The following or less: 3.5 on Dec. 31, 2019 3.5 on June 30, 2020 3.0 on Dec. 31, 2020 3.0 on June 30, 2021 3.0 on/after Dec. 31, 2021 — Semi-annual and annual 7th Debentures Issue Cemig D Net debt / Ebitda adjusted The following or less: 3.8 on Dec. 31. 2019 3.5 on June 30. 2020 The following or less: 3.5 on December, 31, 2019 3.5 on June, 30, 2020 3.0 on December, 31, 2020 — Semi-annual and annual Debentures GASMIG (3) Overall indebtedness (Total liabilities/Total assets) Less than 0.6 — — Annual Ebitda / Debt servicing 1.3 or more — — Annual Ebitda / Net finance income (expenses) 2.5 or more — — Annual Net debt / Ebitda The following or less: 4.0 on Dec, 31.2019 2.5 on/after Dec, 31.2020 — — Annual Financings Caixa Econômica Federal (CEF) Parajuru and Volta do Rio (4) Debt servicing coverage index — — 1.20 or more Annual (during amortization) Equity / Total liabilities — — 20.61% or more (Parajuru) 20.63% or more (Volta do Rio) Always Share capital subscribed in investee / Total investments made in the project financed — — 20.61% or more (Parajuru) 20.63% or more (Volta do Rio) Always (1) 7th Issue of Debentures by Cemig GT, as of December 31, 2016, of R$ 2,240. (2) In the event of a possible breach of the financial covenants, interest will automatically be increased by 2% p.a. during the period in which they remain exceeded. There is also an obligation to comply with a ‘maintenance’ covenants – that the consolidated debt, shall have a guarantee for debt of 1.75x Ebitda (2.0 as of December 31, 2017); and a ‘damage’ covenant, requiring real guarantee for debt at Cemig GT of 1.5x Ebitda. (3) If Gasmig does not achieve the required covenants, it must, within 120 days from the date of notice in writing from BNDES or BNDESPar, constitute guarantees acceptable the debenture holders fbyor the total amount of the debt, subject to the rules of the National Monetary Council (CMN), unless the required ratios are restored within that period. Certain contractually specified situations can cause early maturity of other debts (cross-default). (4) The financing contracts with Caixa Econômica Federal for the Praias de Parajuru and Volta do Rio wind power plants have financial covenants with compliance relating to early maturity of the debt remaining balance. Compliance with the debt servicing coverage index is considered to be demandable only annually and during the period of amortization, which begins in July 2020. The Company is in compliance with all covenants as of December 31, 2019, with the exception of the CEF contract non-financial covenant at the loan of the subsidiaries Central Eólica Praias de Parajuru and Central Eólica Volta do Rio, for an amount of R$ 178, which is classified in current liabilities. In the event the Company is required by the creditor to settle such amount, which is not expected, the Company has available resources to make such payments. Additionally, the Company assessed the possible consequences arising from this matter in their other contracts for loans, financings and debentures, and concluded that no further adjustments were necessary. The information on the derivative financial instruments (swaps) contracted to hedge the debt servicing of the Eurobonds (principal, in foreign currency, plus interest), and the Company’s exposure to interest rate risks, are disclosed in Note 33. |
25. REGULATORY CHARGES
25. REGULATORY CHARGES | 12 Months Ended |
Dec. 31, 2019 | |
Net movement in regulatory deferral account balances related to profit or loss [abstract] | |
REGULATORY CHARGES | 25. REGULATORY CHARGES 2019 2018 Liabilities Global Reversion Reserve (RGR) 31 29 Energy Development Account (CDE) 58 122 Regulator inspection fee – ANEEL 3 2 Energy Efficiency Program 255 258 Research and development (R&D) 199 225 Energy System Expansion Research 3 2 National Scientific and Technological Development Fund 6 5 Proinfa – Alternative Energy Program 8 7 Royalties for use of water resources 10 6 Emergency capacity charge 26 31 Others 5 6 604 693 Current liabilities 457 514 Non-current liabilities 147 179 |
26. POST-EMPLOYMENT OBLIGATIONS
26. POST-EMPLOYMENT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of defined benefit plans [abstract] | |
POST-EMPLOYMENT OBLIGATIONS | 26. POST-EMPLOYMENT OBLIGATIONS Forluz Pension plan (a Supplementary retirement pension plan) Company and its subsidiaries are sponsors of Forluz – Forluminas Social Security Foundation, a non-profit legal entity whose object is to provide its associates and participants and their dependents with a finance income to complement retirement and pension, in accordance with the pension plan that they are subscribed in. Forluz provides the following supplementary pension benefit plans available to its participants: Mixed Benefit Plan (‘Plan B’): Funded Benefit Plan (‘Plan A’): Company and its subsidiaries also maintain, independently of the plans made available by Forluz, payments of part of the life insurance premium for the retirees, and contribute to a health plan and a dental plan for the active employees, retired employees and dependents, administered by Cemig Saúde. Actuarial obligations and recognition in the financial statements On this Note the Company discloses its obligations and expenses incurred for purposes of the Retirement Plan, Health Plan, Dental Plan and the Life Insurance Plan in accordance with the terms of IAS 19 - Employee Benefits Debt with the pension fund (Forluz) The Company has recognized an obligation for past actuarial deficits relating to the pension fund in the amount of R$566 on December 31, 2019 (R$652 on December 31, 2018). This amount has been recognized as an obligation payable by Cemig and its subsidiaries, and will be amortized until June of 2024, through monthly installments calculated by the system of constant installments (known as the ‘Price’ table), and adjusted by the IPCA (Expanded National Customer Price) inflation index (published by the Brazilian Geography and Statistics Institute – IBGE) plus 6% per year. The Company is required to pay this debt even if Forluz has a surplus, thus, the Company maintain recorded the debt in full, and record the effects of monetary updating and interest in finance income (expenses) in the statement of income. Agreement to cover the deficit on Forluz Pension Plan ‘A’ Forluz and the company have signed a Debt Assumption Instrument to cover the deficit of Plan A for the years of 2015 2016 and 2017. On December 31, 2019 the total amount payable by Cemig and its subsidiaries as a result of the Plan deficit is R$550 (R$378 on December 31, 2018, referring to the Plan A deficits of 2015 and 2016). The contracts were entered into in May 2017, March 2018 and April 2019, for the deficits, respectively, of 2015, 2016 and 2017. The monthly amortizations, calculated by the constant installments system (Price Table), will be paid up to 2031 for the 2015 and 2016 deficits, and up to 2033 for the 2017 deficit. Remuneratory interest applicable to the outstanding balance is 6% p.a., plus the effect of the IPCA. If the plan reaches actuarial surplus before the full period of amortization of the debt, also Company will not be required to pay the remaining installments and the contract will be extinguished. Actuarial information 2019 Pension plans Health plan Dental plan Life insurance Total Present value of obligations 13,285 3,102 61 574 17,022 Fair value of plan assets (10,366 ) – – – (10,366 ) Initial net liabilities 2,919 3,102 61 574 6,656 Adjustment to asset ceiling 53 – – – 53 Net liabilities in the statement of financial position 2,972 3,102 61 574 6,709 2018 Pension plans Health plan Dental plan Life insurance Total Present value of obligations 11,073 2,344 48 427 13,892 Fair value of plan assets (9,062 ) – – – (9,062 ) Initial net liabilities 2,011 2,344 48 427 4,830 Adjustment to asset ceiling 159 – – – 159 Net liabilities in the statement of financial position 2,170 2,344 48 427 4,989 The asset ceiling The present value of the liabilities of the pension plan is adjusted to the asset ceiling, which corresponds to the surplus result of Plan B, which has a specific destination allocation under the regulations of the National Private Pension Plans Council (CNPC). The changes in the present value of the defined benefit obligation are as follows: Pension plans Health plan Dental plan Life insurance Total Defined-benefit obligation at December 31, 2016 9,743 1,711 38 814 12,306 Cost of current service 5 11 – 3 19 Interest on actuarial obligation 980 178 3 85 1,246 Actuarial losses (gains): Due to changes in demographic assumptions 191 – – – 191 Due to changes in financial assumptions 414 66 2 55 537 Due to adjustments based on experience 53 (44 ) (2 ) (60 ) (53 ) 658 22 – (5 ) 675 Plan amendment – Past service – – – (619 ) (619 ) Benefits paid (841 ) (113 ) (2 ) (8 ) (964 ) Defined-benefit obligation at December 31, 2017 10,545 1,809 39 270 12,663 Cost of current service 3 10 – 2 15 Interest on actuarial obligation 959 173 4 25 1,161 Actuarial losses (gains): Due to changes in demographic assumptions Due to changes in financial assumptions 467 402 8 26 903 Due to adjustments based on experience (20 ) 68 – 113 161 447 470 8 139 1,064 Benefits paid (881 ) (118 ) (3 ) (9 ) (1,011 ) Defined-benefit obligation at December 31, 2018 11,073 2,344 48 427 13,892 Cost of current service 1 14 – 3 18 Interest on actuarial obligation 963 208 4 38 1,213 Actuarial losses (gains): Due to changes in demographic assumptions 6 – – – 6 Due to changes in financial assumptions 2,058 576 11 130 2,775 Due to adjustments based on experience 83 91 – (14 ) 160 2,147 667 11 116 2,941 Benefits paid (899 ) (131 ) (2 ) (10 ) (1,042 ) Defined-benefit obligation at December 31, 2019 13,285 3,102 61 574 17,022 On 2017, the Company changed its life insurance policy, resulting in reduction of the retirees’ capital insured by 20% at each 5-year interval, from aged 60, down to a minimum of 20%. These changes resulted in a reduction of R$ 619 in the post-employment obligations reported on December 31, 2017, with counterpart in the Statement of income in 2017. Changes in the fair values of the plan assets are as follows: Pension plans and retirement supplement plans Fair value of plan assets at December 31, 2016 8,128 Return on investments 1,100 Contributions from employer 159 Benefits paid (841 ) Fair value of plan assets at December 31, 2017 8,546 Return on investments 1,220 Contributions from employer 178 Benefits paid (881 ) Fair value of the plan assets at December 31, 2018 9,063 Return on investments 2,003 Contributions from employer 199 Benefits paid (899 ) Fair value of the plan assets at December 31, 2019 10,366 The amounts recognized in 2019, 2018 and 2017 statement of income are as follows: 2019 Pension plans Health plan Dental plan Life insurance Total Current service cost 1 14 – 2 17 Interest on the actuarial obligation 963 208 5 38 1,214 Expected return on the assets of the Plan (767 ) – – – (767 ) Expense (recovery of expense) in 2019 according to actuarial calculation 197 222 5 40 464 2018 Pension plans Health plan Dental plan Life insurance Total Current service cost 4 10 0 1 15 Interest on the actuarial obligation 959 172 4 26 1,161 Expected return on the assets of the Plan (771 ) – – – (771 ) Expense (recovery of expense) in 2018 according to actuarial calculation 192 182 4 27 405 2017 Pension plans Health plan Dental plan Life insurance Total Current service cost 5 11 – 3 19 Interest on the actuarial obligation 980 178 3 85 1,246 Expected return on the assets of the Plan (810 ) – – – (810 ) Past service cost – – – (619 ) (619 ) Expense (recovery of expense) in 2017 according to actuarial calculation 175 189 3 (531 ) (164 ) Changes in net liabilities were as follows: Pension plans Health plan Dental plan Life insurance Total Net liabilities at December 31, 2016 1,679 1,711 38 814 4,242 Expense recognized in Statement of income 175 189 3 88 455 Contributions paid (160 ) (113 ) (2 ) (7 ) (282 ) Plan amendment – Past service – – – (619 ) (619 ) Actuarial losses (gains) 374 22 (1 ) (5 ) 390 Net liabilities at December 31, 2017 2,068 1,809 38 271 4,186 Expense recognized in Statement of income 193 183 4 25 405 Contributions paid (178 ) (118 ) (2 ) (9 ) (307 ) Actuarial losses 87 470 8 140 705 Net liabilities at December 31, 2018 2,170 2,344 48 427 4,989 Expense recognized in Statement of income 197 222 5 40 464 Contributions paid (200 ) (131 ) (2 ) (10 ) (343 ) Actuarial losses 805 667 10 117 1,599 Net liabilities at December 31, 2019 2,972 3,102 61 574 6,709 2019 2018 Current liabilities 288 253 Non-current liabilities 6,421 4,736 Amounts recorded as current liabilities refer to contributions to be made by Cemig and its subsidiaries in the next 12 months for the amortization of the actuarial liabilities. The amounts reported as ‘Expense recognized in the Statement of income’ refer to the costs of post-employment obligations, totaling R$408 in 2019 (R$ 337 in 2018 and R$ 391 in 2017), plus the finance expenses and monetary updating on the debt with Forluz, in the amounts of R$56 in 2019 (R$ 68 in 2018 and R$65 in 2017). The independent actuary’s estimation for the expense to be recognized for 2020 is as follows: Pension plans Health plan Dental plan Life insurance Total Current service cost 1 21 1 3 26 Interest on the actuarial obligation 887 215 4 41 1,147 Expected return on the assets of the Plan (682 ) – – – (682 ) Estimated total expense in 2020 as per actuarial report 206 236 5 44 491 The expectation for payment of benefits for 2020 is as follows: Pension plans Health plan Dental plan Life insurance Total Estimated payment of benefits 898 141 3 17 1,059 The Company have expectation of making contributions to the pension plan in 2020 of R$286 for amortization of the deficit of Plan A, and R$79 for the Defined Contribution Plan (recorded directly in the Statement of income for the year). The average maturity periods of the obligations of the benefit plans, in years, are as follows: Pension plans and retirement supplement plans Plan A Plan B Health plan Dental plan Life insurance 9.54 11.55 12.82 13.17 16.93 The main categories plan’s assets, as a percentage of total plan’s assets are as follows: 2019 2018 Shares 9.51 % 7.11 % Fixed income securities 72.28 % 71.92 % Real estate property 3.79 % 4.69 % Others 14.42 % 16.28 % Total 100.00 % 100.00 % The following assets of the pension plan, measured at fair value, are related to the Company: 2019 2018 Non-convertible debentures issued by the Company 398 380 Shares issued by the Company 24 35 Real estate properties of the Foundation, occupied by the Company 503 662 925 1,077 This table provides the main actuarial assumptions: 2019 Pension plans and retirement supplement plans Health plan and Dental plan Life insurance Annual discount rate for present value of the actuarial obligation 6.87% 7.09% 7.19% Annual expected return on plan assets 6.87% Not applicable Not applicable Long-term annual inflation rate 3.61% 3.61% 3.61% Estimated future annual salary increases 3.61% Not applicable 4.85% General mortality table AT-2000 M S10% D10% AT-2000 M S10% D20% AT-2000 M S10% D20% Disability table Not applicable Álvaro Vindas D30% Álvaro Vindas D30% Disabled mortality table AT-49 M MI-85 F MI-85 F Real growth of contributions above inflation – 1% – 2018 Pension plans and retirement supplement plans Health plan and Dental plan Life insurance Annual discount rate for present value of the actuarial obligation 9.02% 9.60% 9.57% Annual expected return on plan assets 9.02% Not applicable Not applicable Long-term annual inflation rate 4.01% 4.00% 4.00% Estimated future annual salary increases 4.01% Not applicable 6.08% General mortality table AT-2000 M S10% D10% AT-2000 M S10% D20% AT-2000 M S10% D20% Disability table Not applicable Álvaro Vindas D30% Álvaro Vindas D30% Disabled mortality table AT 49 M Winklevoss D30% Winklevoss D30% Real growth of contributions above inflation (1) – 1% – (1) Starting in 2018, Company adopted the assumption of real growth of the contributions above inflation at the rate of 1% p.a. 2017 Pension plans and retirement supplement plans Health and Dental plans Life insurance Annual discount rate for present value of the actuarial obligation 9.48% 9.60% 9.57% Annual expected return on plan assets 9.48% 9.60% 9.57% Long-term annual inflation rate 4.00% 4.00% 4.00% Estimated future annual salary increases 4.00% Not applicable 6.08% General mortality table AT-2000 M S10% D10% AT-2000 M S10% D20% AT-2000 M S10% D20% Disability table Not applicable Álvaro Vindas D30% Álvaro Vindas D30% Disabled mortality table AT 49 M Winklevoss D30% Winklevoss D30% Below is a sensitivity analysis of the effects of changes in the main actuarial assumptions used to determine the defined-benefit obligation at December 31, 2019: Effects on the defined-benefit obligation Pension plans and Health plan Dental plan Life insurance Total Reduction of one year in the mortality table 335 84 1 (15 ) 405 Increase of one year in the mortality table (336 ) (61 ) (1 ) 16 (382 ) Reduction of 1% in the discount rate 1,583 496 10 122 2,211 In the presentation of the sensitivity analysis, the present value of the defined-benefit obligation was calculated using the Unit Projected Credit method, the same method used to calculate the defined-benefit obligation recognized in the Statement of financial position. The Company has not made changes in the methods used to calculate its post-employment obligations for the years ended December 31, 2019 and 2018. |
27. PROVISIONS
27. PROVISIONS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of other provisions [abstract] | |
PROVISIONS | 27. PROVISIONS Company is involved in certain legal and administrative proceedings at various courts and government bodies, arising in the normal course of business, regarding employment-law, civil, tax, environmental and regulatory matters, and other issues. Actions in which the Company is defendant Company recorded provisions for contingencies in relation to the legal actions in which, based on the assessment of the Company’s management and its legal advisors, the chances of loss are assessed as ‘probable’ (i.e. an outflow of funds to settle the obligation will be necessary), as follows: 2018 Additions Reversals Settled 2019 Labor 457 180 (44 ) (96 ) 497 Civil Customer relations 19 21 (1 ) (20 ) 19 Other civil actions 29 16 (12 ) (15 ) 18 48 37 (13 ) (35 ) 37 Tax 52 1,236 (8 ) (20 ) 1,260 Environmental 1 - (1 ) - - Regulatory 37 2 (1 ) (2 ) 36 Others 46 13 (1 ) - 58 Total 641 1,468 (68 ) (153 ) 1,888 2017 Additions Reversals Settled 2018 Labor 474 67 (25 ) (59 ) 457 Civil Customer relations 18 17 - (16 ) 19 Other civil actions 43 10 (14 ) (10 ) 29 61 27 (14 ) (26 ) 48 Tax 57 5 (10 ) 52 Environmental - 1 - - 1 Regulatory 40 8 (10 ) (1 ) 37 Others 46 7 (5 ) (2 ) 46 Total 678 115 (64 ) (88 ) 641 2016 Additions Reversals Settled 2017 Labor 350 210 (4 ) (82 ) 474 Civil Customer relations 15 21 (2 ) (16 ) 18 Other civil actions 40 10 (2 ) (5 ) 43 55 31 (4 ) (21 ) 61 Tax 68 9 (2 ) (18 ) 57 Regulatory 44 15 (18 ) (1 ) 40 Corporate 239 - (239 ) - - Other 59 13 (19 ) (7 ) 46 Total 815 278 (286 ) (129 ) 678 The Company’s management, in view of the extended period and the Brazilian judiciary, tax and regulatory systems, believes that it is not practical to provide information that would be useful to the users of these financial statements in relation to the the timing of any cash outflows, or any possibility of reimbursements, might occur. The Company’s believes that any disbursements in excess of the amounts provisioned, when the respective claims are completed, will not significantly affect the Company’s result of operations or financial position. The details on the main provisions and contingent liabilities are provided below, with the best estimation of expected future disbursements for these contingencies: Provisions, made for legal actions in which the chances of loss have been assessed as ‘probable’ and contingent liabilities, for actions in which the chances of loss are assessed as ‘possible’ Labor claims The Company is involved in various legal claims filed by its employees and by employees of service providing companies. Most of these claims relate to overtime and additional pay, severance payments, various benefits, salary adjustments and the effects of such items on a supplementary retirement plan. In addition to these actions, there are others relating to outsourcing of labor, complementary additions to or re-calculation of retirement pension payments by Forluz, and salary adjustments. The aggregate amount of the contingency is approximately R$ 1,679 (R$1,725 at December 31, 2018), of which R$ 487 (R$457 at December 31, 2018) has been recorded – the amount estimated as probably necessary for settlement of these disputes. Alteration of the monetary updating index of employment-law cases The Higher Employment-Law Appeal Court ( Tribunal Superior do Trabalho Supremo Tribunal Federal In a joint judgment published on November 1, 2018, the TST decided that the IPCA-E should be adopted as the index for inflation adjustment of employment-law debts for cases filed from March 25, 2015 to November 10, 2017, and the TR would continue to be used for the other periods. The estimated amount of the contingency is R$106 (R$88 at December 31, 2018), of which R$10 has been provisioned upon assessment by the Company of the effects of the decision of the Regional Employment-Law Appeal Court of the third region (TRT3) in May 2019, on the subject of the joint judgment published by the TST, in the cases for which the chances of loss have been classified as ‘probable’ and which are at execution phase. No additional provision has been made, since the Company, based on the assessment by its legal advisers, has assessed the chances of loss in the action as ‘possible’, as a result of the decision by the Federal Supreme Court, and of there being no established case law, nor analysis by legal writers, on the subject, after the injunction given by the Federal Supreme Court. Customers claims The Company is involved in various civil actions relating to indemnity for personal injury and for material damages, arising, principally, from allegations of irregularity in measurement of consumption, and claims of undue charging, in the normal course of business, totaling R$68 (R$66 at December 31, 2018), of which R$19 (R$19 at December 31, 2018) has been recorded – this being the probable estimate for funds needed to settle these disputes. Other civil proceedings The Company is involved in various civil actions claiming indemnity for personal injury and for material damages, among others, arising from incidents occurred in the normal course of business, in the amount of R$300 (R$277 at December 31, 2018), of which R$18 (R$29 at December 31, 2018) has been recorded – the amount estimated as probably necessary for settlement of these disputes. Tax The Company is involved in numerous administrative and judicial claims actions relating to taxes, including, among other matters, subjects relating to the Urban Property Tax ( Imposto sobre a Propriedade Territorial Urbana Programa de Integração Social Contribuição para o Financiamento da Seguridade Social Imposto de Renda Pessoa Jurídica Contribuição Social sobre o Lucro Líquido In addition to the issues above the Company is involved in various proceedings on the applicability of the IPTU Urban Land Tax to real estate properties that are in use for providing public services. The aggregate amount of the contingency is approximately R$79 (R$142 at December 31, 2018). Of this total, R$4 has been recognized (R$5 at December 31, 2018) – this being the amount estimated as probably necessary for settlement of these disputes. The company has been successful in its efforts to have its IPTU tax liability suspended, winning judgments in favor in some cases – this being the principal factor in the reduction of the total value of the contingency. Social Security contributions on profit sharing payments The Brazilian tax authority ( Receita Federal The amount of the contingencies is approximately R$1,451 (R$1,264 on December 31, 2018), of which R$1,213 has been provisioned, this being the estimate of the probable amount of funds to settle these disputes. Environmental The Company is involved in environmental matters, in which the subjects include protected areas, environmental licenses, recovery of environmental damage, and other matters, in the approximate total amount of R$47 (R$15 at December 31, 2018) classified as ‘possible’ and for whitch the amount of the provision recognized was not material. Regulatory The Company is involved in numerous administrative and judicial proceedings, challenging, principally: (i) tariff charges in invoices for use of the distribution system by a self-producer; (ii) alleged violation of targets for continuity indicators in retail supply of energy; and (iii) the tariff increase made during the federal government’s economic stabilization plan referred to as the ‘Cruzado Plan’, in 1986. The aggregate amount of the contingency is approximately R$280 (R$260 at December 31, 2018), of which R$36 (R$37 at December 31, 2018) has been recorded as provision – the amount estimated as probably necessary for settlement of these disputes. Other legal actions in the normal course of business Breach of contract – Power line pathways and accesses cleaning services contract Company is involved in disputes alleging losses suffered as a result of supposed breaches of contract at the time of provision of services of cleaning of power line pathways and firebreaks. The amount recorded is R$41 (R$36 at December 31, 2018), this being estimated as the likely amount of funds necessary to settle this dispute. ‘ ‘ Luz Para Todos’ The Company is a party in disputes alleging losses suffered by third parties as a result of supposed breach of contract at the time of implementation of part of the rural electrification program known as the ‘ Luz Para Todos’ Other legal proceedings The Company is involved as plaintiff or defendant, in other less significant claims, related to the normal course of their operations with an estimated total amount of of which the amount estimated as probably necessary for settlement of these disputes – has been provisioned. Contingent liabilities – loss assessed as ‘possible’ Taxes and contributions The Company is involved in numerous administrative and judicial proceedings in relation to taxes. Below are details of the main claims: Indemnity of employees’ future benefit (the ‘Anuênio’) In 2006 the Company paid an indemnity to its employees, totaling R$178, in exchange for rights to future payments (referred to as the Anuênio Social Security contributions The Brazilian federal tax authority ( Secretaria da Receita Federal Programa de Alimentação do Trabalhador Non-homologation of offsetting of tax credit The federal tax authority did not ratify the Company’s declared offsetting, in Corporate income tax returns, of carry-forwards and undue or excess payment of federal taxes – IRPJ, CSLL, PIS/Pasep and Cofins – identified by official tax deposit receipts (‘DARFs’ and ‘DCTFs’). The Company is contesting the non-homologation of the amounts offset. The amount of the contingency is R$160 (R$146 at December 31, 2018), and the chance of loss was classified as ‘possible’, since the relevant requirements of the National Tax Code (CTN) have been complied with. Income tax withheld on capital gain in a shareholding transaction The federal tax authority issued a tax assessment against Cemig as a jointly responsible party with its jointly-controlled entity Parati S.A. Participações em Ativos de Energia Elétrica (Parati), relating to withholding income tax ( Imposto de Renda Retido na Fonte The social contribution tax on net income (CSLL) The federal tax authority issued a tax assessment against the Company for the years of 2012 and 2013, alleging undue non-addition, or deduction, of amounts relating to the following items in calculating the social contribution tax on net income: (i) taxes with liability suspended; (ii) donations and sponsorship (Law 8,313/91); and (iii) fines for various alleged infringements. The amount of this contingency is R$400 (R$350 at December 31, 2018). The Company has classified the chances of loss as ‘possible’, in accordance with the analysis of the case law on the subject. ICMS (local state value added tax) From December 2019 to March 2020 the Tax Authority of Minas Gerais State issued infraction notices against the subsidiary Gasmig, in the total amount of R$55, relating to reduction of the calculation base of ICMS tax in the sale of natural gas to its customers over the period from December 2014 to December 2015, alleging a divergence between the form of calculation used by Gasmig and the opinion of that tax authority. The claims comprises: principal of R$17, penalty payments of R$27 and interest of R$11. Considering that the State of Minas Gerais, over a period of more than 25 years, has never made any allegations against the methodology of calculation by Gasmig, Management and Company’s legal advisors, believe that there is a defense under Article 100, III of the National Tax Code, which removes claims for penalties and interest; and that the contingency for loss related to these amounts is ‘remote’. In relation to the argument on the difference between the amount of ICMS tax calculated by Gasmig and the new interpretation by the state tax authority, the probability of loss was considered ‘possible’. On December 31, 2019 the amount of the contingency for the period relating to the rules on expiry by limitation of time is R$ 89. Regulatory matters Public Lighting Contribution (CIP) Cemig and Cemig D are defendants in several public civil claims (class actions) requesting nullity of the clause in the Electricity Supply Contracts for public illumination signed between the Company and the various municipalities of its concession area, and restitution by the Company of the difference representing the amounts charged in the last 20 years, in the event that the courts recognize that these amounts were unduly charged. The actions are grounded on a supposed error by Cemig in the estimation of the period of time that was used in calculation of the consumption of energy for public illumination, funded by the Public Lighting Contribution ( Contribuição para Iluminação Pública The Company believes it has arguments of merit for defense in these claims, since the charge at present made is grounded on Aneel Normative Resolution 456/2000. As a result, it has not constituted a provision for this action, the amount of which is estimated at R$959 (R$975 at December 31, 2018). The Company has assessed the chances of loss in this action as ‘possible’, due to the Customer Defense Code (Código de Defesa do Consumidor, or CDC) not being applicable, because the matter is governed by the specific regulation of the electricity sector, and because Cemig complied with Aneel Resolutions 414 and 456, which deal with the subject. Accounting of energy sale transactions in the Power Trading Chamber (CCEE) In a claim dating from August 2002, AES Sul Distribuidora challenged in the court the criteria for accounting of energy sale transactions in the wholesale energy market ( Mercado Atacadista de Energia Câmara de Comercialização de Energia Elétrica This should take effect in the CCEE as from November 2008, resulting in an additional disbursement for Cemig GT, related to the expense on purchase of energy in the spot market on the CCEE, in the approximate amount of R$343 (R$317 at December 31, 2018). On November 9, 2008 Cemig GT obtained an interim decision in the Regional Federal Appeal Court ( Tribunal Regional Federal System Service Charges (ESS) – Resolution of the National Energy Policy Council Resolution 3 of the National Energy Policy Council ( Conselho Nacional de Política Energética Encargos do Serviço do Sistema In May 2013, the Brazilian Independent Electricity Producers’ Association ( Associação Brasileira dos Produtores Independentes de Energia Elétrica As a result of the interim decision, the CCEE carried out the financial settlement for transactions from April through December 2013 using the criteria prior to Resolution. As a result, Cemig GT recorded the costs of the ESS in accordance with the criteria for financial settlement published by the CCEE, without the effects of Resolution CNPE 3. In June 2019 the case was dismissed, since the action for annulment brought by APINE reached final judgment against which there was no further appeal. This made final and irreversible the court judgment that declared nullity of CNPE Resolution 3/2013 as to the part in which generation agents were included in the proportional sharing of the cost of the additional dispatch of plant to guarantee supply of energy. This results in the systemic structure of CNPE Resolution 8/2007 remaining definitively intact. Tariff increases Exclusion of customers classified as low-income The Federal Public Attorneys’ Office filed a class action against the Company and the regulator (Aneel), to avoid exclusion of customers from classification in the Low-income residential tariff Environmental claims Impact arising from construction of power plants The Public Attorneys of Minas Gerais State, together with an association and individuals, have brought class actions requiring Cemig GT to invest, since 1997, at least 0.5% of the annual gross operating revenue of the Emborcação, Pissarrão, Funil, Volta Grande, Poquim, Paraúna, Miranda, Nova Ponte, Rio de Pedras Peti The Public Attorneys’ Office of Minas Gerais State has filed class actions requiring the formation of a Permanent Preservation Area (APP) around the reservoir of the Capim Branco Other contingent liabilities Early settlement of the CRC (Earnings Compensation) Account The Company is involved in an administrative proceeding at the Audit Court of the State of Minas Gerais which challenges: (i) a difference of amounts relating to the discount offered by Cemig for early repayment of the credit owed to Cemig by the State under the Receivables Assignment Contract in relation to the CRC Account ( Conta de Resultados a Compensar Contractual imbalance Company is party in other disputes arising from alleged non-compliance with contracts in the normal course of business, for an estimated total of R$149 (R$90 at December 31, 2018). Company has classified the chance of loss as ‘possible’, after analysis of the case law on this subject. |
28. EQUITY AND REMUNERATION TO
28. EQUITY AND REMUNERATION TO SHAREHOLDERS | 12 Months Ended |
Dec. 31, 2019 | |
Statement of changes in equity [abstract] | |
EQUITY AND REMUNERATION TO SHAREHOLDERS | 28. EQUITY AND REMUNERATION TO SHAREHOLDERS a) Share capital As of December 31, 2019, the Company’s issued and share capital is R$7,294 (R$7,294 at December 31, 2018 and 2017), represented by 487,614,213 common shares (487,614,213 at December 31, 2018) and 971,138,388 preferred shares (971,138,388 at December 31, 2018), both of them with nominal value of R$5.00 (five Reais), as follows: Number of shares on December 31, 2019 Shareholders Common % Preferred % Total % State of Minas Gerais 248,516,953 51 11,323 – 248,528,276 17 Other entities of Minas Gerais State 19,896 – 1,411,276 – 1,431,172 – FIA Dinâmica Energia S.A. 48,700,000 10 55,133,744 6 103,833,744 7 BNDES Participações 54,342,992 11 26,220,938 3 80,563,930 6 Others In Brazil 101,170,317 21 328,982,856 34 430,153,173 29 Foreign shareholders 34,864,055 7 559,378,251 57 594,242,306 41 Total 487,614,213 100 971,138,388 100 1,458,752,601 100 Number of shares on December 31, 2018 Shareholders Common % Preferred % Total % State of Minas Gerais 248,480,146 51 – – 248,480,146 17 Other entities of Minas Gerais State 56,703 – 647,647 – 704,35 – FIA Dinâmica Energia S.A. 48,200,000 10 55,905,344 6 104,105,344 7 BNDES Participações 54,342,992 11 26,220,938 3 80,563,930 5 Others In Brazil 105,402,202 22 370,338,947 38 475,741,149 33 Foreign shareholders 31,132,170 6 518,025,512 53 549,157,682 38 Total 487,614,213 100 971,138,388 100 1,458,752,601 100 Number of shares on December 31, 2017 Shareholders Common % Preferred % Total % State of Minas Gerais 214,414,739 51 – – 214,414,739 17 Other entities of Minas Gerais State 56,703 – 4,860,228 1 4,916,931 1 FIA Dinâmica Energia S.A. 41,635,754 10 62,469,590 7 104,105,344 8 BNDES 54,342,992 13 26,220,938 3 80,563,930 6 Others In Brazil 56,000,217 13 210,953,069 25 266,953,286 21 Foreign shareholders 54,314,303 13 533,573,121 64 587,887,424 47 Total 420,764,708 100 838,076,946 100 1,258,841,654 100 The Company’s Share Capital may be increased by up to a limit of 10% (ten percent) of the share capital set in the by-laws, without need for change in the by-laws and upon decision of the Board of Directors, having previously heard statement of opinion issued by the Fiscal Council. Capital increase On April 23, 2018, the Shareholders’ Extraordinary General Meeting approved an increase in the Company’s capital, of R$ 1,000, from R$ 6,294 to R$ 7,294, through issuance of 199,910,947 new shares, each with nominal value of R$ 5.00, comprising 66,849,505 common shares and 133,061,442, preferred shares. The amount subscribed and paid-up by the shareholders was R$ 1,325. The difference between the capital increase and the amount subscribed, of R$ 325 was allocated to the Capital reserve. b) Earnings per share Number of shares 2019 2018 2017 Common shares already paid up 487,614,213 487,614,213 420,764,708 Common shares to be paid up – – 66,849,505 Shares in treasury (69 ) (69 ) (69 ) 487,614,144 487,614,144 487,614,144 Preferred shares already paid up 971,138,388 971,138,388 838,076,946 Preferred shares to be paid up – – 133,061,442 Shares in treasury (560,649 ) (560,649 ) (560,649 ) 970,577,739 970,577,739 970,577,739 Total 1,458,191,883 1,458,191,883 1,458,191,883 Basic and diluted earnings per share The Company’s preferred shares carry the right to a minimum mandatory dividend, as shown in more detail in item ‘e’. The shares that were subscribed in the capital increase of April 23, 2018, were considered in full in the calculation of basic and diluted profit for 2017, since the proposal for subscription of new shares was decided in an Extraordinary Shareholders’ Meeting on October 26, 2017, and these new shares already had potential for subscription since that date, as decided by the shareholders. The purchase and sale options of investments described in Note 33 could potentially dilute basic profit per share in the future; however, they have not caused dilution of profit per share in 2019, 2018 and 2017. The calculation of basic and diluted earnings per share is as follows: 2019 2018 2017 Net income for the year attributed to equity holders of the parent 3,127 1,700 1,001 Minimum mandatory dividend from net income for the year - preferred shares 509 577 486 Net income for the year not distributed - preferred shares 1,573 554 333 Total earnings - preferred shares (A) 2,082 1,131 819 Minimum mandatory dividend from net income for the year - common shares 255 290 15 Net income for the year not distributed - common shares 790 279 167 Total earnings - common shares (B) 1,045 569 182 Basic and diluted earnings per preferred share (A / number of preferred shares) 2.14 1.17 0.84 Basic and diluted earnings per common share (B / number of common shares) 2.14 1.17 0.37 2019 2018 2017 Net income for the year from continuing operations attributed to equity holders of the parent 2,903 1,378 1,001 Minimum mandatory dividend from net income for the year from continuing operations – preferred shares 509 527 486 Net income for the year from continuing operations not distributed – preferred shares 1,424 390 333 Total earnings from continuing operations - preferred shares (A.1) 1,933 917 819 Minimum mandatory dividend from net income for the year from continuing operations - common shares 255 290 15 Net income for the year from continuing operations not distributed – common shares 715 171 167 Total earnings from continuing operations - common shares (B.1) 970 461 182 Basic and diluted earnings from continuing operations per preferred share (A.1 / number of preferred shares) 1.99 0.95 0.84 Basic and diluted earnings from continuing operations per common share (B.1 / number of common shares) 1.99 0.95 0.37 c) Reserves Capital reserves 2019 2018 2017 Investment-related donations and subsidies 1,857 1,857 1,857 Goodwill on issuance of shares 394 394 69 Shares in treasury (1 ) (1 ) (1 ) 2,250 2,250 1,925 The Reserve for investment-related donations and subsidies basically refers to the compensation by the Federal Government for the difference between the profitability obtained by Cemig up to March 1993 and the minimum return guaranteed by the legislation in effect at the time. The reserve for treasury shares refers to the pass-through by Finor of shares arising from funds applied in Cemig projects in the area covered by Sudene (the development agency for the Northeast) under tax incentive programs. Profit reserves 2019 2018 2017 Legal reserve 853 853 853 Statutory reserve 57 57 57 Retained earnings reserve 5,500 3,965 3,341 Unrealized profit reserve 835 – – Incentive tax reserve 85 67 58 Reserve for mandatory dividends not distributed 1,420 1,420 1,420 8,750 6,362 5,729 Legal reserve Constitution of the legal reserve is mandatory, up to the limits established by law. The purpose of the reserve is to ensure the security of the share capital, its use being allowed only for offsetting of losses or increase capital. The Company did not record legal reserve due to that reserve had reached its legal limit. Statutory reserve The reserve under the By-laws is for future payment of extraordinary dividends, in accordance with Article 37 of the by-laws. Retained earnings reserve Retained earnings reserves refers to profits not distributed in prior years, to guarantee execution of the Company’s Investment Program, and amortization of loans and financing. The retentions are supported by capital budgets approved by the Board of Directors in the respective years. The calculation of the retained earnings reserve is as follows: 2019 2018 2017 Net income for the year 3,127 1,700 1,001 Expired dividends – 42 – Incentives tax reserve (18 ) (9 ) (1 ) Deemed cost realization 25 42 28 Adjustment for initial adoption of IFRS 9 and IFRS 15. – (157 ) – Dividends proposed (764 ) (867 ) (500 ) Unrealized profit reserve (835 ) – – Retained earnings reserve 1,535 751 528 Unrealized profit reserve Article 197 of the Brazilian corporate law nº 6,404/76 allows the Company to pay the mandatory dividend, calculated as required by the Bylaws (see e) below), up to the amounts of the realized portion of the net income for the year (received in cash). The excess between such mandatory dividend amount and the dividends that will be actually paid was recorded in the “Unrealized profit reserve”. In 2019, Company presented a positive net share of profit of subsidiaries, jointly-controlled entities and affiliates of R$2,834, which can be regarded as unrealized portion of net income for the year, in accordance with the Brazilian corporate law. The share of profit of subsidiaries and joint ventures might not be realized in 2020, which means it might not be converted into cash, considering the macro-economic scenario and the fact that is not possible yet to forecast the impacts of COVID-19 – coronavirus on investees’ cash flows and financial results, as stated in Note 39. Additionally, the above does not apply to the payment of the minimum mandatory dividends on preferred shares, which are required to be paid in full for an amount of R$486, as described in further details in f) below. In addition, since the creation of the unrealized profit reserve is optional, Management decided to propose the same proportion of dividend payment to shareholders owning common shares, considering Company’s expected financial capacity. Thus, since the mandatory dividends if distributed in their totality represents 50% of net income and an amount of R$1,564 and considering the expectations of realized profit for the year, as stated above, Management proposed the constitution of unrealized profit reserve in the amount of R$835, whose calculation is described as follows. 2019 Minimum mandatory dividend required by Bylaws (50% of net income) 1,564 Minimum mandatory dividend required by the Bylaws for the preferred shares (486 ) Minimum mandatory dividend proposed for the common shares (243 ) Unrealized profit reserve 835 The unrealized profit reserve amounts can only be used to pay mandatory dividends. Hence, when the Company realizes such profits in cash, it must distribute the corresponding dividend in the subsequent period, after offsetting of any losses in subsequent years. Incentives tax reserve The Company has a right to a 75% reduction in income tax, including the tax paid at the additional rate, calculated on the basis of the operating profit in the region of Sudene (the Development Agency for the Northeast), for 10 years starting in 2014. The amount of the incentive recognized in the Statement of income was R$18 in 2019 (R$9 in 2018 and R$1 in 2017), and it was subsequently transferred to the Incentives Tax reserve. The amount of the Tax incentives reserve on December 31, 2019 was R$85 (R$67 at December 31, 2018). This reserve cannot be used for payment of dividends. Reserve for mandatory dividends not distributed 2019 Dividends withheld, arising from the net income of 2015 623 Dividends withheld, arising from the net income of 2014 797 1,420 These dividends were retained in Equity, in years 2015 and 2014, in the account Reserve for mandatory dividends not distributed; and as per the proposal approved in the Annual General Meetings of 2016 and 2015, the dividends retained will be paid as soon as the Company’s financial situation permits. The Company's Management, in view of the uncertainties present in the current macroeconomic scenario, concluded that the financial situation does not yet allow the payment of these retained dividends. d) Rights and preferences of the common and preferred shares. Every holder of Cemig common shares has a tag-along right to receive 80% of the value paid per share owned by the controlling stockholder in the event of a change of control. Every holder of Cemig common shares has the right to vote in an election for members of our Board of Directors. Under the Brazilian Corporate Law, any shareholder holding at least 5% of Cemig’s common shares in circulation may request adoption of a multiple vote procedure, which confers upon each share a number of votes equal to the present number of members of the Board of Directors and gives the shareholder the right to accumulate his or her votes in one sole candidate, or distribute them among several. Under the Brazilian Corporate Law, holders of preferred shares representing at least 10% of Cemig’s share capital, and also holders of common shares representing at least 15% of its share capital (other than the controlling shareholder) have the right to appoint a member of the Board of Directors and his or her respective substitute member in a separate election. If none of the holders of common or preferred shares qualifies under the minimum limits specified above, shareholders representing, in the aggregate, a minimum of 10% of the share capital may combine their holdings to elect a member of the Board of Directors, and that member’s substitute member. Under Article 171 of the Corporate Law, every shareholder has a generic right of first refusal in subscription of new shares, or securities convertible into shares, issued in any capital increase, in proportion to their percentage shareholding, except in the event of exercise of any option to acquire shares in our share capital. Shareholders are required to exercise their right of first refusal within 30 days from publication of the notice of increase of capital. Every holder of Cemig preferred shares has preference in the event of share redemption. The dividend rights of the preferred and common shares are described below: e) Dividends Under its by-laws, Cemig is required to pay to its shareholders, as mandatory dividends, 50% of the net income of each year. The preferred shares have preference in the event of reimbursement of capital and participate in profits on the same conditions as the common shares have the right, when there is net income, to a minimum annual dividends equal to the greater of: (a) 10% of their par value, and (b) 3% of the portion of equity that they represent. Under its by-laws, Cemig’s shares held by private individuals and issued up to August 5, 2004 have the right to a minimum dividend of 6% per year on their par value in all years when Cemig does not obtain sufficient profits to pay dividends to its Shareholders. This guarantee is given by the State of Minas Gerais by Article 9 of State Law 828 of December 14, 1951 and by State Law 15,290 of August 4, 2004. Under the by-laws, if the Company is able to pay dividends higher than the mandatory minimum dividends required for the preferred Shareholders, and the remaining net income is sufficient to offer equal dividends for both the common and preferred shares, then the dividends per share will be the same for the holders of common shares and preferred shares. Dividends declared are paid in two equal installments, the first by June 30 and the second by December 30, of the year following the generation of the profit to which they refer. The Executive Board decides the location and processes of payment, subject to these periods. Calculation of the minimum dividends proposed The calculation of the minimum dividends proposed for distribution to Shareholders, considering the 2019 unrealized profit assumption mentioned in the previous paragraphs, is as follows: 2019 2018 2017 Calculation of Minimum Dividends required by the By-laws for the preferred shares Nominal value of the preferred shares 4,856 4,856 4,191 Nominal value of the preferred shares to be capitalized – – 665 4,856 4,856 4,856 Percentage applied to the nominal value of the preferred shares 10.00 % 10.00 % 10.00 % Amount of the dividends by the first payment criterion 486 486 486 Equity 15,887 14,579 14,326 Preferred shares as a percentage of Equity (net of shares held in Treasury) 66.56 % 66.56 % 66.58 % Portion of Equity represented by the preferred shares 10,574 9,704 9,538 Percentage applied to the portion of Equity represented by the preferred shares 3.00 % 3.00 % 3.00 % Amount of the dividends by the second payment criterion 317 291 286 Minimum Dividends required by the Bylaws for the preferred shares 486 486 486 Calculation of the Minimum Dividend under the by-laws based on the net income for the period Mandatory dividend Net income for the year 3,127 1,700 1,001 Mandatory dividends – 50% of Net income 1,564 850 500 Unrealized profit reserve (835 ) Withholding income tax on Interest on equity 35 17 – 764 867 500 Dividends recorded, as specified in the by-laws Interest on Equity 400 210 - Ordinary dividends 364 657 500 764 867 500 Total dividends for the preferred shares 509 577 486 Total dividends for the common shares 255 290 14 Unit value of dividends – R$ Minimum dividends required by the by-laws for the preferred shares 0.50 0.50 0.50 Mandatory dividends (including withholding income tax on Interest on Equity) 0.52 0.59 0.34 Dividends proposed: Common (ON) shares 0.52 0.59 0.03 Dividends proposed: Preferred (PN) shares 0.52 0.59 0.50 This table provides the changes on dividends and interest on capital payable: Balances at December 31, 2017 428 Proposed dividends and interest on equity 867 Withholding income tax on interest on capital (17 ) Dividends proposed for non-controlling shareholder 127 Proposed dividends of previous years (42 ) Expired dividends (8 ) Dividends retained – Minas Gerais state government (491 ) Balances at December 31, 2018 864 Proposed dividends 764 Withholding income tax on interest on capital (35 ) Dividends retained – Minas Gerais state government (Note 13) (148 ) Dividends paid (701 ) Balances at December 31, 2019 744 f) Allocation of net income for 2019 – Management’s proposal The Board of Directors decided to propose to the Annual General Meeting (AGM) to be held on July 31, 2020 the following allocation of the net income for 2019, totaling R$3,127, less R$25 from realization of the deemed cost of PP&E. • R$764 for payment of the mandatory minimum dividends to Company’s holders, as follows: – R$400 in the form of Interest on Equity, to be paid in two equal installments, by June 30, 2020 and by December 31, 2020, to shareholders whose names were on the Company’s Nominal Share Registry on December 23, 2019; – R$364 as dividends of 2019, to be paid by December 31, 2020, to holders whose names are in the Company’s Nominal Share Registry on the date of the AGM. • R$835 to be recorded as Unrealized Profit Reserve, considering the positive net share of profit of subsidiaries, jointly-controlled entities and affiliates not yet converted into cash. • R$1,535 to be held in the Retained earnings reserve, to ensure the Company’s consolidated investments planned for 2020, as per capital budget. • R$18 to be recorded as Incentives Tax reserve, in reference to the tax incentive amounts obtained in 2019 in relation to the investments made in the region of Sudene. Under the Brazilian corporate law, if Company's subsidiaries pay dividends for the year of 2019, which are not yet converted into cash by the investees until the present date, the reversal of unrealized profit reserve will be included as part of the calculation of minimum dividend required by the Bylaws for the year of 2020. g) Capital increase – Proposal by management Considering that on December 31, 2019 the profit reserves, with the exclusion of the Tax Incentive reserves, exceed the registered share capital by R$537, the Board of Directors will submit to the Annual General Meeting a proposal for increase of the registered share capital to R$7,594, as per Article 199 of the Brazilian Corporate Law. h) Non-controlling shareholders interests The changes in the equity held by non-controlling shareholders are shown below: Investee Gasmig Light S.A LightGer Guanhães Axxion UHE Itaocara Total Balances at Dec. 31, 2017 4 – – – – – 4 Net profit attributed to non-controlling shareholders 1 41 – – – – 42 Non-controlling interests arising from business combination – 1,236 22 50 4 3 1,315 Others (1 ) – – – – – (1 ) Balances at Dec. 31, 2018 4 1,277 22 50 4 3 1,360 Net profit attributed to non-controlling shareholders 1 – – – – – 1 Capital Increase to non-controlling shareholders – – – 10 – – 10 Proposed dividends to non-controlling shareholders (1 ) – – – – – (1 ) Derecognition of the non-controlling interests in Light (Note 34) – (1,277 ) (22 ) (60 ) (4 ) (3 ) (1,366 ) Balances at Dec. 31, 2019 4 – – – – – 4 Net profit allocated to non-controlling interests: Company 2019 2018 Gasmig 1 1 Total 1 1 |
29. REVENUE
29. REVENUE | 12 Months Ended |
Dec. 31, 2019 | |
Revenue [abstract] | |
REVENUE | 29. REVENUE Revenues are measured at the fair value of the consideration received or to be received and are recognized on a monthly basis as and when: (i) Rights and obligations of the contract with the customer are identified; (ii) the performance obligation of the contract is identified; (iii) the price for each transaction has been determined; (iv) the transaction price has been allocated to the performance obligations defined in the contract; and (v) the performance obligations have been complied. 2019 2018 2017 Revenue from supply of energy(a) 26,928 24,872 23,701 Revenue from use of the electricity distribution systems (TUSD) (b) 2,722 2,045 1,611 CVA, and Other financial components (c) 58 1,973 988 Transmission revenue Transmission concession revenue (d) 504 411 371 Transmission construction revenue (e) 220 96 25 Transmission assets - indemnity revenue (f) 156 250 373 Generation assets - Indemnity Revenue – 55 271 Distribution construction revenue (e) 980 802 1,094 Adjustment to expectation of cash flow from indemnifiable financial assets of distribution concession (g) 18 – 9 Revenue on financial updating of the Concession Grant Fee (h) 318 321 317 Energy transactions on the CCEE (i) 432 217 860 Supply of gas 2,298 1,995 1,759 Fine for violation of service continuity indicator (1) (58 ) (44 ) – Recovery of PIS/Pasep and Cofins (note 10) 1,428 – – Other operating revenues (j) 1,722 1,585 1,484 Deductions on revenue (k) (12,336 ) (12,312 ) (11,151 ) Net operating revenue 25,390 22,266 21,712 (1) As from January 1, 2018 these amounts began to be recognized as a reduction of revenue, rather than as operational expenses, as per the change contained in IFRS 15. a) Revenue from energy supply These items are recognized upon delivery of supply, and the revenue is recorded as and when billed, based on the tariff approved by the regulator for each class of customer. This table shows energy supply by type of customer: GWh (1) R$ 2019 2018 2017 2019 2018 2017 Residential 10,538 10,267 10,008 9,668 8,658 7,842 Industrial 16,024 17,689 17,761 4,760 4,893 4,907 Commercial, services and others 9,567 8,380 7,507 5,439 4,683 4,342 Rural 3,795 3,615 3,651 2,058 1,794 1,629 Public authorities 905 871 866 654 575 532 Public lighting 1,357 1,384 1,367 614 585 537 Public services 1,372 1,316 1,301 725 646 589 Subtotal 43,558 43,522 42,461 23,918 21,834 20,378 Own consumption 38 41 37 – – – Unbilled revenue – 134 48 61 43,596 43,563 42,498 24,052 21,882 20,439 Wholesale supply to other concession holders (2) 11,448 11,992 12,777 2,943 3,002 1,727 Wholesale supply unbilled, net – – – (67 ) (12 ) 1,535 Total 55,044 55,555 55,275 26,928 24,872 23,701 (1) Data not audited by external auditors. (2) 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. b) Revenue from Use of the Distribution System (the TUSD charge) These are recognized upon the distribution infrastructure becoming available to customers, and the fair value of the consideration is calculated according to the TUSD tariff of those customers, set by the regulator. c) The CVA account, and Other financial components The results from variations in (i) the CVA account ( Parcel A Costs Variation Compensation Account Other financial components d) Transmission concession revenue Transmission revenue comprises the amount received from agents of the energy sector for operation and maintenance of transmission lines of the national grid, in the form of the Permitted Annual Revenue ( Receita Anual Permitida e) Construction revenue Construction revenue corresponds to the performance obligation to build the transmission and distribution infrastructure during the construction phase. Considering that constructions and improvements are substantially executed through outsourced parties; and that all construction revenues is related to the construction of the infrastructure of the energy distribution and transmission services, Company’s management concluded that construction contract revenue has zero profit margin. f) Transmission assets - indemnity revenue Corresponded to updating, by the IPCA index, of the balance of transmission indemnity receivable. For further information, please see Note 16. g) Adjustment to expected cash flow from financial assets on residual value of infrastructure asses of distribution concessions Income from fair value changes of the Regulatory Remuneration Asset Base. h) Revenue on financial updating of the Concession Grant Fee Represents the inflation adjustment using the IPCA inlfation index, plus interest, on the Concession Grant Fee for the concession awarded as Lot D of Auction 12/2015. See Note 16. i) Energy transactions on the CCEE (Power Trading Chamber) The revenue from transactions made through the Power Trading Chamber ( Câmara de Comercialização de Energia Elétrica j) Other operating revenues 2019 2018 2017 Charged service 17 14 10 Telecoms services – – 149 Services rendered 183 188 156 Subsidies (1) 1,266 1,136 1,034 Rental and leasing 189 90 121 Reimbursement for decontracted supply 65 145 - Other 2 12 14 1,722 1,585 1,484 (1) Revenue recognized for the tariff subsidies applied to users of distribution and transmission services, including low income tariff incentive refunded by Eletrobras. k) Deductions on revenue 2019 2018 2017 Taxes on revenue ICMS 6,358 5,657 5,847 Cofins 2,395 2,547 2,237 PIS/Pasep 521 553 455 Others 8 8 8 9,282 8,765 8,547 Charges to the customer Global Reversion Reserve (RGR) 16 19 17 Energy Efficiency Program (PEE) 69 64 56 Energy Development Account (CDE) 2,448 2,603 1,822 Research and Development (R&D) 41 38 38 National Scientific and Technological Development Fund (FNDCT) 41 38 38 Energy System Expansion Research (EPE of MME) 20 19 19 Customer charges – Proinfa alternative sources program 52 40 39 Energy services inspection fee 30 26 29 Royalties for use of water resources 43 45 92 Customer charges – the ‘Flag Tariff’ system 294 655 454 3,054 3,547 2,604 12,336 12,312 11,151 |
30. OPERATING COSTS AND EXPENSE
30. OPERATING COSTS AND EXPENSES | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Operating Costs And Expenses [abstract] | |
OPERATING COSTS AND EXPENSES | 30. OPERATING COSTS AND EXPENSES The operating costs are as follows: 2019 2018 2017 Personnel (a) 1,272 1,410 1,627 Employees’ and managers’ profit sharing 263 77 5 Post-employment benefits (reversals) – Note 26 408 337 (229 ) Materials 91 104 61 Raw materials and inputs for production of energy – – 10 Outsourced services (b) 1,239 1,087 974 Energy bought for resale (c) 11,286 11,084 10,919 Depreciation and amortization (1) 958 835 850 Operating provisions and adjustments for operating losses (d) 2,401 466 854 Charges for use of the national grid 1,426 1,480 1,174 Gas bought for resale 1,436 1,238 1,071 Construction costs (e) 1,200 897 1,119 Other operating expenses, net (f) 499 405 383 22,479 19,420 18,818 (1) Net of PIS/Pasep and Cofins taxes applicable to amortization of the right-of-use assets in the amount of R$5. For details about the discontinued operating costs and expenses, see Note 34. a) Personnel 2019 Programmed Voluntary Retirement Plan (‘PDVP’) On December 2018, the Company launched the Programmed Voluntary Retirement Plan for 2019 (‘the 2019 PDVP’). Those eligible – any employees who had worked with the Company for 25 years or more by December 31, 2018 – were able to join from January 7 to 31, 2019. The program will pay the standard legal payments for severance – including: payment for the period of notice, and especially, an amount equal to the ‘penalty’ payment of 40% of the Base Value of the employee’s FGTS fund, as well as the other payments under the legislation, but with no additional premium. On March 2019 the Company re-launched the 2019 PDVP program, for those joining between April 1 and 10, 2019, with some changes in the requirements for joining, but with the same financial conditions. A total of R$87 has been recorded as expense related to the 2019 PDVP, corresponding to acceptance by 613 employees, R$66 (458 employees) in 2018 and R$21 (155 employees) in 2019. b) Outsourced services 2019 2018 2017 Meter reading and bill delivery 128 129 142 Communication 69 80 66 Maintenance and conservation of electrical facilities and equipment 404 323 266 Building conservation and cleaning 110 110 108 Contracted labor 17 21 15 Freight and airfares 7 7 8 Accommodation and meals 14 12 13 Security services 18 20 23 Consultant 24 16 16 Maintenance and conservation of furniture and utensils 5 4 4 Information technology 63 59 62 Maintenance and conservation of vehicles 3 2 2 Disconnection and reconnection 70 62 35 Environmental services 14 14 11 Legal services 26 25 22 Legal procedural costs 2 2 3 Tree pruning 46 28 21 Cleaning of power line pathways 61 41 16 Copying and legal publications 21 21 23 Inspection of customer units 14 10 1 Printing of tax invoices and energy bills – – 3 Other expenses 123 101 114 1,239 1,087 974 c) Energy purchased for resale 2019 2018 2017 Supply from Itaipu Binacional 1,429 1,351 1,243 Physical guarantee quota contracts 715 679 461 Quotas for Angra I and II nuclear plants 269 267 244 Spot market 1,886 1,818 1,498 Proinfa Program 376 324 303 ‘Bilateral’ contracts 311 484 385 Energy acquired in Regulated Market auctions 3,021 3,346 3,555 Energy acquired in the Free Market 4,098 3,871 4,283 Distributed generation (‘Geração distribuída’) 207 – – PIS/Pasep and Cofins credits (1,026 ) (1,056 ) (1,053 ) 11,286 11,084 10,919 d) Operating provision (reversals) and adjustments for operating losses 2019 2018 2017 Estimated losses on doubtful accounts receivables (Note 8) 238 264 248 Estimated losses on other accounts receivables (1) 11 (4 ) 27 Estimated losses on accounts receivables from related parties (3) (note 32) 688 Contingency provisions (reversals) (Note 27) (2) Labor claims 136 42 206 Civil 24 13 27 Tax 1,228 (5 ) 7 Environmental (1 ) 1 – Regulatory 1 (2 ) (3 ) Other 12 2 (6 ) 1,400 51 231 2,337 311 506 Adjustment for losses Put option – Sonda – – 1 Put option – RME and LEPSA – 48 231 Put option – SAAG (Note 33) 64 107 116 64 155 348 2,401 466 854 (1) The estimated losses on other accounts receivable are presented in the consolidated Statement of income as operating expenses. (2) The provisions for contingencies of the holding company are presented in the consolidated statement of income for the year as operating expenses. (3) Estimated losses on accounts receivable from Renova, as a result of the assessment of the jointly-controlled entity credit risk, which deteriorated in the current year. e) Construction costs 2019 2018 2017 Personnel and managers 85 70 36 Materials 595 379 550 Outsourced services 421 364 406 Others 99 84 127 1,200 897 1,119 f) Other operating expenses (revenues), net 2019 2018 2017 Leasing and rentals (1) 20 93 103 Advertising 9 19 30 Own consumption of energy 21 27 24 Subsidies and donations 40 22 19 Onerous concession 3 3 3 Insurance 12 7 8 CCEE annual charge 6 6 8 Net loss (gain) on deactivation and disposal of assets 92 7 193 Forluz – Administrative running cost 30 28 26 Collection agents 88 78 71 Gain on disposal, Taesa – – (207 ) Fine for violation of service continuity standard – – 42 Obligations deriving from investment contracts (2) 32 – – Taxes and charges 10 9 – Other expenses (3) 136 106 63 499 405 383 (1) As from January 1, 2019, the amounts related to leasing and rentals are recognized in accordance with IFRS 16, as shown in notes 2.4 and 21. The Company has operational leasing contracts relating, mainly, to vehicles and buildings used in its operational activities. Their amounts are not material in relation to the total costs of the Company. Actual leasing and rentals expenses are related to remaining leasing arrangements and rentals that do not qualify for recognition under IFRS 16. (2) This refers to claims under the agreement made between Aliança Geração, Vale S.A. and Cemig. The action is provisioned at the cost of R$98, of which Cemig is responsible for R$32. (3) The losses recorded on assets in progress (canceled works) are net of the reversal of the provisions constituted in prior periods. Includes the adjustment of R$22 for impairment of intangible assets. |
31. FINANCE INCOME AND EXPENSES
31. FINANCE INCOME AND EXPENSES | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of finance income expense [abstract] | |
FINANCE INCOME AND EXPENSES | 31. FINANCE INCOME AND EXPENSES FINANCE INCOME Income from financial investments 102 116 205 Interest on sale of energy 361 352 261 Foreign exchange variations – – 19 Monetary variations 30 19 46 Monetary variations – CVA (Note 16) 105 62 – Monetary updating of escrow deposits 50 34 191 PIS/Pasep and Cofins charged on finance income (1) (128 ) (68 ) (53 ) Gains on financial instruments –swap (Note 33) 998 893 – Finance income from advance payments 5 29 – Inflation adjustment in arbitration case – 77 – Borrowing costs paid by related parties (Note 32) 48 56 – Monetary updating on PIS/Pasep and Cofins taxes credits over ICMS (Note 10) 1,580 – – Others 56 136 135 3,207 1,706 804 FINANCE EXPENSES Charges on loans and financings (Note 24) (1,227 ) (1,257 ) (1,466 ) Cost of debt – amortization of transaction cost (Note 24) (38 ) (33 ) (67 ) Foreign exchange variations – loans and financing (Note 24) (226 ) (582 ) (73 ) Foreign exchange variations – Itaipu (13 ) (29 ) Monetary updating – loans and financings (Note 24) (142 ) (134 ) (109 ) Monetary updating – onerous concessions (3 ) (3 ) – Charges and monetary updating on post–employment obligations (Note 26) (56 ) (68 ) (65 ) Losses on financial instruments (Note 33) – – (32 ) Monetary variations – CVA (Note 16) – – (41 ) Monetary updating – AFAC – – 239 Monetary updating – Advance sales of energy supply (Note 8) (1 ) (11 ) (45 ) Adjustment to present value – – (2 ) Monetary updating – Lease liabilities (Note 21) (34 ) – – Finance income of P&D and PEE (24 ) (23 ) – Others (83 ) (84 ) (139 ) (1,847 ) (2,224 ) (1,800 ) NET FINANCE INCOME (EXPENSES) 1,360 (518 ) (996 ) (1) The PIS/Pasep and Cofins expenses apply to Interest on Equity. |
32. RELATED PARTY TRANSACTIONS
32. RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of transactions between related parties [abstract] | |
RELATED PARTY TRANSACTIONS | 32. RELATED PARTY TRANSACTIONS Cemig’s main balances and transactions with related parties and its jointly-controlled entities are as follows: ASSETS LIABILITIES REVENUE EXPENSES COMPANY 2019 2018 2019 2018 2019 2018 2017 2019 2018 2017 Shareholder Minas Gerais State Government Current Receivables from customers and traders (1) 346 245 – – 166 163 163 – – – ICMS tax – early payment (2) – – – 11 12 – – – Non-current Accounts Receivable – AFAC (3) 115 246 – – 17 18 18 – – – Jointly-controlled entity Aliança Geração Current Transactions with energy (4) – – 14 13 40 35 34 (166 ) (165 ) (147 ) Provision of services (5) 1 2 – – 7 12 12 – – – Interest on Equity, and dividends 103 91 – – – – – – – – Contingency (6) – – 32 – – – – (32 ) – – Baguari Energia Current Transactions with energy (4) – – 1 1 – – – (8 ) (11 ) (7 ) Provision of services (5) – – – – 1 1 1 – – – Madeira Energia Current Transactions with energy (4) 6 6 58 64 68 70 70 (730 ) (778 ) (686 ) Advance for future energy supply (7) – 7 – – – 9 9 – – – Reimbursement due to cancelled contract (8) 4 42 – – 4 2 2 – – – Non-current Reimbursement for cancelled contract (8) – 4 – – – – – – – – Norte Energia Current Transactions with energy (4) – – 24 23 22 16 16 (228 ) (202 ) (122 ) Advance for future power supply (9) 40 – – – – – – – – – Lightger Current Transactions with energy (4) – – 2 – – – – (21 ) (21 ) (19 ) Hidrelétrica Pipoca Current Transactions with energy (4) – – 1 1 – – – (19 ) (19 ) (15 ) Retiro Baixo Current Transactions with energy (4) – – – – 5 4 – (5 ) (5 ) (6 ) Interest on Equity, and dividends 6 6 – – – – – – – – Hidrelétrica Cachoeirão Current – – Interest on Equity, and dividends 3 2 – – – – – – – – Renova Current Transactions with energy (4) – – – 1 4 – – – (81 ) (179 ) Non-current Advance for future energy supply (8) – – – – – – 7 – – – Accounts Receivable (10) – 594 – – 94 106 37 (688 ) – – Loans from related parties (11) 17 – 6 – – – – – – – Reimbursement for suspension of supply of power – – – – – – 52 – – – Reimbursement for cessation of power purchase agreement – – – – – – 10 – – – Empresa Amazonense de Transmissão de Energia (EATE) Current Transactions with energy (4) – – – – – – – – – (26 ) COMPANY ASSETS LIABILITIES REVENUE EXPENSES 2019 2018 2019 2018 2019 2018 2017 2019 2018 2017 Light Current Transactions with energy (4) – – 1 1 98 60 54 (9 ) (1 ) (1 ) Interest on Equity, and dividends 73 10 – – – – – – – – Taesa Current Transactions with energy (4) – – 9 8 – – – (96 ) (109 ) (127 ) Provision of services (5) – – – – 1 1 1 – – – Hidrelétrica Itaocara Current Adjustment for losses (12) – – 22 – – – – – – – Cia. Transirapé de Transmissão Current Transactions with energy (4) – – – – – – – – – (10 ) Provision of services (5) – – – – – – 1 – – – Axxiom Current Provision of services (13) – – 3 – – – – – – – Transudeste Current Transactions with energy (4) – – – – – – – – – (2 ) Provision of services (5) – – – – – – 1 – – – Transleste Current Transactions with energy (4) – – – – – – – – – (3 ) Provision of services (5) – – – – – – 1 – – – Centroeste Current Interest on Equity, and dividends 1 1 – – – – – – – – Other related parties FIC Pampulha Current Cash and cash equivalents 36 274 – – – – – – – – Marketable securities 743 727 – – 8 1,106 9 – – – (–) Marketable securities issued by subsidiary companies (Note 24) (3 ) (24 ) – – – – – – – – Non-current – – – Marketable securities 2 101 – – – – – – – – Forluz Current Post-employment obligations (14) – – 145 123 – – – (197 ) (192 ) (174 ) Supplementary pension contributions – Defined contribution plan (15) – – – – – – – (78 ) (78 ) (84 ) Administrative running costs (16) – – – – – – – (30 ) (28 ) (26 ) Operating leasing (17) 179 – 35 2 – – – (55 ) (46 ) (55 ) Non-current Post-employment obligations (14) – – 2,827 2,046 – – – – – – Operating leasing (17) – – 149 – – – – – – – Cemig Saúde Current Health Plan and Dental Plan (18) – – 141 120 – (227 ) – – (186 ) (193 ) Non-current Health Plan and Dental Plan (18) – – 3,022 2,271 – – – – – – The main conditions and characteristics of interest with reference to the related party transactions are: (1) Refers to sale of energy supply to the Minas Gerais State government. The price of the supply is set by the regulator (Aneel) through a Resolution relating to the annual tariff adjustment of Cemig D. In 2017 the government of Minas Gerais State signed a debt recognition agreement with Cemig D for payment of debits relating to the supply of power due and unpaid, in the amount of R$ 113, up to November 2019. Twenty installments were unpaid at December 31, 2019. These receivables have guarantee in the form of Cemig’s right to retain dividends and Interest on Equity otherwise payable to the State (in proportion to the State’s equity interest in the Company), for as long as any payments are overdue or in default. The amount of the Public Lighting Contribution relating to the debt recognition agreement at December 31, 2019 is R$190. (2) Refers to financial income from ICMS tax anticipation, as per Minas Gerais State Decree 47,488. (3) This refers to the recalculation of the inflation adjustment of amounts relating to the Advance against Future Capital Increase (AFAC), which were returned to the State of Minas Gerais. These receivables have guarantee in the form of Cemig’s right to retain dividends and Interest on Equity otherwise payable to the State (in proportion to the State’s equity interest in the Company), for as long as any payments are overdue or in default. For further information, see Note 13. (4) The transactions in sale and purchase of energy between generators and distributors take place through auctions in the Regulated Market, and are organized by the federal government. In the Free Market, transactions are made through auctions or through direct contracting, under the applicable legislation. Transactions for transport of energy, on the other hand, are carried out by transmission companies and arise from the centralized operation of the National Grid, executed by the National System Operator (ONS). (5) Refers to a contract to provide plant operation and maintenance services. (6) This refers to the aggregate amounts of legal actions realized and legal actions provisioned arising from the agreement made between Aliança Geração, Vale S.A. and Cemig. The action is provisioned in the amount of R$98, of which Cemig’s portion is R$32. (7) In 2017, payments of R$70 were made to Santo Antônio Energia, subsidiary of Madeira Energia: R$52 was advanced by Cemig GT; R$ 12 by Sá Carvalho; and R$ 6 by Rosal. The last installment was paid in January 2019. (8) Refers to reimbursement due to termination of contract related to change of the “power purchase agreements” (CCEARs) between Santo Antônio Energia S.A., a subsidiary of Madeira Energia, and Cemig Distribuição – totaling R$ 84, to be settled in 24 monthly installments, with inflation adjustment by the Selic rate and maturities up to January 2020. The outstanding amount at December 31, 2019 was R$4. (9) Refers to advance payments for energy supply made in 2019 to Norte Energia, established by auction and by contract registered with the CCEE (Power Trading Chamber). In full-year 2020 Norte Energia S.A. will deliver contracted supply in the amount of R$40. There is no financial updating of the contract. (10) As mentioned in Note 18, in June 2019, due to the uncertainties related to continuity of Renova, an estimated loss on realization of the receivables was recorded for the full value of the balance in the amount of R$688. (11) On November 25 and December 27, 2019, DIP loan contracts under court-supervised reorganization proceedings, referred to as ‘DIP’ and ‘DIP 2’, were entered into between the Company and Renova Energia S.A., in the amounts of R$10 and R$6.5, respectively. The contracts specify interest equal to 100% of the accumulated variation in the DI rate, plus an annual spread, applied pro rata die (on 252-business-days basis), of 1.083% for the DIP contract and 2.5% for the DIP2 contract, up to the date of respective full payment. The proceeds of this loan were allocated to the investee’s minimum cash needs. The contracts specify a guarantee, given by the investee and its guarantor, through surety and a fiduciary assignment on the shares of the special-purpose company Mina de Ouro, which represents 120% of the principal value of the loan, according to an independent valuation. (12) A liability was recognized corresponding to the Company’s interest in the share capital of Hidrelétrica Itaocara, due to its negative equity (see Note 18). (13) This refers to a contract for development of management software between Cemig D and Axxiom Soluções Tecnológicas S.A., instituted in Aneel Dispatch 2657/2017; (14) The contracts of Forluz are updated by the Expanded Customer Price Index ( Índice Nacional de Preços ao Consumidor Amplo (15) The Company’s contributions to the pension fund for the employees participating in the Mixed Plan, and calculated on the monthly remuneration, in accordance with the regulations of the Fund. (16) Funds for annual current administrative costs of the Pension Fund in accordance with the specific legislation of the sector. The amounts are estimated as a percentage of the Company’s payroll. (17) Rental of the Company’s administrative head offices, in effect until November 2020 (able to be extended every five years, up to 2035) and August 2024 (able to be extended every five years, up to 2034), with annual inflation adjustment by the IPCA index and price reviewed every 60 months. Aiming at costs reduction, in November, 2019, Cemig returned the Aureliano Chaves building to Forluz. (18) Post-employment obligations relating to the employees’ health and dental plan (see Note 26). Dividends receivable from equity investees Dividends receivable from Company’s equity investees are as follows: Dividends receivable 2019 2018 Light 73 – Aliança Geração 103 91 Others (1) 10 29 186 120 (1) The subsidiaries grouped in ‘Others’ are identified in the table above under “Interest on Equity, and Dividends”. Guarantees on loans, financing and debentures Cemig has provided guarantees on loans, financing and debentures of the following related parties – not consolidated in the financial statements because they relate to jointly-controlled entities or affiliated companies: Related party Relationship Type Objective 2019 Maturity Norte Energia (NESA) Affiliated Surety Financing 2,555 2042 Light (1) Affiliated Counter-guarantee Financing 684 2042 Santo Antônio Energia (SAESA) (2) Affiliated Guarantee Financing 939 2034 Santo Antônio Energia (SAESA) (2) Affiliated Surety Debentures 424 2037 Centroeste Jointly-controlled entity Surety Financing 5 2023 4,607 (1) Related to execution of guarantees of the Norte Energia financing. (2) Corporate guarantee given by Cemig to Saesa. At December 31, 2019, Management believes that there is no need to recognize any provisions in the Company’s financial statements for the purpose of meeting any obligations arising under these sureties and/or guarantees. Cash investments in FIC Pampulha – the investment fund of Cemig and its subsidiaries and affiliates Cemig and its subsidiaries and affiliates invest part of their financial resources in an investment fund which has the characteristics of fixed income and obeys the Company’s cash investment policy. The amounts invested by the fund at December 31, 2019 are reported as Cash and cash equivalents, marketable securities or as a deduction of debentures account balances. The funds applied are allocated only in public and private fixed income securities, subject only to credit risk, with various maturity periods, obeying the unit holders’ cash flow needs. The financial investments of the investment fund in marketable securities of related parties are as follows: Issuer of security Type Annual contractual Maturity 2019 2018 ETAU (1) Debentures 108.00% of CDI Dec. 01, 2019 – 5 Light Promissory Note CDI + 3.50% Jan. 22, 2019 – 3 – 8 (1) Empresa de Transmissão do Alto Uruguai S.A. Remuneration of key management personnel The total costs of key personnel, comprising the Executive Board, the Fiscal Council, the Audit Committee and the Board of Directors in 2019, 2018 and 2017, are within the limits approved at a General Shareholders’ Meeting, and the effects on the income statements of the years ended, are as follows: 2019 2018 2017 Remuneration 25 34 32 Profit sharing (reversal) 6 4 1 Assistance benefits 1 3 2 Total 32 41 35 |
33. FINANCIAL INSTRUMENTS AND R
33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [abstract] | |
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT a) Financial instruments classification and fair value The main financial instruments, classified in accordance with the accounting principles adopted by the Company, are as follows: Level 2019 2018 Balance Fair value Balance Fair value Financial assets Amortized cost (1) Marketable securities – Cash investments 2 102 102 117 117 Accounts receivables from Customers and traders; Concession holders (transmission service) 2 4,601 4,601 4,173 4,173 Restricted cash 2 12 12 91 91 Accounts receivable from the State of Minas Gerais (AFAC) 2 115 115 246 246 Concession financial assets – CVA Other financial components 3 882 882 1,081 1,081 Reimbursement of tariff subsidies 2 97 97 91 91 Low-income subsidy 2 30 30 30 30 Escrow deposits 2 2,540 2,540 2,502 2,502 Concession grant fee – Generation concessions 3 2,468 2,468 2,409 2,409 Indemnifiable receivable – Transmission 1,281 1,281 1,296 1,296 Accounts receivable – Renova 2 – – 532 532 Reimbursement – Decontracting of supply 2 – – 97 97 Reimbursement – Assignment of contract – – 10 10 12,128 12,128 12,675 12,675 Fair value through profit or loss Cash equivalents – Cash investments 326 326 783 783 Marketable securities Treasury Financial Notes (LFTs) 1 94 94 254 254 Financial Notes – Banks 2 557 557 435 435 Debentures 2 – – 7 7 977 977 1,479 1,479 Derivative financial instruments (Swaps) 3 1,691 1,691 813 813 Derivative financial instruments (Ativas and Sonda Put options) 3 3 3 4 4 Concession financial assets – Distribution infrastructure 3 483 483 396 396 Indemnifiable receivable – Generation 3 816 816 816 816 3,970 3,970 3,508 3,508 16,098 16,098 16,183 16,183 Financial liabilities Amortized cost (1) Loans, financing and debentures 2 (14,777 ) (14,777 ) (14,772 ) (14,772 ) Debt with pension fund (Forluz) 2 (566 ) (566 ) (652 ) (652 ) Deficit of pension fund (Forluz) 2 (550 ) (550 ) (378 ) (378 ) Concessions payable 3 (20 ) (20 ) (19 ) (19 ) Suppliers 2 (2,080 ) (2,080 ) (1,801 ) (1,801 ) Leasing transactions (2) 2 (288 ) (288 ) – – Advances from customers 2 – – (79 ) (79 ) (18,281 ) (18,281 ) (17,701 ) (17,701 ) Fair value through profit or loss Derivative financial instruments (SAAG put options) 3 (483 ) (483 ) (419 ) (419 ) (483 ) (483 ) (419 ) (419 ) (18,764 ) (18,764 ) (18,120 ) (18,120 ) (1) On December 31, 2019 and 2018, the book values of financial instruments reflect their fair values. (2) Leasing transactions recognized in accordance with IFRS 16. For more information see Note 21. At initial recognition the Company measures its financial assets and liabilities at fair value and classifies them according to the accounting standards currently in effect. Fair value • Level 1 – Active market – Quoted prices: A financial instrument is considered to be quoted in an active market if the prices quoted are promptly and regularly made available by an exchange or organized over-the-counter market, by operators, by brokers or by a market association, by entities whose purpose is to publish prices, or by regulatory agencies, and if those prices represent regular arm’s length market transactions made without any preference. • Level 2 – No active market – Valuation technique: For an instrument that does not have an active market, fair value should be found by using a method of valuation/pricing. Criteria such as data on the current fair value of another instrument that is substantially similar, or discounted cash flow analysis or option pricing models, may be used. The objective of the valuation technique is to establish what would be the transaction price on the measurement date in an arm’s-length transaction motivated by business model. • Level 3 – No active market – No observable inputs: The fair value of investments in securities for which there are no prices quoted on an active market, and/or of derivatives linked to them which are to be settled by delivery of unquoted securities. Fair value is determined based on generally accepted valuation techniques, such as on discounted cash flow analysis or other valuation techniques such as, for example, New Replacement Value ( Valor novo de reposição For assets and liabilities that are recognized at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization. Fair value calculation of financial positions Distribution infrastructure concession financial assets, and transmission concession financial assets – Assets remunerated by tariff Valor novo de reposição Indemnifiable receivable – transmission Valor novo de reposição Indemnifiable receivable – generation Marketable securities Put options Swaps Other financial liabilities b) Derivative financial instruments Put options Company holds options to sell certain securities (put options) for which it has calculated the fair value based on the Black and Scholes Merton Analytically, calculation of the exercise price of the options, the risk-free interest rate and the time to maturity is primarily deterministic, so that the main divergence in the put options takes place in the measurement of the closing price and the volatility of the underlying asset. On December 31, 2019 and 2018, the options values were as follows: 2019 2018 Put option – SAAG 483 419 Put / call options – Ativas and Sonda (3 ) (4 ) 480 415 Put option – SAAG Option contracts were signed between Cemig GT and the private pension entities that participate in the investment structure of SAAG (comprising FIP Melbourne, Parma Participações S.A. and FIP Malbec, jointly, ‘the Investment Structure’), giving those entities the right to sell units in the Funds that comprise the Investment Structure, at the option of the Funds, in the 84 th pro rata temporis For measurement of the fair value of SAAG put options Cemig GT uses the Black-Scholes-Merton (‘BCM’) model. The assumption was made that the future expenditures of FIP Malbec and FIP Melbourne are insignificant, so that the options are valued as if they hold direct equity interests at Mesa. However, neither SAAG nor Mesa have its share traded on a securities exchange, so that some assumptions are necessary for calculation of the price of the asset and its volatility for application of the BSM model. The closing price of the share of Mesa on December 31, 2019 is ascertained based on free cash flow (FCFE), expressed by equity pick-up of the indirect interests held by the FIPs. Volatility, in turn, is measured as an average of historic volatility (based on the hypothesis that the series of the difference of continuously capitalized returns follows a normal distribution) of comparable companies in the energy generation sector that are traded at Bovespa. Based on the analysis performed, a liability of R$483 was recorded in the Company’s financial statements (R$419 on December 31, 2018), for the difference between the exercise price and the estimated fair value of the assets. The changes in the value of the options are as follows: Balance at December 31, 2016 196 Variation in fair value 121 Reversals (5 ) Balance at December 31, 2017 312 Adjustment to fair value 107 Balance at December 31, 2018 419 Adjustment to fair value 64 Balance at December 31, 2019 483 Cemig GT performed the sensitivity analysis of the exercise price of the option, varying the risk-free interest rate and the volatility, keeping the other variables of the model unchanged. In this context, scenarios for the risk-free interest rate at -0.81% to 3.19% p.a., and for volatility between 10% and 70% p.a., were used, resulting in estimates of minimum and maximum price for the put option of R$492 and R$525, respectively. This option can potentially dilute basic profit per share in the future; however, they have not caused dilution of profit per share in the years presented. Put options of RME and Lepsa’s shares Cemig had a contract under which Fundo de Participações Redentor had the option to sell to Cemig all of its shares at RME and Lepsa. The exercise price of the option was calculated from the sum of the value of the amounts injected by the Fund into the investee, plus the operating expenses of the fund, less Interest on equity, and dividends, distributed by RME and Lepsa. The exercise price was subject to monetary adjustment by the CDI (Interbank CD) Rate plus financial remuneration at 0.9% per year. The exercise of the options occurred in 2016, 2017 and 2018. The change in the value of the options – the difference between the estimated fair value for the assets and the corresponding exercise price, on December 31, 2018 and 2017 is as follows: Balance at December 31, 2016 1,150 Variation in fair value 187 Written down, due to exercise of Put (830 ) Balance at December 31, 2017 507 Variation in fair value 48 Written down, due to exercise of Put (555 ) Balance at December 31, 2018 – The effects of the options contract on the net income for 2018 and 2017 were recognized at fair value based on the Black-Scholes-Merton analysis, considering: exercise price of the option; closing price of the stock of Light on the record dates (as a reference for the value of the indirect equity interest held by the direct shareholders of RME and Lepsa in Light); risk-free interest rate; volatility of the price of the underlying asset; and time to maturity of the option. After the exercise of the option, which resulted in the acquisition of the remaining shares of the the investees, the Company completed the merger of its wholly-owned subsidiaries on April 24, 2019, at book value, with consequent extinction of these companies. With extinction of RME and Lepsa, the Shareholders ‘agreement of Light S.A. (‘Light’) immediately ceased to exist, losing its object, and obligations under it terminated. Since this was a merger of wholly-owned subsidiaries, there was no capital increase nor issuance of new shares. Also, this merger did not change the aggregate percentage equity interest in Light held by Cemig in that date. Sonda options As part of the shareholding restructuring, CemigTelecom and Sonda signed a Purchase Option Agreement (issued by Cemig Telecom) and a Sale Option Agreement (issued by Sonda). With the merger of Cemig Telecom into Cemig, on March 31, 2018, the option contract became an agreement between Cemig and Sonda. This resulted in Cemig simultaneously having a right (put option) and an obligation (call option). The exercise price of the put option will be equivalent to fifteen times the adjusted net income of Ativas in the year prior to the exercise date. The exercise price of the call option will be equivalent to seventeen times the adjusted net income of Ativas in the business year prior to the exercise date. Both options, if exercised, result in the sale of the shares in Ativas currently owned by the Company, and the exercise of one of the options results in nullity of the other. The options may be exercised as from January 1, 2021. The put and call options in Ativas (‘the Ativas Options’) were measured at fair value and posted at their net value, i.e. the difference between the fair values of the two options on the reporting date of the financial statements for 2019. Depending on the value of the options, the net value of the Ativas Options may be an asset or a liability of the Company. The measurement has been made using the Black-Scholes-Merton (BSM) model. In the calculation of the fair value of the Ativas Options based on the BSM model, the following variables are taken into account: closing price of the underlying asset in 2019; the risk-free interest rate; the volatility of the price of the underlying asset; the time to maturity of the option; and the exercise prices on the exercise date. The closing price of the underlying asset was based on the valuation prepared by the same specialized consulting firm responsible for calculating the options. The valuation base date is December 31, 2019, the same date as the closing of the Company’s Financial Statements, and the methodology used to calculate the fair value of the company is discounted cash flow (DCF) based on the value of the shares transaction of Ativas by Sonda, occurred on October 19, 2016. The calculation of the risk-free interest rate was based on yields of National Treasury Bills. Maturity was calculated assuming exercise date of December 31, 2021. Considering that the exercise prices of the options are contingent upon the future financial results of Ativas, the estimated exercise prices on the maturity date was based on statistical analyses and information of comparable listed companies. Swap transactions Considering that part of the loans and financings of the Company’s subsidiaries is denominated in foreign currency, the companies use derivative financial instruments (swaps) to protect the servicing associated with these debts (principal plus interest). The derivative financial instruments contracted have the purpose of protecting the operations against the risks arising from foreign exchange variation and are not used for speculative purposes. The notional amount of derivative transactions are not presented in the statement of financial position, since they refer to transactions that do not require cash as only the gains or losses actually incurred are recorded. The net result of those transactions on December 31, 2019 was a positive adjustment of R$998 (positive adjustment of R$893 on December 31, 2018), which was posted in finance income (expenses). The counterparties of the derivative transactions are the banks Bradesco, Itaú, Goldman Sachs and BTG Pactual and Cemig is guarantor of the derivative financial instruments contracted by Company. This table presents the derivative instruments contracted by Company as of December 31, 2019 and 2018. Assets (1) Liability (1) Maturity period Trade market Notional amount (2) Unrealized gain / loss Unrealized gain / loss Carrying amount 2019 Fair value 2019 Carrying amount 2018 Fair value 2018 US$ exchange variation + Rate (9.25% p.y.) Local currency + R$ 150.49% of CDI Interest: Half-yearly Principal: Dec. 2024 Over the counter US$1,000 814 1,235 679 627 US$ exchange variation + Rate (9.25% p.y.) Local currency + R$125.52% of CDI Interest: Half-yearly Principal: Dec. 2024 Over the counter US$500 108 456 33 186 922 1,691 712 813 1) For the US$1 billion Eurobond issued on December 2017: (i) for the principal, a call spread was contracted, with floor at R$ 3.25/US$ and ceiling at R$ 5.00/US$; and (ii) a swap was contracted for the total interest, for a coupon of 9.25% p.a. at an average rate equivalent to 150.49% of the CDI. For the additional US$500 issuance of the same Eurobond issued on July 2018: (1) a call spread was contracted for the principal, with floor at R$ 3.85/US$ and ceiling at R$ 5.00/US$; and (2) a swap was contracted for the interest, resulting in a coupon of 9.25% p.a., with an average rate equivalent to 125.52% of the CDI rate. 2) In millions of US$. In accordance with market practice, the Company uses a mark-to-market method to measure its derivatives financial instruments for its Eurobonds. The principal indicators for measuring the fair value of the swap are the B3 future market curves for the DI rate and the dollar.The Black & Scholes model is used to price the call spread, and one of parameters of which is the volatility of the dollar, measured on the basis of its historic record over 2 years. The fair value at December 31, 2019 was R$1,691 (R$ 813 in December 31, 2018), which would be the reference if Cemig GT would liquidate the financial instrument on that date, but the swap contracts protect the Company’s cash flow up to the maturity of the bonds in 2024 and they have carrying value of R$922 at December 31, 2019 (R$ 712 in December 31, 2018). Company is exposed to market risk due to having contracted this hedge, the principal potential impact being a change in future interest rates and/or the future exchange rates. Based on the futures curves for interest rates and dollar, Company prepare a sensitivity analyses and estimates that in a probable scenario its results would be affected by the swap and call spread at the end of the period in the amount of R$1,705 for the option (call spread), and R$1,511 for the swap – comprising a total of R$3,216. Company has measured the effects on its net income of reduction of the estimated fair value for the ‘probable’ scenario, analyzing sensitivity for the risks of interest rates, exchange rates and volatility changes, by 25% and 50%, as follows: Base scenario Dec. 31, 2019 ‘Probable’ scenario: ‘Possible’ scenario ‘Remote’ scenario: Swap (asset) 6,427 7,193 6,087 5,052 Swap (liability) (5,774 ) (5,682 ) (5,794 ) (5,896 ) Option / Call spread 1,038 1,705 1,183 481 Derivative hedge instrument 1,691 3,216 1,476 (363 ) The same methods of measuring marked to market of the derivative financial instruments described above were applied to the estimation of fair value. c) Financial risk management Corporate risk management is a management tool that is part of the Company’s corporate governance practices, and is aligned with the process of planning, which sets the Company’s strategic business objectives. The Company monitor the financial risk of transactions that could negatively affect the Company’s liquidity or profitability, recommending hedge protection strategies to minimize the Company’s exposure to foreign exchange rate risk, interest rate risk, and inflation risks, which are effective, in alignment with the Company’s business strategy. The main risks to which the Company is exposed are as follows: Exchange rate risk Cemig and its subsidiaries are exposed to the risk of appreciation in exchange rates, with effect on loans and financing, suppliers, and cash flow. The net exposure to exchange rates is as follows: 2019 2018 Exposure to exchange rates Foreign currency R$ Foreign currency R$ US dollar Loans and financing 1,516 6,110 1,518 5,882 Suppliers (Itaipu Binacional) 60 243 70 268 1,576 6,353 1,588 6,150 Net liabilities exposed 6,353 6,150 Sensitivity analysis Based on information from its financial consultants, the Company estimates that in a probable scenario the variation of the exchange rates of foreign currencies in relation to the Real at the end of 2020 will be an appreciation of the dollar by 29.01% to R$5.20. The Company has prepared a sensitivity analysis of the effects on the Company’s net income arising from depreciation of the Real exchange rate by 25%, and by 50%, in relation to this ‘probable’ scenario. Risk: foreign exchange rate exposure Base Scenario ‘Probable’ scenario US$1=R$5.20 ‘Possible’ scenario Appreciation 25.00% US$1= R$6.50 ‘Remote’ scenario Appreciation 50.00% US$1=R$7.80 US dollar Loans and financings 6,110 7,883 9,853 11,824 Suppliers (Itaipu Binacional) 243 313 392 470 6,353 8,196 10,245 12,294 Net liabilities exposed 6,353 8,196 10,245 12,294 Net effect of exchange rate fluctuation - 1,843 3,892 5,941 Company has entered into swap operations to replace the exposure to the US dollar fluctuation with exposure to fluctuation in the CDI Rate, as described in more detail in the item ‘Swap Transactions’ in this Note. Interest rate risk The Company is exposed to the risk of increase in Brazilian domestic interest rates. This exposure occurs as a result of net liabilities indexed to variation in interest rates, as follows: Risk: Exposure to domestic interest rate changes 2019 2018 Assets Cash equivalents – Cash investments (Note 6) – CDI 326 783 Marketable securities (Note 7) – CDI / SELIC 753 813 Accounts receivable – Renova (Note 32) – CDI – 532 Restricted cash – CDI 12 91 CVA and in tariffs (Note 16) – SELIC 882 1,081 Reimbursement due to termination of contract (Note 32) – SELIC / CDI – 97 Reimbursement related to cancelled contracts – CDI – 10 1,973 3,407 Liabilities Loans, financing and debentures (Note 24) – CDI (3,773 ) (4,920 ) Loans, financing and debentures (Note 24) – TJLP (244 ) (249 ) Advance sales of energy supply - CDI – (79 ) (4,017 ) (5,248 ) Net liabilities exposed (2,044 ) (1,841 ) Sensitivity analysis In relation to the most significant interest rate risk, Company estimates that, in a probable scenario, at December 31, 2020 Selic and TJLP rates will be 1.50% and 4.95%, respectively. The Company has made a sensitivity analysis of the effects on its net income arising from increases in rates of 25% and 50% in relation to the ‘probable’ scenario. Fluctuation in the CDI rate accompanies the fluctuation of Selic rate. 2019 2020 Risk: Increase in Brazilian interest rates Book value ‘Probable’ scenario ‘Possible’ scenario ‘Remote’ scenario Assets Cash equivalents (Note 6) 326 331 332 333 Marketable securities (Note 7) 753 764 767 770 Restricted cash 12 12 12 12 CVA Other financial components 882 895 899 902 1,973 2,002 2,010 2,017 Liabilities Loans and financing (Note 24) – CDI (3,773 ) (3,830 ) (3,844 ) (3,858 ) Loans and financing (Note 24) – TJLP (244 ) (256 ) (259 ) (262 ) (4,017 ) (4,086 ) (4,103 ) (4,120 ) Net assets (liabilities) exposed (2,044 ) (2,084 ) (2,093 ) (2,103 ) Net effect of fluctuation in interest rates (40 ) (49 ) (59 ) Increase in inflation risk This table presents the Company’s net exposure to inflation index: Exposure to increase in inflation 2019 2018 Assets Concession financial assets related to Distribution infrastructure - IPCA (1) 483 396 Receivable from Minas Gerais state government (Debt recognition agreement) – IGPM index (Note 13 and 32) – 247 Receivable from Minas Gerais state government (AFAC) – IGPM (Note 13 and 32) 115 246 Receivable for residual value – Transmission – IPCA (Note 16) 2,468 1,296 Concession Grant Fee – IPCA (Note 16) 1,281 2,409 4,347 4,594 Liabilities Loans, financing and debentures – IPCA and IGP-DI (Note 24) (4,730 ) (3,791 ) Debt with pension fund (Forluz) – IPCA (566 ) (652 ) Deficit of pension plan (Forluz) – IPCA (550 ) (378 ) (5,846 ) (4,821 ) Net assets (liabilities) exposed (1,499 ) (227 ) (1) Portion of the concession financial assets relating to the Regulatory Remuneration Base of Assets ratified by the regulator (Aneel) after the 3 rd Sensitivity analysis In relation to the most significant risk of reduction in inflation index, reflecting the consideration that the Company has more assets than liabilities indexed to inflation indices, the Company estimates that, in a probable scenario, at December 31, 2020 the IPCA inflation index will be 1.31% and the IGPM inflation index will be 4.23%. The Company has prepared a sensitivity analysis of the effects on its net income arising from an increase in inflation of 25% and 50% in relation to the ‘probable’ scenario. 2019 2020 Risk: increase in inflation Amount Book value ‘Probable’ scenario IPCA 1.31% IGPM 4.23% ‘Possible’ scenario (25%) IPCA 1.64% IGPM 5.29% ‘Remote’ scenario (50%) IPCA 1.97% IGPM 6.35% Assets Concession financial assets related to Distribution infrastructure – IPCA (1) 483 489 491 493 Accounts receivable from Minas Gerais state government (AFAC) – IGPM index (Note 32) 115 120 121 122 Receivable for residual value – Transmission – IPCA (Note 16) 2,468 2,500 2,508 2,517 Concession Grant Fee – IPCA (Note 16) 1,281 1,298 1,302 1,306 4,347 4,407 4,422 4,438 Liabilities Loans, financing and debentures – IPCA and IGP-DI (4,730 ) (4,792 ) (4,808 ) (4,823 ) Debt agreed with pension fund (Forluz) – IPCA (566 ) (573 ) (575 ) (577 ) Deficit of pension plan (Forluz) (550 ) (557 ) (559 ) (561 ) (5,846 ) (5,922 ) (5,942 ) (5,961 ) Net liability exposed (1,499 ) (1,515 ) (1,520 ) (1,523 ) Net effect of fluctuation in IPCA and IGP–M indices (16 ) (21 ) (24 ) (1) Portion of the Concession financial assets relating to the Regulatory Remuneration Base of Assets ratified by the regulator (Aneel) after the 4 rd Liquidity risk Cemig has sufficient cash flow to cover the cash needs related to its operating activities. The Company manages liquidity risk with a group of methods, procedures and instruments that are coherent with the complexity of the business, and applied in permanent control of the financial processes, to guarantee appropriate risk management. Cemig manages liquidity risk by permanently monitoring its cash flow in a budget-oriented manner. Balances are projected monthly, for each one of the companies, over a period of 12 months, and daily liquidity is projected over 180 days. Short-term investments must comply with investing principles established in the Company’s Cash Investment Policy. These include applying its resources in private credit investment funds, without market risk, and investment of the remainder directly in bank CDs or repo contracts which earn interest at the CDI rate. In managing cash investments, the Company seeks to obtain profitability through a rigid analysis of financial institutions’ credit risk, applying operational limits for each bank, based on assessments that take into account their ratings, exposures and balance sheet. It also seeks greater returns on investments by strategically investing in securities with longer investment maturities, while bearing in mind the Company’s minimum liquidity control requirements. Any reduction in the Company’s ratings could result in a reduction of its ability to obtain new financing and could also make refinancing of debts not yet due more difficult or more costly. In this situation, any financing or refinancing of the Company’s debt could have higher interest rates or might require compliance with more onerous covenants, which could additionally cause restrictions to the operations of the business. The flow of payments of the Company’s obligation to suppliers, debts with the pension fund, loans, financing and debentures, at floating and fixed rates, including future interest up to contractual maturity dates, is as follows: Up to 1 month 1 to 3 months 3 months to 1 year 1 to 5 years Over 5 years Total Financial instruments at (interest rates): - Floating rates Loans, financing and debentures 36 1,119 1,335 14,572 1,912 18,974 Onerous concessions – – 2 9 13 24 Debt with pension plan (Forluz) (Note 26) 12 24 111 557 – 704 Deficit of the pension plan (FORLUZ) (Note 26) 5 11 123 212 630 981 53 1,154 1,571 15,350 2,555 20,683 - Fixed rate Suppliers 1,786 293 1 – – 2,080 1,839 1,447 1,572 15,350 2,555 22,763 Credit risk The distribution concession contract requires levels of service on a very wide basis within the concession area, and disconnection of supply of defaulting customers is permitted. Additionally, the Company uses numerous tools of communication and collection to avoid increase in default. These include: telephone contact, emails, text messages, collection letters, posting of customers with credit protection companies, and collection through the courts. The risk arising from the possibility of Cemig and its subsidiaries incurring losses as a result of difficulty in receiving amounts billed to its customers is considered to be low. The credit risk is also reduced by the extremely wide customers’ base. The allowance for doubtful accounts receivable recorded on December 31, 2019, considered to be adequate in relation to the credits in arrears receivable by the Company, was R$810 (R$840 on December 31, 2018). In relation to the risk of losses resulting from insolvency of the financial institutions at which the Company or its subsidiaries have deposits, a Cash Investment Policy was approved and has been in effect since 2004. Company manage the counterparty risk of financial institutions based on an internal policy. This Policy assesses and scales the credit risks of the institutions, the liquidity risk, the market risk of the investment portfolio and the Treasury operational risk. All investments are made in financial securities that have fixed-income characteristics, always indexed to the CDI rate. The Company does not carry out any transactions that would bring volatility risk into its financial statements. As a management instrument, Company divide the investment of its funds into direct purchases of securities (own portfolio) and investment funds. The investment funds invest the funds exclusively in fixed income products, having companies of the Group as the only unit holders. They obey the same policy adopted in the investments for the Company’s directly-held own portfolio. The minimum requirements for concession of credit to financial institutions are centered on three items: 1. Rating by three risk rating agencies. 2. Equity greater than R$ 400. 3. Basel ratio one percentage point above the minimum set by the Brazilian Central Bank. Banks that exceed these thresholds are classified in three groups, by the value of their equity; and within this classification, limits of concentration by group and by institution are set: Group Equity Concentration Limit per bank (% of equity)* A1 Over R$ 3.5 billion Minimum of 50% Between 6% and 9% A2 R$ 1.0 billion to R$ 3.5 billion Maximum 30% Between 5% and 8% B R$ 400 to R$ 1.0 billion Maximum 30% Between 5% and 7% * The percentage assigned to each bank depends on individual assessment of indicators, e.g. liquidity, and quality of the credit portfolio. Further to these points, Cemig also sets two concentration limits: 1. No bank may have more than 30% of the Group’s portfolio. 2. No bank may have more than 50% of the portfolio of any individual company. Risk of over-contracting and under-contracting of energy supply Sale or purchase of energy supply in the spot market to cover a positive or negative exposure of supply contracted, to serve the captive market of Cemig D, is an inherent risk to the energy distribution business. The regulatory agent limits for 100% pass-through to customers the exposure to the spot market, valued at the difference between the distributor’s average purchase price and the spot price (PLD), is only the margin between 95% and 105% of the distributor’s contracted supply. Any exposure that can be proved to have arisen from factors outside the distributor’s control (‘involuntary exposure’) may also be passed through in full to customers. Company’s management is continually monitories its contracts for purchase of energy supply to mitigate the risk of exposure to the spot market. Risk of continuity of the concession The risk to continuity of the distribution concession arises from the new terms included in the extension of Cemig D’s concession for 30 years from January 1, 2016, as specified by Law 12,783/13. The extension introduced changes to the present contract, conditional upon compliance by the distributor with new criteria for quality, and for economic and financial sustainability. The extension is conditional on compliance with indicators contained in the contract itself, which aim to guarantee quality of the service provided and economic and financial sustainability of the company. These are determinant for actual continuation of the concession in the first five years of the contract, since non-compliance with them in two consecutive years, or in the fifth year, results in cancellation of the concession. Additionally, as from 2021, non-compliance with the quality criteria for three consecutive years, or the minimum parameters for economic/financial sustainability for two consecutive years, results in opening of proceedings for termination of the concession. The efficiency criteria for continuity of supply and for economic and for financial management, required to maintain the distribution concession, were met in the year ended December 31, 2019. Hydrological risk The greater part of the energy sold by the Company’s subsidiaries is generated by hydroelectric plants. A prolonged period of drought can result in lower water volumes in the reservoirs of these plants, which can lead to an increase in the cost of acquisition of energy, due to replacement by thermoelectric generation, or reduction of revenues due to reduction in consumption caused by implementation of wide-ranging programs for saving of energy. Prolongation of the generation of energy using the thermal plants could pressure costs of acquisition of supply for the distributors, causing a greater need for cash, and could result in future increases in tariffs. Risk of debt early maturity The Company’s subsidiaries have loan contracts with restrictive covenants normally applicable to this type of transaction, related to compliance with a financial index. Non-compliance with these covenants could result in earlier maturity of debts. On December 31, 2019, the Company was compliant with all the covenants for financial index requiring half-yearly and annual compliance. Exception was noticed for the CEF contract non-financial covenant at the loan contracts of the subsidiaries Central Eólica Praias |
34. ASSETS AS HELD FOR SALE AND
34. ASSETS AS HELD FOR SALE AND DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of assets and liabilities classified as held for sale [abstract] | |
ASSETS AS HELD FOR SALE AND DISCONTINUED OPERATIONS | 34. ASSETS AS HELD FOR SALE AND DISCONTINUED OPERATIONS Assets and liabilities classified as held for sale, and the results of discontinued operations, were as follows: 2019 2018 Investments Investments Telecom Total Assets 1,258 19,446 – 19,446 Liabilities – (16,272 ) – (16,272 ) Net Asset 1,258 3,174 – 3,174 Attributed to equity holders of the parent 1,258 1,818 – 1,818 Attributed to non-controlling interests – 1,356 – 1,356 Net income from discontinued operations 224 73 290 363 Attributed to equity holders of the parent 224 32 290 322 Attributed to non-controlling interests – 41 – 41 Net income from continuing operations 73 – – – Attributed to equity holders of the parent 73 – – – Attributed to non-controlling interests – – – – On November 27, 2018, the Board of Directors of the Company decided, in the context of Cemig’s disinvestment program, to maintain as a priority for 2019 the firm commitment to sale of its shares in Light S.A., on conditions that are compatible with the market and also in accordance with the interests of shareholders. Additionally, the Company has assessed that its investment in Light meets the criteria of IFRS 5 – Non-current assets held for sale and discontinued operations Disposal of interest in and control of Light On July 17, 2019, together with the public offering of shares by Light, the Company sold 33,333,333 shares that it held in that investee, at the price per share of R$ 18.75, in the total amount of R$625. Additionally, with completion of the public offering of shares by Light, the Company’s equity interest in the total capital of this investee was reduced from 49.99% to 22.58%. This limited its right of voting in meetings of shareholders, and consequently its ability to direct material activities of the investee. Thus, as from that date, with the changes of the equity interest in Light, the Company ceased to control the investee. In these circumstances, the Company wrote down the values of assets and liabilities of its former subsidiary, and recognized, at fair value, its remaining equity interest as an investment in an affiliate or jointly-controlled entity, in accordance with IFRS 10– Consolidated financial statements. Since the Company maintains its firm commitment to dispose of the remaining equity interest in Light in the near future, the investment in Light continues to be classified as Assets held for sale, in accordance with IFRS 5 – Non-current assets held for sale and discontinued operations The Company also wrote down the assets and liabilities of the former subsidiaries Itaocara, Guanhães, LightGer Axxiom The accounting effects arising from the sale of equity interest and control of Light are shown in this table: Profit/loss on disposal of equity interest Remeasurement of remaining equity interest 2019 Light Light Lightger Guanhães Axxion Itaocara Total Prior equity interest – Assets held for sale (515 ) (1,060 ) (126 ) (141 ) (4 ) (4 ) (1,850 ) Proceeds from disposal of equity interest 625 – – – – – 625 Remeasurement at fair value of remaining equity interest 1,258 128 131 4 4 1,525 Others – – – 4 5 – 9 Effects on the income statement, before taxes 110 198 2 (6 ) 5 – 309 Income tax and social contribution tax (38 ) (47 ) – – – – (85 ) Net income from discontinued operations 72 151 2 (6 ) 5 – 224 Of the total gain resulting from the disposal of control of Light, totaling R$ R$224, the amount of R$72 refers to the capital gain, net of tax, resulting from the sale of 33,333,333 shares, considering as a cost of these shares the proportion of the equity interest sold in relation to the total amount of the asset held for sale on the date of the disposal. The remeasurement at fair value of the remaining equity interest in Light considered its shares’ sales price on the date of the loss of control (Level 1 in the fair value hierarchy), less the estimated costs to sale of R$29. This table gives information on the assets and liabilities of Light, which Company’s interest is classified as asset held for sale on December 31, 2019: 2019 2019 ASSETS LIABILITIES Cash and cash equivalents 1,678 Suppliers 2,546 Receivables from customers and traders 2,537 Loans and financings 1,387 Recoverable taxes 216 Taxes 172 Financial assets of sector 549 Other current liabilities 1,071 Other current assets 374 Total, current liabilities 5,176 Total, current assets 5,354 Receivables from customers and traders 1,113 Loans and financings 7,379 Recoverable taxes 6,257 Taxes 348 Concession financial assets 5,358 Deferred taxes 400 Property, plant and equipment 1,587 Other non-current liabilities 4,308 Intangible assets 2,837 Total, non-current liabilities 12,435 Investments 579 Other non-current assets 758 Share capital 4,051 Total, non-current assets 18,489 Capital reserves 3 Profit reserves 1,958 Equity valuation adjustments 220 Shareholders’ Equity 6,232 Total Assets 23,843 Total, Liabilities 23,843 Maintenance of the interest in Light as an asset held for sale In 2019, Management has not completed the process of disinvestment of the entire investment in Light due to external factors, beyond its control and to unfavorable market conditions. Company’s management continues to have a firm commitment to dispose of the remaining equity interest in Light and estimates that conclusion of the process in 2020 is highly probable. Considering that it is an investment in an affiliate, it was classified as an asset held for sale, but no longer as a discontinued operation, in accordance with the provisions established in IFRS 5 – Non-current assets held for sale and discontinued operations As the investment is no longer accounted for by the equity method as from the date when it is classified as held for sale, the dividends declared by the investee in December 2019, in the amount of R$73, were recognized in net income from continuing operations. |
35. INSURANCE
35. INSURANCE | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of types of insurance contracts [abstract] | |
INSURANCE | 35. INSURANCE The Company maintains insurance policies to cover damages on certain assets, in accordance with orientation by specialists, as listed below, taking into account the nature and the degree of risk, for amounts considered sufficient to cover any significant losses related to its assets and responsibilities. The risk assumptions adopted, due to their nature, are not part of the scope of an audit of the financial statements, and consequently were not examined by the external auditors. Coverage Coverage period Amount Annual Companhia Energética de Minas Gerais Facilities in buildings Fire Jan. 8, 2020 to Jan. 8, 2021 R$ 8,661 R$ 2 Cemig Geração e Transmissão Air transport / Aircraft Fuselage Third party April 29, 2019 to April 29, 2020 April 29, 2019 to April 29, 2020 US$ 4,385 14,000 US$ 49 Warehouse stores Fire Nov. 2, 2019 to Nov. 2, 2020 R$ 20,771 R$ 20 Buildings Fire Jan. 8, 2020 to Jan. 8, 2021 R$ 275,773 R$ 75 Telecoms equipment (3) Fire Jan. 8, 2019 to Jan. 8, 2020 R$ 2,650 R$ 2 Operational risk - Transformers above 15MVA and other power distribution equipment with value above R$1,000 (2) Dec. 7, 2019 to Dec. 7, 2020 R$ 959,243 R$ 1,262 Cemig Distribuição Air transport / Aircraft / Guimbal equipment Fuselage Third party April 29, 2019 to April 29, 2020 US$ 3,370 14,000 US$ 34 Warehouse stores Fire Nov. 2, 2019 to Nov. 2, 2020 R$ 120,007 R$ 117 Buildings Fire Jan. 8, 2019 to Jan. 8, 2020 R$ 744,134 R$ 201 Telecoms equipment (3) Fire R$ 31,083 R$ 28 Operational risk – Transformers above 15MVA and other energy distribution equipment with value above R$ 1,000 (2) Total Dec. 7, 2019 to Dec. 7, 2020 R$ 528,071 R$ 695 Gasmig Gas distribution network / Third party Third party Dec. 15, 2019 to Dec. 15, 2020 R$ 60,000 R$ 398 Own vehicle fleet (Operation) Damage to third parties only Jul. 7, 2019 to Jul. 7, 2020 R$ 500 R$ 3 Own vehicle fleet (Directors) Full cover Oct. 25, 2019 to Oct. 25, 2020 R$ 100 R$ 2 Facilities – multirisk Robbery, theft and fire Jan. 1, 2020 to Jan. 1, 2021 R$ 41,374 R$ 44.8 (1) Amounts expressed in R$ ‘000 or US$’000. (2) Maximum indemnity limit: R$ 231 (3) Contracting of a new policy is in progress. The Company, except for its aircraft, does not have third party liability insurance covering accidents, and is not seeking proposals for this type of insurance. Additionally, Company has not sought proposals for, and does not have current policies for, insurance against events that could affect its facilities such as earthquakes, floods, systemic failures or business interruption. The Company has not suffered significant losses arising from the above-mentioned risks. |
36. COMMITMENTS
36. COMMITMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Commitments | |
COMMITMENTS | 36. COMMITMENTS Cemig and its subsidiaries have contractual obligations and commitments as follows: 2020 2021 2022 2023 2024 After 2025 Total Purchase of energy from Itaipu 1,701 1,538 1,538 1,568 1,551 32,724 40,620 Purchase of energy – auctions 4,408 4,081 4,035 4,281 4,724 55,730 77,259 Purchase of energy – ‘bilateral contracts’ 334 334 334 334 223 148 1,707 Quotas of Angra 1 and Angra 2 296 289 291 299 302 6,352 7,829 Transport of energy from Itaipu 240 251 264 251 238 1,441 2,685 Other energy purchase contracts 3,619 3,347 3,808 3,679 3,913 35,082 53,448 Physical quota guarantees 845 757 718 681 653 13,601 17,255 Total 11,443 10,597 10,988 11,093 11,604 145,078 200,803 |
37. THE ANNUAL TARIFF ADJUSTMEN
37. THE ANNUAL TARIFF ADJUSTMENT | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Financial Assets And Financial Liabilities With The Tariff Adjustments [abstract] | |
THE ANNUAL TARIFF ADJUSTMENT | 37. THE ANNUAL TARIFF ADJUSTMENT On May 28, 2019, the regulator (Aneel) approved the Annual Tariff Adjustment for Cemig D. This provided a tariff increase of 8.73%, whereas 1.60% corresponded to Cemig D’s manageable costs (Portion B) and the remaining portion, of 7.13%, has zero economic effect, not affecting profitability, since it represents direct pass-through, within the tariff, relating to the following items: (i) increase of 0.34% in non-manageable (‘Parcel A’) costs – mainly purchase of energy supply and transmission charges; (ii) ) increase of 9.24% in the financial components of the current process, led by the CVA currently being processed, which had an effect of 10.79%; and (iii) 2.45% was withdrawn from the financial components of the prior process. The increase is in effect from May 28, 2019 to May 27, 2020. |
38. NON-CASH TRANSACTIONS
38. NON-CASH TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Non Cash Transactions [abstract] | |
NON-CASH TRANSACTIONS | 38. NON-CASH TRANSACTIONS On 2019, 2018 and 2017, the Company had the following transactions not involving cash, which are not reflected in the Cash flow statement: • Capitalized financial costs of R$23 on 2019 (R$ 30 on 2018, R$ 71 on 2017). • Except for the cash arising from the merger of the subsidiaries RME and LUCE amounting R$ 22, this transaction did not generate effects in the Company’s cash flow on 2019. • Settlement of receivables from State of Minas Gerais through retention of dividends in the total amount of R$148 on 2019. • Except for the cash arising from the acquisition of the subsidiaries Parajuru and Volta do Rio amounting R$ 4, and the payment of R$ 5, this business combination did not generate effects in the Company’s cash flow on 2018. • Except for the consideration paid for acquisition of an additional equity interest at RME and control of Light, in the amount of R$ 104, and the cash arising from RME, of R$ 67, this business combination did not generate effects in the Company’s cash flow on 2018. |
39. SUBSEQUENT EVENTS
39. SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events | |
SUBSEQUENT EVENTS | 39. SUBSEQUENT EVENTS Covid-19 Pandemic General Context On March 11, 2020, the World Health Organization characterized Covid-19 as a pandemic, reinforcing the restrictive measures recommendations to prevent the virus dissemination worldwide. These measures are based, mainly, on social distancing, which have been causing major negative impact on entities, affecting their production process, interrupting their supply chains, causing workforce shortages and closing of stores and facilities. The economies around the world are developing measures to handle the economic crisis, especially by their central banks and fiscal authorities, but the economic downturn and its effects are not yet accurately measurable. Government measures aimed at Brazilian energy sector Several measures were implemented by the Brazilian government, specifically aimed at energy sector, which include: • The provisional normative act. 950/2020 issued in April 8, 2020, which provides for 100% discount in the calculation of social energy tariff (‘Tarifa Social de Energia Elétrica’), from April 1, 2020 to June 20, 2020, applicable to customers included in low-income residential subclass, with energy consumption less than or equal to 220 kWh/month. The act also authorizes the Federal Government to allocate resources to Energy Development Account (CDE), limited to R$900, to cover the tariff discounts established. • Expansion on the limit of total amount of energy that can be declared by energy distributors in the process of the surplus sales mechanism (‘Mecanismo de Venda de Excedentes’ - MVE), during 2020, from 15% to 30%, for the purpose of facilitating contractual reductions. • Provision of financial resources available in the reserve fund, by CCEE, dedicated to reduce future regulatory fees. Cemig D was granted with R$122 million. • Under Resolution 878/2020, issued on March 24, 2020, the regulator has implemented some measures in an attempt to maintain the public service of energy supply, which include: prohibiting energy supply suspension due to default of certain categories of customers (residentials), for 90 days, prioritizing emergency assistance and energy supply to services and activities regarded as essential, drawing up specific contingency plans to assist health care units and hospital services, among others. On May 18, 2020, the Federal Government published the Decree n. 10,350/20 to support the energy distribution sector, which is the segment that deals directly with customers and firstly affect by the Covid-19 pandemic crisis. Based on this decree, CCEE (Power Trading Chamber) will create and manage the “Covid Account” in order to either cover the distribution agents revenue/cash flow deficit or to anticipate their revenues, related to (i) over-contracted purchases due to market retraction, (ii) “CVA” sector assets (iii) maintaining the neutrality of regulatory charges, (iv) compensation for the delay in applying tariff adjustments and (v) anticipation of “parcel B” revenues as determined by Aneel regulation. Aneel will determine on a monthly basis the total amount to be paid to each distribution agent from Covid-Account. There are some rules applied to distribution agents to be entitled to the Covid-Account resources, such as relinquishing any intention to reduce or end the purchase of energy from generators because of a reduction in the sales until December 2020, and, in the event of default on payments, limiting their dividend payments to the legal minimum of 25% of net income. Notwithstanding, the right to request an extraordinary tariff review is fully preserved. Aneel will determine the amount of contribution to the “CDE” sector fund in order to rebuild it, which will be implemented in the tariff adjustment/review processes to happen in 2021 and normally charged to the customers untili full repayment. In addition, the regulator have been discussing other measures to support the energy sector by providing short-term resources in order to offset the liquidity reduction due to decrease in revenue and collection. Company’s initiatives On March 23, 2020, the Company established the Coronavirus Crisis Management Committee (‘Comitê Diretor de Gestão da Crise do Coronavírus’) to ensure its readiness to making decisions and responding to the impact of Covid-19, because of the fast-changing situation, which became more widespread, complex and systemic Also, in line with recommendations to maintain social-distancing measures, the Company has implemented an operational contingency plan and several precautionary measures to keep its employees healthy and safe, including: security and health technicians contacting operational staff on a daily basis; interacting daily with subcontractors Social Service department to monitor the evolution of suspicious cases; changing the schedule to prevent gatherings; restricting national and international travel; suspending technical visits and events at Company’s facilities; using remote means of communication; adopting work-from-home policies for a substantial number of employees, providing face masks for employees in external service or in service into its facilities, and requiring outsourcings providers to put the same procedures in place. In addition, the Company has suspended in-store assistance to the general public temporarily. The Company maintain the communication with its customers on virtual channels and essential assistance in customers’ facilities, ensuring the appropriate energy supply. The Company also adopted the follow measures in order to contribute with society, which are assessed continuously: • Providing payment flexibility to low-income residential subclass customers, registered as social tariff, who will be able to pay their debts in up to six installments, without interests or penalties. • Providing payment flexibility to public and philanthropic hospitals as well as to emergency rooms units, which will be able to pay the bills not yet collected in up to six installments, without interests or penalties; • Offering the entities regarded as small business by Brazilian law the option for payment in up to six installments, without interests or penalties. • A donation program linked to its customers established for the purchase of medical equipment to hospitals located in several regions in the State of Minas Gerais, in addition to a donation made directly by the Company, which has already committed an amount around R$10 million. The company is working diligently to mitigate the crisis impacts on its liquidity, implementing the following measures, among others: • reviewing its program of investments and expenses for 2020, which planned capital investments amounting to approximately R$2,042 million, in order to postpone R$266 (13%) of those capital investment to 2021, being R$168 million, R$17 million and R$81 million originally budgeted to be applied on the distribution, generation and transmission segments, respectively; • payment of minimum mandatory dividends to shareholders, and concentration of the greater part of the dividend’s payment at the end of 2020; • negotiating with its customers on the free market the volumes and delivery times on their contracts; • deferral payment of taxes and social charges, as authorized by legislation. Impact of Covid-19 on Financial Statements Considering the significant restrictions on business and social interaction during the Covid-19 pandemic in combination with the latest movements in exchange and interest rates, the Company estimates that the resulting economic contraction might have a negative effect on its liquidity, but the overall impact of the Covid-19 outbreak on its financial position and performance is still difficult to be accurately measured at this point. In such a scenario, the significant intervention in the local market policies and the initiatives to reduce the transmission of Covid-19 are likely to cause a reduction in energy consumption and consequently in revenue from sale of energy, as well as an increase in expected credit losses. The energy demand (load) measured by Brazilian Interconnected Power Grid (SIN) has decreased 18.3% since the second half of March 2020. From the observation of the pandemic’s immediate economic effects, the Company assessed the assumptions used for calculating fair value and recoverable amount of certain financial and non-financial assets, as follows: • The Company assessed whether the greater pressure on the exchange rate, combined with a lack of financial market liquidity, will have a negative impact on derivative financial instruments hired to protect its operations against the risks arising from foreign exchange rate changes. At this point, given the current market conditions, the change in derivative instrument’s fair value, based on the forecasts of future interest and exchanges rates, cannot offset the Company’s total exposure to foreign exchange rate variability, resulting in a net loss of R$438 million in the first quarter of 2020. The long-term projections carried out for the foreign exchange rate are lower than the current dollar quotation, which may represent a decrease in Company’s foreign exchange variation expense, if the projected scenario occurs. • As a result of Covid-19 situation, the market conditions have deteriorated, and, under the current circumstances, the fair value of the Company’s interest in Light has decreased significantly. The estimated negative impact arising from the remeasurement of the asset at fair value less cost to sell is R$609 on March 31, 2020. • The Company is assessing the circumstances arising from Covid-19 pandemic and associated measures aimed at reducing its systematic impact when measuring expected credit losses. Under the Resolution 878/2020, the regulator has implemented some measures in an attempt to maintain the public service of energy supply, including prohibiting energy supply suspension due to default of certain customers categories. This measures can increase delinquency and bring further cash flow pressure. The Company believes it is still too early to assess accurately these measures potential impact, which may be mitigated by the possible interventions from federal government in order to support the Brazilian energy distributors. • The Company estimates that the assumptions applied to determine the recoverable amount of the relevant investments in subsidiaries, joint-controlled entities and associates were not influenced significantly by the Covid-19 situation, since these investees’ cash flows are mainly related to long-term rights to commercial operation of the regulated activity. Therefore, except for the effects described above, related to the negative impact arising from the remeasurement of Company’s interest in Light, classified as asset held for sale, no additional impairment losses was recognize to its investments in subsidiaries, joint-controlled entities and associates. • The Company has also made an assessment attempting to identify the behavior of the interest rates and discount rates that are the basis for the calculation of post-employment obligations, and believes that at this moment, due to the high volatility of the market, it is not possible to conclude whether the present rates reflect an alteration in the macroeconomic fundamentals that would indicate a need for recalculation of the actuarial liabilities. • Despite the uncertainties related to the crisis unfolding and its potential long-term effects, the Company does not expect that the negative impact on its projections of likely future taxable profits might compromise the recoverability of its deferred tax assets The sensitivity analysis for interest rate, exchange rate and inflation risks presented in Note 33 were prepared in the current pandemic context. The Company estimates that the effects of the pandemic may temporarily affect its liquidity in 2020, however, significant long-term effects are not expected. Based on the market projections and on the crisis measurable effects, the Company has observed the following effects in 2020: • The Company expects that the return of economic activities after the peak of the coronavirus outbreak will reestablish the collection behavior, which reduced in April 2020. In addition, the negotiations to enable the recovery of past due receivables and the possible regulator’s measures to reestablish economic balance, which are currently being discussed in the sector, may mitigate the negative effects of the economic crisis on collection. • The energy demand (load) measured by the Brazilian Interconnected Power Grid (SIN) has decreased in March and April 2020. Measured up to the initial days of May 2020, the reduction in the market of Cemig D’s captive customers was approximately 11%. We believe there is a possibility that the effect of this temporary market reduction on the Company’s cash flow will be mitigated by the possible actions of the federal government to support the energy distributors. Further, the Company expects that the market will recover as the requirements for social distancing are made more flexible, as is happening in several cities of Minas Gerais and the country. • The Company is starting negotiations and deferrals with its customers and energy suppliers, in order to maintain Cemig GT liquidity during the economic crisis. 2020 Programmed Voluntary Retirement Plan (‘PDVP’) On April 2020, the Company approved the Programmed Voluntary Retirement Plan for 2020 (‘the 2020 PDVP’). Those eligible – any employees who had worked with the Company for 25 years or more by December 31, 2020 – are able to join from May 4 to 22, 2020. The program will pay the standard legal payments for severance, 50% of the period of notice, an amount equal to 20% of the Base Value of the employee’s FGTS fund, an additional premium equal to 50% of the period of notice plus 20% of the Base Value of the employee’s FGTS fund, as well as the other payments under the legislation. |
2. BASIS OF PREPARATION (Polici
2. BASIS OF PREPARATION (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of initial application of standards or interpretations [abstract] | |
Financial instruments | a) Financial instruments Financial instruments are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other comprehensive income (OCI), and fair value through profit or loss, depending on the financial asset’s contractual cash flow characteristics and the Company’s business model for managing them. Fair value through profit or loss: Valor Novo de Reposição This category also include: cash equivalents, marketable securities not classified at amortized cost, derivative financial instruments and indemnities receivable from the generation assets. Cash and cash equivalents comprise cash at banks and on hand and short-term highly liquid deposits, subject to an insignificant risk of changes in value, maintained to carry out the Company’s short-term cash management. The disclosures about the main assumptions used in fair value measurement are summarized in the respective notes. Derivative financial instruments (Swap transactions and call spread): Derivative financial instruments (Put options) Amortized cost: CVA Other financial components Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate (EIR). |
Receivables from customers, traders and power transport concession holders | b) Receivables from customers, traders and power transport concession holders Accounts receivable from customers, traders and power transport concession holders are initially recognized at the sales value and subsequently measured at amortized cost. These receivables are stated including sales tax and net of withholding taxes, which are recognized as recoverable taxes. In order to estimate future losses on receivables, the Company adopted a simplified approach, considered that the accounts receivable from customers do not have significant financial components, and calculated the expected loss considering the historical average of non-collection over the total billed in each month (based on the last 24 months of billing), segregated by type of customer and projected for the next 12 months, taking into account the age of maturity of invoices, including those not yet due and unbilled. In 2019, the Company changed the assumption applied for the calculation of the historic percentages of default in the provision matrix, from 12 to 24 months, with the aim of enhancing the estimation method, based on studies of its customers’ debt behavior after more than 12 and 24 months from the due date, using the existing collection tools. See note°8. The expected losses for overdue accounts of customers that renegotiated their debt is measured based on the maturity date of the original invoice, despite the new terms negotiated. Expected losses are fully recognized for accounts overdue for more than 12 months. Expected losses for invoices unbilled, not yet due or less than 12 months past due are measured according to the potential default events, or losses of credit expected for the whole life of a financial instrument, if the credit risk has significantly increased since its initial recognition. For large customers, the provision for doubtful receivables is recorded based on estimates by Management, in an amount sufficient to cover probable losses. The main criteria used by the Company are: (i) customers with significant open balances, the receivable balance is analyzed based on the debt history, negotiations in progress, and asset guarantees; and (ii) for large customers, an individual analysis of the debtors and the initiatives in progress to realize the receivables. |
Investments in affiliates and jointly-controlled entities | c) Investments in affiliates and jointly-controlled entities The Company has investments in affiliates and jointly-controlled entities. The considerations made in determining significant influence or joint control are similar to those necessary to determine control over subsidiaries. These investments are accounted using the equity method and are initially recognized at acquisition cost, equivalent to the consideration transferred measured at fair value at the acquisition date. The investments of the Company includes the intangible assets representing the right to commercial operation of the regulated activity identified in the process of allocation of the price for acquisition of the affiliates and jointly-controlled entities. Those intangible assets relating to the affiliates and jointly-controlled entities are included in the carrying amount of the investment and are amortized by the straight-line method, during the period of the concessions. After application of the equity method, the Company determines whether it is necessary to recognize an impairment loss on its investment in its affiliates or jointly-controlled entities. At each reporting date, the Company determines whether there is objective evidence that the investment in the affiliates or jointly-controlled entities is impaired. If there is such evidence, the investment carrying amount is subject to impairment testing. |
Business combinations | d) Business combinations Business combinations are accounted for using the acquisition method of accounting. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date at fair value, as well as the amount of any non-controlling interests. Goodwill is initially measured at cost, as the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests and any previous interest held over the net identifiable assets acquired and liabilities assumed. In the process of allocating the purchase price for of the acquisition of subsidiaries that is a concession holder, the fair value relating to the identifiable right to commercial operation of the regulated activity is recognized as intangible assets with a finite useful life. When a business combination is carried out in stages (“step-acquisition method”), the interest previously held by the Company in its investee is remeasured at the fair value at the acquisition date and the corresponding gain or loss, if any, is recognized in the statement of income. |
Concession assets | e) Concession assets Concession infrastructure under construction are initially recorded as contract assets, in accordance with IFRS 15 and IFRIC 12, considering that the Company is entitled to consideration for performance completed to date, and, only when the construction phases ends, has the right to charge for the services provided to customers or receive an indemnity at the end of the concession period for assets not yet amortized. In accordance with IFRS 15 and IFRIC 12, construction revenues equivalent to new infrastructure are initially recorded as contract assets, measured at construction cost plus margin (which, for the construction business, is deemed as zero). Construction cost include borrowing costs. Energy and Gas Distribution segment The portion of the infrastructure to be amortized during the concession period is recorded as an intangible asset, as provided for in IFRIC 12 – Concession contracts, and subsequently measured at cost less amortization. The main amortization rates, which take into account the useful life that management expects for the intangible asset, and reflect the expected pattern of their consumption, are presented in Note 20. The Company recognizes a financial asset for the residual value of the infrastructure at the end of the concession, representing an unconditional right to receive cash or another financial asset directly from the grantor. The financial assets is subsequently measured at the estimated fair value. Transmission segment: Consideration monthly received is allocated to revenue related to the operation and maintenance service and to the collection of the contract asset related to the construction service based on their relative fair value. Costs of expansion and upgrades of the infrastructure are recorded as contract assets. Due to the acceptance of the terms of renewal of the old transmission concessions, part of the transmission assets of the concessions terminated on December 31, 2012, is subject of reimbursement by the granting authority, and a financial asset was recognized corresponding to the estimated indemnity to be received over a period of eight years. Generation segment |
Intangible assets | f) Intangible assets Intangible assets are mainly, comprised of the intangible assets related to the service concession contracts as described in topic (e) above as well as software. Intangible assets are stated at cost, less amortization, and any accumulated impairments when applicable. Any gain or loss arising on derecognition of an intangible asset, calculated as the difference between the net disposal proceeds and the carrying amount of the asset, is included in the statement of income when the asset is derecognized. |
Property, plant and equipment | g) Property, plant and equipment Property, plant and equipment are stated at the cost, including deemed cost (upon initial application of IFRSs) and capitalized borrowing costs, less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, or in certain circumstances, the concession term, whatever is shorter. Depreciation rates are shown in Note 19. Any gain or loss arising on derecognition of a property, plant and equipment, calculated as the difference between the net disposal proceeds and the carrying amount of the asset, is included in the statement of income when the asset is derecognized. |
Impairment | h) Impairment In assessing impairment of financial assets, the Company uses historical trends of the probability of default, timing of recovery and the amounts of loss incurred, adjusted to reflect management’s judgment as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. Additionally, management revises, annually, the carrying amount of non-financial assets, for the purpose of assessing if there is any indication, such as events or changes in the economic, operational or technological conditions that an asset may be impaired. If any indication exists, or when annual impairment testing of an asset is required, the Company estimates the asset´s recoverable amount. The recoverable amount of an asset or cash generating unit is defined as the higher between its value in use and its fair value less costs to sell. When the carrying amount of an asset or cash generating unit exceeds its recoverable amount, an impairment loss is recognized, adjusting the carrying amount of the asset or cash generating unit to its recoverable value. |
Employee benefits | i) Employee benefits The liability recorded in the consolidated statement of financial position related the Company’s retirement benefit pension plan obligations, is the greater of: (a) the amount to be paid in accordance with the terms of the pension plan for amortization of the actuarial obligations, and (b) the present value of the actuarial obligation, as calculated by a qualified actuary, less the fair value of the plan’s assets, and adjusted for unrecognized actuarial gains and losses. Expenses related to the debt agreed upon with the pension trust fund were recorded in finance income (expenses), because they represent financial interest and inflation adjustment. Other expenses related to the pension fund were recorded as operating expenses. The Company offers post-employment healthcare benefits to its employees as well as life insurance for active and retired employees. The expected costs of these benefits are accrued over the period of employment using the same accounting methodology that is used for defined benefit pension plans. These obligations are measured annually by a qualified independent actuary. Actuarial gains and losses arising as a result of changes in actuarial assumptions are recognized in other comprehensive income. Short-term benefits to employees: |
Income tax and social contribution tax | j) Income tax and social contribution tax Current Advances, or tax credits, are presented as current or non-current assets, in accordance with the expected date of their realization at the balance sheet date, when the tax amounts are duly calculated and offset against advances made. Deferred Deferred tax is recognized for temporary differences between the carrying amount of an asset or liability in the statement of financial position and its tax base at the reporting date. Deferred tax liabilities are recognized for unused tax loss carryforwards and all taxable temporary differences, except for the situations listed below. Deferred tax assets are recognized for all the deductible temporary differences, except for the situations listed below, to the extent that it is probable that future taxable profit will be available for the temporary differences to be offset. These taxes are measured at the tax rates that are expected to apply in the year when the asset is recovered or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. The follow exemptions apply to the deferred tax recognition: When the deferred tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. The carrying amount of deferred income tax and social contribution tax assets is reviewed at each reporting date, and are reduced to the extent that is no longer probable. that sufficient taxable profit will be available to allow the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. |
Government grants | k) Government grants Government grants are recognized when there is reasonable assurance that the grant will be received, and all attached conditions will be complied with. The Company has operations in an area incentivized by SUDENE and recognize its right to a 75% reduction in income tax, including the 10% additional. Such tax incentives, in the form of exemption or reduction of income tax, comply with the concept of government grants and are recognized as income on a systematic basis over the periods that the related income tax expense for which it is intended to compensate, is recorded Given the legal restriction on the profit distribution corresponding to the tax incentive, the Company maintains the amount related to the incentive granted in a tax incentive reserve. In addition, the Company receives amounts from the Energy Development Account (CDE) as reimbursement for subsidies on tariffs granted to users of the public energy distribution service. These amounts are recognized as revenue in the income statement in a monthly basis, at the moment that the Company acquire the right of receive them. |
Non-current assets classified as held for sale and discontinued operations | l) Non-current assets classified as held for sale and discontinued operations The Company classify non-current assets as held for sale when their carrying amount will be recovered, principally, through a sale transaction rather than through continuous use. This condition is met only when the asset (or group of assets) is available for immediate sale in its current condition subject only to usual and customary terms for the sale of the asset (or group of assets) and its sale is considered highly probable. Management must be committed to the sale which is expected to be completed within one year from the date of classification. Assets held for sale are measured at the lower of its carrying amount and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an asset, excluding finance expenses and income tax expenses. Fixed assets (PP&E) and Intangible assets are not depreciated or amortized as long as they are classified as held for sale. Assets and liabilities classified as held for sale are presented separately as current items in the Statement of financial position. Dividends received from jointly-controlled entities and affiliates, classified as held for sale, are recognized in the Income statement, in view of the discontinuation of measurement by the equity method, under IFRS 5. A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and: • Represents a separate major line of business or geographical area of operations • Is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or • Is a subsidiary acquired exclusively with a view to resale. Discontinued operations are excluded from the reported profit from continuing operations, and are presented as a single amount, after taxes, based on discontinued operations, in the statement of income. Additional disclosures are presented in Note 34. All the other notes to the financial statements include amounts for continuing operations, except when otherwise stated. |
Revenue recognition | m) Revenue recognition Through December 31, 2017, revenue was measured at fair value of the consideration received or receivable, less any estimates or refunds and other similar deductions. As from January 1, 2018 in general, revenue from contracts with customers is recognized when the performance obligation is satisfied, at an amount that reflects the consideration to which the Company expects to be entitled in exchange for the goods or services transferred, which must be allocated to that performance obligation. The revenue is recognized only when it is probable that the Company will collect the consideration to which it is entitled in exchange for the goods or services transferred to the customer, considering the customer’s ability and intention to pay that amount of consideration when it is due. Revenues from the sale of energy are measured based on the energy supplied and the tariffs specified in the terms of the contract or in effect in the market. Revenues from supply of energy to final customers are recorded when the delivery has taken place. The billing is carried out monthly. Unbilled supply of energy, from the period between the last billing and the end of each month, is estimated based on the supply contracted and on the volume of energy delivered but not yet billed. Historically, the differences between the estimated amounts and the actual revenues recognized are not significant. Revenues from use of the distribution system (TUSD) received by the Company from other concession holders and other customers that use the distribution network are recognized in the period in which the services are provided. Unbilled retail supply of energy, from the period between the last measured consumption, according to the schedules specified in the concession regulation, and the end of each month is estimated based on the billing from the previous month or the contractual amount. Historically, the differences between the estimated amounts and the actual revenues recognized are not significant. Construction revenue – Corresponds to the performance obligation to build the transmission and distribution infrastructure during the construction phase; Revenues from transmission concession services are recognized in the Statement of income monthly and include: • Operation and maintenance revenue arising from costs incurred and necessary to comply with the performance obligation of operation and maintenance specified in the transmission concession contract, after termination of the construction phase; • Revenue from remuneration of the contract asset recognized, recorded as transmission concession gross revenue in statement income The services provided include charges for connection and other related services; the revenues are recognized when the services are rendered. The ‘Parcel A’ revenue and other financial components Note 16 Any adjustment of expected cash flows from the concession financial asset of the energy distribution concession contract is presented as operating revenue, together with the other revenues related to the energy distribution services. |
Finance income and expenses | n) Finance income and expenses Finance income is mainly comprised of interest income on funds invested, monetary adjustments on overdue receivables and interest income on other financial assets. Interest income is recognized in the Statement of income using the effective interest method. Finance expenses include interest expense on borrowings; and foreign exchange and monetary adjustments on borrowing costs of debt, financings and debentures. Interest expense on the Company’s borrowings that is not capitalized is recognized in the Statement of income using the effective interest method. |
Cash dividends | o) Cash dividends A liability to pay a dividend is recognized when the distribution is authorized or is enforced by law or Company's bylaws and the distribution is no longer at the discretion of the Company. |
Segment reporting | p) Segment reporting The operating results of all operating segments for which discrete financial information is available, are reviewed regularly by the Company’s CEO, to make decisions about resources to be allocated to the segment, and to assess its performance. Segment results that are reported to the CEO include items directly attributable to the segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the Company’s headquarters) and head office expenses. Segment capital expenditure is the total cost incurred during the year to acquire: concession financial assets, intangible assets, concession contract assets and property, plant and equipment. |
Leases | q) Leases As from January 1, 2019, Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. Company recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets. Right-of-use assets: Company recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated amortization and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are amortized on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as described in Note 21. If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, amortization is calculated using the estimated useful life of the asset. Lease liabilities: At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including insubstance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognized as expenses in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. Short-term leases and leases of low-value assets: The Company applies the short-term lease recognition exemption to its short-term leases. It also applies the lease of low-value assets recognition exemption to leases that are considered to be low value. Lease payments on short-term leases and leases of low value assets are recognized as expense on a straight-line basis over the lease term. |
2. BASIS OF PREPARATION (Tables
2. BASIS OF PREPARATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of expected impact of initial application of new standards or interpretations [abstract] | |
Schedule of asset of right to use | The Company has considered the asset of right to use at the same value as the lease liability on the initial adoption date. The impacts of adoption of IFRS 16, on January 1, 2019 are as follows: Consolidated Right-of-use assets 342 Lease liabilities – Obligations referring to operational leasing agreements (342 ) |
3. PRINCIPLES OF CONSOLIDATION
3. PRINCIPLES OF CONSOLIDATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of subsidiaries [abstract] | |
Schedule of companies direct equity investments | The following subsidiaries are included in the consolidated financial statements: Subsidiary Form of 2019 Form of 2018 Direct Indirect Direct Indirect Cemig Geração e Transmissão Consolidation 100.00 – Consolidation 100.00 – Cemig Distribuição Consolidation 100.00 – Consolidation 100.00 – Gasmig Consolidation 99.57 – Consolidation 99.57 – Cemig Geração Distribuída (Usina Térmica Ipatinga) Consolidation 100.00 – Consolidation 100.00 – Efficientia Consolidation 100.00 – Consolidation 100.00 – Luce Empreendimentos e Participações S.A. (1) Consolidation – – Consolidation 100.00 – Rio Minas Energia e Participações (1) Consolidation – – Consolidation 100.00 – Light (2) Assets classified as held for sale 22.58 – Consolidation 26.06 23.93 LightGer(3) Equity method – 49.00 Consolidation – 74.49 Guanhães (3) Equity method – 49.00 Consolidation – 74.49 Axxion (4) Equity method 49.00 – Consolidation 49.00 25.49 UHE Itaocara (3) Equity method – 49.00 Consolidation – 74.49 (1) Merged with Cemig on April 24, 2019. (2) With the settlement of the restricted offering, on July 17 th th th (3) On December 31, 2018, the Company holds indirect equity interests in LightGer, Guanhães and Itaocara, of 74.49% and 49%, held through Cemig GT, and 25.49%, held through Light. As from the cessation of control of Light, the Company no longer holds control of these investees and the remaining indirect interest through Cemig GT is, from that date, measured by the equity method in the consolidated financial statements, in accordance with IAS 28. For more information, see Notes 18 and 34. (4) On December 31, 2018 the Company holds direct and indirect interests (through Light) in Axxiom of 49% and 25.49%, respectively. As from the cessation of control of Light, the Company no longer holds control of these investees and the remaining direct interest is, from that date, measured by the equity method in the consolidated financial statements, in accordance with IAS 28. For more information, see Notes 18 and 34 |
4. CONCESSIONS AND AUTHORIZAT_2
4. CONCESSIONS AND AUTHORIZATIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Concessions And Authorizations | |
Schedule of concessions and authorizations held | Cemig, through its subsidiaries, holds the following concessions or authorizations: Company holding concession or Concession or authorization Expiration POWER GENERATION Hydroelectric plants Emborcação (1) Cemig GT 07/1997 07/2025 Nova Ponte (1) Cemig GT 07/1997 07/2025 Santa Luzia (1) Cemig GT 07/1997 02/2026 Sá Carvalho (1) Sá Carvalho 01/2004 12/2024 Rosal (1) Rosal Energia 01/1997 05/2032 Mineiro (1) Salto Voltão (1) Salto Paraopeba (1) Salto do Passo Velho (1) Horizontes Energia Resolution 331/2002 07/2025 10/2030 10/2030 10/2030 PCH Pai Joaquim (1) Cemig PCH Authorizing Resolution 377/2005 04/2032 Irapé (1) Cemig GT 14/2000 02/2035 Queimado (Consórcio) (1) Cemig GT 06/1997 01/2033 Salto Morais (1) Cemig GT 02/2013 07/2020 Rio de Pedras (1) Cemig GT 02/2013 09/2024 Luiz Dias (1) Cemig GT 02/2013 08/2025 Poço Fundo (1) Cemig GT 02/2013 08/2025 São Bernardo (1) Cemig GT 02/2013 08/2025 Xicão (1) Cemig GT 02/2013 08/2025 Três Marias (2) Cemig Geração Três Marias 08/2016 01/2046 Salto Grande (2) Cemig Geração Salto Grande 09/2016 01/2046 Itutinga (2) Cemig Geração Itutinga 10/2016 01/2046 Camargos (2) Cemig Geração Camargos 11/2016 01/2046 Coronel Domiciano, Joasal, Marmelos, Paciência and Piau (2) Cemig Geração Sul 12/2016 and 13/2016 01/2046 Dona Rita, Ervália, Neblina, Peti, Sinceridade and Tronqueiras (2) Cemig Geração Leste 14/2016 and 15/2016 01/2046 Cajurú, Gafanhoto and Martins (2) Cemig Geração Oeste 16/2016 01/2046 Thermal plants Igarapé (1) (5) Cemig GT 07/1997 08/2024 Wind power plants Central Geradora Eólica Praias de Parajuru (3) Parajuru Resolution 526/2002 09/2032 Central Geradora Eólica Volta do Rio (3) Volta do Rio Resolution 660/2001 01/2031 POWER TRANSMISSION National grid (4) Cemig GT 006/1997 01/2043 Substation – SE Itajubá (4) Cemig GT 79/2000 10/2030 ENERGY DISTRIBUTION (6) Cemig D 002/1997 003/1997 004/1997 005/1997 12/2045 GAS DISTRIBUTION (6) (7) Gasmig State Law 11,021/1993 01/2053 * Cemig has grants for hydroelectric generation with potential of 5MW or less, and thus under Law 9074/95, these are dispensed from concession, permission or authorization, and do not have a final concession date. (1) Generation concession contracts that are not within the scope of IFRIC 12, whose infrastructure assets are recorded as PP&E since the concession grantor does not have control over whom the service is provided to as the output is being sold mainly in the Free Market (‘ACL’). (2) Generation concession contracts within the scope of IFRIC 12, under which Cemig has the right to receive cash and therefore, recognizes a concession financial assets. (3) This refers to concessions, given by the process of authorization, for generation, as an independent power producer, of wind power, sold under the Proinfa program. The assets tied to the right of commercial operation are recorded in PP&E. The rights of authorization of commercial operation that are classified as an Intangible. (4) These refer to transmission concession contracts, for which a contract asset was recognized upon the application of IFRS 15, for being subject to satisfaction of performance obligations. (5) On December 6, 2019, Aneel suspended Igarapé Plant commercial operation upon Cemig GT’s claim for early termination of its concession contract. (6) Concession contracts that are within the scope of IFRIC 12 and under which the concession infrastructure assets are recorded under the intangible and financial assets bifurcation model, and in compliance with IFRS 15, the infrastructure under construction has been classified as a contract asset. Despite the segregation of distribution concession contract into four regions of State of Minas Gerais, its terms and conditions are the same. (7) On September 19, 2019, Gasmig executed with the State of Minas Gerais, as Granting Authority, the Third Amendment to the Concession Agreement, assuring Gasmig the extension of its concession term until 2053. For further information, please see Note 20 – Intangible Assets. |
Schedule of concession and amount to be paid | The information on the concessions and the amounts to be paid are as follows: Project Nominal value in Present value in Period of the concession Updating indexer Irapé 33 15 03/2006 – 02/2035 IGPM Queimado (Consortium) 8 4 01/2004 – 12/2032 IGPM Salto Morais – – 06/2013 – 07/2020 IPCA Rio de Pedras – – 06/2013 – 09/2024 IPCA Various Small Hydro Plants (*) (1) – – 06/2013 – 08/2025 IPCA (*) SHPs, with installed capacity less than 50 MW: Luiz Dias, Poço Fundo, São Bernardo and Xicão. (1) Under Aneel Resolution 467/2011 the power plants with total installed generation capacity of 1 to 50 MW must pay Aneel for five years, starting on the date that the concession contract is signed. The power plants contracts of Salto Morais, Rio de Pedras, Luis Dias, Poço Fundo, São Bernardo and Xicão were signed in 06/2013, completing five years in 2018, therefore, they didn’t make any payments in 2019. |
Schedule of nominal value and present value portion to be paid | The amounts paid to the grantor in 2019, the nominal value and the present value of the amounts to be paid in the next 12 months, are as follows: Project Interest, % Amounts paid Amounts to be Irapé 100.00 2 2 Queimado (Consortium) 82.50 1 1 |
5. OPERATING SEGMENTS (Tables)
5. OPERATING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of operating segments [abstract] | |
Schedule of operating revenues, costs and expenses | The tables below show segment information for 2019, 2018 and 2017: INFORMATION BY SEGMENT AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2019 DESCRIPTION ENERGY GAS OTHER ELIMINATIONS TOTAL GENERATION TRANSMISSION DISTRIBUTION SEGMENT ASSETS 14,749 4,113 25,616 2,689 3,887 (1,128 ) 49,926 INVESTMENTS IN SUBSIDIARIES AND JOINTLY–CONTROLLED ENTITIES 4,133 1,237 – – 30 – 5,400 INVESTMENTS IN AFFILIATES CLASSIFIED AS HELD FOR SALE – – 1,258 – – – 1,258 ADDITIONS TO THE SEGMENT 102 221 936 934 9 – 2,202 CONTINUING OPERATIONS NET REVENUE 6,882 714 15,919 1,858 324 (307 ) 25,390 COST OF ENERGY AND GAS Energy bought for resale (3,841 ) – (7,517 ) – – 72 (11,286 ) Charges for use of the national grid (190 ) – (1,459 ) – – 223 (1,426 ) Gas bought for resale – – – (1,436 ) – – (1,436 ) Total (4,031 ) – (8,976 ) (1,436 ) – 295 (14,148 ) OPERATING COSTS AND EXPENSES Personnel (208 ) (115 ) (869 ) (46 ) (34 ) – (1,272 ) Employees’ and managers’ profit sharing (36 ) (27 ) (183 ) – (17 ) – (263 ) Post–employment obligations (50 ) (38 ) (276 ) – (44 ) – (408 ) Materials (17 ) (6 ) (63 ) (2 ) (3 ) – (91 ) Outsourced services (125 ) (45 ) (1,016 ) (20 ) (40 ) 7 (1,239 ) Depreciation and amortization (210 ) (5 ) (652 ) (86 ) (5 ) – (958 ) Operating provisions (reversals) (975 ) (134 ) (1,102 ) (2 ) (188 ) – (2,401 ) Construction costs – (221 ) (936 ) (43 ) – – (1,200 ) Other operating expenses, net (176 ) (20 ) (298 ) (10 ) 5 (499 ) Total cost of operation (1,797 ) (611 ) (5,395 ) (209 ) (331 ) 12 (8,331 ) OPERATING COSTS AND EXPENSES (5,828 ) (611 ) (14,371 ) (1,645 ) (331 ) 307 (22,479 ) Equity in earnings of unconsolidated investees, net (88 ) 214 – – (1 ) – 125 Dividends declared by investee classified as held for sale – – 73 – – – 73 OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) 966 317 1,621 213 (8 ) – 3,109 Finance income 1,282 98 1,535 21 271 – 3,207 Finance expenses (1,035 ) (115 ) (632 ) (46 ) (19 ) – (1,847 ) INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX 1,213 300 2,524 188 244 – 4,469 Income tax and social contribution tax (551 ) (36 ) (806 ) (47 ) (125 ) – (1,565 ) NET INCOME FROM CONTINUING OPERATIONS 662 264 1,718 141 119 – 2,904 DISCONTINUED OPERATIONS NET INCOME AFTER TAX FROM DISCONTINUED OPERATIONS – – 224 – – – 224 NET INCOME (LOSS) FOR THE YEAR 662 264 1,942 141 119 – 3,128 Equity holders of the parent 662 264 1,942 140 119 – 3,127 Non–controlling interests – – – 1 – – 1 662 264 1,942 141 119 – 3,128 INFORMATION BY SEGMENT AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2018 DESCRIPTION ENERGY GAS TELECOM* OTHER ELIMINATIONS TOTAL GENERATION TRANSMISSION DISTRIBUTION SEGMENT ASSETS 14,671 3,862 37,840 1,822 10 2,607 (957 ) 59,855 INVESTMENTS IN SUBSIDIARIES AND JOINTLY–CONTROLLED ENTITIES 4,055 1,163 – – – 17 – 5,235 ADDITIONS TO THE SEGMENT 559 96 856 70 9 – – 1,590 CONTINUING OPERATIONS NET REVENUE 6,374 675 13,757 1,619 – 134 (293 ) 22,266 COST OF ENERGY AND GAS Energy bought for resale (3,917 ) – (7,238 ) – – – 71 (11,084 ) Charges for use of the national grid (216 ) – (1,463 ) – – – 200 (1,480 ) Gas bought for resale (1,238 ) (1,238 ) Total (4,133 ) – (8,701 ) (1,238 ) – – 271 (13,802 ) OPERATING COSTS AND EXPENSES Personnel (230 ) (108 ) (965 ) (60 ) (18 ) (29 ) – (1,410 ) Employees’ and managers’ profit sharing (10 ) (7 ) (51 ) – – (10 ) – (77 ) Post–employment obligations (46 ) (27 ) (224 ) – – (41 ) – (337 ) Materials (39 ) (4 ) (58 ) (2 ) (1 ) – – (104 ) Outsourced services (123 ) (40 ) (880 ) (20 ) (9 ) (30 ) 15 (1,087 ) Depreciation and amortization (164 ) – (595 ) (74 ) (1 ) (1 ) – (835 ) Operating provisions (reversals) (107 ) (12 ) (332 ) 2 1 (18 ) – (466 ) Construction costs – (96 ) (757 ) (45 ) – – – (897 ) Other operating expenses, net (65 ) (17 ) (203 ) (13 ) (3 ) (109 ) 7 (405 ) Total cost of operation (784 ) (311 ) (4,065 ) (212 ) (31 ) (238 ) 22 (5,618 ) OPERATING COSTS AND EXPENSES (4,917 ) (311 ) (12,766 ) (1,450 ) (31 ) (238 ) 293 (19,420 ) Equity in earnings of unconsolidated investees, net (353 ) 231 33 – (1 ) (14 ) – (104 ) Remeasurement of previously held equity interest in subsidiaries acquired 80 – (52 ) – – (147 ) – (119 ) Impairment of investments (127 ) – – – – – – (127 ) OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) 1,057 595 972 169 (32 ) (265 ) – 2,496 Finance income 1,113 61 434 84 1 13 – 1,706 Finance expenses (1,536 ) (5 ) (621 ) (38 ) (5 ) (19 ) – (2,224 ) INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX 634 651 785 215 (36 ) (271 ) – 1,978 Income tax and social contribution tax (276 ) (122 ) (217 ) (53 ) 12 57 – (599 ) NET INCOME (LOSS) FROM CONTINUING OPERATIONS 358 529 568 162 (24 ) (214 ) – 1,379 DISCONTINUED OPERATIONS NET INCOME AFTER TAX FROM DISCONTINUED OPERATIONS 11 – 62 – 290 – – 363 NET INCOME (LOSS) FOR THE YEAR 369 529 630 162 266 (214 ) – 1,742 Equity holders of the parent 361 529 599 161 266 (216 ) – 1,700 Non–controlling interests 8 – 31 1 – 2 – 42 369 529 630 162 266 (214 ) – 1,742 (*) On March 31, 2018 Cemig Telecom assets and liabilities were merged into the Company. INFORMATION BY SEGMENT AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2017 ENERGY TELECOMS GAS OTHER ELIMINATIONS TOTAL DESCRIPTION GENERATION TRANSMISSION DISTRIBUTION SEGMENT ASSETS 14,366 3,955 20,021 347 2,000 1,582 (32 ) 42,239 INVESTMENTS IN SUBSIDIARIES AND JOINTLY–CONTROLLED ENTITIES 4,723 1,122 1,918 – – 29 – 7,792 ADDITIONS TO THE SEGMENT 308 25 1,083 47 56 1 – 1,520 NET REVENUE 7,190 777 12,312 127 1,482 112 (288 ) 21,712 COST OF ENERGY AND GAS Energy bought for resale (4,209 ) – (6,783 ) – – – 73 (10,919 ) Charges for use of the national grid (353 ) – (1,002 ) – – – 181 (1,174 ) Gas bought for resale – – – – (1,071 ) – – (1,071 ) Operational costs, total (4,562 ) – (7,785 ) – (1,071 ) – 254 (13,164 ) OPERATING COSTS AND EXPENSES Personnel (281 ) (106 ) (1,123 ) (20 ) (56 ) (41 ) – (1,627 ) Employees’ and managers’ profit sharing (1 ) – (3 ) – – (1 ) – (5 ) Post–employment obligations 39 19 180 – – (9 ) – 229 Materials (11 ) (4 ) (43 ) – (2 ) (1 ) – (61 ) Raw materials and inputs for production of energy (10 ) – – – – – – (10 ) Outsourced services (127 ) (31 ) (785 ) (28 ) (17 ) (16 ) 30 (974 ) Depreciation and amortization (176 ) – (567 ) (35 ) (71 ) (1 ) – (850 ) Operating provisions (reversals) (139 ) (10 ) (469 ) (1 ) (2 ) (233 ) – (854 ) Construction costs – (25 ) (1,045 ) – (49 ) – – (1,119 ) Other operating expenses, net (117 ) (11 ) (408 ) (23 ) (15 ) 187 4 (383 ) Total cost of operation (823 ) (168 ) (4,263 ) (107 ) (212 ) (115 ) 34 (5,654 ) OPERATING COSTS AND EXPENSES (5,385 ) (168 ) (12,048 ) (107 ) (1,283 ) (115 ) 288 (18,818 ) OPERATING INCOME BEFORE EQUITY GAINS (LOSSES) AND FINANCE INCOME (EXPENSES) 1,805 609 264 20 199 (3 ) – 2,894 Equity in earnings of unconsolidated investees, net (519 ) 234 42 (2 ) – (7 ) – (252 ) Finance income 226 9 397 3 49 120 – 804 Finance expenses (1,161 ) (3 ) (815 ) (15 ) (43 ) 237 – (1,800 ) INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX 351 849 (112 ) 6 205 347 – 1,646 Income tax and social contribution tax (257 ) (189 ) 31 (3 ) (71 ) (155 ) – (644 ) NET INCOME (LOSS) FOR THE YEAR 94 660 (81 ) 3 134 192 – 1,002 OTHER COMPREHENSIVE INCOME Items that will not be reclassified to profit or loss Post retirement liabilities – restatement of obligations of the defined benefit plans, net of taxes (47 ) (23 ) (145 ) – – (46 ) – (261 ) Equity gain (loss) on Other comprehensive income in subsidiary and jointly–controlled entity, net of tax – – – – – (3 ) – (3 ) (47 ) (23 ) (145 ) – – (49 ) – (264 ) Items that may be reclassified to profit or loss Equity gain on Other comprehensive income, in subsidiary and jointly–controlled entity, relating to fair value of financial asset available for sale, net of tax (34 ) – – – – (4 ) – (38 ) (34 ) – – – – (4 ) – (38 ) COMPREHENSIVE INCOME FOR THE YEAR 13 637 (226 ) 3 134 139 – 700 Equity holders of the parent 13 637 (226 ) 3 133 139 – 699 Non–controlling interests – – – – 1 – – 1 13 637 (226 ) 3 134 139 – 700 |
Schedule of breakdown of revenue by activity | The following is a breakdown of the revenue of the Company by activity: 2019 ENERGY GAS OTHER ELIMINATIONS TOTAL GENERATION TRANSMISSION DISTRIBUTION Revenue from supply of energy 7,038 – 19,967 – – (77 ) 26,928 Revenue from Use of Distribution Systems (the TUSD charge) – – 2,746 – – (24 ) 2,722 CVA Other financial components – – 58 – – – 58 Transmission concession revenue – 703 – – – (199 ) 504 Transmission construction revenue – 220 – – – – 220 Transmission assets - indemnity revenue – 156 – – – – 156 Distribution construction revenue – – 937 43 – – 980 Adjustment to expectation of cash flow from Financial assets of distribution concession to be indemnified – – 18 – – – 18 Gain on inflation updating of Concession Grant Fee 318 – – – – – 318 Transactions in energy on the CCEE 439 – (7 ) – – – 432 Supply of gas – – – 2,298 – – 2,298 Fine for violation of continuity indicator – – (58 ) – – – (58 ) PIS/Pasep and Cofins taxes credits over ICMS 414 – 830 – 184 – 1,428 Other operating revenues 81 27 1,469 – 152 (7 ) 1,722 Sector / Regulatory charges reported as Deductions from revenue (1,408 ) (392 ) (10,041 ) (483 ) (12 ) – (12,336 ) Net operating revenue 6,882 714 15,919 1,858 324 (307 ) 25,390 INFORMATION BY SEGMENT AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2018 DESCRIPTION ENERGY GAS TELECOM* OTHER ELIMINATIONS TOTAL GENERATION TRANSMISSION DISTRIBUTION SEGMENT ASSETS 14,671 3,862 37,840 1,822 10 2,607 (957 ) 59,855 INVESTMENTS IN SUBSIDIARIES AND JOINTLY–CONTROLLED ENTITIES 4,055 1,163 – – – 17 – 5,235 ADDITIONS TO THE SEGMENT 559 96 856 70 9 – – 1,590 CONTINUING OPERATIONS NET REVENUE 6,374 675 13,757 1,619 – 134 (293 ) 22,266 COST OF ENERGY AND GAS Energy bought for resale (3,917 ) – (7,238 ) – – – 71 (11,084 ) Charges for use of the national grid (216 ) – (1,463 ) – – – 200 (1,480 ) Gas bought for resale (1,238 ) (1,238 ) Total (4,133 ) – (8,701 ) (1,238 ) – – 271 (13,802 ) OPERATING COSTS AND EXPENSES Personnel (230 ) (108 ) (965 ) (60 ) (18 ) (29 ) – (1,410 ) Employees’ and managers’ profit sharing (10 ) (7 ) (51 ) – – (10 ) – (77 ) Post–employment obligations (46 ) (27 ) (224 ) – – (41 ) – (337 ) Materials (39 ) (4 ) (58 ) (2 ) (1 ) – – (104 ) Outsourced services (123 ) (40 ) (880 ) (20 ) (9 ) (30 ) 15 (1,087 ) Depreciation and amortization (164 ) – (595 ) (74 ) (1 ) (1 ) – (835 ) Operating provisions (reversals) (107 ) (12 ) (332 ) 2 1 (18 ) – (466 ) Construction costs – (96 ) (757 ) (45 ) – – – (897 ) Other operating expenses, net (65 ) (17 ) (203 ) (13 ) (3 ) (109 ) 7 (405 ) Total cost of operation (784 ) (311 ) (4,065 ) (212 ) (31 ) (238 ) 22 (5,618 ) OPERATING COSTS AND EXPENSES (4,917 ) (311 ) (12,766 ) (1,450 ) (31 ) (238 ) 293 (19,420 ) Equity in earnings of unconsolidated investees, net (353 ) 231 33 – (1 ) (14 ) – (104 ) Remeasurement of previously held equity interest in subsidiaries acquired 80 – (52 ) – – (147 ) – (119 ) Impairment of investments (127 ) – – – – – – (127 ) OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) 1,057 595 972 169 (32 ) (265 ) – 2,496 Finance income 1,113 61 434 84 1 13 – 1,706 Finance expenses (1,536 ) (5 ) (621 ) (38 ) (5 ) (19 ) – (2,224 ) INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX 634 651 785 215 (36 ) (271 ) – 1,978 Income tax and social contribution tax (276 ) (122 ) (217 ) (53 ) 12 57 – (599 ) NET INCOME (LOSS) FROM CONTINUING OPERATIONS 358 529 568 162 (24 ) (214 ) – 1,379 DISCONTINUED OPERATIONS NET INCOME AFTER TAX FROM DISCONTINUED OPERATIONS 11 – 62 – 290 – – 363 NET INCOME (LOSS) FOR THE YEAR 369 529 630 162 266 (214 ) – 1,742 Equity holders of the parent 361 529 599 161 266 (216 ) – 1,700 Non–controlling interests 8 – 31 1 – 2 – 42 369 529 630 162 266 (214 ) – 1,742 (*) On March 31, 2018 Cemig Telecom assets and liabilities were merged into the Company. The following is a breakdown of the revenue of the Company by activity: ENERGY GAS OTHER ELIMINATIONS TOTAL 2018 GENERATION TRANSMISSION DISTRIBUTION Revenue from supply of energy 7,065 – 17,885 – – (78 ) 24,872 Revenue from Use of Distribution Systems (the TUSD charge) – – 2,067 – – (22 ) 2,045 CVA Other financial components – – 1,973 – – – 1,973 Transmission concession revenue – 589 – – – (178 ) 411 Transmission construction revenue – 96 – – – – 96 Transmission assets – indemnity revenue – 250 – – – – 250 Generation assets – indemnity revenue 55 – – – – – 55 Distribution construction revenue – – 757 45 – – 802 Adjustment to expectation of cash flow from Financial assets of distribution concession to be indemnified – – – – – – – Gain on inflation updating of Concession Grant Fee 321 – – – – – 321 Transactions in energy on the CCEE 217 – – – – 217 Supply of gas – – – 1,995 – – 1,995 Fine for violation of continuity indicator – – (44 ) – – – (44 ) Other operating revenues 82 29 1,345 – 144 (15 ) 1,585 Sector / Regulatory charges reported as Deductions from revenue (1,366 ) (288 ) (10,226 ) (421 ) (11 ) – (12,312 ) Net operating revenue 6,374 676 13,757 1,619 133 (293 ) 22,266 INFORMATION BY SEGMENT AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2017 ENERGY TELECOMS GAS OTHER ELIMINATIONS TOTAL DESCRIPTION GENERATION TRANSMISSION DISTRIBUTION SEGMENT ASSETS 14,366 3,955 20,021 347 2,000 1,582 (32 ) 42,239 INVESTMENTS IN SUBSIDIARIES AND JOINTLY–CONTROLLED ENTITIES 4,723 1,122 1,918 – – 29 – 7,792 ADDITIONS TO THE SEGMENT 308 25 1,083 47 56 1 – 1,520 NET REVENUE 7,190 777 12,312 127 1,482 112 (288 ) 21,712 COST OF ENERGY AND GAS Energy bought for resale (4,209 ) – (6,783 ) – – – 73 (10,919 ) Charges for use of the national grid (353 ) – (1,002 ) – – – 181 (1,174 ) Gas bought for resale – – – – (1,071 ) – – (1,071 ) Operational costs, total (4,562 ) – (7,785 ) – (1,071 ) – 254 (13,164 ) OPERATING COSTS AND EXPENSES Personnel (281 ) (106 ) (1,123 ) (20 ) (56 ) (41 ) – (1,627 ) Employees’ and managers’ profit sharing (1 ) – (3 ) – – (1 ) – (5 ) Post–employment obligations 39 19 180 – – (9 ) – 229 Materials (11 ) (4 ) (43 ) – (2 ) (1 ) – (61 ) Raw materials and inputs for production of energy (10 ) – – – – – – (10 ) Outsourced services (127 ) (31 ) (785 ) (28 ) (17 ) (16 ) 30 (974 ) Depreciation and amortization (176 ) – (567 ) (35 ) (71 ) (1 ) – (850 ) Operating provisions (reversals) (139 ) (10 ) (469 ) (1 ) (2 ) (233 ) – (854 ) Construction costs – (25 ) (1,045 ) – (49 ) – – (1,119 ) Other operating expenses, net (117 ) (11 ) (408 ) (23 ) (15 ) 187 4 (383 ) Total cost of operation (823 ) (168 ) (4,263 ) (107 ) (212 ) (115 ) 34 (5,654 ) OPERATING COSTS AND EXPENSES (5,385 ) (168 ) (12,048 ) (107 ) (1,283 ) (115 ) 288 (18,818 ) OPERATING INCOME BEFORE EQUITY GAINS (LOSSES) AND FINANCE INCOME (EXPENSES) 1,805 609 264 20 199 (3 ) – 2,894 Equity in earnings of unconsolidated investees, net (519 ) 234 42 (2 ) – (7 ) – (252 ) Finance income 226 9 397 3 49 120 – 804 Finance expenses (1,161 ) (3 ) (815 ) (15 ) (43 ) 237 – (1,800 ) INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX 351 849 (112 ) 6 205 347 – 1,646 Income tax and social contribution tax (257 ) (189 ) 31 (3 ) (71 ) (155 ) – (644 ) NET INCOME (LOSS) FOR THE YEAR 94 660 (81 ) 3 134 192 – 1,002 OTHER COMPREHENSIVE INCOME Items that will not be reclassified to profit or loss Post retirement liabilities – restatement of obligations of the defined benefit plans, net of taxes (47 ) (23 ) (145 ) – – (46 ) – (261 ) Equity gain (loss) on Other comprehensive income in subsidiary and jointly–controlled entity, net of tax – – – – – (3 ) – (3 ) (47 ) (23 ) (145 ) – – (49 ) – (264 ) Items that may be reclassified to profit or loss Equity gain on Other comprehensive income, in subsidiary and jointly–controlled entity, relating to fair value of financial asset available for sale, net of tax (34 ) – – – – (4 ) – (38 ) (34 ) – – – – (4 ) – (38 ) COMPREHENSIVE INCOME FOR THE YEAR 13 637 (226 ) 3 134 139 – 700 Equity holders of the parent 13 637 (226 ) 3 133 139 – 699 Non–controlling interests – – – – 1 – – 1 13 637 (226 ) 3 134 139 – 700 The following is a breakdown of the revenue of the Company by activity: ENERGY TELECOMS GAS OTHER ELIMINATIONS TOTAL 2017 GENERATION TRANSMISSION DISTRIBUTION Revenue from supply of energy 7,340 – 16,442 – – (81 ) 23,701 Revenue from Use of Distribution Systems (the TUSD charge) – – 1,643 – – – (32 ) 1,611 CVA Other financial components – – 988 – – – – 988 Transmission concession revenue – 519 – – – – (148 ) 371 Transmission construction revenue – 25 – – – – – 25 Transmission assets - indemnity revenue – 373 – – – – – 373 Generation assets - indemnity revenue 271 – – – – – – 271 Distribution construction revenue – – 1,045 – 49 – – 1,094 Adjustment to expectation from reimbursement of distribution concession financial assets – – 9 – – – – 9 Gain on inflation updating of concession grant fee 317 – – – – – – 317 Transactions in energy on the CCEE 860 – – – – – – 860 Supply of gas – – – – 1,759 – – 1,759 Other operating revenues 37 9 1,175 168 1 120 (26 ) 1,484 Sector / Regulatory charges reported as Deductions from revenue (1,430 ) (167 ) (9,177 ) (41 ) (327 ) (9 ) – (11,151 ) Net operating revenue 7,395 759 12,125 127 1,482 111 (287 ) 21,712 |
6. CASH AND CASH EQUIVALENTS (T
6. CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash and cash equivalents [abstract] | |
Schedule of cash and cash equivalents | 2019 2018 Bank accounts 210 108 Cash equivalents Bank certificates of deposit (CDBs) (1) 290 555 Overnight (2) 36 228 326 783 536 891 (1) Bank Certificates of Deposit Certificados de Depósito Bancário Certificados de Depósito Inter-bancário Câmara de Custódia e Liquidação (2) Overnight |
7. MARKETABLE SECURITIES (Table
7. MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of investment securities [abstract] | |
Schedule of marketable securities | 2019 2018 Investments Current Financial Notes (LFs) – Banks (1) 645 435 Treasury Financial Notes (LFTs) (2) 94 254 Debentures (3) – 11 Others 1 4 740 704 Non–current Financial Notes (LFs) – Banks (1) 11 109 Debentures 2 – 13 109 753 813 (1) Bank Financial Notes ( Letras Financeiras (2) Treasury Financial Notes (LFTs) (3) Debentures |
8. RECEIVABLES FROM CUSTOMERS_2
8. RECEIVABLES FROM CUSTOMERS, TRADERS AND POWER TRANSPORT CONCESSION HOLDERS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of trade and other receivables [abstract] | |
Schedule of trade and other receivables | Balances not yet due Up to 90 days past due More than 91 up to 360 days past due More than 361 days past due 2019 2018 Billed supply 1,396 707 431 596 3,130 2,989 Unbilled supply 1,204 – – – 1,204 1,048 Other concession holders – wholesale supply – 32 15 – 47 47 Other concession holders – wholesale supply, unbilled 204 – – – 204 282 CCEE (Power Trading Chamber) – – 386 – 386 166 Concession Holders – power transport 80 20 6 81 187 180 Concession Holders – power transport, unbilled 253 – – – 253 212 (–) Provision for doubtful receivables (171 ) (12 ) (38 ) (589 ) (810 ) (751 ) 2,966 747 800 88 4,601 4,173 Current assets 4,524 4,092 Non–current assets 77 81 |
Schedule of provision for allowance for doubtful accounts | The allowance for doubtful accounts is considered to be sufficient to cover any potential losses in the realization of accounts receivable, and the breakdown by type of customers is as follows: 2019 2018 Residential 131 137 Industrial 197 172 Commercial, services and others 161 189 Rural 32 33 Public authorities 201 119 Public lighting 2 6 Public services 31 27 Charges for use of the network (TUSD) 55 68 810 751 |
Schedule of changes in provision for doubtful accounts | Changes in the allowance for doubtful accounts in 2019, 2018 and 2017 are as follows: Balance at December 31, 2016 660 Additions, net 248 Write-off (340 ) Balance at December 31, 2017 568 Effect of adoption of IFRS 9 on Jan. 1, 2018 150 Additions, net (Note 30 d) 264 Write-off (231 ) Balance at December 31, 2018 751 Additions, net (Note 30 d) 238 Disposals (179 ) Balance at December 31, 2019 810 |
Schedule of advances from customers | The Company receives advance payments for the sale of energy from certain customers. Advance payments related to services not yet provided are as follows: Balance at December 31, 2017 233 Additions 50 Energy supplied (215 ) Inflation adjustment (Note 31) 11 Balance at December 31, 2018 79 Energy supplied (80 ) Inflation adjustment (Note 31) 1 Balance at December 31, 2019 – |
9. RECOVERABLE TAXES (Tables)
9. RECOVERABLE TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of recoverable taxes [abstract] | |
Schedule of recoverable taxes | 2019 2018 Current ICMS (VAT) 65 80 PIS/Pasep 3 4 Cofins 7 21 Others 24 19 99 124 Non-current ICMS (VAT) 277 240 PIS/Pasep 1,102 – Cofins 4,968 – Others 2 2 6,349 242 6,448 366 |
10. PIS_PASEP AND COFINS TAXE_2
10. PIS/PASEP AND COFINS TAXES CREDITS OVER ICMS - FINAL COURT JUDGMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Pispasep And Cofins Taxes Credits Over Icms - Final Court Judgment | |
Schedule of pasep and cofins taxes credits | Shown below are the accounting effects relating to the recognition of the PIS/Pasep and Cofins taxes credits, including their monetary updating by the Selic rate, and the amounts to be refunded to customers at December 31, 2019: PIS/Pasep and Cofins taxes credits Parent Cemig D Cemig GT Other subsidiaries (4) Total Effects on the statement of financial position Recoverable taxes (July/2003 to May/2019) 490 4.926 626 28 6,070 Amounts to be refunded to customers (1) – (3,038 ) – – (3,038 ) Taxes payable (2) (4 ) (45 ) (6 ) – (55 ) Income tax and social contribution tax (165 ) (627 ) (211 ) (9 ) (1,012 ) Equity 321 1,216 409 19 1,965 Effects on net income Recovery of PIS/Pasep and Cofins taxes credits – Other operating revenues (3) 184 830 397 17 1,428 Finance income (5) 306 1,034 229 11 1,580 PIS/Pasep and Cofins taxes charged on financial revenues (5) (4 ) (21 ) (6 ) – (31 ) Income tax and social contribution tax (165 ) (627 ) (211 ) (9 ) (1,012 ) 321 1,216 409 19 1,965 (1) Amounts t o be refunded to customers on the PIS/Pasep and Cofins taxes credits for Cemig D, recognized in 2019. The total amount to be restituted to customers presented in the consolidated Statements of Financial Position, as Pasep and Cofins taxes to be refunded to customers – Note 23, is R$ 4,193. The difference of R$ 1,155 is due to the constitution of a liability corresponding to the reversal of the provision related to the escrow deposits made from 2008 to 2011, recorded in 2017. (2) PIS/Pasep and Cofins taxes on the financial revenues comprising the monetary updating of the tax credits that have been recognized. These taxes applicable to the credits to be refunded to customers reduce their total, without effects in the Statement of income. (3) This refers to the credits recognized in operating profit of 2019, amounting R$ 3,826, net of the amounts to be refunded to customers, of R$ 2,398. (4) This refers to the credits recognized by the wholly-owned subsidiaries Sá Carvalho, Cemig Geração Distribuída, Cemig Geração Poço Fundo S.A. (previously denominated UTE Barreiro S.A.) and Horizontes Energia S.A.. (5) It includes financial updating from the date of credits recognition until December 31, 2019, net of PIS/Pasep and Cofins taxes on finance income, in the amounts o R$25. |
11. INCOME AND SOCIAL CONTRIB_2
11. INCOME AND SOCIAL CONTRIBUTION TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of income and social contribution taxes [abstract] | |
Schedule of income and social contribution taxes recoverable | The balances of income tax and social contribution tax refer to tax credits in the corporate income tax returns of previous years and to advance payments which will be offset against federal taxes eventually payable. 2019 2018 Income tax 608 253 Social contribution tax 241 140 849 393 Current 621 387 Non-current 228 6 2019 2018 Current Income tax 99 83 Social contribution tax 35 29 134 112 |
Schedule of deferred income and social contribution taxes | The Company has deferred taxed assets from unused tax loss carryforwards, negative base for the social contribution tax, and deductible temporary differences, at the statutory rates applicable to each legal entity in Brazil of 25% (for Income tax) and 9% (for the social contribution tax), as follows: 2019 2018 Deferred tax assets Tax loss carryforwards 116 373 Provisions for contingencies 544 218 Impairment on investments 660 882 Fair value of derivative instruments (PUT SAAG 164 143 Operating provisions 66 39 Provisions for profit sharing 72 25 Post-employment obligations 2,090 1,477 Estimated provision for doubtful receivables 283 279 Onerous concession 8 8 Others 25 27 Total 4,028 3,471 Deferred tax liabilities Funding cost (16 ) (25 ) Deemed cost (232 ) (239 ) Acquisition costs of equity interests (503 ) (501 ) Borrowing costs capitalized (166 ) (168 ) Taxes on revenues not redeemed – Presumed Profit accounting method (1 ) (5 ) Adjustment to expectation of cash flow – Concession assets (761 ) (804 ) Adjustment to fair value: Swap/Gains (575 ) (277 ) Others (5 ) (33 ) Total (2,259 ) (2,052 ) Total, net 1,769 1,419 Total assets 2,430 2,147 Total liabilities (661 ) (728 ) |
Schedule of changes in deferred income and social contribution taxes | The changes in deferred income tax and social contribution tax were as follows: Consolidated Balance at December 31, 2016 1,215 Effects allocated to net profit from continuing operations (198 ) Effect allocated to other comprehensive income 133 Effects allocated to equity Variations in deferred tax assets and liabilities (14 ) Balance at December 31, 2017 1,136 Effects allocated to net profit from continuing operations (16 ) Effect allocated to other comprehensive income 239 Effects allocated to Equity First-time adoption of IFRS 9 – effects allocated to equity 51 Reversal of deemed cost 18 Transfer to assets held for sale (3 ) Variations in deferred tax assets and liabilities (3 ) Deferred taxes arising from business combination (3 ) Balance at December 31, 2018 1,419 Effect allocated to other comprehensive income 544 Effects allocated to net profit from continuing operations (111 ) Effects allocated to net profit from discontinuing operations (note 34) (85 ) Others 2 Balance at December 31, 2019 1,769 |
Schedule of estimated balance of deferred tax asset | The Company estimated that the balance of deferred tax asset as of December 31, 2019 will be recovered, as follows: Consolidated 2020 659 2021 571 2022 571 2023 572 2024 571 2025 to 2027 659 2028 to 2029 425 4,028 |
Schedule of reconciliation of statutory on income and social contribution Ttxes | This table reconciles the statutory income tax (rate 25%) and social contribution tax (rate 9%) with the current income tax expense in the Statement of income: 2019 2018 2017 Profit before income tax and social contribution tax 4,469 1,978 1,646 Income tax and social contribution tax – nominal expense (34%) (1,520 ) (672 ) (560 ) Tax effects applicable to: Gain (loss) in subsidiaries by equity method 8 (61 ) (129 ) Interest on Equity 136 71 – Gain on dilution of an equity interest – – 8 Non-deductible contributions and donations (13 ) (6 ) (6 ) Tax incentives 66 29 11 Tax credits not recognized – (1 ) – Effects from subsidiaries taxed based on gross revenues 89 89 81 Non-deductible penalties (135 ) (12 ) (14 ) Impairment of accounts receivable from related parties (234 ) Excess reactive power and demand – – (2 ) Others 38 (36 ) (33 ) Income tax and social contribution tax – effective expense (1,565 ) (599 ) (644 ) Current tax (1,454 ) (583 ) (446 ) Deferred tax (111 ) (16 ) (198 ) (1,565 ) (599 ) (644 ) Effective rate 35.03 % 30.30 % 39.13 % |
14. ESCROW DEPOSITS (Tables)
14. ESCROW DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of escrow deposits [abstract] | |
Schedule of payments related to escrow deposits | 2019 2018 Labor claims 355 335 Tax contingencies Income tax on Interest on Equity 29 28 PIS/Pasep and Cofins taxes (1) 1,448 1,402 Donations and legacy tax (ITCD) 53 51 Urban property tax (IPTU) 79 87 Finsocial tax 40 38 Income tax and social contr. tax on indemnity for employees’ ‘Anuênio’ benefit (2) 282 275 Income tax withheld at source on inflationary profit 9 8 Contribution tax effective rate (3) 18 18 ICMS (VAT) credits on PP&E 39 38 Others (4) 92 118 2,089 2,063 Others Regulatory 43 53 Third party 11 9 Customer relations 7 6 Court embargo 12 12 Others 23 24 96 104 2,540 2,502 (1) This refers to escrow deposits in the action challenging the constitutionality of inclusion of ICMS value added tax within the taxable amount for calculation of PIS/Pasep and Cofins taxes. On February 13, 2020 Company’s wholly-owned subsidiaries Cemig D and Cemig GT escrow deposits were released, totaling R$1,382, comprising monetary update. The expectation is that the escrow deposits from the others wholly-owned subsidiaries will be received as their judicial claims reach the final judgement. See more details in Note 10 – PIS/Pasep and Cofins taxes credits over ICMS – Final court judgement. (2) See more details in Note 27 – Provisions under the section relating to the ‘Anuênio indemnity’. (3) Escrow deposit in the legal action challenging an infringement claim relating to application of social contribution tax to amounts of cultural and artistic donations and sponsorship, expenses on punitive fines, and taxes with liability suspended. (4) Includes escrow deposits from legal actions related to INSS and PIS/Pasep and Cofins taxes |
16. CONCESSION FINANCIAL AND _2
16. CONCESSION FINANCIAL AND SECTOR ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Financial Assets And Liabilities Of The Concession [abstract] | |
Schedule of financial assets and liabilities of concession | Concession financial assets 2019 2018 Energy distribution concession (16.1) 460 396 Gas distribution concession (16.1) 24 – Indemnifiable receivable – Transmission (16.2) 1,281 1,296 Indemnifiable receivable – Generation (16.3) 816 816 Concession grant fee – Generation concessions (16.4) 2,468 2,409 5,049 4,917 Concession sector assets 2019 2018 Amounts receivable from Parcel A (CVA) and Other Financial Components (16.5) 882 1,081 Total 5,931 5,998 Current assets 1,080 1,071 Non-current assets 4,851 4,927 |
Schedule of changes in concession financial assets related to infrastructure | The changes in concession financial assets related to infrastructure are as follows: Transmission Generation Distribution Gas Total Balances at December 31, 2016 2,287 2,800 216 – 5,303 Additions 25 – – – 25 Transfers of indemnity – plants not renewed – 1,082 – – 1,082 Amounts received (264 ) (232 ) – – (496 ) Transfers between PP&E, Financial assets and Intangible assets 2 – 146 – 148 Monetary updating 224 317 – – 541 Adjustment of expectation of cash flow from the Concession financial assets 54 – 9 – 63 Disposals (2 ) – – – (2 ) Adjustment of BRR of Transmission Assets 149 – – – 149 Adjustment on indemnities of plants not renewed (Ministerial Order 291) – including financial updating – 271 – – 271 Balances at December 31, 2017 2,475 4,238 371 – 7,084 Effects of first-time adoption of IFRS 15 (1,092 ) – – – (1,092 ) Amounts received (249 ) (1,389 ) – – (1,638 ) Transfers from PP&E – – 27 – 27 Others transfers – (1 ) (1 ) – (2 ) Monetary updating 162 377 – – 539 Disposals – – (1 ) – (1 ) Balances at December 31, 2018 1,296 3,225 396 – 4,917 Amounts received (181 ) (259 ) – – (440 ) Transfers from contract assets 44 – 48 – 92 Transfers from (to) intangible assets – – (1 ) 24 23 Monetary updating 122 318 18 – 458 Disposals – – (1 ) – (1 ) Balances at December 31, 2019 1,281 3,284 460 24 5,049 |
Schedule of generation indemnity receivable | These balances are recorded as financial assets at fair value through profit or loss, and totaled R$ 816 on December 31, 2019 and 2018. Generation plant Concession expiration date Installed capacity Net balance of assets based on Net balance of assets based on fair Lot D UHE Três Marias July 2015 396 71 413 UHE Salto Grande July 2015 102 11 39 UHE Itutinga July 2015 52 3 7 UHE Camargos July 2015 46 8 23 PCH Piau July 2015 18.01 2 9 PCH Gafanhoto July 2015 14 1 10 PCH Peti July 2015 9.4 1 8 PCH Dona Rita Sep. 2013 2.41 1 1 PCH Tronqueiras July 2015 8.5 2 12 PCH Joasal July 2015 8.4 1 8 PCH Martins July 2015 7.7 2 4 PCH Cajuru July 2015 7.2 4 4 PCH Paciência July 2015 4.08 1 4 PCH Marmelos July 2015 4 1 4 Others UHE Volta Grande Feb. 2017 380 26 70 UHE Miranda (1) Dec. 2016 408 27 23 UHE Jaguara (1) Aug. 2013 424 40 174 UHE São Simão (1) Jan. 2015 1,710 2 3 3,601.70 204 816 (1) Investments made after the Jaguara, São Simão and Miranda plants came into operation, in the amounts of R$174, R$3 and R$23, respectively, are recorded as concession financial assets, and the determination of the final amounts to be paid to the Company is in a process of discussion with Aneel (the regulator). Company does not expect losses in realization of these amounts. |
Schedule of auction won transferred to related specific purpose companies | The changes in these concession financial assets are as follows: SPE Plants 2018 Monetary updating Amounts received 2019 Cemig Geração Três Marias S.A. Três Marias 1,370 171 (139 ) 1,402 Cemig Geração Salto Grande S.A. Salto Grande 430 54 (44 ) 440 Cemig Geração Itutinga S.A. Itutinga 161 23 (19 ) 165 Cemig Geração Camargos S.A. Camargos 120 17 (13 ) 124 Cemig Geração Sul S.A. Coronel Domiciano, Joasal, Marmelos, Paciência and Piau 157 24 (20 ) 161 Cemig Geração Leste S.A. Dona Rita, Ervália, Neblina, Peti, Sinceridade and Tronqueiras 107 18 (15 ) 110 Cemig Geração Oeste S.A. Cajurú, Gafanhoto and Martins 64 11 (9 ) 66 Total 2,409 318 (259 ) 2,468 SPE Plants 2017 Monetary updating Amounts received 2018 Cemig Geração Três Marias S.A. Três Marias 1,330 174 (134 ) 1,370 Cemig Geração Salto Grande S.A. Salto Grande 417 55 (42 ) 430 Cemig Geração Itutinga S.A. Itutinga 156 23 (18 ) 161 Cemig Geração Camargos S.A. Camargos 116 17 (13 ) 120 Cemig Geração Sul S.A. Coronel Domiciano, Joasal, Marmelos, Paciência and Piau 152 24 (19 ) 157 Cemig Geração Leste S.A. Dona Rita, Ervália, Neblina, Peti, Sinceridade and Tronqueiras 103 18 (14 ) 107 Cemig Geração Oeste S.A. Cajurú, Gafanhoto and Martins 63 11 (10 ) 64 Total 2,337 322 (250 ) 2,409 SPE Plants 2016 Monetary updating Amounts received 2017 Cemig Geração Três Marias S.A. Três Marias 1,283 172 (125 ) 1,330 Cemig Geração Salto Grande S.A. Salto Grande 403 54 (40 ) 417 Cemig Geração Itutinga S.A. Itutinga 150 23 (17 ) 156 Cemig Geração Camargos S.A. Camargos 112 17 (13 ) 116 Cemig Geração Sul S.A. Coronel Domiciano, Joasal, Marmelos, Paciência, Piau 147 23 (18 ) 152 Cemig Geração Leste S.A. Dona Rita, Ervália, Neblina, Peti, Sinceridade, Tronqueiras 99 17 (13 ) 103 Cemig Geração Oeste S.A. Cajurú, Gafanhoto, Martins 60 11 (8 ) 63 Total 2,254 317 (234 ) 2,337 |
Schedule of financial assets and financial liabilities with the tariff adjustments | The balance of these sector financial assets and liabilities, which are presented at net value, in assets or liabilities, in accordance with the tariff adjustments that have been authorized or are to be ratified, are as follows: 2019 2018 Financial position Amounts ratified by Aneel in the last tariff adjustment Amounts to be ratified by Aneel in the next tariff adjustments Total Amounts ratified by Aneel in the last tariff adjustment Amounts to be ratified by Aneel in the next tariff adjustments Total Assets 1,286 2,144 3,430 1,184 2,545 3,729 Current assets 1,286 1,269 2,555 1,184 1,505 2,689 Non-current assets – 875 875 – 1,040 1,040 Liabilities (882 ) (1,666 ) (2,548 ) (1,140 ) (1,509 ) (2,649 ) Current liabilities (882 ) (1,033 ) (1,915 ) (1,140 ) (902 ) (2,042 ) Non-current liabilities – (633 ) (633 ) – (607 ) (607 ) Total current, net 404 236 640 44 603 647 Total non-current, net – 242 242 – 433 433 Total, net 404 478 882 44 1,036 1,080 2019 2018 Financial components Amounts ratified by Aneel in the last tariff adjustment Amounts to be ratified by Aneel in the next tariff adjustments Total Amounts ratified by Aneel in the last tariff adjustment Amounts to be ratified by Aneel in the next tariff adjustments Total Items of ‘Parcel A’ Energy Development Account (CDE) quota 119 29 148 1 220 221 Tariff for use of transmission facilities of grid participants (18 ) 114 96 24 (6 ) 18 Tariff for transport of Itaipu supply 9 16 25 2 16 18 Alternative power source program (Proinfa) 11 (6 ) 5 3 5 8 ESS/EER System Service/Energy Charges (161 ) (136 ) (297 ) (246 ) (287 ) (533 ) Energy bought for resale 661 632 1,293 667 1,402 2,069 Other financial components Over contracting of supply (1) (84 ) 216 132 (204 ) (13 ) (217 ) Neutrality of Parcel A (30 ) (12 ) (42 ) 53 (15 ) 38 Other financial items (71 ) (206 ) (277 ) (236 ) (212 ) (448 ) Tariff Flag balances (2) - (103 ) (103 ) - (11 ) (11 ) Excess demand and reactive power (32 ) (66 ) (98 ) (21 ) (62 ) (83 ) TOTAL 404 478 882 43 1,037 1,080 (1) The wholly-owned subsidiary Cemig D was over contracted in 2017 and 2018 and the gain arising from the sale of the excess of energy in the spot market was provisionally passed through to customers by Aneel in the tariff adjustments of 2018 and 2019, including the portion in excess of the limit of 105% of the regulatory load – thus reducing the tariff that was determined. To establish whether this is a voluntary over contracting, the Company considers that the portion above the regulatory limit will be recovered in the subsequent tariff adjustment, when Aneel approves them. The Company has no expectation of loss in relation to realization of these amounts. The Company recognizes this right, in the amount of R$ 216,852, as ‘Other financial components’, to be approved by Aneel in the next forthcoming tariff adjustments. (2) Billing arising from the ‘Flag’ Tariff System (see below) not yet approved by the regulator (Aneel). |
Schedule of changes in balances of financial assets and liabilities | Changes in balances of these sector assets and liabilities: Balance at December 31, 2016 (407 ) Additions 811 Amortization 177 Payments from the Flag Tariff Centralizing Account (586 ) Updating – Selic rate (Note 31) (41 ) Balance at December 31, 2017 (46 ) Additions 1,638 Amortization 335 Others – R&D Reimbursement (115 ) Payments from the Flag Tariff Centralizing Account (794 ) Updating – Selic rate (Note 31) 62 Balance at December 31, 2018 1,080 Additions 724 Amortization (666 ) Payments from the Flag Tariff Centralizing Account (361 ) Updating – Selic rate (Note 31) 105 Balance at December 31, 2019 882 |
17. CONCESSION CONTRACT ASSETS
17. CONCESSION CONTRACT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [abstract] | |
Schedule of detailed information about concession contract assets | 2019 2018 Distribution – Infrastructure assets under construction 740 518 Gas – Infrastructure assets under construction 68 82 Transmission – Assets reincorporated into the assets remuneration base 348 492 Transmission – Assets remunerated by tariff 849 637 2,005 1,729 Current 172 131 Non-current 1,833 1,598 |
Schedule of changes in concession contract assets | Changes in concession contract assets are as follows: Transmission Distribution Gas Total Balances at December 31, 2017 – – – – Effects of adoption of IFRS 15 1,092 532 90 1,714 Additions 96 727 70 893 Inflation adjustment 88 – – 88 Adjustment to expected contract cash flow from the concession 13 – – 13 Amounts received (161 ) – – (161 ) Transfers to financial assets – (27 ) – (27 ) Transfers to intangible assets – (672 ) (78 ) (750 ) Transfers from PP&E 1 – 1 Impairment (42 ) (42 ) Balances at December 31, 2018 1,129 518 82 1,729 Additions 221 903 43 1,167 Inflation adjustment 34 – – 34 Adjustment to expected contract cash flow from the concession 15 – – 15 Amounts received (154 ) – – (154 ) Disposals (4 ) – (2 ) (6 ) Transfers to financial assets (44 ) (48 ) – (92 ) Transfers to intangible assets – (630 ) (55 ) (685 ) Impairment – (3 ) – (3 ) Balances at December 31, 2019 1,197 740 68 2,005 |
18. INVESTMENTS (Tables)
18. INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about investment property [abstract] | |
Schedule of percentage of the company's equity interest | Control 2019 2018 Hidrelétrica Cachoeirão Jointly-controlled 54 49 Guanhães Energia (1) Jointly-controlled 131 – Hidrelétrica Pipoca Jointly-controlled 31 31 Retiro Baixo Jointly-controlled 180 171 Aliança Norte (Belo Monte plant) Jointly-controlled 671 664 Madeira Energia (Santo Antônio plant) Affiliated 167 270 FIP Melbourne (Santo Antônio plant) Affiliated 385 470 Lightger (1) Jointly-controlled 128 – Baguari Energia Jointly-controlled 157 162 Aliança Geração Jointly-controlled 1,192 1,217 Amazônia Energia (Belo Monte plant) Jointly-controlled 1,028 1,013 Taesa Jointly-controlled 1,213 1,143 Ativas Data Center Affiliated 16 16 UFV Janaúba Geração de Energia Elétrica Distribuída Affiliated 10 9 Companhia de Transmissão Centroeste de Minas Jointly-controlled 24 20 Axxiom Soluções Tecnológicas (1) Jointly-controlled 13 – Total of investments 5,400 5,235 Itaocara – equity deficit (2) Jointly-controlled (22 ) – Total 5,378 5,235 (1) With the cessation of control of Light, the remaining equity interest in these investees was recognized as an investment in affiliate or jointly-controlled entities, and measured by the equity method, in accordance with IFRS 10. For more details please see Notes 1 and 34. (2) On December 31, 2019, the investee has negative net equity. Thus, after reducing the accounting value of its interest to zero, the Company recognized the provision for losses to the extent of its obligations , in the amount of R$22, resulting from contractual obligations assumed with the jointly-controlled entity and the other shareholders. |
Schedule of allocation of acquisition price of jointly-controlled subsidiaries, a valuation was made of intangible assets relating to right to operate regulated activity | Changes in these assets are as follows: Investees 2016 Amortization Written off 2017 Additions Amortization Written off 2018 Amortization 2019 Taesa 288 (13 ) (86 ) 189 – (9 ) – 180 (9 ) 171 Retiro Baixo 29 (1 ) – 28 6 (2 ) – 32 (1 ) 31 Central Eólica Praias de Parajuru (1) 19 (1 ) (1 ) 17 – (2 ) (15 ) – – – Central Eólica Volta do Rio (1) 14 (1 ) (2 ) 11 – (1 ) (10 ) – – – Central Eólica Praias de Morgado (1) 27 (2 ) (1 ) 24 – (2 ) (22 ) – – – Madeira Energia (Santo Antônio plant) 157 (6 ) – 151 – (6 ) (127 ) 18 (1 ) 17 Lightger – – – – 84 – – 84 (3 ) 81 Light 209 (23 ) – 186 – (20 ) (166 ) – – – Aliança Geração 428 (25 ) – 403 – (25 ) – 378 (25 ) 353 Aliança Norte (Belo Monte plant) 57 (2 ) – 55 – (2 ) – 53 (2 ) 51 Lepsa 49 (6 ) (43 ) – – – – – – – RME 48 (4 ) – 44 20 (5 ) (59 ) – – – Total 1,325 (84 ) (133 ) 1,108 110 (74 ) (399 ) 745 (41 ) 704 (1) As from 2018 the investees Central Eólica Praias de Parajuru Central Eólica Volta do Rio |
Schedule of changes in investments in subsidiaries jointly controlled entities and affiliates | Investee 2018 Gain (loss) by equity method (Income statement) Remeasurement of equity interest held in subsidiaries after loss of control Dividends Additions / acquisitions Others 2019 Companhia de Transmissão Centroeste de Minas 20 4 – – – – 24 Axxiom Soluções Tecnológicas – – 4 – 9 – 13 Lightger – – 128 – – – 128 Guanhães Energia – – 131 – – – 131 Usina Hidrelétrica Itaocara S.A. – (50 ) 5 – 23 22 – Hidrelétrica Pipoca 31 4 – (4 ) – – 31 Madeira Energia (Santo Antônio plant) 270 (103 ) – – – – 167 FIP Melbourne (Santo Antônio plant) 470 (85 ) – – – – 385 Hidrelétrica Cachoeirão 49 11 – (6 ) – – 54 Baguari Energia 162 22 – (27 ) – – 157 Amazônia Energia (Belo Monte plant) 1,013 15 – – – – 1,028 Aliança Norte (Belo Monte plant) 664 6 – – 1 – 671 Ativas Data Center 16 – – – – – 16 Taesa 1,143 210 – (141 ) – 1 1,213 Aliança Geração 1,217 78 – (103 ) – – 1,192 Retiro Baixo 171 12 – (3 ) – – 180 UFV Janaúba Geração de Energia Elétrica Distribuída 9 1 – – – – 10 Total of investments 5,235 125 268 (284 ) 33 23 5,400 Itaocara – equity deficit – – – – – (22 ) (22 ) Total 5,235 125 268 (284 ) 33 1 5,378 Investee 2017 Gain (loss) by equity method (Income statement) Remeasurement of previously held equity interest in subsidiaries acquired (step–acquisition) Dividends Additions / acquisitions Disposals Reclassification to held for sale Others 2018 Companhia de Transmissão Centroeste de Minas 21 5 – (6 ) – – – – 20 Light (1) 1,534 19 (231 ) (8 ) – – (1,255 ) (59 ) – RME (1) 383 3 (52 ) (1 ) 104 – (326 ) (111 ) – Axxiom Soluções Tecnológicas (1) 12 (7 ) – – – – (4 ) (1 ) – Lightger (1) 41 3 84 (2 ) – – (126 ) – – Guanhães Energia (1) 25 30 – – 57 – (112 ) – – Usina Hidrelétrica Itaocara S.A. (1) 4 (4 ) – – 5 – (5 ) – – Hidrelétrica Pipoca 26 7 – (2 ) – – – – 31 Madeira Energia (Santo Antônio plant) (2) (4) 535 (163 ) – – 25 – – (127 ) 270 FIP Melbourne (Santo Antônio plant) (4) 582 (139 ) – – 27 – – – 470 Hidrelétrica Cachoeirão 58 10 – (19 ) – – – – 49 Baguari Energia 148 28 – (15 ) – – – 1 162 Central Eólica Praias de Parajuru (3) 60 (6 ) 21 – 74 (3 ) – (146 ) – Central Eólica Volta do Rio (3) 68 (16 ) 59 – 92 (22 ) – (181 ) – Central Eólica Praias de Morgado (3) 51 (15 ) – – – (12 ) – (24 ) – Amazônia Energia (Belo Monte plant) 867 80 – – 69 – – (3 ) 1,013 Aliança Norte (Belo Monte plant) 577 44 – – 43 – – – 664 Ativas Data Center 17 (1 ) – – – – – – 16 Taesa (1) 1,101 225 – (208 ) – – – 25 1,143 Renova 282 (282 ) – – – – – – – Aliança Geração 1,242 65 – (90 ) – – – – 1,217 Retiro Baixo 158 10 – (3 ) 6 – – – 171 UFV Janaúba Geração de Energia Elétrica Distribuída – – – – 9 – – – 9 Total of investments 7,792 (104 ) (119 ) (354 ) 511 (37 ) (1,828 ) (626 ) 5,235 (1) Others arises from first adoption of the new accounting standards on January 1, 2018, recognized by the investees directly in equity without inclusion in the Income statement. The column Reclassification to held for sale Non-current assets held for sale (2) Due to the result of analysis of impairment indication, due to the recurring losses incurred by Madeira, a provision was recognized for loss of part of the residual added value of the investment in Madeira, to limit its balance to the minimum value of the excess of future economic benefits arising from use of the net fixed asset on December, 31, 2018, using the nominal WACC of 9.59% as the discount rate. The provision is presented in the statement of income for the year ended December 31, 2018 as Impairment loss on Investments (3) Arising from the business combination between the Company and Energimp. The rights to exploitation of the regulated activity are classified in the consolidated statement of financial position under Intangible. (4) In October 2018 the Company subscribed capital increases in Mesa and FIP Melbourne, of R$25 and R$26, respectively. These funds were entirely applied in capital contributions to Santo Antônio Energia S.A. (‘Saesa’ or ‘ Santo Antônio 2016 Gain (loss) by equity method (Income statement) Gain (loss) by equity method (Other comprehensive income) Dividends Additions / acquisitions Disposals Others 2017 Companhia Transleste de Transmissão 22 5 – (7 ) – (20 ) – – Companhia Transudeste de Transmissão 21 3 – (12 ) – (12 ) – – Companhia Transirapé de Transmissão 24 4 – (6 ) – (22 ) – – Companhia de Transmissão Centroeste de Minas 21 5 – (5 ) – – – 21 Light (1) 1,070 35 (3 ) – – – 432 1,534 Axxiom Soluções Tecnológicas 19 (7 ) – – – – – 12 Lepsa (1) 344 – (2 ) – – – (342 ) – RME 339 7 (2 ) – 38 – 1 383 Hidrelétrica Cachoeirão 50 10 – (3 ) – – 1 58 Guanhães Energia (2) – (13 ) – – 97 – (59 ) 25 Hidrelétrica Pipoca 32 2 – (8 ) – – – 26 Madeira Energia (Santo Antônio plant) 644 (109 ) – – – – – 535 FIP Melbourne (Santo Antônio plant) 677 (95 ) – – – – – 582 Lightger 42 2 – (3 ) – – – 41 Baguari Energia 162 17 – (30 ) – – (1 ) 148 Central Eólica Praias de Parajuru 63 (1 ) – – – – (2 ) 60 Central Eólica Volta do Rio 81 (12 ) – – – – (1 ) 68 Central Eólica Praias de Morgado 60 (8 ) – – – – (1 ) 51 Amazônia Energia (Belo Monte plant) 781 1 – – 85 – – 867 Ativas Data Center 18 (2 ) – – – – 1 17 Taesa (3) 1,583 216 – (183 ) – (515 ) – 1,101 Renova 689 (390 ) (34 ) – 18 – (1 ) 282 Usina Hidrelétrica Itaocara S.A. 3 (2 ) – – 3 – – 4 Aliança Geração 1,319 72 – (149 ) – – – 1,242 Aliança Norte (Belo Monte plant) 527 (2 ) – – 51 – 1 577 Retiro Baixo 162 10 – (14 ) – – – 158 Total of investments 8,753 (252 ) (41 ) (420 ) 292 (569 ) 29 7,792 Guanhães Energia – equity deficit (2) (59 ) – – – – – 59 – Total 8,694 (252 ) (41 ) (420 ) 292 (569 ) 88 7,792 (1) On November 30, 2017 the Company acquired all Lepsa’s shares, and therefore as from that date on it consolidates that company in its financial statements. Lepsa’s sole asset is its holdings in the share capital of Light. Hence, the Company no longer presents the investment that it previously held at Lepsa in its consolidated statement, presenting only the interest in Light. (2) Equity deficit reversed through injection of capital. (3) On November 2017 the Company sold part of its equity interest in the jointly-controlled entity Taesa. The Company sold 34 million Units of Taesa at the price of R$ 21.10 per Unit. With the sale, the Company’s holding in the share capital of Taesa was reduced from 31.54% to 21.68%. The shares that were sold are not part of the controlling shareholding block of Taesa, and as a result Cemig continues to be in the controlling block of Taesa. |
Schedule of changes in dividends receivable | Changes in dividends receivable are as follows: 2019 2018 Opening balances 119 77 Dividends proposed by investees 285 354 Dividends proposed by investee classified as held for sale 73 Withholding income tax on Interest on equity (8 ) (7 ) Amounts received (283 ) (304 ) Ending balances 186 120 |
Schedule of subsidiaries and jointly controlled entities percentage by the company's ownership interest | Main information on the subsidiaries, jointly-controlled entities and affiliates, not adjusted for the percentage represented by the Company’s ownership interest: 2019 2018 2017 Investee Number of shares Cemig interest % Share capital Equity Cemig interest % Share capital Equity Cemig interest % Share capital Equity Cemig Geração e Transmissão 2,896,785,358 100.00 2,600 5,136 100.00 2,600 4,980 100.00 1,838 4,794 Madeira Energia (Santo Antônio plant) 12,034,025,147 15.51 10,620 3,705 15.51 10,620 4,657 18.13 9,547 5,327 Hidrelétrica Cachoeirão 35,000,000 49.00 35 110 49.00 35 100 49.00 35 118 Guanhães Energia 548,626,000 49.00 549 268 49.00 396 228 49.00 331 51 Hidrelétrica Pipoca 41,360,000 49.00 41 63 49.00 41 63 49.00 41 53 Baguari Energia (1) 26,157,300,278 69.39 187 227 69.39 187 234 69.39 187 214 Central Eólica Praias de Parajuru 71,834,843 100.00 72 89 100.00 72 80 49.00 71 89 Central Eólica Volta do Rio 138,867,440 100.00 139 58 100.00 139 84 49.00 117 116 Central Eólica Praias de Morgado – – – – – – – 49.00 53 54 Lightger 79,078,937 49.00 79 95 49.00 79 86 49.00 79 83 Aliança Norte (Belo Monte plant) 41,893,675,837 49.00 1,208 1,266 49.00 1,206 1,247 49.00 1,119 1,066 Amazônia Energia (Belo Monte plant) (1) 1,322,597,723 74.50 1,323 1,380 74.50 1,322 1,359 74.50 1,230 1,163 Aliança Geração 1,291,582 45.00 1,291 1,858 45.00 1,291 1,858 45.00 1,291 1,858 Retiro Baixo 225,350,000 49.90 225 300 49.90 223 278 49.90 223 258 Renova (1) (2) 41,719,724 36.23 2,961 (1,091 ) 36.23 2,919 (76 ) 36.23 2,919 780 Usina Hidrelétrica Itaocara S.A. (6) 69,282,514 49.00 69 (45 ) 49.00 22 10 49.00 11 8 Cemig Ger.Três Marias S.A. 1,291,423,369 100.00 1,291 1,408 100.00 1,291 1,396 100.00 1,291 1,392 Cemig Ger.Salto Grande S.A 405,267,607 100.00 405 446 100.00 405 440 100.00 405 440 Cemig Ger. Itutinga S.A. 151,309,332 100.00 151 184 100.00 151 179 100.00 151 171 Cemig Geração Camargos S.A. 113,499,102 100.00 113 136 100.00 113 132 100.00 113 130 Cemig Geração Sul S.A. 148,146,505 100.00 148 179 100.00 148 176 100.00 148 168 Cemig Geração Leste S.A. 100,568,929 100.00 101 127 100.00 101 121 100.00 101 116 Cemig Geração Oeste S.A. 60,595,484 100.00 61 73 100.00 61 70 100.00 61 69 Rosal Energia S.A. 46,944,467 100.00 47 128 100.00 47 125 100.00 47 107 Sá Carvalho S.A. 361,200,000 100.00 37 124 100.00 37 94 100.00 37 103 Horizontes Energia S.A. 39,257,563 100.00 39 57 100.00 39 55 100.00 39 53 Cemig PCH S.A. 45,952,000 100.00 46 98 100.00 46 93 100.00 36 97 Cemig Geração Poço Fundo S.A. (3) 1,402,000 100.00 1 4 100.00 17 18 100.00 17 18 Empresa de Serviços de Comercialização de Energia Elétrica S.A. 486,000 100.00 – 28 100.00 – 27 100.00 – 18 Cemig Comercializadora de Energia Incentivada S.A. 1,000,000 100.00 1 3 100.00 1 3 100.00 1 2 Cemig Trading S.A. 1,000,000 100.00 1 31 100.00 1 28 100.00 1 29 Cemig Distribuição (4) 2,359,113,452 100.00 5,372 4,708 100.00 2,772 4,642 100.00 2,772 3,737 Light 303,934,060 22.58 4,051 5,983 26.06 2,226 3,389 26.06 2,226 3,462 TAESA 1,033,496,721 21.68 3,042 4,927 21.68 3,042 4,572 21.68 3,042 4,347 Cemig Telecom – – – – – – – 100.00 292 247 Ativas Data Center 456,540,718 19.60 182 82 19.60 182 84 – – – Gasmig 409,255,483 99.57 665 988 99.57 665 1,001 99.57 665 1,224 Cemig Geração Distribuída 174,281 100.00 – 11 100.00 0 3 100.00 0 5 LEPSA (5) – – – – 100.00 406 447 100.00 406 456 RME (5) – – – – 100.00 403 423 75.00 403 453 Efficientia 15,121,845 100.00 15 17 100.00 15 18 100.00 6 7 Companhia de Transmissão Centroeste de Minas 28,000,000 51.00 28 47 51.00 28 39 51.00 28 40 Axxiom Soluções Tecnológicas 58,365,000 49.00 58 27 49.00 47 17 49.00 47 24 (1) Jointly-control under a Shareholders’ Agreement. (2) In view of Renova’s negative net equity, the Company reduced to zero the carrying value of its equity interests in this investee, at December 31, 2018. (3) The Extraordinary General Meeting of Shareholders held on August 29, 2019 approved changes to the bylaws of the subsidiary, changing its name and its corporate objects. With the alteration, the name of Usina Termelétrica Barreiro S.A. was changed to Cemig Geração Poço Fundo S.A. (4) An Extraordinary General Shareholders’ Meeting held on August 7, 2019 approved increase in the share capital of Cemig D by R$2,600, through subscription of funds from Advances for Future Capital Increase (AFACs), paid in by the Company, without issuance of new shares. (5) These investees were merged on April 24, 2019. (6) On December 31, 2019, the investee has equity deficit. Thus, after reducing the accounting value of its interest to zero, the Company recognized the provision for losses to the extent of its obligations , in the amount of R$22, resulting from contractual obligations assumed with the jointly-controlled entity and the other shareholders. |
Schedule of direct and indirect equity interests | The Company has indirect equity interests in the following investees: 2019 2018 Direct interest % Indirect interest % Direct interest % Indirect interest % Amazônia 74.50 % 5.76 % 74.50 % 12.46 % Renova (1) 36.23 % – 36.23 % 8.39 % LightGer 49.00 % 11.52 % 49.00 % 24.92 % Guanhães 49.00 % 11.52 % 49.00 % 24.92 % Axxion 49.00 % 11.52 % 49.00 % 24.92 % UHE Itaocara 49.00 % 11.52 % 49.00 % 24.92 % Light 22.58 % – 26.06 % 22.80 % (1) On October 15, 2019, Light sold the totality of its shares in the jointly-controlled entity Renova to CG I Fundo de Investimento em Participações |
Schedule of summarized financial information of the company's equity investees | The main balances for the affiliated and jointly-controlled entities, at December 31, 2019, 2018 and 2017, are as follows: 2019 Centroeste Ativas Data Center Taesa Axxiom Soluções Tecnológicas Hidrelétrica Cachoeirão Hidrelétrica Pipoca Retiro Baixo Aliança Norte Assets Current 29 33 3,568 34 35 11 68 1 Cash and cash equivalents 27 8 83 7 30 2 56 1 Non-current 35 107 7,662 26 82 89 343 1,266 Total assets 64 140 11,230 60 117 100 411 1,267 Liabilities Current 6 24 996 28 7 11 34 1 Loans and financings – Current 3 13 10 8 – 7 14 – Non-current 11 34 5,307 5 – 26 77 – Loans and financings – Non-Current 8 31 4,159 – – 26 68 – Equity 47 82 4,927 27 110 63 300 1,266 Total liabilities 64 140 11,230 60 117 100 411 1,267 Statement of income Net sales revenue 17 83 1,795 53 38 30 70 – Cost of sales (5 ) (75 ) (574 ) (54 ) (17 ) (15 ) (30 ) – Depreciation and amortization (1 ) (18 ) (5 ) (2 ) (3 ) (3 ) (9 ) – Gross profit (loss) 12 8 1,221 (1 ) 21 15 40 – General and administrative expenses (2 ) (7 ) (122 ) (11 ) – – (4 ) (2 ) Finance income 2 – 97 – 1 – 3 – Finance expenses (2 ) (3 ) (356 ) (2 ) – (3 ) (8 ) – Operational profit (loss) 10 (2 ) 840 (14 ) 22 12 31 (2 ) Share of (loss) profit, net, of subsidiaries and joint ventures – – 306 – – – – 19 Income tax and social contribution tax (1 ) – (144 ) 5 (2 ) (1 ) (3 ) – Net income (loss) for the year 9 (2 ) 1,002 (9 ) 20 11 28 17 Comprehensive income (loss) for the year 9 (2 ) 1,002 (9 ) 20 11 28 17 2019 Amazônia Energia Madeira Energia Baguari Energia Renova Lightger Guanhães Energia Aliança Geração Assets Current – 750 60 21 87 11 935 Cash and cash equivalents – 78 9 5 69 5 435 Non-current 1,380 21,680 187 2,309 124 419 2,409 Total assets 1,380 22,430 247 2,330 211 430 3,344 Liabilities Current 1 1,177 16 2,928 53 27 610 Loans and financings – Current – 73 – 1,507 9 12 161 Non-current – 17,548 4 493 63 136 876 Loans and financings – Non-Current – 10,925 – 55 63 127 276 Equity 1,379 3,705 227 (1,091 ) 95 267 1,858 Total liabilities 1,380 22,430 247 2,330 211 430 3,344 Statement of income Net sales revenue – 3,198 68 98 50 51 1,103 Cost of sales – (2,508 ) (23 ) (66 ) (27 ) (38 ) (681 ) Depreciation and amortization – (869 ) (9 ) (9 ) (11 ) (14 ) (151 ) Gross profit (loss) – 690 45 32 23 13 422 General and administrative expenses – (99 ) – (660 ) (2 ) (5 ) (31 ) Finance income – 131 4 3 4 1 39 Finance expenses – (1,683 ) (1 ) (448 ) (7 ) (9 ) (90 ) Operational profit (loss) – (961 ) 48 (1,073 ) 18 – 340 Share of (loss) profit, net, of subsidiaries and joint ventures 20 – 66 – – Income tax and social contribution tax – 10 (16 ) (7 ) (3 ) (2 ) (111 ) Net income (loss) for the year 20 (951 ) 32 (1,014 ) 15 (2 ) 229 Comprehensive income (loss) for the year 20 (951 ) 32 (1,014 ) 15 (2 ) 229 2018 Centroeste Ativas Data Center Taesa Hidrelétrica Cachoeirão Hidrelétrica Retiro Baixo Aliança Norte Assets Current 19 17 1,927 23 12 47 – Cash and cash equivalents – 1 21 18 4 36 – Non-current 36 106 6,689 85 95 354 1,247 Total assets 55 123 8,616 108 107 401 1,247 Liabilities Current 6 23 647 8 11 32 – Loans and financings – Current 3 9 11 – 7 14 – Non-current 10 16 3,397 – 33 91 – Loans and financings – Non-Current 10 13 410 – 33 82 – Equity 39 84 4,572 100 63 278 1,247 Total liabilities 55 123 8,616 108 107 401 1,247 Statement of income Net sales revenue 14 70 1,635 50 29 71 – Cost of sales (1 ) (72 ) (362 ) (29 ) (12 ) (29 ) – Depreciation and amortization – – – (3 ) (3 ) (10 ) – Gross profit (loss) 13 (2 ) 1,273 21 17 42 – General and administrative expenses – (16 ) (144 ) – – (4 ) (3 ) Finance income 1 – 63 1 – 2 1 Finance expenses (3 ) (3 ) (274 ) – (4 ) (11 ) (1 ) Operational profit (loss) 11 (21 ) 918 22 13 29 (3 ) Share of (loss) profit, net, of subsidiaries and joint ventures – – 301 – – – 97 Income tax and social contribution tax (1 ) – (147 ) (2 ) (1 ) (3 ) – Net income (loss) for the year 10 (21 ) 1,072 20 12 26 94 Comprehensive income (loss) for the year 10 (21 ) 1,072 20 12 26 94 2018 Amazônia Energia Madeira Energia Baguari Energia Renova Aliança Geração Assets Current – 618 44 1,738 791 Cash and cash equivalents – 69 8 15 381 Non-current 1,360 22,453 201 891 2,440 Total assets 1,360 23,071 245 2,629 3,231 Liabilities Current 1 1,281 7 2,195 564 Loans and financings – Current – 53 – 349 168 Non-current – 17,134 5 510 809 Loans and financings – Non-Current – 10,220 – 64 348 Equity 1,359 4,656 233 (76 ) 1,858 Total liabilities 1,360 23,071 245 2,629 3,231 Statement of income Net sales revenue – 3,006 74 710 984 Cost of sales – (2,689 ) (31 ) (834 ) (599 ) Depreciation and amortization – (887 ) (9 ) (10 ) (153 ) Gross profit (loss) – 317 43 (124 ) 385 General and administrative expenses (1 ) (195 ) – (458 ) (31 ) Finance income 2 128 3 3 33 Finance expenses (2 ) (1,881 ) (1 ) (320 ) (89 ) Operational profit (loss) (1 ) (1,631 ) 45 (899 ) 298 Share of (loss) profit, net, of subsidiaries and joint ventures 105 – – 49 – Income tax and social contribution tax (1 ) (112 ) (4 ) (6 ) (100 ) Net income (loss) for the year 103 (1,743 ) 41 (856 ) 198 Comprehensive income (loss) for the year 103 (1,743 ) 41 (856 ) 198 2017 Centroeste RME Light Taesa Axxiom Aliança Itaocara Lightger Amazônia Energia Aliança Assets Current 56 2 4,137 1,947 46 1 5 51 – 706 Cash and cash equivalents 17 1 270 57 3 – 5 1 – 540 Non-current 1 451 10,807 6,108 11 1,065 11 142 1,163 2,593 Total assets 57 453 14,944 8,055 57 1,066 16 193 1,163 3,299 Liabilities Current 4 – 5,493 645 29 – 1 31 – 511 Suppliers – – – – 1 – 1 20 – – Loans and financings – Current 3 – 1,395 9 5 – – – – 98 Non-current 13 – 6,019 3,062 4 – 7 79 – 930 Equity 40 453 3,432 4,348 24 1,066 8 83 1,163 1,858 Total liabilities 57 453 14,944 8,055 57 1,066 16 193 1,163 3,299 Statement of income Net sales revenue 15 – 11,315 1,077 43 – – 42 – 930 Cost of sales (4 ) – (8,869 ) (198 ) (55 ) – (4 ) (28 ) – (560 ) Depreciation and amortization (1 ) – (493 ) (1 ) (2 ) – – (11 ) – (123 ) Gross profit (loss) 11 – 2,446 879 (12 ) – (4 ) 14 – 370 General and administrative expenses – (1 ) (1,071 ) (122 ) (7 ) (1 ) – (2 ) (1 ) 4 Finance income 2 16 100 70 1 – – 4 2 28 Finance expenses (2 ) – (977 ) (292 ) (1 ) – – (9 ) – (73 ) Operational profit (loss) 11 15 498 535 (19 ) (1 ) (4 ) 7 1 329 Share of (loss) profit, net, of subsidiaries and joint ventures – – (199 ) 168 – – – – – – Income tax and social contribution tax (1 ) – (175 ) (55 ) 6 – – (3 ) – (114 ) Net income (loss) for the year 10 15 124 648 (13 ) (1 ) (4 ) 4 1 215 Comprehensive income (loss) for the year 10 15 124 648 (13 ) (1 ) (4 ) 4 1 215 2017 Hidrelétrica Cachoeirão Baguari Energia Guanhães Energia Madeira Energia Hidrelétrica Pipoca Retiro Baixo Renova Central Eólica Central Eólica Central Eólica Assets Current 51 29 8 557 15 23 144 41 11 16 Cash and cash equivalents 46 5 4 55 6 14 25 35 7 5 Non-current 87 209 223 23,593 95 366 2,786 121 136 233 Total assets 138 238 231 24,150 110 389 2,930 162 147 249 Liabilities Current 10 18 25 2,030 18 27 1,751 26 90 126 Suppliers 1 10 12 203 6 3 259 1 2 1 Non-current 10 6 155 16,793 39 104 399 47 3 7 Equity 118 214 51 5,327 53 258 780 89 54 116 Total liabilities 138 238 231 24,150 110 389 2,930 162 147 249 Statement of income Net sales revenue 39 64 – 2,971 29 67 734 21 14 22 Cost of sales (17 ) (37 ) – (1,858 ) (18 ) (34 ) (677 ) (16 ) (17 ) (28 ) Depreciation and amortization (4 ) (9 ) – (838 ) (3 ) (10 ) (10 ) (10 ) (10 ) (17 ) Gross profit (loss) 22 27 – 1,113 11 33 57 5 (3 ) (6 ) General and administrative expenses – – (10 ) (817 ) (1 ) – (942 ) (2 ) (1 ) (3 ) Provision for loss – – – – – – – – – – Financial income 4 6 1 115 2 3 12 3 2 3 Finance expenses (2 ) – (16 ) (1,551 ) (5 ) (11 ) (470 ) (6 ) (8 ) (12 ) Operational profit (loss) 24 33 (25 ) (1,140 ) 7 25 (1,343 ) – (10 ) (18 ) Share of (loss) profit, net, of subsidiaries and joint ventures – – – – – – 96 – – – Income tax and social contribution tax (3 ) (11 ) – 49 (2 ) (3 ) 107 – (1 ) (3 ) Net income (loss) for the year 21 22 (25 ) (1,091 ) 5 22 (1,140 ) – (11 ) (21 ) Comprehensive income (loss) for the year 21 22 (25 ) (1,091 ) 5 22 (1,140 ) – (11 ) (21 ) |
Schedule of restatement of prior holding in subsidiaries acquired | Based on the provisions of IFRS 3 – Business combinations, the Company remeasured the previously held interest at fair value on the date control was obtained, and any difference between the fair value and the carrying value of the investment will be recognized in the statement of income in 2020, as follows: Centroeste Fair value on the acquisition date 120 Equity interest held by the Company before the acquisition of control 51 % Previously held interest, valued at fair value on the date control was obtained 61 Carrying value of the investment (24 ) Gain on remeasurement of previously held equity interest in subsidiaries acquired to be recognized in 2020 37 |
Schedule of remeasurement of interest previously held in subsidiaries at fair value | The remeasurement of the previously held interest based on the preliminary fair value of the net assets acquired is as follows: Centroeste Cash consideration paid for 49% of the equity of Centroeste 45 Previously held interest, valued at fair value on the acquisition date – 51% 61 Bargain purchase 14 Total 120 |
Schedule of fair value of interest acquired, and remeasurement of previous equity interest in subsidiaries | The preliminary fair value of the assets and liabilities acquired at the acquisition date, is as follows: Assets Fair value on the transaction date Liabilities Fair value on the transaction date Current 29 Current 6 Cash and cash equivalents 27 Loans and financings 3 Other current assets 2 Interest on equity and dividends payable 2 Non-current 108 Other current liabilities 1 Contract assets and Right to exploitation of the regulated activity 108 Non-current 11 Loans and financings 8 Provisions 3 Fair value of net identifiable assets 120 |
19. PROPERTY, PLANT AND EQUIP_2
19. PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Schedule of movement in property, plant and equipment | 2019 2018 Historical cost Accumulated depreciation Net value Historical cost Accumulated depreciation Net value In service Land 248 (19 ) 229 231 (16 ) 215 Reservoirs, dams and watercourses 3,280 (2,200 ) 1,080 3,282 (2,132 ) 1,150 Buildings, works and improvements 1,092 (818 ) 274 1,114 (800 ) 314 Machinery and equipment 2,598 (1,869 ) 729 2,773 (1,919 ) 854 Vehicles 20 (18 ) 2 32 (27 ) 5 Furniture and utensils 14 (11 ) 3 16 (12 ) 4 7,252 (4,935 ) 2,317 7,448 (4,906 ) 2,542 In progress 133 – 133 120 – 120 Net property, plant and equipment 7,385 (4,935 ) 2,450 7,568 (4,906 ) 2,662 Changes in PP&E are as follows: 2018 Additions Disposals Depreciation Transfers / capitalizations (2) 2019 In service Land (1) 215 – – (3 ) 17 229 Reservoirs, dams and watercourses 1,150 – (4 ) (80 ) 14 1,080 Buildings, works and improvements 314 – (5 ) (19 ) (16 ) 274 Machinery and equipment 854 – (81 ) (78 ) 34 729 Vehicles 5 – – (3 ) – 2 Furniture and utensils 4 – (1 ) – – 3 2,542 (91 ) (183 ) 49 2,317 In progress 120 70 (12 ) – (45 ) 133 Net property, plant and equipment 2,662 70 (103 ) (183 ) 4 2,450 (1) Certain land sites linked to concession contracts and without provision for reimbursement are amortized in accordance with the period of the concession. (2) Balances of R$ 4 were transferred between Intangible assets concession contract assets and PP&E. 2017 Additions Disposals Depreciation Transfer to Held for sale Adjustment for business combination Transfers / capitalizations 2018 In service Land (1) 211 – – (2 ) – – 6 215 Reservoirs, dams and watercourses 1,234 – (2 ) (82 ) – – – 1,150 Buildings, works and improvements 331 – – (19 ) – – 2 314 Machinery and equipment 874 – (9 ) (70 ) (256 ) 296 19 854 Vehicles 3 – (2 ) – – 4 5 Furniture and utensils 3 – – – – – 1 4 2,656 – (11 ) (175 ) (256 ) 296 32 2,542 In progress 106 77 (22 ) (41 ) 120 Net property, plant and equipment 2,762 77 (33 ) (175 ) (256 ) 296 (9 ) 2,662 (1) Certain land sites linked to concession contracts and without provision for reimbursement are amortized in accordance with the period of the concession. 2016 Additions Jaguara, Miranda and Volta Grande Plants (1) Disposals Depreciation Transfers / capitalizations 2017 In service Land 279 – (61 ) (1 ) (6 ) – 211 Reservoirs, dams and watercourses 1,761 – (441 ) (4 ) (85 ) 3 1,234 Buildings, works and improvements 418 – (69 ) – (20 ) 2 331 Machinery and equipment 1,172 – (305 ) (5 ) (93 ) 105 874 Vehicles 4 – – – (1 ) – 3 Furniture and utensils 3 – – – – – 3 3,637 – (876 ) (10 ) (205 ) 110 2,656 In progress 138 83 (17 ) – (98 ) 106 Net property, plant and equipment 3,775 83 (876 ) (27 ) (205 ) 12 2,762 |
Schedule of summary of property plant and equipment depreciation rate | Generation (%) Administration (%) Reservoirs, dams and watercourses 2 Software 20 Buildings – Machine room 2 Vehicles 14.29 Buildings – Other 3.33 IT equipment in general 16.67 Generator 3.33 General equipment 6.25 Water turbine 2.5 Buildings – Other 3.33 Pressure tunnel 3.13 Command station, panel and cubicle 3.57 Town planning and improvements 3.33 The average annual depreciation rate for the year 2019 is 3.13% (3.72% in 2018 and 3.14% in 2017): Hydroelectric Generation Thermoelectric Generation Wind Power Generation Administration 2.83 4.13 4.87 8.29 |
20. INTANGIBLE ASSETS (Tables)
20. INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [abstract] | |
Schedule of composition of intangible assets | The composition of the balance at December 31, 2019 and 2018 is as follow: 2019 2018 Historical cost Accumulated amortization Residual value Historical cost Accumulated amortization Residual value In service Useful life defined Temporary easements 12 (4 ) 8 11 (3 ) 8 Onerous concession 20 (13 ) 7 19 (12 ) 7 Assets of concession (1) 20,039 (8,522 ) 11,517 18,674 (7,994 ) 10,680 Others 77 (67 ) 10 85 (66 ) 19 20,148 (8,606 ) 11,542 18,789 (8,075 ) 10,714 In progress 82 – 82 63 – 63 Net intangible assets 20,230 (8,606 ) 11,624 18,852 (8,075 ) 10,777 (1) The rights of authorization to generate wind energy granted to Parajuru Volta do Rio |
Schedule of changes in intangible assets | Changes in Intangible assets are as follow: 2018 Additions Disposals (2) Amortization Transfers (1) 2019 In service Useful life defined Temporary easements 9 – – (1 ) – 8 Onerous concession 7 – – – – 7 Assets of concession 10,680 891 (41 ) (698 ) 685 11,517 Others 18 7 – (5 ) (10 ) 10 10,714 898 (41 ) (704 ) 675 11,542 In progress 63 36 – – (17 ) 82 Net intangible assets 10,777 934 (41 ) (704 ) 658 11,624 (1) The transfers were made between Intangible assets, concession contract assets and property, plant and equipment as follows: (1) R$685 from concession contract assets to intangible assets; (2) (R$4) from intangible assets to property, plant and equipment and; and (3) (R$23) from intangible assets to concession financial assets. (2) This includes the impairment, in the amount of R$ 22 recognized in the Income Statement under “Other expenses”. The test of impairment of intangible assets, relating to the authorization for wind generation granted to Volta do Rio, recognized in 2018 as part of the business combination, arises from non- achievement of the operational performance expected in 2019 for the wind generation assets of the subsidiary. The Value in Use of the assets was calculated based on the projection of future expected cash flows for the operation of the assets of the subsidiary, brought to present value by the weighted average cost of capital defined for the company’s activity, using the Firm Cash Flow (FCFF) methodology. 2017 Assets arising from business combination Additions Disposals Effects of first-time adoption of IFRS 15 Amortization Transfer to Held for sale Transfers 2018 In service Useful life defined Temporary easements 10 – – – – (1 ) – – 9 Onerous concession 8 – – – – (1 ) – – 7 Assets of concession 10,435 162 – (23 ) – (668 ) – 774 10,680 Others 17 4 1 – – (5 ) (7 ) 8 18 10,470 166 1 (23 ) – (675 ) (7 ) 782 10,714 In progress 686 – 33 (4 ) (621 ) – – (31 ) 63 Net intangible assets 11,156 166 34 (27 ) (621 ) (675 ) (7 ) 751 10,777 2016 Additions Disposals Amortization Transfers (1) 2017 In service Useful life defined Temporary easements 10 – – – – 10 Onerous concession 9 – – (1 ) – 8 Assets of concession 9,248 – (11 ) (638 ) 1,836 10,435 Others 18 – – (7 ) 6 17 9,285 – (11 ) (646 ) 1,842 10,470 In progress 1,535 1,105 (8 ) – (1,946 ) 686 Net intangible assets 10,820 1,105 (19 ) (646 ) (104 ) 11,156 (1) Balances transferred to financial assets. |
Schedule of disclosure of intangible assets principal amortization rates | The main amortization rates, which take into account the useful life that management expects for the asset, and reflect the expected pattern of their consumption, are as follows: Energy (%) Administration (%) System cable – below 69 KV 6.67 Software 20.00 System cable – below 69 KV 3.57 Vehicles 14.29 Structure – Posts 3.57 General equipment 6.25 Overhead distribution transformer 4.00 Buildings 3.33 Circuit breaker – up to 69 kV 3.03 Capacitor bank – up to 69 kV 6.67 Voltage regulator – up to 69 kV 4.35 Gas (%) Administration (%) Tubing 3.33 Software 20.00 Buildings, works and improvements 4.00 Vehicles 20.00 Improvements in leased properties 10.00 Data processing equipment 20.00 Machinery and equipment 5.00 a 20.00 Furniture 10.00 The annual average amortization rate is 4.01%: Hydroelectric Generation Wind Power Generation Gas Distribution Administration 19.74 16.90 2.87 3.88 16.03 |
21. LEASING TRANSACTIONS (Table
21. LEASING TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leasing Transactions | |
Schedule of right to use | The breakdown of the balance for each type of asset identified is as follows: Dec. 31, 2019 Jan 1, 2019 Real estate property 206 238 Vehicles 71 104 277 342 |
Schedule of changes in the asset right to use | Changes in the right-of-use assets are as follows: Real estate Vehicles Total January 1, 2019 238 104 342 Addition 28 4 32 Disposals (contracts terminated) (13 ) - (13 ) Amortization (1) (37 ) (39 ) (76 ) Remeasurement (2) (10 ) 2 (8 ) Balances at December 31, 2019 206 71 277 (1) Amortization of the right-of-use assets is recognized in the Income Statement is net of use of the credits of PIS, Pasep and Cofins taxes on leasing payments ofR$5. (2) The Company has identified events giving rise to modifications of their principal contracts. When occurred, the lease liabilities adjustments are recognized in counterpart of the right-of-use assets. |
Schedule of changes in the liabilities for leasing transactions | The changes in the lease liabilities are as follows: 2019 January 1, 2019 (1) 342 Addition 32 Disposals (contracts terminated) (13 ) Accrued interest (2) 36 Payment of principal portion of lease liability (96 ) Payment of interest (5 ) Remeasurement (3) (8 ) Balances at December 31, 2019 288 Current liabilities 85 Non-current liabilities 203 (1) The Company’s incremental borrowing rate applied to the lease liability recognized in the statement of financial position on the date of the initial application varied between 7.96% p.a. and 10.64% p.a., depending on the leasing contract period, and 13.17% p.a., respectively, for contracts with maturities of up to two years, two to five years and longer than five years. The rates applied to the contracts entered into during 2019 were 6.87% p.a., 7.33% p.a. and 8.08% p.a., for contracts with maturities, respectively, of up to three years, three to four years, and over four years. To determine the incremental borrowing rate, the Company used as a reference quotations obtained from financial institutions, these being a function of the Company’s credit risk, and market conditions on the date of contracting. (2) Financial expenses recognized in the income statement are net of PIS/Pasep and Cofins taxes credits on lease payments in the amounts of R$2. (3) The Company identified events that give rise to modifications of their principal contracts. When occurred, the lease liabilities adjustments are recognized in counterpart of the right-of-use assets. |
Schedule of potential right to recovery | The potential right to recovery of PIS/Pasep and Cofins taxes embedded in the leasing consideration, according to the periods specified for payment, is as follows: Cash flow Nominal Adjusted to present value Consideration for the leasing 704 288 Potential PIS/Pasep and Cofins (9.25%) 56 18 |
Schedule of maturity of its contracts | The cash flows of the contracts containing a lease are, in their majority, indexed to the IPCA inflation index on an annual basis. Below is an analysis of maturity of lease contracts: 2020 86 2021 58 2022 26 2023 26 2024 26 2025 at 2045 482 Undiscounted values 704 Embedded interest (416 ) Lease liabilities 288 |
22. SUPPLIERS (Tables)
22. SUPPLIERS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Current raw materials and current production supplies [abstract] | |
Schedule of suppliers | 2019 2018 Energy on spot market – CCEE 401 139 Charges for use of energy network 145 122 Energy purchased for resale 764 775 Itaipu Binacional 243 268 Gas purchased for resale 143 124 Materials and services 384 373 2,080 1,801 |
23. TAXES PAYABLE AND AMOUNTS_2
23. TAXES PAYABLE AND AMOUNTS TO BE REFUNDED TO CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of taxes, income tax and social contribution tax [abstract] | |
Schedule of taxes and amounts to be restituted to customers | 2019 2018 Current ICMS 112 168 COFINS 135 146 PASEP 29 32 INSS 25 23 Others (1) 58 41 359 410 Non-current COFINS 1 25 PASEP - 4 1 29 360 439 Amounts to be refunded to customers Non-current PASEP/COFINS 4,193 1,124 4,193 1,124 (1) This includes the withholding income tax on Interest on equity paid in January 2020, in accordance with the tax legislation. |
24. LOANS, FINANCING AND DEBENT
24. LOANS, FINANCING AND DEBENTURES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure loans financings and debentures [abstract] | |
Schedule of loans financing and debentures | Principal maturity Annual financial cost % Currency 2019 2018 Financing source Current Non–current Total Total FOREIGN CURRENCY Banco do Brasil: Various Bonds (1) (4) 2024 Diverse US$ 2 16 18 26 Eurobonds (2) 2024 9.25% US$ 46 6,046 6,092 5,856 (–)Transaction costs – (19 ) (19 ) (21 ) (±) Interest paid in advance (3) – (30 ) (30 ) (34 ) Debt in foreign currency 48 6,013 6,061 5,827 BRAZILIAN CURRENCY Banco do Brasil S.A.(4) (11) 2022 146.50% of CDI R$ – – – 503 Caixa Econômica Federal (4) (11) 2022 146.50% of CDI R$ – – – 627 Caixa Econômica Federal (5) 2021 TJLP + 2.50% R$ 61 – 61 56 Caixa Econômica Federal (6) 2022 TJLP + 2.50% R$ 118 – 118 108 Eletrobrás (4) 2023 UFIR + 6.00% at 8.00% R$ 11 9 20 33 Large customers (4) 2024 IGP–DI + 6.00% R$ 3 2 5 5 Sonda (7) 2021 110.00% of CDI R$ – 49 49 46 Promissory Notes – 9th Issue – Single series (4) (11) 2019 151.00% of CDI R$ – – – 426 Promissory Notes – 1st Issue – Single series (8) 2020 107.00% of CDI R$ 875 – 875 – (–) FIC Pampulha – Marketable securities of subsidiary companies (9) (3 ) – (3 ) (25 ) (–)Transaction costs – – – (13 ) Debt in Brazilian currency 1,065 60 1,125 1,766 Total of loans and financings 1,113 6,073 7,186 7,593 Debentures – 3th Issue – 2nd Series (2) 2019 IPCA + 6.00% R$ – – – 156 Debentures – 3th Issue – 3rd Series (2) 2022 IPCA + 6.20% R$ 396 692 1,088 1,049 Debentures – 6th Issue – 2nd Series (2) 2020 IPCA + 8.07% R$ 17 – 17 33 Debentures – 7th Issue – Single series (2) (12) 2021 140.00% of CDI R$ 289 289 578 1,023 Debentures – 3th Issue – 2nd Series (4) 2021 IPCA + 4.70% R$ 568 541 1,109 1,596 Debentures – 3th Issue – 3rd Series (4) 2025 IPCA + 5.10% R$ 42 949 991 957 Debentures – 5th Issue – Single Series (4) (11) 2022 146.50% of CDI R$ – – – 1,580 Debentures – 6th Issue – Single Series (4) (11) 2020 CDI + 1.75% R$ – – – 551 Debentures – 7th Issue – 1st Series (4) 2024 CDI + 0.45% R$ 275 1,890 2,165 – Debentures – 7th Issue – 2nd Series (4) 2026 IPCA + 4.10% R$ 3 1,517 1,520 – Debentures – 4th Issue – 1st Series (8) 2022 TJLP+1.82% R$ 12 19 31 125 Debentures – 4th Issue – 2nd Series (8) 2022 Selic + 1,82% R$ 5 9 14 – Debentures – 4th Issue – 3th Series (8) 2022 TJLP + 1,82% R$ 12 22 34 – Debentures – 4th Issue – 4th Series (8) 2022 Selic + 1,82% R$ 5 10 15 – Debentures – 6th Issue – Single series (8) 2019 116.50% of CDI R$ – – – 50 Debentures – 7th Issue – Single series (8) 2023 CDI + 1.50% R$ 20 60 80 100 (–) Discount on the issuance of debentures (10) – (22 ) (22 ) – (–) Transaction costs (10 ) (19 ) (29 ) (41 ) Total, debentures 1,634 5,957 7,591 7,179 Total 2,747 12,030 14,777 14,772 (1) Net balance of the Restructured Debt comprising bonds at par and discounted, with balance of R$ 182, less the amounts given as Deposits in guarantee, with balance of R$ 164. Interest rates vary – from 2 to 8% p.a.; six-month Libor plus spread of 0.81% to 0.88% p.a. (2) Cemig Geração e Transmissão; (3) Advance of funds to achieve the yield to maturity agreed in the Eurobonds contract. (4) Cemig Distribuição; (5) Central Eólica Praias de Parajuru; (6) Central Eólica Volta do Rio; (7) Arising from merger of Cemig Telecom. (8) Gasmig; (9) FIC Pampulha has financial investments in marketable securities issued by subsidiaries of the Company. For more information on this fund, see Note 32. (10) Discount on the sale price of the 2nd series of the Seventh issue of Cemig Distribuição. (11) The funds incorporated into the cash position of Cemig D as a result of the distribution of its Seventh Issue of non-convertible debentures, on July 22, 2019, enabled full prepayment of the debtor balances of: the Ninth Issue of Promissory Notes, with final maturity in October 2019; the Sixth Issue of Non- convertible Debentures, with final maturity in June 2020; the Fifth Issue of Non-convertible Debentures, maturing at the end of June 2022; and Bank Credit Notes with final maturities in June 2022. These prepayments, made on July 24, 2019, total R$3,644 including principal, interest and charges. These initiatives have balanced the cash flow and improved the Company’s credit quality. The changes in the new debt profile consisted of extinction of existing contracts and signature of new contracts. The accounting effects of the transactions are reflected in accordance with IFRS 09. (12) On July 24, 2019 Cemig GT made extraordinary amortization of its Seventh Issue of Non-convertible ventures, in the amount of R$125, with final maturity in December 2021. |
Schedule of consolidated totals of funds raised | This table provides the totals of funds raised in 2019, 2018 and 2017: Financing source 2019 Signature date Principal maturity Annual financial Amount BRAZILIAN CURRENCY Debentures – 7th Issue – 1st Series (1) July, 2019 2024 CDI + 0.454% 2,160 Debentures – 7th Issue – 2nd Series (1) July, 2019 2026 4.10% of IPCA 1,500 Promissory Notes – 1st Issue (2) September, 2019 2020 107.00% of CDI 850 (-)Transactions costs (10 ) (-)Discount on the issuance of debentures (3) (23 ) Total raised 4,477 (1) Cemig Distribuição (2) Gasmig (3) Discount on the sale price of the 2nd series of the debentures issued by Cemig Distribuição. Financing source 2018 Signature date Principal maturity Annual financial Amount FOREIGN CURRENCY Eurobonds (1) July, 2018 2024 9.25% 1,946 (-) Transactions costs (8 ) (±)Interest paid in advance (2) 10 1,948 BRAZILIAN CURRENCY Promissory Notes – 9th Issue - Single Series (3) May, 2018 2019 151% of CDI 400 (-)Transactions costs (4 ) Debentures – Debentures (4) August, 2018 2023 CDI + 1.50% 100 Debentures – 6th Issue – Single Series (5) December, 2018 2020 CDI + 1.75% 550 (-)Transactions costs (4 ) 1,042 Total raised 2,990 (1) In July 2018, Cemig GT completed financial settlement of an additional tranche to its initial Eurobond issue completed on December 5, 2017. The new tranche, of US$ 500, which brought the total of the issuance to R$ 1.946 billion, has half-yearly coupon of 9.25% p.a., with maturity of the principal in 2024. (2) Advance of funds to achieve the yield to maturity agreed in the Eurobonds contract. (3) In May 2018 Cemig D made its 9 th (4) In August 2018 Gasmig completed its 7th debenture issue, with maturity at 5 years, paying CDI + 1.50%, with annual amortization from August 2019. (5) In December 2018 the 6 th Financing source 2017 Signature date Principal maturity Annual financing cost – % Amount (*) Foreign currency Eurobonds 12/05/2017 2024 9.25% 3,252 (–) Transaction costs (*) (16 ) Interest paid in advance (*) (48 ) Brazilian currency Debentures (1) 11/04/2013 2022 CDI + 0.74% 34 Debentures (2) 04/22/2017 2019 128.50% of CDI 26 Debentures – 5th Issue, single series (3) 12/14/2017 2022 146.50% of CDI 1,575 (–) Transaction costs (3) (11 ) Total raised 4,812 (*) Includes taxes without cash effect, of R$ 10. (1) Subscription by BNDESPar of Gasmig’s 4 th (2) Cemig Telecom (merged into Company in 2018) completed its second issue of non-convertible debentures in May 2017 with real guarantees and additional surety, in a single series, to roll over debt and strengthen cash position. (3) On December 14, 2017 CemigTelecom made its 5 th 5th |
Schedule of guarantees of the debtor balance on loans and financings | The guarantees of the debt balance on loans and financing, on December 31, 2019, were as follows: 2019 Promissory notes and Sureties 9,247 Guarantee and Receivables 3,652 Receivables 310 Shares 609 Unsecured 959 TOTAL 14,777 |
Schedule of consolidated composition of loans, financings and debentures, by currency and indexor, with the respective amortization | The composition of loans, financing and debentures, by currency and index, with the respective amortization, is as follows: 2020 2021 2022 2023 2024 2025 2026 Total Currency US dollar 48 – – – 6,062 – – 6,110 Total, currency denominated 48 – – – 6,062 – – 6,110 Index IPCA (1) 1,027 881 588 237 237 996 759 4,725 UFIR/RGR (2) 11 3 3 3 – – – 20 CDI (3) 1,465 907 570 560 271 – – 3,773 URTJ/TJLP (4) 202 21 21 – – – – 244 IGP-DI (5) 2 1 1 1 – – – 5 Total by index 2,707 1,813 1,183 801 508 996 759 8,767 (-)Transaction costs (11 ) (10 ) (1 ) (1 ) (19 ) (3 ) (3 ) (48 ) (±)Interest paid in advance – – – – (30 ) – – (30 ) (-) Discount – – – – – (11 ) (11 ) (22 ) Overall total 2,744 1,803 1,182 800 6,521 982 745 14,777 (1) Expanded National Customer Price (IPCA) Index. (2) Fiscal Reference Unit (Ufir / RGR). (3) CDI: Interbank Rate for Certificates of Deposit. (4) Interest rate reference unit (URTJ) / Long-Term Interest Rate (TJLP) (5) IGP-DI (‘General – Domestic Availability’) Price Index. |
Schedule of the principal currencies and indexors used for monetary updating of loans and financings | The principal currencies and index used for monetary updating of loans and financings had the following variations: Currency Accumulated change in 2019, % Accumulated change in 2018, % Indexer Accumulated change in 2019, % Accumulated change in 2018, % US dollar 4.02 17.13 IPCA 4.31 3.75 CDI 5.97 6.40 TJLP (20.20 ) (0.29 ) |
Schedule of changes in loans, financings and debentures | The changes in loans, financing and debentures are as follows: Balance at December 31, 2016 15,179 Loans and financing obtained 3,363 (–) Transaction costs (1) (16 ) (–) Interest paid in advance (1) (48 ) Financing obtained, net 3,299 Transaction costs (2) (11 ) Monetary variation 109 Exchange rate variation 59 Financial charges provisioned 1,537 Amortization of transaction cost 67 Financial charges paid (1,749 ) Amortization of financing (4,131 ) Subtotal 14,359 FIC Pampulha: Marketable securities of subsidiary companies 39 Balance at December 31, 2017 14,398 Liabilities arising from business combination 163 Initial balance for consolidation purposes 14,561 Loans and financing obtained 2,996 (–) Transaction costs (16 ) Interest paid in advance 10 Financing obtained, net 2,990 Monetary variation 134 Exchange rate variation 582 Financial charges provisioned 1,287 Amortization of transaction cost 33 Financial charges paid (1,290 ) Amortization of financing (3,527 ) Subtotal 14,770 FIC Pampulha: Marketable securities of subsidiary companies 2 Balance at December 31, 2018 14,772 Loans and financing obtained 4,510 (–) Transaction costs (10 ) Discount in the issues of securities (23 ) Financing obtained, net 4,477 Monetary variation 142 Exchange rate variation 226 Financial charges provisioned 1,250 Amortization of transaction cost 38 Financial charges paid (1,265 ) Amortization of financing (4,883 ) Subtotal 14,757 FIC Pampulha: Marketable securities of subsidiary companies 20 Balance at December 31, 2019 14,777 (1) Includes taxes with no cash effect, of R$10. (2) Transaction costs arising from the 5th issue of debentures by Cemig D, which was subscribed by transfer of the debentures of the 4th issue – thus there was no cash effect in the Company. |
Schedule of transferred to intangible assets the costs of loans and financings linked to working in progress | The subsidiaries Cemig D and Gasmig considered the costs of loans and financing linked to construction in progress as construction costs of intangible and concession contract assets , as follows: 2019 2018 2017 Costs of loans and financing 1,250 1,287 1,604 Financing costs on intangible assets and contract assets (1) (Note 17 and 20) (23 ) (30 ) (71 ) Net effect in Profit or loss 1,227 1,257 1,533 (1) The average capitalization rate p.a. in 2019 was 6.79% (9.64% in 2018 and 14.28% in 2017). |
Schedule of restrictive covenants | The Company has contracts with financial covenants as follows: Title - Security Covenant Ratio required – Issuer Ratio required Cemig (guarantor) Ratio required – Parajuru and Volta do Rio Compliance required 7th Debentures Issue Cemig GT (1) Net debt / (Ebitda + Dividends received) The following or less: 4.5 in 2019 3.0 in 2020 2.5 in 2021 The following or less: 3.5 in 2019 3.0 in 2020 2.5 in 2021 — Semi-annual and annual Eurobonds Cemig GT (2) Net debt / Ebitda adjusted for the Covenant The following or less: 4.5 on Dec. 31, 2019 4.5 on June 30, 2020 3.0 on Dec. 31, 2020 3.0 on June 30, 2021 2.5 on/after Dec. 31, 2021 The following or less: 3.5 on Dec. 31, 2019 3.5 on June 30, 2020 3.0 on Dec. 31, 2020 3.0 on June 30, 2021 3.0 on/after Dec. 31, 2021 — Semi-annual and annual 7th Debentures Issue Cemig D Net debt / Ebitda adjusted The following or less: 3.8 on Dec. 31. 2019 3.5 on June 30. 2020 The following or less: 3.5 on December, 31, 2019 3.5 on June, 30, 2020 3.0 on December, 31, 2020 — Semi-annual and annual Debentures GASMIG (3) Overall indebtedness (Total liabilities/Total assets) Less than 0.6 — — Annual Ebitda / Debt servicing 1.3 or more — — Annual Ebitda / Net finance income (expenses) 2.5 or more — — Annual Net debt / Ebitda The following or less: 4.0 on Dec, 31.2019 2.5 on/after Dec, 31.2020 — — Annual Financings Caixa Econômica Federal (CEF) Parajuru and Volta do Rio (4) Debt servicing coverage index — — 1.20 or more Annual (during amortization) Equity / Total liabilities — — 20.61% or more (Parajuru) 20.63% or more (Volta do Rio) Always Share capital subscribed in investee / Total investments made in the project financed — — 20.61% or more (Parajuru) 20.63% or more (Volta do Rio) Always (1) 7th Issue of Debentures by Cemig GT, as of December 31, 2016, of R$ 2,240. (2) In the event of a possible breach of the financial covenants, interest will automatically be increased by 2% p.a. during the period in which they remain exceeded. There is also an obligation to comply with a ‘maintenance’ covenants – that the consolidated debt, shall have a guarantee for debt of 1.75x Ebitda (2.0 as of December 31, 2017); and a ‘damage’ covenant, requiring real guarantee for debt at Cemig GT of 1.5x Ebitda. (3) If Gasmig does not achieve the required covenants, it must, within 120 days from the date of notice in writing from BNDES or BNDESPar, constitute guarantees acceptable the debenture holders fbyor the total amount of the debt, subject to the rules of the National Monetary Council (CMN), unless the required ratios are restored within that period. Certain contractually specified situations can cause early maturity of other debts (cross-default). (4) The financing contracts with Caixa Econômica Federal for the Praias de Parajuru and Volta do Rio wind power plants have financial covenants with compliance relating to early maturity of the debt remaining balance. Compliance with the debt servicing coverage index is considered to be demandable only annually and during the period of amortization, which begins in July 2020. |
25. REGULATORY CHARGES (Tables)
25. REGULATORY CHARGES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Net movement in regulatory deferral account balances related to profit or loss [abstract] | |
Schedule of information about amounts recognised in relation to regulatory deferral account balances | 2019 2018 Liabilities Global Reversion Reserve (RGR) 31 29 Energy Development Account (CDE) 58 122 Regulator inspection fee – ANEEL 3 2 Energy Efficiency Program 255 258 Research and development (R&D) 199 225 Energy System Expansion Research 3 2 National Scientific and Technological Development Fund 6 5 Proinfa – Alternative Energy Program 8 7 Royalties for use of water resources 10 6 Emergency capacity charge 26 31 Others 5 6 604 693 Current liabilities 457 514 Non-current liabilities 147 179 |
26. POST-EMPLOYMENT OBLIGATIO_2
26. POST-EMPLOYMENT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of defined benefit plans [abstract] | |
Schedule of consolidated actuarial information | Actuarial information 2019 Pension plans Health plan Dental plan Life insurance Total Present value of obligations 13,285 3,102 61 574 17,022 Fair value of plan assets (10,366 ) – – – (10,366 ) Initial net liabilities 2,919 3,102 61 574 6,656 Adjustment to asset ceiling 53 – – – 53 Net liabilities in the statement of financial position 2,972 3,102 61 574 6,709 2018 Pension plans Health plan Dental plan Life insurance Total Present value of obligations 11,073 2,344 48 427 13,892 Fair value of plan assets (9,062 ) – – – (9,062 ) Initial net liabilities 2,011 2,344 48 427 4,830 Adjustment to asset ceiling 159 – – – 159 Net liabilities in the statement of financial position 2,170 2,344 48 427 4,989 |
Schedule of changes in present value of defined benefit obligation | The changes in the present value of the defined benefit obligation are as follows: Pension plans Health plan Dental plan Life insurance Total Defined-benefit obligation at December 31, 2016 9,743 1,711 38 814 12,306 Cost of current service 5 11 – 3 19 Interest on actuarial obligation 980 178 3 85 1,246 Actuarial losses (gains): Due to changes in demographic assumptions 191 – – – 191 Due to changes in financial assumptions 414 66 2 55 537 Due to adjustments based on experience 53 (44 ) (2 ) (60 ) (53 ) 658 22 – (5 ) 675 Plan amendment – Past service – – – (619 ) (619 ) Benefits paid (841 ) (113 ) (2 ) (8 ) (964 ) Defined-benefit obligation at December 31, 2017 10,545 1,809 39 270 12,663 Cost of current service 3 10 – 2 15 Interest on actuarial obligation 959 173 4 25 1,161 Actuarial losses (gains): Due to changes in demographic assumptions Due to changes in financial assumptions 467 402 8 26 903 Due to adjustments based on experience (20 ) 68 – 113 161 447 470 8 139 1,064 Benefits paid (881 ) (118 ) (3 ) (9 ) (1,011 ) Defined-benefit obligation at December 31, 2018 11,073 2,344 48 427 13,892 Cost of current service 1 14 – 3 18 Interest on actuarial obligation 963 208 4 38 1,213 Actuarial losses (gains): Due to changes in demographic assumptions 6 – – – 6 Due to changes in financial assumptions 2,058 576 11 130 2,775 Due to adjustments based on experience 83 91 – (14 ) 160 2,147 667 11 116 2,941 Benefits paid (899 ) (131 ) (2 ) (10 ) (1,042 ) Defined-benefit obligation at December 31, 2019 13,285 3,102 61 574 17,022 |
Schedule of changes in the fair value of plan assets | Changes in the fair values of the plan assets are as follows: Pension plans and retirement supplement plans Fair value of plan assets at December 31, 2016 8,128 Return on investments 1,100 Contributions from employer 159 Benefits paid (841 ) Fair value of plan assets at December 31, 2017 8,546 Return on investments 1,220 Contributions from employer 178 Benefits paid (881 ) Fair value of the plan assets at December 31, 2018 9,063 Return on investments 2,003 Contributions from employer 199 Benefits paid (899 ) Fair value of the plan assets at December 31, 2019 10,366 |
Schedule of defined benefit plans expense recognised in income statement | The amounts recognized in 2019, 2018 and 2017 statement of income are as follows: 2019 Pension plans Health plan Dental plan Life insurance Total Current service cost 1 14 – 2 17 Interest on the actuarial obligation 963 208 5 38 1,214 Expected return on the assets of the Plan (767 ) – – – (767 ) Expense (recovery of expense) in 2019 according to actuarial calculation 197 222 5 40 464 2018 Pension plans Health plan Dental plan Life insurance Total Current service cost 4 10 0 1 15 Interest on the actuarial obligation 959 172 4 26 1,161 Expected return on the assets of the Plan (771 ) – – – (771 ) Expense (recovery of expense) in 2018 according to actuarial calculation 192 182 4 27 405 2017 Pension plans Health plan Dental plan Life insurance Total Current service cost 5 11 – 3 19 Interest on the actuarial obligation 980 178 3 85 1,246 Expected return on the assets of the Plan (810 ) – – – (810 ) Past service cost – – – (619 ) (619 ) Expense (recovery of expense) in 2017 according to actuarial calculation 175 189 3 (531 ) (164 ) |
Schedule of changes in net liabilities | Changes in net liabilities were as follows: Pension plans Health plan Dental plan Life insurance Total Net liabilities at December 31, 2016 1,679 1,711 38 814 4,242 Expense recognized in Statement of income 175 189 3 88 455 Contributions paid (160 ) (113 ) (2 ) (7 ) (282 ) Plan amendment – Past service – – – (619 ) (619 ) Actuarial losses (gains) 374 22 (1 ) (5 ) 390 Net liabilities at December 31, 2017 2,068 1,809 38 271 4,186 Expense recognized in Statement of income 193 183 4 25 405 Contributions paid (178 ) (118 ) (2 ) (9 ) (307 ) Actuarial losses 87 470 8 140 705 Net liabilities at December 31, 2018 2,170 2,344 48 427 4,989 Expense recognized in Statement of income 197 222 5 40 464 Contributions paid (200 ) (131 ) (2 ) (10 ) (343 ) Actuarial losses 805 667 10 117 1,599 Net liabilities at December 31, 2019 2,972 3,102 61 574 6,709 2019 2018 Current liabilities 288 253 Non-current liabilities 6,421 4,736 |
Schedule of independent actuaries estimate for the expense amount | The independent actuary’s estimation for the expense to be recognized for 2020 is as follows: Pension plans Health plan Dental plan Life insurance Total Current service cost 1 21 1 3 26 Interest on the actuarial obligation 887 215 4 41 1,147 Expected return on the assets of the Plan (682 ) – – – (682 ) Estimated total expense in 2020 as per actuarial report 206 236 5 44 491 |
Schedule of expectation for payment of benefits | The expectation for payment of benefits for 2020 is as follows: Pension plans Health plan Dental plan Life insurance Total Estimated payment of benefits 898 141 3 17 1,059 |
Schedule of average periods of the obligations under the benefit plans | The average maturity periods of the obligations of the benefit plans, in years, are as follows: Pension plans and retirement supplement plans Plan A Plan B Health plan Dental plan Life insurance 9.54 11.55 12.82 13.17 16.93 |
Schedule of principal categories percentage of plan assets | The main categories plan’s assets, as a percentage of total plan’s assets are as follows: 2019 2018 Shares 9.51 % 7.11 % Fixed income securities 72.28 % 71.92 % Real estate property 3.79 % 4.69 % Others 14.42 % 16.28 % Total 100.00 % 100.00 % The following assets of the pension plan, measured at fair value, are related to the Company: 2019 2018 Non-convertible debentures issued by the Company 398 380 Shares issued by the Company 24 35 Real estate properties of the Foundation, occupied by the Company 503 662 925 1,077 |
Schedule of actuarial assumptions | This table provides the main actuarial assumptions: 2019 Pension plans and retirement supplement plans Health plan and Dental plan Life insurance Annual discount rate for present value of the actuarial obligation 6.87% 7.09% 7.19% Annual expected return on plan assets 6.87% Not applicable Not applicable Long-term annual inflation rate 3.61% 3.61% 3.61% Estimated future annual salary increases 3.61% Not applicable 4.85% General mortality table AT-2000 M S10% D10% AT-2000 M S10% D20% AT-2000 M S10% D20% Disability table Not applicable Álvaro Vindas D30% Álvaro Vindas D30% Disabled mortality table AT-49 M MI-85 F MI-85 F Real growth of contributions above inflation – 1% – 2018 Pension plans and retirement supplement plans Health plan and Dental plan Life insurance Annual discount rate for present value of the actuarial obligation 9.02% 9.60% 9.57% Annual expected return on plan assets 9.02% Not applicable Not applicable Long-term annual inflation rate 4.01% 4.00% 4.00% Estimated future annual salary increases 4.01% Not applicable 6.08% General mortality table AT-2000 M S10% D10% AT-2000 M S10% D20% AT-2000 M S10% D20% Disability table Not applicable Álvaro Vindas D30% Álvaro Vindas D30% Disabled mortality table AT 49 M Winklevoss D30% Winklevoss D30% Real growth of contributions above inflation (1) – 1% – (1) Starting in 2018, Company adopted the assumption of real growth of the contributions above inflation at the rate of 1% p.a. 2017 Pension plans and retirement supplement plans Health and Dental plans Life insurance Annual discount rate for present value of the actuarial obligation 9.48% 9.60% 9.57% Annual expected return on plan assets 9.48% 9.60% 9.57% Long-term annual inflation rate 4.00% 4.00% 4.00% Estimated future annual salary increases 4.00% Not applicable 6.08% General mortality table AT-2000 M S10% D10% AT-2000 M S10% D20% AT-2000 M S10% D20% Disability table Not applicable Álvaro Vindas D30% Álvaro Vindas D30% Disabled mortality table AT 49 M Winklevoss D30% Winklevoss D30% |
Schedule of sensitivity analysis of the effects of changes in the principal actuarial assumptions used to determine the defined-benefit obligation | Below is a sensitivity analysis of the effects of changes in the main actuarial assumptions used to determine the defined-benefit obligation at December 31, 2019: Effects on the defined-benefit obligation Pension plans and Health plan Dental plan Life insurance Total Reduction of one year in the mortality table 335 84 1 (15 ) 405 Increase of one year in the mortality table (336 ) (61 ) (1 ) 16 (382 ) Reduction of 1% in the discount rate 1,583 496 10 122 2,211 |
27. PROVISIONS (Tables)
27. PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of other provisions [abstract] | |
Schedule of provisions for contingencies | Company recorded provisions for contingencies in relation to the legal actions in which, based on the assessment of the Company’s management and its legal advisors, the chances of loss are assessed as ‘probable’ (i.e. an outflow of funds to settle the obligation will be necessary), as follows: 2018 Additions Reversals Settled 2019 Labor 457 180 (44 ) (96 ) 497 Civil Customer relations 19 21 (1 ) (20 ) 19 Other civil actions 29 16 (12 ) (15 ) 18 48 37 (13 ) (35 ) 37 Tax 52 1,236 (8 ) (20 ) 1,260 Environmental 1 - (1 ) - - Regulatory 37 2 (1 ) (2 ) 36 Others 46 13 (1 ) - 58 Total 641 1,468 (68 ) (153 ) 1,888 2017 Additions Reversals Settled 2018 Labor 474 67 (25 ) (59 ) 457 Civil Customer relations 18 17 - (16 ) 19 Other civil actions 43 10 (14 ) (10 ) 29 61 27 (14 ) (26 ) 48 Tax 57 5 (10 ) 52 Environmental - 1 - - 1 Regulatory 40 8 (10 ) (1 ) 37 Others 46 7 (5 ) (2 ) 46 Total 678 115 (64 ) (88 ) 641 2016 Additions Reversals Settled 2017 Labor 350 210 (4 ) (82 ) 474 Civil Customer relations 15 21 (2 ) (16 ) 18 Other civil actions 40 10 (2 ) (5 ) 43 55 31 (4 ) (21 ) 61 Tax 68 9 (2 ) (18 ) 57 Regulatory 44 15 (18 ) (1 ) 40 Corporate 239 - (239 ) - - Other 59 13 (19 ) (7 ) 46 Total 815 278 (286 ) (129 ) 678 |
28. EQUITY AND REMUNERATION T_2
28. EQUITY AND REMUNERATION TO SHAREHOLDERS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement of changes in equity [abstract] | |
Schedule of share capital for common shares and preferred shares | As of December 31, 2019, the Company’s issued and share capital is R$7,294 (R$7,294 at December 31, 2018 and 2017), represented by 487,614,213 common shares (487,614,213 at December 31, 2018) and 971,138,388 preferred shares (971,138,388 at December 31, 2018), both of them with nominal value of R$5.00 (five Reais), as follows: Number of shares on December 31, 2019 Shareholders Common % Preferred % Total % State of Minas Gerais 248,516,953 51 11,323 – 248,528,276 17 Other entities of Minas Gerais State 19,896 – 1,411,276 – 1,431,172 – FIA Dinâmica Energia S.A. 48,700,000 10 55,133,744 6 103,833,744 7 BNDES Participações 54,342,992 11 26,220,938 3 80,563,930 6 Others In Brazil 101,170,317 21 328,982,856 34 430,153,173 29 Foreign shareholders 34,864,055 7 559,378,251 57 594,242,306 41 Total 487,614,213 100 971,138,388 100 1,458,752,601 100 Number of shares on December 31, 2018 Shareholders Common % Preferred % Total % State of Minas Gerais 248,480,146 51 – – 248,480,146 17 Other entities of Minas Gerais State 56,703 – 647,647 – 704,35 – FIA Dinâmica Energia S.A. 48,200,000 10 55,905,344 6 104,105,344 7 BNDES Participações 54,342,992 11 26,220,938 3 80,563,930 5 Others In Brazil 105,402,202 22 370,338,947 38 475,741,149 33 Foreign shareholders 31,132,170 6 518,025,512 53 549,157,682 38 Total 487,614,213 100 971,138,388 100 1,458,752,601 100 Number of shares on December 31, 2017 Shareholders Common % Preferred % Total % State of Minas Gerais 214,414,739 51 – – 214,414,739 17 Other entities of Minas Gerais State 56,703 – 4,860,228 1 4,916,931 1 FIA Dinâmica Energia S.A. 41,635,754 10 62,469,590 7 104,105,344 8 BNDES 54,342,992 13 26,220,938 3 80,563,930 6 Others In Brazil 56,000,217 13 210,953,069 25 266,953,286 21 Foreign shareholders 54,314,303 13 533,573,121 64 587,887,424 47 Total 420,764,708 100 838,076,946 100 1,258,841,654 100 |
Schedule of shares used in calculation of basic profit and diluted profit per share | Number of shares 2019 2018 2017 Common shares already paid up 487,614,213 487,614,213 420,764,708 Common shares to be paid up – – 66,849,505 Shares in treasury (69 ) (69 ) (69 ) 487,614,144 487,614,144 487,614,144 Preferred shares already paid up 971,138,388 971,138,388 838,076,946 Preferred shares to be paid up – – 133,061,442 Shares in treasury (560,649 ) (560,649 ) (560,649 ) 970,577,739 970,577,739 970,577,739 Total 1,458,191,883 1,458,191,883 1,458,191,883 |
Schedule of calculation of basic earnings per share | The calculation of basic and diluted earnings per share is as follows: 2019 2018 2017 Net income for the year attributed to equity holders of the parent 3,127 1,700 1,001 Minimum mandatory dividend from net income for the year - preferred shares 509 577 486 Net income for the year not distributed - preferred shares 1,573 554 333 Total earnings - preferred shares (A) 2,082 1,131 819 Minimum mandatory dividend from net income for the year - common shares 255 290 15 Net income for the year not distributed - common shares 790 279 167 Total earnings - common shares (B) 1,045 569 182 Basic and diluted earnings per preferred share (A / number of preferred shares) 2.14 1.17 0.84 Basic and diluted earnings per common share (B / number of common shares) 2.14 1.17 0.37 2019 2018 2017 Net income for the year from continuing operations attributed to equity holders of the parent 2,903 1,378 1,001 Minimum mandatory dividend from net income for the year from continuing operations – preferred shares 509 527 486 Net income for the year from continuing operations not distributed – preferred shares 1,424 390 333 Total earnings from continuing operations - preferred shares (A.1) 1,933 917 819 Minimum mandatory dividend from net income for the year from continuing operations - common shares 255 290 15 Net income for the year from continuing operations not distributed – common shares 715 171 167 Total earnings from continuing operations - common shares (B.1) 970 461 182 Basic and diluted earnings from continuing operations per preferred share (A.1 / number of preferred shares) 1.99 0.95 0.84 Basic and diluted earnings from continuing operations per common share (B.1 / number of common shares) 1.99 0.95 0.37 |
Schedule of capital reserves and profit reserves | Capital reserves 2019 2018 2017 Investment-related donations and subsidies 1,857 1,857 1,857 Goodwill on issuance of shares 394 394 69 Shares in treasury (1 ) (1 ) (1 ) 2,250 2,250 1,925 Profit reserves 2019 2018 2017 Legal reserve 853 853 853 Statutory reserve 57 57 57 Retained earnings reserve 5,500 3,965 3,341 Unrealized profit reserve 835 – – Incentive tax reserve 85 67 58 Reserve for mandatory dividends not distributed 1,420 1,420 1,420 8,750 6,362 5,729 |
Schedule of detailed information regarding calculation of retained earnings reserve | The calculation of the retained earnings reserve is as follows: 2019 2018 2017 Net income for the year 3,127 1,700 1,001 Expired dividends – 42 – Incentives tax reserve (18 ) (9 ) (1 ) Deemed cost realization 25 42 28 Adjustment for initial adoption of IFRS 9 and IFRS 15. – (157 ) – Dividends proposed (764 ) (867 ) (500 ) Unrealized profit reserve (835 ) – – Retained earnings reserve 1,535 751 528 |
Schedule of unrealized profit reserve | Thus, since the mandatory dividends if distributed in their totality represents 50% of net income and an amount of R$1,564 and considering the expectations of realized profit for the year, as stated above, Management proposed the constitution of unrealized profit reserve in the amount of R$835, whose calculation is described as follows. 2019 Minimum mandatory dividend required by Bylaws (50% of net income) 1,564 Minimum mandatory dividend required by the Bylaws for the preferred shares (486 ) Minimum mandatory dividend proposed for the common shares (243 ) Unrealized profit reserve 835 |
Schedule of reserve for obligatory dividends not distributed | Reserve for mandatory dividends not distributed 2019 Dividends withheld, arising from the net income of 2015 623 Dividends withheld, arising from the net income of 2014 797 1,420 |
Schedule of dividends proposed for distribution to shareholders based on the profit for the business year | The calculation of the minimum dividends proposed for distribution to Shareholders, considering the 2019 unrealized profit assumption mentioned in the previous paragraphs, is as follows: 2019 2018 2017 Calculation of Minimum Dividends required by the By-laws for the preferred shares Nominal value of the preferred shares 4,856 4,856 4,191 Nominal value of the preferred shares to be capitalized – – 665 4,856 4,856 4,856 Percentage applied to the nominal value of the preferred shares 10.00 % 10.00 % 10.00 % Amount of the dividends by the first payment criterion 486 486 486 Equity 15,887 14,579 14,326 Preferred shares as a percentage of Equity (net of shares held in Treasury) 66.56 % 66.56 % 66.58 % Portion of Equity represented by the preferred shares 10,574 9,704 9,538 Percentage applied to the portion of Equity represented by the preferred shares 3.00 % 3.00 % 3.00 % Amount of the dividends by the second payment criterion 317 291 286 Minimum Dividends required by the Bylaws for the preferred shares 486 486 486 Calculation of the Minimum Dividend under the by-laws based on the net income for the period Mandatory dividend Net income for the year 3,127 1,700 1,001 Mandatory dividends – 50% of Net income 1,564 850 500 Unrealized profit reserve (835 ) Withholding income tax on Interest on equity 35 17 – 764 867 500 Dividends recorded, as specified in the by-laws Interest on Equity 400 210 - Ordinary dividends 364 657 500 764 867 500 Total dividends for the preferred shares 509 577 486 Total dividends for the common shares 255 290 14 Unit value of dividends – R$ Minimum dividends required by the by-laws for the preferred shares 0.50 0.50 0.50 Mandatory dividends (including withholding income tax on Interest on Equity) 0.52 0.59 0.34 Dividends proposed: Common (ON) shares 0.52 0.59 0.03 Dividends proposed: Preferred (PN) shares 0.52 0.59 0.50 |
Schedule of dividends and interest on capital payable | This table provides the changes on dividends and interest on capital payable: Balances at December 31, 2017 428 Proposed dividends and interest on equity 867 Withholding income tax on interest on capital (17 ) Dividends proposed for non-controlling shareholder 127 Proposed dividends of previous years (42 ) Expired dividends (8 ) Dividends retained – Minas Gerais state government (491 ) Balances at December 31, 2018 864 Proposed dividends 764 Withholding income tax on interest on capital (35 ) Dividends retained – Minas Gerais state government (Note 13) (148 ) Dividends paid (701 ) Balances at December 31, 2019 744 |
Schedule of changes in the equity held by non-controlling shareholders | The changes in the equity held by non-controlling shareholders are shown below: Investee Gasmig Light S.A LightGer Guanhães Axxion UHE Itaocara Total Balances at Dec. 31, 2017 4 – – – – – 4 Net profit attributed to non-controlling shareholders 1 41 – – – – 42 Non-controlling interests arising from business combination – 1,236 22 50 4 3 1,315 Others (1 ) – – – – – (1 ) Balances at Dec. 31, 2018 4 1,277 22 50 4 3 1,360 Net profit attributed to non-controlling shareholders 1 – – – – – 1 Capital Increase to non-controlling shareholders – – – 10 – – 10 Proposed dividends to non-controlling shareholders (1 ) – – – – – (1 ) Derecognition of the non-controlling interests in Light (Note 34) – (1,277 ) (22 ) (60 ) (4 ) (3 ) (1,366 ) Balances at Dec. 31, 2019 4 – – – – – 4 |
Schedule of net profit allocated to non-controlling interests | Net profit allocated to non-controlling interests: Company 2019 2018 Gasmig 1 1 Total 1 1 |
29. REVENUE (Tables)
29. REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue [abstract] | |
Schedule of net operating revenue | Revenues are measured at the fair value of the consideration received or to be received and are recognized on a monthly basis as and when: (i) Rights and obligations of the contract with the customer are identified; (ii) the performance obligation of the contract is identified; (iii) the price for each transaction has been determined; (iv) the transaction price has been allocated to the performance obligations defined in the contract; and (v) the performance obligations have been complied. 2019 2018 2017 Revenue from supply of energy(a) 26,928 24,872 23,701 Revenue from use of the electricity distribution systems (TUSD) (b) 2,722 2,045 1,611 CVA, and Other financial components (c) 58 1,973 988 Transmission revenue Transmission concession revenue (d) 504 411 371 Transmission construction revenue (e) 220 96 25 Transmission assets - indemnity revenue (f) 156 250 373 Generation assets - Indemnity Revenue – 55 271 Distribution construction revenue (e) 980 802 1,094 Adjustment to expectation of cash flow from indemnifiable financial assets of distribution concession (g) 18 – 9 Revenue on financial updating of the Concession Grant Fee (h) 318 321 317 Energy transactions on the CCEE (i) 432 217 860 Supply of gas 2,298 1,995 1,759 Fine for violation of service continuity indicator (1) (58 ) (44 ) – Recovery of PIS/Pasep and Cofins (note 10) 1,428 – – Other operating revenues (j) 1,722 1,585 1,484 Deductions on revenue (k) (12,336 ) (12,312 ) (11,151 ) Net operating revenue 25,390 22,266 21,712 (1) As from January 1, 2018 these amounts began to be recognized as a reduction of revenue, rather than as operational expenses, as per the change contained in IFRS 15. |
Schedule of the supply of electricity by type of consumer | This table shows energy supply by type of customer: GWh (1) R$ 2019 2018 2017 2019 2018 2017 Residential 10,538 10,267 10,008 9,668 8,658 7,842 Industrial 16,024 17,689 17,761 4,760 4,893 4,907 Commercial, services and others 9,567 8,380 7,507 5,439 4,683 4,342 Rural 3,795 3,615 3,651 2,058 1,794 1,629 Public authorities 905 871 866 654 575 532 Public lighting 1,357 1,384 1,367 614 585 537 Public services 1,372 1,316 1,301 725 646 589 Subtotal 43,558 43,522 42,461 23,918 21,834 20,378 Own consumption 38 41 37 – – – Unbilled revenue – 134 48 61 43,596 43,563 42,498 24,052 21,882 20,439 Wholesale supply to other concession holders (2) 11,448 11,992 12,777 2,943 3,002 1,727 Wholesale supply unbilled, net – – – (67 ) (12 ) 1,535 Total 55,044 55,555 55,275 26,928 24,872 23,701 (1) Data not audited by external auditors. (2) 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 other operating revenues | j) Other operating revenues 2019 2018 2017 Charged service 17 14 10 Telecoms services – – 149 Services rendered 183 188 156 Subsidies (1) 1,266 1,136 1,034 Rental and leasing 189 90 121 Reimbursement for decontracted supply 65 145 - Other 2 12 14 1,722 1,585 1,484 (1) Revenue recognized for the tariff subsidies applied to users of distribution and transmission services, including low income tariff incentive refunded by Eletrobras. |
Schedule of deductions from revenue | k) Deductions on revenue 2019 2018 2017 Taxes on revenue ICMS 6,358 5,657 5,847 Cofins 2,395 2,547 2,237 PIS/Pasep 521 553 455 Others 8 8 8 9,282 8,765 8,547 Charges to the customer Global Reversion Reserve (RGR) 16 19 17 Energy Efficiency Program (PEE) 69 64 56 Energy Development Account (CDE) 2,448 2,603 1,822 Research and Development (R&D) 41 38 38 National Scientific and Technological Development Fund (FNDCT) 41 38 38 Energy System Expansion Research (EPE of MME) 20 19 19 Customer charges – Proinfa alternative sources program 52 40 39 Energy services inspection fee 30 26 29 Royalties for use of water resources 43 45 92 Customer charges – the ‘Flag Tariff’ system 294 655 454 3,054 3,547 2,604 12,336 12,312 11,151 |
30. OPERATING COSTS AND EXPEN_2
30. OPERATING COSTS AND EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Operating Costs And Expenses [abstract] | |
Schedule of operating costs and expenses | The operating costs are as follows: 2019 2018 2017 Personnel (a) 1,272 1,410 1,627 Employees’ and managers’ profit sharing 263 77 5 Post-employment benefits (reversals) – Note 26 408 337 (229 ) Materials 91 104 61 Raw materials and inputs for production of energy – – 10 Outsourced services (b) 1,239 1,087 974 Energy bought for resale (c) 11,286 11,084 10,919 Depreciation and amortization (1) 958 835 850 Operating provisions and adjustments for operating losses (d) 2,401 466 854 Charges for use of the national grid 1,426 1,480 1,174 Gas bought for resale 1,436 1,238 1,071 Construction costs (e) 1,200 897 1,119 Other operating expenses, net (f) 499 405 383 22,479 19,420 18,818 (1) Net of PIS/Pasep and Cofins taxes applicable to amortization of the right-of-use assets in the amount of R$5. |
Schedule of outsourced services | b) Outsourced services 2019 2018 2017 Meter reading and bill delivery 128 129 142 Communication 69 80 66 Maintenance and conservation of electrical facilities and equipment 404 323 266 Building conservation and cleaning 110 110 108 Contracted labor 17 21 15 Freight and airfares 7 7 8 Accommodation and meals 14 12 13 Security services 18 20 23 Consultant 24 16 16 Maintenance and conservation of furniture and utensils 5 4 4 Information technology 63 59 62 Maintenance and conservation of vehicles 3 2 2 Disconnection and reconnection 70 62 35 Environmental services 14 14 11 Legal services 26 25 22 Legal procedural costs 2 2 3 Tree pruning 46 28 21 Cleaning of power line pathways 61 41 16 Copying and legal publications 21 21 23 Inspection of customer units 14 10 1 Printing of tax invoices and energy bills – – 3 Other expenses 123 101 114 1,239 1,087 974 |
Schedule of electricity purchased for resale | c) Energy purchased for resale 2019 2018 2017 Supply from Itaipu Binacional 1,429 1,351 1,243 Physical guarantee quota contracts 715 679 461 Quotas for Angra I and II nuclear plants 269 267 244 Spot market 1,886 1,818 1,498 Proinfa Program 376 324 303 ‘Bilateral’ contracts 311 484 385 Energy acquired in Regulated Market auctions 3,021 3,346 3,555 Energy acquired in the Free Market 4,098 3,871 4,283 Distributed generation (‘Geração distribuída’) 207 – – PIS/Pasep and Cofins credits (1,026 ) (1,056 ) (1,053 ) 11,286 11,084 10,919 |
Schedule of operating provision (reversals) and adjustments for operating losses | d) Operating provision (reversals) and adjustments for operating losses 2019 2018 2017 Estimated losses on doubtful accounts receivables (Note 8) 238 264 248 Estimated losses on other accounts receivables (1) 11 (4 ) 27 Estimated losses on accounts receivables from related parties (3) (note 32) 688 Contingency provisions (reversals) (Note 27) (2) Labor claims 136 42 206 Civil 24 13 27 Tax 1,228 (5 ) 7 Environmental (1 ) 1 – Regulatory 1 (2 ) (3 ) Other 12 2 (6 ) 1,400 51 231 2,337 311 506 Adjustment for losses Put option – Sonda – – 1 Put option – RME and LEPSA – 48 231 Put option – SAAG (Note 33) 64 107 116 64 155 348 2,401 466 854 (1) The estimated losses on other accounts receivable are presented in the consolidated Statement of income as operating expenses. (2) The provisions for contingencies of the holding company are presented in the consolidated statement of income for the year as operating expenses. (3) Estimated losses on accounts receivable from Renova, as a result of the assessment of the jointly-controlled entity credit risk, which deteriorated in the current year. |
Schedule of construction cost | e) Construction costs 2019 2018 2017 Personnel and managers 85 70 36 Materials 595 379 550 Outsourced services 421 364 406 Others 99 84 127 1,200 897 1,119 |
Schedule of other operating expenses (revenues), net | f) Other operating expenses (revenues), net 2019 2018 2017 Leasing and rentals (1) 20 93 103 Advertising 9 19 30 Own consumption of energy 21 27 24 Subsidies and donations 40 22 19 Onerous concession 3 3 3 Insurance 12 7 8 CCEE annual charge 6 6 8 Net loss (gain) on deactivation and disposal of assets 92 7 193 Forluz – Administrative running cost 30 28 26 Collection agents 88 78 71 Gain on disposal, Taesa – – (207 ) Fine for violation of service continuity standard – – 42 Obligations deriving from investment contracts (2) 32 – – Taxes and charges 10 9 – Other expenses (3) 136 106 63 499 405 383 (1) As from January 1, 2019, the amounts related to leasing and rentals are recognized in accordance with IFRS 16, as shown in notes 2.4 and 21. The Company has operational leasing contracts relating, mainly, to vehicles and buildings used in its operational activities. Their amounts are not material in relation to the total costs of the Company. Actual leasing and rentals expenses are related to remaining leasing arrangements and rentals that do not qualify for recognition under IFRS 16. (2) This refers to claims under the agreement made between Aliança Geração, Vale S.A. and Cemig. The action is provisioned at the cost of R$98, of which Cemig is responsible for R$32. (3) The losses recorded on assets in progress (canceled works) are net of the reversal of the provisions constituted in prior periods. Includes the adjustment of R$22 for impairment of intangible assets. |
31. FINANCE INCOME AND EXPENS_2
31. FINANCE INCOME AND EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of finance income expense [abstract] | |
Schedule of financial income and expenses | FINANCE INCOME Income from financial investments 102 116 205 Interest on sale of energy 361 352 261 Foreign exchange variations – – 19 Monetary variations 30 19 46 Monetary variations – CVA (Note 16) 105 62 – Monetary updating of escrow deposits 50 34 191 PIS/Pasep and Cofins charged on finance income (1) (128 ) (68 ) (53 ) Gains on financial instruments –swap (Note 33) 998 893 – Finance income from advance payments 5 29 – Inflation adjustment in arbitration case – 77 – Borrowing costs paid by related parties (Note 32) 48 56 – Monetary updating on PIS/Pasep and Cofins taxes credits over ICMS (Note 10) 1,580 – – Others 56 136 135 3,207 1,706 804 FINANCE EXPENSES Charges on loans and financings (Note 24) (1,227 ) (1,257 ) (1,466 ) Cost of debt – amortization of transaction cost (Note 24) (38 ) (33 ) (67 ) Foreign exchange variations – loans and financing (Note 24) (226 ) (582 ) (73 ) Foreign exchange variations – Itaipu (13 ) (29 ) Monetary updating – loans and financings (Note 24) (142 ) (134 ) (109 ) Monetary updating – onerous concessions (3 ) (3 ) – Charges and monetary updating on post–employment obligations (Note 26) (56 ) (68 ) (65 ) Losses on financial instruments (Note 33) – – (32 ) Monetary variations – CVA (Note 16) – – (41 ) Monetary updating – AFAC – – 239 Monetary updating – Advance sales of energy supply (Note 8) (1 ) (11 ) (45 ) Adjustment to present value – – (2 ) Monetary updating – Lease liabilities (Note 21) (34 ) – – Finance income of P&D and PEE (24 ) (23 ) – Others (83 ) (84 ) (139 ) (1,847 ) (2,224 ) (1,800 ) NET FINANCE INCOME (EXPENSES) 1,360 (518 ) (996 ) (1) The PIS/Pasep and Cofins expenses apply to Interest on Equity. |
32. RELATED PARTY TRANSACTIONS
32. RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of transactions between related parties [line items] | |
Schedule of cemig's principal balances and transactions with related parties | Cemig’s main balances and transactions with related parties and its jointly-controlled entities are as follows: ASSETS LIABILITIES REVENUE EXPENSES COMPANY 2019 2018 2019 2018 2019 2018 2017 2019 2018 2017 Shareholder Minas Gerais State Government Current Receivables from customers and traders (1) 346 245 – – 166 163 163 – – – ICMS tax – early payment (2) – – – 11 12 – – – Non-current Accounts Receivable – AFAC (3) 115 246 – – 17 18 18 – – – Jointly-controlled entity Aliança Geração Current Transactions with energy (4) – – 14 13 40 35 34 (166 ) (165 ) (147 ) Provision of services (5) 1 2 – – 7 12 12 – – – Interest on Equity, and dividends 103 91 – – – – – – – – Contingency (6) – – 32 – – – – (32 ) – – Baguari Energia Current Transactions with energy (4) – – 1 1 – – – (8 ) (11 ) (7 ) Provision of services (5) – – – – 1 1 1 – – – Madeira Energia Current Transactions with energy (4) 6 6 58 64 68 70 70 (730 ) (778 ) (686 ) Advance for future energy supply (7) – 7 – – – 9 9 – – – Reimbursement due to cancelled contract (8) 4 42 – – 4 2 2 – – – Non-current Reimbursement for cancelled contract (8) – 4 – – – – – – – – Norte Energia Current Transactions with energy (4) – – 24 23 22 16 16 (228 ) (202 ) (122 ) Advance for future power supply (9) 40 – – – – – – – – – Lightger Current Transactions with energy (4) – – 2 – – – – (21 ) (21 ) (19 ) Hidrelétrica Pipoca Current Transactions with energy (4) – – 1 1 – – – (19 ) (19 ) (15 ) Retiro Baixo Current Transactions with energy (4) – – – – 5 4 – (5 ) (5 ) (6 ) Interest on Equity, and dividends 6 6 – – – – – – – – Hidrelétrica Cachoeirão Current – – Interest on Equity, and dividends 3 2 – – – – – – – – Renova Current Transactions with energy (4) – – – 1 4 – – – (81 ) (179 ) Non-current Advance for future energy supply (8) – – – – – – 7 – – – Accounts Receivable (10) – 594 – – 94 106 37 (688 ) – – Loans from related parties (11) 17 – 6 – – – – – – – Reimbursement for suspension of supply of power – – – – – – 52 – – – Reimbursement for cessation of power purchase agreement – – – – – – 10 – – – Empresa Amazonense de Transmissão de Energia (EATE) Current Transactions with energy (4) – – – – – – – – – (26 ) COMPANY ASSETS LIABILITIES REVENUE EXPENSES 2019 2018 2019 2018 2019 2018 2017 2019 2018 2017 Light Current Transactions with energy (4) – – 1 1 98 60 54 (9 ) (1 ) (1 ) Interest on Equity, and dividends 73 10 – – – – – – – – Taesa Current Transactions with energy (4) – – 9 8 – – – (96 ) (109 ) (127 ) Provision of services (5) – – – – 1 1 1 – – – Hidrelétrica Itaocara Current Adjustment for losses (12) – – 22 – – – – – – – Cia. Transirapé de Transmissão Current Transactions with energy (4) – – – – – – – – – (10 ) Provision of services (5) – – – – – – 1 – – – Axxiom Current Provision of services (13) – – 3 – – – – – – – Transudeste Current Transactions with energy (4) – – – – – – – – – (2 ) Provision of services (5) – – – – – – 1 – – – Transleste Current Transactions with energy (4) – – – – – – – – – (3 ) Provision of services (5) – – – – – – 1 – – – Centroeste Current Interest on Equity, and dividends 1 1 – – – – – – – – Other related parties FIC Pampulha Current Cash and cash equivalents 36 274 – – – – – – – – Marketable securities 743 727 – – 8 1,106 9 – – – (–) Marketable securities issued by subsidiary companies (Note 24) (3 ) (24 ) – – – – – – – – Non-current – – – Marketable securities 2 101 – – – – – – – – Forluz Current Post-employment obligations (14) – – 145 123 – – – (197 ) (192 ) (174 ) Supplementary pension contributions – Defined contribution plan (15) – – – – – – – (78 ) (78 ) (84 ) Administrative running costs (16) – – – – – – – (30 ) (28 ) (26 ) Operating leasing (17) 179 – 35 2 – – – (55 ) (46 ) (55 ) Non-current Post-employment obligations (14) – – 2,827 2,046 – – – – – – Operating leasing (17) – – 149 – – – – – – – Cemig Saúde Current Health Plan and Dental Plan (18) – – 141 120 – (227 ) – – (186 ) (193 ) Non-current Health Plan and Dental Plan (18) – – 3,022 2,271 – – – – – – The main conditions and characteristics of interest with reference to the related party transactions are: (4) The transactions in sale and purchase of energy between generators and distributors take place through auctions in the Regulated Market, and are organized by the federal government. In the Free Market, transactions are made through auctions or through direct contracting, under the applicable legislation. Transactions for transport of energy, on the other hand, are carried out by transmission companies and arise from the centralized operation of the National Grid, executed by the National System Operator (ONS). (5) Refers to a contract to provide plant operation and maintenance services. (6) This refers to the aggregate amounts of legal actions realized and legal actions provisioned arising from the agreement made between Aliança Geração, Vale S.A. and Cemig. The action is provisioned in the amount of R$98, of which Cemig’s portion is R$32. (7) In 2017, payments of R$70 were made to Santo Antônio Energia, subsidiary of Madeira Energia: R$52 was advanced by Cemig GT; R$ 12 by Sá Carvalho; and R$ 6 by Rosal. The last installment was paid in January 2019. (8) Refers to reimbursement due to termination of contract related to change of the “power purchase agreements” (CCEARs) between Santo Antônio Energia S.A., a subsidiary of Madeira Energia, and Cemig Distribuição – totaling R$ 84, to be settled in 24 monthly installments, with inflation adjustment by the Selic rate and maturities up to January 2020. The outstanding amount at December 31, 2019 was R$4. (9) Refers to advance payments for energy supply made in 2019 to Norte Energia, established by auction and by contract registered with the CCEE (Power Trading Chamber). In full-year 2020 Norte Energia S.A. will deliver contracted supply in the amount of R$40. There is no financial updating of the contract. (10) As mentioned in Note 18, in June 2019, due to the uncertainties related to continuity of Renova, an estimated loss on realization of the receivables was recorded for the full value of the balance in the amount of R$688. (11) On November 25 and December 27, 2019, DIP loan contracts under court-supervised reorganization proceedings, referred to as ‘DIP’ and ‘DIP 2’, were entered into between the Company and Renova Energia S.A., in the amounts of R$10 and R$6.5, respectively. The contracts specify interest equal to 100% of the accumulated variation in the DI rate, plus an annual spread, applied pro rata die (on 252-business-days basis), of 1.083% for the DIP contract and 2.5% for the DIP2 contract, up to the date of respective full payment. The proceeds of this loan were allocated to the investee’s minimum cash needs. The contracts specify a guarantee, given by the investee and its guarantor, through surety and a fiduciary assignment on the shares of the special-purpose company Mina de Ouro, which represents 120% of the principal value of the loan, according to an independent valuation. (12) A liability was recognized corresponding to the Company’s interest in the share capital of Hidrelétrica Itaocara, due to its negative equity (see Note 18). (13) This refers to a contract for development of management software between Cemig D and Axxiom Soluções Tecnológicas S.A., instituted in Aneel Dispatch 2657/2017; (14) The contracts of Forluz are updated by the Expanded Customer Price Index ( Índice Nacional de Preços ao Consumidor Amplo (15) The Company’s contributions to the pension fund for the employees participating in the Mixed Plan, and calculated on the monthly remuneration, in accordance with the regulations of the Fund. (16) Funds for annual current administrative costs of the Pension Fund in accordance with the specific legislation of the sector. The amounts are estimated as a percentage of the Company’s payroll. (17) Rental of the Company’s administrative head offices, in effect until November 2020 (able to be extended every five years, up to 2035) and August 2024 (able to be extended every five years, up to 2034), with annual inflation adjustment by the IPCA index and price reviewed every 60 months. Aiming at costs reduction, in November, 2019, Cemig returned the Aureliano Chaves building to Forluz. (18) Post-employment obligations relating to the employees’ health and dental plan (see Note 26). |
Schedule of dvidends receivable from equity investees | Dividends receivable from Company’s equity investees are as follows: Dividends receivable 2019 2018 Light 73 – Aliança Geração 103 91 Others (1) 10 29 186 120 (1) The subsidiaries grouped in ‘Others’ are identified in the table above under “Interest on Equity, and Dividends”. |
Schedule of cemig is provider of surety or guarantee of loans, financings and debentures of related parties | Cemig has provided guarantees on loans, financing and debentures of the following related parties – not consolidated in the financial statements because they relate to jointly-controlled entities or affiliated companies: Related party Relationship Type Objective 2019 Maturity Norte Energia (NESA) Affiliated Surety Financing 2,555 2042 Light (1) Affiliated Counter-guarantee Financing 684 2042 Santo Antônio Energia (SAESA) (2) Affiliated Guarantee Financing 939 2034 Santo Antônio Energia (SAESA) (2) Affiliated Surety Debentures 424 2037 Centroeste Jointly-controlled entity Surety Financing 5 2023 4,607 (1) Related to execution of guarantees of the Norte Energia financing. (2) Corporate guarantee given by Cemig to Saesa. |
Schedule of total costs of key management personnel | The total costs of key personnel, comprising the Executive Board, the Fiscal Council, the Audit Committee and the Board of Directors in 2019, 2018 and 2017, are within the limits approved at a General Shareholders’ Meeting, and the effects on the income statements of the years ended, are as follows: 2019 2018 2017 Remuneration 25 34 32 Profit sharing (reversal) 6 4 1 Assistance benefits 1 3 2 Total 32 41 35 |
Related parties [Member] | |
Disclosure of transactions between related parties [line items] | |
Schedule of financial investments in securities of related parties, in the investment fund | The financial investments of the investment fund in marketable securities of related parties are as follows: Issuer of security Type Annual contractual Maturity 2019 2018 ETAU (1) Debentures 108.00% of CDI Dec. 01, 2019 – 5 Light Promissory Note CDI + 3.50% Jan. 22, 2019 – 3 – 8 (1) Empresa de Transmissão do Alto Uruguai S.A. |
33. FINANCIAL INSTRUMENTS AND_2
33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [line items] | |
Schedule of financial instruments and fair value | The main financial instruments, classified in accordance with the accounting principles adopted by the Company, are as follows: Level 2019 2018 Balance Fair value Balance Fair value Financial assets Amortized cost (1) Marketable securities – Cash investments 2 102 102 117 117 Accounts receivables from Customers and traders; Concession holders (transmission service) 2 4,601 4,601 4,173 4,173 Restricted cash 2 12 12 91 91 Accounts receivable from the State of Minas Gerais (AFAC) 2 115 115 246 246 Concession financial assets – CVA Other financial components 3 882 882 1,081 1,081 Reimbursement of tariff subsidies 2 97 97 91 91 Low-income subsidy 2 30 30 30 30 Escrow deposits 2 2,540 2,540 2,502 2,502 Concession grant fee – Generation concessions 3 2,468 2,468 2,409 2,409 Indemnifiable receivable – Transmission 1,281 1,281 1,296 1,296 Accounts receivable – Renova 2 – – 532 532 Reimbursement – Decontracting of supply 2 – – 97 97 Reimbursement – Assignment of contract – – 10 10 12,128 12,128 12,675 12,675 Fair value through profit or loss Cash equivalents – Cash investments 326 326 783 783 Marketable securities Treasury Financial Notes (LFTs) 1 94 94 254 254 Financial Notes – Banks 2 557 557 435 435 Debentures 2 – – 7 7 977 977 1,479 1,479 Derivative financial instruments (Swaps) 3 1,691 1,691 813 813 Derivative financial instruments (Ativas and Sonda Put options) 3 3 3 4 4 Concession financial assets – Distribution infrastructure 3 483 483 396 396 Indemnifiable receivable – Generation 3 816 816 816 816 3,970 3,970 3,508 3,508 16,098 16,098 16,183 16,183 Financial liabilities Amortized cost (1) Loans, financing and debentures 2 (14,777 ) (14,777 ) (14,772 ) (14,772 ) Debt with pension fund (Forluz) 2 (566 ) (566 ) (652 ) (652 ) Deficit of pension fund (Forluz) 2 (550 ) (550 ) (378 ) (378 ) Concessions payable 3 (20 ) (20 ) (19 ) (19 ) Suppliers 2 (2,080 ) (2,080 ) (1,801 ) (1,801 ) Leasing transactions (2) 2 (288 ) (288 ) – – Advances from customers 2 – – (79 ) (79 ) (18,281 ) (18,281 ) (17,701 ) (17,701 ) Fair value through profit or loss Derivative financial instruments (SAAG put options) 3 (483 ) (483 ) (419 ) (419 ) (483 ) (483 ) (419 ) (419 ) (18,764 ) (18,764 ) (18,120 ) (18,120 ) (1) On December 31, 2019 and 2018, the book values of financial instruments reflect their fair values. (2) Leasing transactions recognized in accordance with IFRS 16. For more information see Note 21. |
Schedule of net liabilities in relation to its equity | On December 31, 2019 and 2018, the options values were as follows: 2019 2018 Put option – SAAG 483 419 Put / call options – Ativas and Sonda (3 ) (4 ) 480 415 |
Schedule of changes in value of options | The changes in the value of the options are as follows: Balance at December 31, 2016 196 Variation in fair value 121 Reversals (5 ) Balance at December 31, 2017 312 Adjustment to fair value 107 Balance at December 31, 2018 419 Adjustment to fair value 64 Balance at December 31, 2019 483 |
Schedule of changes in value of options - the difference between esimated fair value for assets and corresponding exercise price | The change in the value of the options – the difference between the estimated fair value for the assets and the corresponding exercise price, on December 31, 2018 and 2017 is as follows: Balance at December 31, 2016 1,150 Variation in fair value 187 Written down, due to exercise of Put (830 ) Balance at December 31, 2017 507 Variation in fair value 48 Written down, due to exercise of Put (555 ) Balance at December 31, 2018 – |
Schedule of derivative instruments contracted | This table presents the derivative instruments contracted by Cemig GT as of December 31, 2019 and 2018. Assets (1) Liability (1) Maturity period Trade market Notional amount (2) Unrealized gain / loss Unrealized gain / loss Carrying amount 2019 Fair value 2019 Carrying amount 2018 Fair value 2018 US$ exchange variation + Rate (9.25% p.y.) Local currency + R$ 150.49% of CDI Interest: Half-yearly Principal: Dec. 2024 Over the counter US$1,000 814 1,235 679 627 US$ exchange variation + Rate (9.25% p.y.) Local currency + R$125.52% of CDI Interest: Half-yearly Principal: Dec. 2024 Over the counter US$500 108 456 33 186 922 1,691 712 813 1) For the US$1 billion Eurobond issued on December 2017: (i) for the principal, a call spread was contracted, with floor at R$ 3.25/US$ and ceiling at R$ 5.00/US$; and (ii) a swap was contracted for the total interest, for a coupon of 9.25% p.a. at an average rate equivalent to 150.49% of the CDI. For the additional US$500 issuance of the same Eurobond issued on July 2018: (1) a call spread was contracted for the principal, with floor at R$ 3.85/US$ and ceiling at R$ 5.00/US$; and (2) a swap was contracted for the interest, resulting in a coupon of 9.25% p.a., with an average rate equivalent to 125.52% of the CDI rate. 2) In millions of US$. |
Schedule of exposure to exchange rates | Cemig and its subsidiaries are exposed to the risk of appreciation in exchange rates, with effect on loans and financing, suppliers, and cash flow. The net exposure to exchange rates is as follows: 2019 2018 Exposure to exchange rates Foreign currency R$ Foreign currency R$ US dollar Loans and financing 1,516 6,110 1,518 5,882 Suppliers (Itaipu Binacional) 60 243 70 268 1,576 6,353 1,588 6,150 Net liabilities exposed 6,353 6,150 |
Schedule of exposure to exchange rates | The Company has prepared a sensitivity analysis of the effects on the Company’s net income arising from depreciation of the Real exchange rate by 25%, and by 50%, in relation to this ‘probable’ scenario. Risk: foreign exchange rate exposure Base Scenario ‘Probable’ scenario US$1=R$5.20 ‘Possible’ scenario Appreciation 25.00% US$1= R$6.50 ‘Remote’ scenario Appreciation 50.00% US$1=R$7.80 US dollar Loans and financings 6,110 7,883 9,853 11,824 Suppliers (Itaipu Binacional) 243 313 392 470 6,353 8,196 10,245 12,294 Net liabilities exposed 6,353 8,196 10,245 12,294 Net effect of exchange rate fluctuation - 1,843 3,892 5,941 |
Schedule of risk of increase in inflation | This table presents the Company’s net exposure to inflation index: Exposure to increase in inflation 2019 2018 Assets Concession financial assets related to Distribution infrastructure - IPCA (1) 483 396 Receivable from Minas Gerais state government (Debt recognition agreement) – IGPM index (Note 13 and 32) – 247 Receivable from Minas Gerais state government (AFAC) – IGPM (Note 13 and 32) 115 246 Receivable for residual value – Transmission – IPCA (Note 16) 2,468 1,296 Concession Grant Fee – IPCA (Note 16) 1,281 2,409 4,347 4,594 Liabilities Loans, financing and debentures – IPCA and IGP-DI (Note 24) (4,730 ) (3,791 ) Debt with pension fund (Forluz) – IPCA (566 ) (652 ) Deficit of pension plan (Forluz) – IPCA (550 ) (378 ) (5,846 ) (4,821 ) Net assets (liabilities) exposed (1,499 ) (227 ) (1) Portion of the concession financial assets relating to the Regulatory Remuneration Base of Assets ratified by the regulator (Aneel) after the 3 rd Sensitivity analysis In relation to the most significant risk of reduction in inflation index, reflecting the consideration that the Company has more assets than liabilities indexed to inflation indices, the Company estimates that, in a probable scenario, at December 31, 2020 the IPCA inflation index will be 1.31% and the IGPM inflation index will be 4.23%. The Company has prepared a sensitivity analysis of the effects on its net income arising from an increase in inflation of 25% and 50% in relation to the ‘probable’ scenario. 2019 2020 Risk: increase in inflation Amount Book value ‘Probable’ scenario IPCA 1.31% IGPM 4.23% ‘Possible’ scenario (25%) IPCA 1.64% IGPM 5.29% ‘Remote’ scenario (50%) IPCA 1.97% IGPM 6.35% Assets Concession financial assets related to Distribution infrastructure – IPCA (1) 483 489 491 493 Accounts receivable from Minas Gerais state government (AFAC) – IGPM index (Note 32) 115 120 121 122 Receivable for residual value – Transmission – IPCA (Note 16) 2,468 2,500 2,508 2,517 Concession Grant Fee – IPCA (Note 16) 1,281 1,298 1,302 1,306 4,347 4,407 4,422 4,438 Liabilities Loans, financing and debentures – IPCA and IGP-DI (4,730 ) (4,792 ) (4,808 ) (4,823 ) Debt agreed with pension fund (Forluz) – IPCA (566 ) (573 ) (575 ) (577 ) Deficit of pension plan (Forluz) (550 ) (557 ) (559 ) (561 ) (5,846 ) (5,922 ) (5,942 ) (5,961 ) Net liability exposed (1,499 ) (1,515 ) (1,520 ) (1,523 ) Net effect of fluctuation in IPCA and IGP–M indices (16 ) (21 ) (24 ) (1) Portion of the Concession financial assets relating to the Regulatory Remuneration Base of Assets ratified by the regulator (Aneel) after the 4 rd |
Schedule of flow of payments of the company's obligations for debt agreed, financings and debentures for floating and fixed rates including the interest specified in contracts | The flow of payments of the Company’s obligation to suppliers, debts with the pension fund, loans, financing and debentures, at floating and fixed rates, including future interest up to contractual maturity dates, is as follows: Up to 1 month 1 to 3 months 3 months to 1 year 1 to 5 years Over 5 years Total Financial instruments at (interest rates): - Floating rates Loans, financing and debentures 36 1,119 1,335 14,572 1,912 18,974 Onerous concessions – – 2 9 13 24 Debt with pension plan (Forluz) (Note 26) 12 24 111 557 – 704 Deficit of the pension plan (FORLUZ) (Note 26) 5 11 123 212 630 981 53 1,154 1,571 15,350 2,555 20,683 - Fixed rate Suppliers 1,786 293 1 – – 2,080 1,839 1,447 1,572 15,350 2,555 22,763 |
Schedule of credit exposure | Banks that exceed these thresholds are classified in three groups, by the value of their equity; and within this classification, limits of concentration by group and by institution are set: Group Equity Concentration Limit per bank (% of equity)* A1 Over R$ 3.5 billion Minimum of 50% Between 6% and 9% A2 R$ 1.0 billion to R$ 3.5 billion Maximum 30% Between 5% and 8% B R$ 400 to R$ 1.0 billion Maximum 30% Between 5% and 7% * The percentage assigned to each bank depends on individual assessment of indicators, e.g. liquidity, and quality of the credit portfolio. |
Schedule of net liabilities in relation to its equity | This table shows comparisons of the Company’s net liabilities and its Equity on December 31, 2019 and 2018: 2019 2018 Total liabilities 34,035 43,916 (–) Cash and cash equivalents (536 ) (891 ) (–) Restricted cash (12 ) (91 ) Net liabilities 33,487 42,934 Total equity 15,891 15,939 Net liabilities / equity 2.11 2.70 |
Fair value hedges [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Schedule of fair value of derivative hedge instrument | Company has measured the effects on its net income of reduction of the estimated fair value for the ‘probable’ scenario, analyzing sensitivity for the risks of interest rates, exchange rates and volatility changes, by 25% and 50%, as follows: Base scenario Dec. 31, 2019 ‘Probable’ scenario: ‘Possible’ scenario ‘Remote’ scenario: Swap (asset) 6,427 7,193 6,087 5,052 Swap (liability) (5,774 ) (5,682 ) (5,794 ) (5,896 ) Option / Call spread 1,038 1,705 1,183 481 Derivative hedge instrument 1,691 3,216 1,476 (363 ) |
Interest rate risk [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Schedule of estimation of company interest rate | The Company is exposed to the risk of increase in Brazilian domestic interest rates. This exposure occurs as a result of net liabilities indexed to variation in interest rates, as follows: Risk: Exposure to domestic interest rate changes 2019 2018 Assets Cash equivalents – Cash investments (Note 6) – CDI 326 783 Marketable securities (Note 7) – CDI / SELIC 753 813 Accounts receivable – Renova (Note 32) – CDI – 532 Restricted cash – CDI 12 91 CVA and in tariffs (Note 16) – SELIC 882 1,081 Reimbursement due to termination of contract (Note 32) – SELIC / CDI – 97 Reimbursement related to cancelled contracts – CDI – 10 1,973 3,407 Liabilities Loans, financing and debentures (Note 24) – CDI (3,773 ) (4,920 ) Loans, financing and debentures (Note 24) – TJLP (244 ) (249 ) Advance sales of energy supply - CDI – (79 ) (4,017 ) (5,248 ) Net liabilities exposed (2,044 ) (1,841 ) In relation to the most significant interest rate risk, Company estimates that, in a probable scenario, at December 31, 2020 Selic and TJLP rates will be 1.50% and 4.95%, respectively. The Company has made a sensitivity analysis of the effects on its net income arising from increases in rates of 25% and 50% in relation to the ‘probable’ scenario. Fluctuation in the CDI rate accompanies the fluctuation of Selic rate. 2019 2020 Risk: Increase in Brazilian interest rates Book value ‘Probable’ scenario ‘Possible’ scenario ‘Remote’ scenario Assets Cash equivalents (Note 6) 326 331 332 333 Marketable securities (Note 7) 753 764 767 770 Restricted cash 12 12 12 12 CVA Other financial components 882 895 899 902 1,973 2,002 2,010 2,017 Liabilities Loans and financing (Note 24) – CDI (3,773 ) (3,830 ) (3,844 ) (3,858 ) Loans and financing (Note 24) – TJLP (244 ) (256 ) (259 ) (262 ) (4,017 ) (4,086 ) (4,103 ) (4,120 ) Net assets (liabilities) exposed (2,044 ) (2,084 ) (2,093 ) (2,103 ) Net effect of fluctuation in interest rates (40 ) (49 ) (59 ) |
34. ASSETS AS HELD FOR SALE A_2
34. ASSETS AS HELD FOR SALE AND DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of assets and liabilities classified as held for sale [abstract] | |
Schedule of assets and liabilities classified as held for sale | Assets and liabilities classified as held for sale, and the results of discontinued operations, were as follows: 2019 2018 Investments Investments Telecom Total Assets 1,258 19,446 – 19,446 Liabilities – (16,272 ) – (16,272 ) Net Asset 1,258 3,174 – 3,174 Attributed to equity holders of the parent 1,258 1,818 – 1,818 Attributed to non-controlling interests – 1,356 – 1,356 Net income from discontinued operations 224 73 290 363 Attributed to equity holders of the parent 224 32 290 322 Attributed to non-controlling interests – 41 – 41 Net income from continuing operations 73 – – – Attributed to equity holders of the parent 73 – – – Attributed to non-controlling interests – – – – |
Schedule of accounting effects arising from the equity interest | The accounting effects arising from the sale of equity interest and control of Light are shown in this table: Profit/loss on disposal of equity interest Remeasurement of remaining equity interest 2019 Light Light Lightger Guanhães Axxion Itaocara Total Prior equity interest – Assets held for sale (515 ) (1,060 ) (126 ) (141 ) (4 ) (4 ) (1,850 ) Proceeds from disposal of equity interest 625 – – – – – 625 Remeasurement at fair value of remaining equity interest 1,258 128 131 4 4 1,525 Others – – – 4 5 – 9 Effects on the income statement, before taxes 110 198 2 (6 ) 5 – 309 Income tax and social contribution tax (38 ) (47 ) – – – – (85 ) Net income from discontinued operations 72 151 2 (6 ) 5 – 224 |
Schedule of the assets and liabilities of light, which company interest is classified as asset held for sale | This table gives information on the assets and liabilities of Light, which Company’s interest is classified as asset held for sale on December 31, 2019: 2019 2019 ASSETS LIABILITIES Cash and cash equivalents 1,678 Suppliers 2,546 Receivables from customers and traders 2,537 Loans and financings 1,387 Recoverable taxes 216 Taxes 172 Financial assets of sector 549 Other current liabilities 1,071 Other current assets 374 Total, current liabilities 5,176 Total, current assets 5,354 Receivables from customers and traders 1,113 Loans and financings 7,379 Recoverable taxes 6,257 Taxes 348 Concession financial assets 5,358 Deferred taxes 400 Property, plant and equipment 1,587 Other non-current liabilities 4,308 Intangible assets 2,837 Total, non-current liabilities 12,435 Investments 579 Other non-current assets 758 Share capital 4,051 Total, non-current assets 18,489 Capital reserves 3 Profit reserves 1,958 Equity valuation adjustments 220 Shareholders’ Equity 6,232 Total Assets 23,843 Total, Liabilities 23,843 |
35. INSURANCE (Tables)
35. INSURANCE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of types of insurance contracts [abstract] | |
Schedule of amounts arising from insurance contracts | Coverage Coverage period Amount Annual Companhia Energética de Minas Gerais Facilities in buildings Fire Jan. 8, 2020 to Jan. 8, 2021 R$ 8,661 R$ 2 Cemig Geração e Transmissão Air transport / Aircraft Fuselage Third party April 29, 2019 to April 29, 2020 April 29, 2019 to April 29, 2020 US$ 4,385 14,000 US$ 49 Warehouse stores Fire Nov. 2, 2019 to Nov. 2, 2020 R$ 20,771 R$ 20 Buildings Fire Jan. 8, 2020 to Jan. 8, 2021 R$ 275,773 R$ 75 Telecoms equipment (3) Fire Jan. 8, 2019 to Jan. 8, 2020 R$ 2,650 R$ 2 Operational risk - Transformers above 15MVA and other power distribution equipment with value above R$1,000 (2) Dec. 7, 2019 to Dec. 7, 2020 R$ 959,243 R$ 1,262 Cemig Distribuição Air transport / Aircraft / Guimbal equipment Fuselage Third party April 29, 2019 to April 29, 2020 US$ 3,370 14,000 US$ 34 Warehouse stores Fire Nov. 2, 2019 to Nov. 2, 2020 R$ 120,007 R$ 117 Buildings Fire Jan. 8, 2019 to Jan. 8, 2020 R$ 744,134 R$ 201 Telecoms equipment (3) Fire R$ 31,083 R$ 28 Operational risk – Transformers above 15MVA and other energy distribution equipment with value above R$ 1,000 (2) Total Dec. 7, 2019 to Dec. 7, 2020 R$ 528,071 R$ 695 Gasmig Gas distribution network / Third party Third party Dec. 15, 2019 to Dec. 15, 2020 R$ 60,000 R$ 398 Own vehicle fleet (Operation) Damage to third parties only Jul. 7, 2019 to Jul. 7, 2020 R$ 500 R$ 3 Own vehicle fleet (Directors) Full cover Oct. 25, 2019 to Oct. 25, 2020 R$ 100 R$ 2 Facilities – multirisk Robbery, theft and fire Jan. 1, 2020 to Jan. 1, 2021 R$ 41,374 R$ 44.8 (1) Amounts expressed in R$ ‘000 or US$’000. (2) Maximum indemnity limit: R$ 231 (3) Contracting of a new policy is in progress. |
36.COMITTMENTS (Tables)
36.COMITTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments | |
Schedule of detailed information about contractual obligations and commitments | Cemig and its subsidiaries have contractual obligations and commitments as follows: 2020 2021 2022 2023 2024 After 2025 Total Purchase of energy from Itaipu 1,701 1,538 1,538 1,568 1,551 32,724 40,620 Purchase of energy – auctions 4,408 4,081 4,035 4,281 4,724 55,730 77,259 Purchase of energy – ‘bilateral contracts’ 334 334 334 334 223 148 1,707 Quotas of Angra 1 and Angra 2 296 289 291 299 302 6,352 7,829 Transport of energy from Itaipu 240 251 264 251 238 1,441 2,685 Other energy purchase contracts 3,619 3,347 3,808 3,679 3,913 35,082 53,448 Physical quota guarantees 845 757 718 681 653 13,601 17,255 Total 11,443 10,597 10,988 11,093 11,604 145,078 200,803 |
1. OPERATING CONTEXT (Details)
1. OPERATING CONTEXT (Details) | 12 Months Ended | |
Dec. 31, 2019 | ||
Madeira Energia S.A. ('Madeira') [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of affiliated | Madeira Energia S.A. (‘Madeira’) | |
Classification | Affiliated company | |
Description | Corporation engaged in the construction and commercial operation of the Santo Antônio Hydroelectric Plant, through its subsidiary Santo Antônio Energia S.A., in the basin of the Madeira river, in the State of Rondônia. | |
Ativas Datacenter S.A. ('Ativas') [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of affiliated | Ativas Datacenter S.A. (‘Ativas’) | |
Classification | Affiliated entity | |
Description | Corporation engaged in the supply of IT and communication infrastructure services, including physical hosting and related services for medium-sized and large corporations. | |
FIP Melbourne (Usina de Santo Antonio) [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of affiliated | FIP Melbourne (Usina de Santo Antônio) | |
Classification | Affiliated entity | |
Description | Investment fund managed by Banco Modal S.A., whose objective is to seek appreciation of capital invested through acquisition of shares, convertible debentures or warrants issued by listed or unlisted companies, and/or other assets. This fund held 83% of the share capital of SAAG Investimentos S.A. (‘SAAG’), the objects of which are to own equity in Madeira Energia S.A. (‘Mesa’). | |
Light S.A. ('Light') [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of affiliated | Light S.A. (‘Light’) | |
Classification | Affiliated entity | |
Description | Listed company engaged in the following activities: energy generation, transmission, trading, distribution, and related services; and holding direct or indirect interest in companies engaged in similar activities. | |
Guanhaes Energia S.A. ('Guanhaes Energia') [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of joint venture | Guanhães Energia S.A. (‘Guanhães Energia’) | |
Classification | Jointly-controlled entity | |
Description | Corporation engaged in the production and sale of energy through building and commercial operation of the following Small Hydro Plants: Dores de Guanhães, Senhora do Porto and Jacaré, in the county of Dores de Guanhães; and Fortuna II, in the county of Virginópolis, in Minas Gerais. | |
LightGer S.A. ('LightGer') [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of joint venture | LightGer S.A. (‘LightGer’) | |
Classification | Jointly-controlled entity | |
Description | Corporation classified as independent power producer, formed to build and operate the Paracambi Small Hydro Plant (or PCH), on the Ribeirão das Lages river in the county of Paracambi, Rio de Janeiro State. | |
Usina Hidreletrica Itaocara S.A. ('UHE Itaocara') [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of joint venture | Usina Hidrelétrica Itaocara S.A. (‘UHE Itaocara’) | |
Classification | Jointly-controlled entity | |
Description | Corporation, comprising the partners of the UHE Itaocara Consortium, formed by Cemig GT and Itaocara Energia (of the Light group), responsible for construction of the Itaocara I Hydroelectric Plant. | |
Axxiom Solucoes Tecnologicas S.A. ('Axxiom') [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of joint venture | Axxiom Soluções Tecnológicas S.A. (‘Axxiom’) | |
Classification | Jointly-controlled entity | |
Description | Unlisted corporation, providing technology and systems solutions for operational management of public service concession holders, including companies operating in energy, gas, water and sewerage, and other utilities. Jointly controlled by Light (51%) and Cemig (49%). | |
Hidreletrica Cachoeirao S.A. ('Cachoeirao') [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of joint venture | Hidrelétrica Cachoeirão S.A. (‘Cachoeirão’) | |
Classification | Jointly-controlled entity | |
Description | Production and sale of energy as an independent power producer, through the Cachoeirão hydroelectric power plant located at Pocrane, in the State of Minas Gerais. | |
Hidreletrica Pipoca S.A. ('Pipoca') [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of joint venture | Hidrelétrica Pipoca S.A. (‘Pipoca’) | |
Classification | Jointly-controlled entity | |
Description | Independent production of energy, through construction and commercial operation of the Pipoca Small Hydro Plant (SHP, or Pequena Central Hidrelétrica – PCH), on the Manhuaçu River, in the municipalities of Caratinga and Ipanema, in Minas Gerais State. | |
Amazonia Energia Participacoes S.A. ('Amazonia Energia') [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of joint venture | Amazônia Energia Participações S.A (‘Amazônia Energia’) | |
Classification | Jointly-controlled entity | |
Description | Special-purpose company created by Cemig GT (74.50% ownership) and Light (25.50%), for acquisition of an equity interest of 9.77% in Norte Energia S.A. (‘Nesa’), the company holding the concession for the Belo Monte Hydroelectric Plant, on the Xingu River, in the Northern Brazilian State of Pará. | |
Retiro Baixo Energetica S.A. ('RBE') [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of joint venture | Retiro Baixo Energética S.A. (‘RBE’) | |
Classification | Jointly-controlled entity | |
Description | Corporation that holds the concession to operate the Retiro Baixo Hydroelectric Plant, on the Paraopeba River, in the São Francisco river basin, in the municipalities of Curvelo and Pompeu, in Minas Gerais. | |
Alianca Norte Energia Participacoes S.A. ('Alianca Norte') [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of joint venture | Aliança Norte Energia Participações S.A. (‘Aliança Norte’) | |
Classification | Jointly-controlled entity | |
Description | Special-purpose company created by Cemig GT (49% ownership) and Vale S.A. 51%), for acquisition of an equity interest of 9% in Norte Energia S.A. (‘Nesa’), the company holds the concession for the Belo Monte Hydroelectric Plant, on the Xingu River, in the Northern Brazilian State of Pará. | |
Baguari Energia S.A. ('Baguari Energia') [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of joint venture | Baguari Energia S.A. (‘Baguari Energia’) | |
Classification | Jointly-controlled entity | |
Description | Corporation engaged in the construction, operation, maintenance and commercial operation of the Baguari Hydroelectric Plant, through participation in the UHE Baguari Consortium (Baguari Energia 49%, Neoenergia 51%), on the Doce river in Governador Valadares, Minas Gerais. | |
Renova Energia S.A. ('Renova Energia') [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of joint venture | Renova Energia S.A. (‘Renova Energia’) | |
Classification | Jointly-controlled entity | |
Description | Listed company engaged in the development, construction and operation of plants generating power from renewable sources – wind power, small hydro plants (SHPs), and solar energy; trading of energy; and related activities. | |
Alianca Geracao de Energia S.A. ('Alianca') [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of joint venture | Aliança Geração de Energia S.A. (‘Aliança’) | |
Classification | Jointly-controlled entity | |
Description | Unlisted company created by Cemig GT and Vale S.A. as a platform for consolidation of generation assets held by the two parties in generation consortia, and investments in future generation projects. For their shares, the two parties subscribed the following generation plant assets: Porto Estrela, Igarapava, Funil, Capim Branco I, Capim Branco II, Aimorés, and Candonga. With these assets Aliança has total installed generation capacity, in operation, of 1,257 MW (physical offtake guarantee 668 MW average). It also has other generation projects. Vale and Cemig GT respectively hold 55% and 45% of the total capital. | |
Transmissora Alianca de Energia Eletrica S.A. ('TAESA') [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of joint venture | Transmissora Aliança de Energia Elétrica S.A. (‘TAESA’) | |
Classification | Jointly-controlled entity | |
Description | Corporation engaged in the construction, operation and maintenance of energy transmission facilities in 18 states of Brazil through direct and indirect equity interests in investees | |
Companhia de Transmissao Centroeste de Minas ('Centroeste') [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of joint venture | Companhia de Transmissão Centroeste de Minas (‘Centroeste’) | [1] |
Classification | Jointly-controlled entity | [1] |
Description | Corporation engaged in the construction, operation and maintenance of the Furnas-Pimenta transmission line – part of the national grid. | [1] |
Cemig Geracao e Transmissao S.A. ('Cemig GT' or 'Cemig Geracao e Transmissao') [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Cemig Geração e Transmissão S.A. (‘Cemig GT’ or ‘Cemig Geração e Transmissão’) | |
Classification | Subsidiary | |
Description | Wholly-owned subsidiary engaged in the energy generation and transmission services. Its shares are listed in Brazil, but are not actively traded. Cemig GT has interests in 83 power plants (76 of which are hydroelectric, 6 are wind power, 1 is a thermal plant and 1 is solar), of which 45 are controlled by Cemig GT, and associated transmission lines, most of which are part of the Brazilian national generation and transmission grid system, with total installed generation capacity of 3,235 MW (information not reviewed by the external auditors). | |
Cemig Baguari [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Cemig Baguari | |
Classification | Subsidiary | |
Description | Corporation engaged in the production and sale of energy as an independent power producer and in interests in investees or joint operations that are engaged in the production and sale of energy in future projects. | |
Cemig Geracao Tres Marias Sa [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Cemig GeraçãoTrês Marias S.A. | |
Classification | Subsidiary | |
Description | Corporation engaged in the production and sale of energy as public service concession holder, by commercial operation of the Três Marias Hydroelectric Plant, and sale and trading of energy in the Free Market. This subsidiary has installed capacity of 396 MW, and guaranteed offtake level of 239 MW average. | |
Cemig Geracao Salto Grande S.A. [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Cemig Geração Salto Grande S.A. | |
Classification | Subsidiary | |
Description | Corporation engaged in the production and sale of energy as public service concession holder, by commercial operation of the Salto Grande Hydroelectric Plant, and sale and trading of energy in the Free Market. This subsidiary has installed capacity of 102 MW, and guaranteed offtake level of 75 MW average. | |
Cemig Geracao Itutinga S.A. [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Cemig Geração Itutinga S.A. | |
Classification | Subsidiary | |
Description | Corporation engaged in the production and sale of energy as public service concession holder, by commercial operation of the Itutinga Hydroelectric Plant, and sale and trading of energy in the Free Market. This subsidiary has installed capacity of 52 MW, and guaranteed offtake level of 28 MW average. | |
Cemig Geracao Camargos S.A. [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Cemig Geração Camargos S.A. | |
Classification | Subsidiary | |
Description | Corporation engaged in the production and sale of energy as public service concession holder, by commercial operation of the Camargos Hydroelectric Plant, and sale and trading of energy in the Free Market. This subsidiary has installed capacity of 46 MW, and guaranteed offtake level of 21 MW average. | |
Cemig Geracao Sul S.A. [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Cemig Geração Sul S.A. | |
Classification | Subsidiary | |
Description | Corporation engaged in the production and sale of energy as public concession holder, by commercial operation of the Coronel Domiciano, Marmelos, Joasal, Paciência and Piau Small Hydroelectric Plants, and trading in energy in the Free Market. Aggregate installed generation capacity is 39.53 MW; guaranteed offtake level of 27.42 MW average. | |
Cemig Geracao Leste S.A. [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Cemig Geração Leste S.A. | |
Classification | Subsidiary | |
Description | Corporation engaged in the production and sale of energy as public concession holder, by operation of the Dona Rita, Sinceridade, Neblina, Ervália, Tronqueiras and Peti Small Hydroelectric Plants, and trading in energy in the Free Market. Aggregate installed generation capacity of these plants is 35.16 MW; guaranteed offtake level of 18.64 MW average. | |
Cemig Geracao Oeste S.A. [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Cemig Geração Oeste S.A. | |
Classification | Subsidiary | |
Description | Corporation engaged in the production and sale of energy as public service concession holder, by commercial operation of the Gafanhoto, Cajuru and Martins Small Hydroelectric Plants, and sale and trading of energy in the Free Market. It has aggregate installed capacity of 28.90 MW, and guaranteed offtake level of 11.21 MW average. | |
Rosal Energia S.A. [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Rosal Energia S.A. (‘Rosal’) | |
Classification | Subsidiary | |
Description | Corporation that holds the concession to generate and sell energy, operating the Rosal Hydroelectric Plant, on the border between the states of Rio de Janeiro and Espírito Santo. | |
Sa Carvalho S.A. [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Sá Carvalho S.A. (‘Sá Carvalho’) | |
Classification | Subsidiary | |
Description | Corporation that holds the concession to generate and sell energy, operating the Sá Carvalho Hydroelectric Plant. | |
Horizontes Energia S.A [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Horizontes Energia S.A. (‘Horizontes’) | |
Classification | Subsidiary | |
Description | Corporation that is classified as an independent power producer operating the Machado Mineiro and Salto do Paraopeba Hydroelectric Plants in Minas Gerais; and the Salto do Voltão and Salto do Passo Velho Hydroelectric Plants, in the state of Santa Catarina. | |
Cemig PCH S.A. [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Cemig PCH S.A. (‘PCH’) | |
Classification | Subsidiary | |
Description | Corporation that is classified as an independent power producer operating the Pai Joaquim hydroelectric power plant. | |
Cemig Comercializadora De Energia Incentivada S.A. [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Cemig Comercializadora de Energia Incentivada S.A. | |
Classification | Subsidiary | |
Description | Corporation engaged in the production and sale as ndependent thermal generation power producer, in future projects. | |
Cemig Trading S.A. [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Cemig Trading S.A. (‘Cemig Trading’) | |
Classification | Subsidiary | |
Description | Corporation engaged in trading and intermediation of energy. | |
Empresa de Servicos e Comercializacao de Energia Eletrica S.A. [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Empresa de Serviços e Comercialização de Energia Elétrica S.A. | |
Classification | Subsidiary | |
Description | Corporation engaged in the production and sale of energy as an independent power producer, in future projects. | |
Cemig Geracao Poco Fundo [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Cemig Geração Poço Fundo | |
Classification | Subsidiary | |
Description | Corporation engaged in the production and sale of energy, as an independent producer, through construction and operation of the hydroelectric power plant Poço Fundo, located in Machado river, in the State of Minas Gerais. | |
Central Eolica Praias de Parajuru S.A. ('Central Eolica Praias de Parajuru') [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Central Eólica Praias de Parajuru S.A. (‘Central Eólica Praias de Parajuru’) | |
Classification | Subsidiary | |
Description | Corporation engaged in the production and sale of energy at the wind power plant of the same name in the northeastern Brazilian state of Ceará. | |
Central Eolica Volta do Rio S.A. ('Central Eolica Volta do Rio') [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Central Eólica Volta do Rio S.A. (‘Central Eólica Volta do Rio’) | |
Classification | Subsidiary | |
Description | Corporation engaged in the production and sale of energy at the wind power plant of the same name in Acaraú, northeastern Brazilian state of Ceará. | |
Cemig Distribuicao SA [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Cemig Distribuição S.A. (‘Cemig D’ or ‘Cemig Distribuição’) | |
Classification | Subsidiary | |
Description | Wholly-owned subsidiary, whose shares are listed in Brazil but are not actively traded; engaged in the distribution of energy through networks and distribution lines throughout almost the whole of Minas Gerais State. | |
Companhia de Gas de Minas Gerais ('Gasmig') [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Companhia de Gás de Minas Gerais (‘Gasmig’) | |
Classification | Subsidiary | |
Description | Corporation engaged in the acquisition, transportation and distribution of combustible gas or sub-products and derivatives, through a concession for the distribution of gas in the State of Minas Gerais. | |
Cemig Geracao Distribuida [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Cemig Geração Distribuída | |
Classification | Subsidiary | |
Description | Wholly owned subsidiary engaged in: building and maintaining projects and equipment associated with energy efficiency and micro- and mini- distributed generation; providing consultancy and studies for distributed generation projects and equipment, for subscription to systems for customers to supply to the grid as generators, and technical, regulatory and economic feasibility analyses for these purposes. | |
Efficientia S.A. ('Efficientia') [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Efficientia S.A. (‘Efficientia’) | |
Classification | Subsidiary | |
Description | Corporation that provides energy efficiency and optimization services and energy solutions through studies and execution of projects; and services of operation and maintenance of energy supply facilities. | |
[1] | On January 13, 2020, the Company completed the acquisition of the Eletrobras's equity interest in Centroeste, corresponding to 51%, becoming the owner of the investee's entire share capital. For further information, see note 18 - Investments. |
1. OPERATING CONTEXT (Details N
1. OPERATING CONTEXT (Details Narrative) - R$ / shares | Jan. 13, 2020 | Jul. 17, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 23, 2018 | Dec. 31, 2017 |
Disclosure of subsidiaries [line items] | ||||||
Number of shares issued | 1,258,841,654 | 1,458,752,601 | 199,910,947 | 1,258,841,654 | ||
Share price | R$ 5.00 | R$ 5.00 | ||||
Eletrobras [Member] | Events After Reporting Period [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Percentage of equity interest in total share capital | 49.00% | |||||
Light S.A. ('Light') [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Number of shares issued | 33,333,333 | |||||
Share price | R$ 18.75 | |||||
Description of percentage of equity interest in total share capital | With the settlement of the restricted offering, the Company’s equity interest in the total share capital of Light was reduced from 49.99% to 22.58% | |||||
Intial Public Offering [Member] | Light S.A. ('Light') [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Number of shares issued | 100,000,000 |
2. BASIS OF PREPARATION (Detail
2. BASIS OF PREPARATION (Details) - BRL (R$) R$ in Millions | Jan. 02, 2020 | Dec. 31, 2019 | Jan. 02, 2019 | Dec. 31, 2018 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||||
Right-of-use assets | R$ 342 | R$ 277 | |||
Lease liabilities - Obligations referring to operational leasing agreements | R$ 288 | R$ 342 | [1] | ||
Adoption Of IFRS 16 [Member] | |||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||||
Right-of-use assets | R$ 342 | ||||
Lease liabilities - Obligations referring to operational leasing agreements | R$ 342 | ||||
[1] | The Company's incremental borrowing rate applied to the lease liability recognized in the statement of financial position on the date of the initial application varied between 7.96% p.a. and 10.64% p.a., depending on the leasing contract period, and 13.17% p.a., respectively, for contracts with maturities of up to two years, two to five years and longer than five years. The rates applied to the contracts entered into during 2019 were 6.87% p.a., 7.33% p.a. and 8.08% p.a., for contracts with maturities, respectively, of up to three years, three to four years, and over four years. To determine the incremental borrowing rate, the Company used as a reference quotations obtained from financial institutions, these being a function of the Company's credit risk, and market conditions on the date of contracting. |
3. PRINCIPLES OF CONSOLIDATIO_2
3. PRINCIPLES OF CONSOLIDATION (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Cemig Geracao E Transmissao [Member] | |||
Disclosure of subsidiaries [line items] | |||
Form of valuation | Consolidation | Consolidation | |
Percentage of ownership in subsidiary direct interest | 100.00% | 100.00% | |
Cemig Distribuicao SA [Member] | |||
Disclosure of subsidiaries [line items] | |||
Form of valuation | Consolidation | Consolidation | |
Percentage of ownership in subsidiary direct interest | 100.00% | 100.00% | |
GASMIG [Member] | |||
Disclosure of subsidiaries [line items] | |||
Form of valuation | Consolidation | Consolidation | |
Percentage of ownership in subsidiary direct interest | 99.57% | 99.57% | |
Cemig Geracao Distribuida (Usina Termica Ipatinga) [Member] | |||
Disclosure of subsidiaries [line items] | |||
Form of valuation | Consolidation | Consolidation | |
Percentage of ownership in subsidiary direct interest | 100.00% | 100.00% | |
Efficientia [Member] | |||
Disclosure of subsidiaries [line items] | |||
Form of valuation | Consolidation | Consolidation | |
Percentage of ownership in subsidiary direct interest | 100.00% | 100.00% | |
Luce Empreendimentos e Participacoes S.A [Member] | |||
Disclosure of subsidiaries [line items] | |||
Form of valuation | [1] | Consolidation | Consolidation |
Percentage of ownership in subsidiary direct interest | [1] | 100.00% | |
Rio Minas Energia E Participacoes [Member] | |||
Disclosure of subsidiaries [line items] | |||
Form of valuation | [1] | Consolidation | Consolidation |
Percentage of ownership in subsidiary direct interest | [1] | 100.00% | |
Light [Member] | |||
Disclosure of subsidiaries [line items] | |||
Form of valuation | [2] | Assets classified as held for sale | Consolidation |
Percentage of ownership in subsidiary direct interest | [2] | 22.58% | 26.06% |
Percentage of ownership in subsidiary indirect interest | [2] | 23.93% | |
Lightger [Member] | |||
Disclosure of subsidiaries [line items] | |||
Form of valuation | [3] | Equity method | Consolidation |
Percentage of ownership in subsidiary indirect interest | [3] | 49.00% | 74.49% |
Guanhaes [Member] | |||
Disclosure of subsidiaries [line items] | |||
Form of valuation | [3] | Equity method | Consolidation |
Percentage of ownership in subsidiary indirect interest | [3] | 49.00% | 74.49% |
UHE Itaocara [Member] | |||
Disclosure of subsidiaries [line items] | |||
Form of valuation | [3] | Equity method | Consolidation |
Percentage of ownership in subsidiary indirect interest | [3] | 49.00% | 74.49% |
Axxion [Member] | |||
Disclosure of subsidiaries [line items] | |||
Form of valuation | [4] | Equity method | Consolidation |
Percentage of ownership in subsidiary direct interest | [4] | 49.00% | 49.00% |
Percentage of ownership in subsidiary indirect interest | [4] | 25.49% | |
[1] | Merged with Cemig on April 24, 2019. | ||
[2] | With the settlement of the restricted offering, on July 17th, 2019, the Company's equity interest in the total share capital of Light was reduced from 49.99%, on December 31th, 2018, to 22.58% on December 31th, 2019. This transaction resulted in the company ceasing to have control over this investee, and the Company recognized the remaining investment in Light in the consolidated financial position, as an Investment in affiliate or jointly-controlled entity, in accordance with IAS 28. Since the Company continues to have a firm commitment to dispose of the remaining interest in Light, the investment in that investee continues to be classified as assets held for sale, in accordance with IFRS 5 - Non-current assets held for sale, and discontinued operations. For more information, see Notes 1, 18 and 34. | ||
[3] | On December 31, 2018, the Company holds indirect equity interests in LightGer, Guanhaes and Itaocara, of 74.49% and 49%, held through Cemig GT, and 25.49%, held through Light. As from the cessation of control of Light, the Company no longer holds control of these investees and the remaining indirect interest through Cemig GT is, from that date, measured by the equity method in the consolidated financial statements, in accordance with IAS 28. For more information, see Notes 18 and 34. | ||
[4] | On December 31, 2018 the Company hold direct and indirect interests (through Light) in Axxiom of 49% and 25.49%, respectively. As from the cessation of control of Light, the Company no longer hold control of these investees and the remaining direct interest is, from that date, measured by the equity method in the consolidated financial statements, in accordance with IAS 28. For more information, see Notes 18 and 34 |
3. PRINCIPLES OF CONSOLIDATIO_3
3. PRINCIPLES OF CONSOLIDATION (Details Narrative) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Light [Member] | ||
Disclosure of subsidiaries [line items] | ||
Percentage of ownership interest in entities wholly owned directly or indirectly | 49.99% | |
Light [Member] | Top of Range [Member] | ||
Disclosure of subsidiaries [line items] | ||
Percentage of ownership interest in entities wholly owned directly or indirectly | 49.99% | |
Light [Member] | Bottom Of Range [Member] | ||
Disclosure of subsidiaries [line items] | ||
Percentage of ownership interest in entities wholly owned directly or indirectly | 22.58% | |
Lightger [Member] | ||
Disclosure of subsidiaries [line items] | ||
Percentage of ownership interest in entities wholly owned directly or indirectly | 74.49% | |
Guanhaes [Member] | ||
Disclosure of subsidiaries [line items] | ||
Percentage of ownership interest in entities wholly owned directly or indirectly | 74.49% | |
UHE Itaocara [Member] | ||
Disclosure of subsidiaries [line items] | ||
Percentage of ownership interest in entities wholly owned directly or indirectly | 49.00% | |
Cemig Telecom [Member] | ||
Disclosure of subsidiaries [line items] | ||
Percentage of ownership interest in entities wholly owned directly or indirectly | 25.49% | |
Axxion [member] | ||
Disclosure of subsidiaries [line items] | ||
Percentage of ownership interest in entities wholly owned directly or indirectly | 25.49% | |
Axxion [Member] | ||
Disclosure of subsidiaries [line items] | ||
Percentage of ownership interest in entities wholly owned directly or indirectly | 49.00% |
4. CONCESSIONS AND AUTHORIZAT_3
4. CONCESSIONS AND AUTHORIZATIONS (Details) | 12 Months Ended | |
Dec. 31, 2019 | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Gasmig | [1],[2] |
Concession or authorization contract | State Law 11,021/1993 | [1],[2] |
Expiration date | 01/2053 | [1],[2] |
Energy Purchased For Resale [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig D | [1] |
Concession or authorization contract | 002/1997 003/1997 004/1997 005/1997 | [1] |
Expiration date | 12/2045 | [1] |
National Grid [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig GT | [3] |
Concession or authorization contract | 006/1997 | [3] |
Expiration date | 01/2043 | [3] |
Substation - SE Itajub [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig GT | [3] |
Concession or authorization contract | 79/2000 | [3] |
Expiration date | 10/2030 | [3] |
Central Geradora Elica Volta Do Rio Wind Power Plants [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Volta do Rio | [4] |
Concession or authorization contract | Resolution 660/2001 | [4] |
Expiration date | 01/2031 | [4] |
Central Geradora Elica Praias De Parajuru Wind Power Plants [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Parajuru | [4] |
Concession or authorization contract | Resolution 526/2002 | [4] |
Expiration date | 09/2032 | [4] |
Sa Carvalho Hydroelectric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Sa Carvalho | [5] |
Concession or authorization contract | 01/2004 | [5] |
Expiration date | 12/2024 | [5] |
Igarape Thermal Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig GT | [5],[6] |
Concession or authorization contract | 07/1997 | [5],[6] |
Expiration date | 08/2024 | [5],[6] |
Nova Ponte Hydroelectric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig GT | [5] |
Concession or authorization contract | 07/1997 | [5] |
Expiration date | 07/2025 | [5] |
Queimado hydroelectric plants [member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig GT | [5] |
Concession or authorization contract | 06/1997 | [5] |
Expiration date | 01/2033 | [5] |
Irape Hydroelectric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig GT | [5] |
Concession or authorization contract | 14/2000 | [5] |
Expiration date | 02/2035 | [5] |
Itutinga Hydroelectric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig Geracao Itutinga | [7] |
Concession or authorization contract | 10/2016 | [7] |
Expiration date | 01/2046 | [7] |
Salto Grande Hydroelectric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig Geracao Salto Grande | [7] |
Concession or authorization contract | 09/2016 | [7] |
Expiration date | 01/2046 | [7] |
Emborcacao Hydroelectric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig GT | [5] |
Concession or authorization contract | 07/1997 | [5] |
Expiration date | 07/2025 | [5] |
Camargos Hydroelectric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig Geracao Camargos | [7] |
Concession or authorization contract | 11/2016 | [7] |
Expiration date | 01/2046 | [7] |
Salto Voltao Hydroelectric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Horizontes Energia | |
Concession or authorization contract | Resolution 331/2002 | |
Expiration date | 10/2030 | |
Cajuru Gafan Hoto and Martins Hydroelectric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig Geracao Oeste | [7] |
Concession or authorization contract | 16/2016 | [7] |
Expiration date | 01/2046 | [7] |
Dona Rita Ervalia Neblina Peti Sinceridade And Tronqueiras Hydroelectric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig Geracao Leste | [7] |
Concession or authorization contract | 14/2016 and 15/2016 | [7] |
Expiration date | 01/2046 | [7] |
Coronel Domiciano Joasal Marmelos Paciencia E Piau Hydroelectric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig Geracao Sul | [7] |
Concession or authorization contract | 12/2016 and 13/2016 | [7] |
Expiration date | 01/2046 | [7] |
Xicao Hydroelectric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig GT | [5] |
Concession or authorization contract | 02/2013 | [5] |
Expiration date | 08/2025 | [5] |
Sao Bernardo Hydroelectric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig GT | [5] |
Concession or authorization contract | 02/2013 | [5] |
Expiration date | 08/2025 | [5] |
Poco Fundo Hydroelectric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig GT | [5] |
Concession or authorization contract | 02/2013 | [5] |
Expiration date | 08/2025 | [5] |
Luiz Dias Hydroelectric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig GT | [5] |
Concession or authorization contract | 02/2013 | [5] |
Expiration date | 08/2025 | [5] |
Rio De Pedras Hydroelectric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig GT | [5] |
Concession or authorization contract | 02/2013 | [5] |
Expiration date | 09/2024 | [5] |
Salto morais hydroelectric plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig GT | [5] |
Concession or authorization contract | 02/2013 | [5] |
Expiration date | 07/2020 | [5] |
Salto Do Passo Velho Hydroelectric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Horizontes Energia | [5] |
Concession or authorization contract | Resolution 331/2002 | [5] |
Expiration date | 10/2030 | [5] |
PCH Pai Joaquim Hydro Electric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig PCH | [5] |
Concession or authorization contract | Authorizing Resolution 377/2005 | [5] |
Expiration date | 04/2032 | [5] |
Salto Paraopeba Hydroelectric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Horizontes Energia | [5] |
Concession or authorization contract | Resolution 331/2002 | [5] |
Expiration date | 10/2030 | [5] |
Machado Mineiro Hydroelectric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Horizontes Energia | [5] |
Concession or authorization contract | Resolution 331/2002 | [5] |
Expiration date | 07/2025 | [5] |
Rosal Hydroelectric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Rosal Energia | [5] |
Concession or authorization contract | 01/1997 | [5] |
Expiration date | 05/2032 | [5] |
Santa Luzia Hydroelectric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig GT | [5] |
Concession or authorization contract | 07/1997 | [5] |
Expiration date | 02/2026 | [5] |
Tres Marias Hydroelectric Plants [Member] | National Electrical Energy Agency [Member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig Geracao Tres Marias | [7] |
Concession or authorization contract | 08/2016 | [7] |
Expiration date | 01/2046 | [7] |
[1] | Concession contracts that are within the scope of IFRIC 12 and under which the concession infrastructure assets are recorded under the intangible and financial assets bifurcation model, and in compliance with IFRS 15, the infrastructure under construction has been classified as a contract asset. Despite the segregation of distribution concession contract into four regions of State of Minas Gerais, its terms and conditions are the same. | |
[2] | On September 19, 2019, Gasmig executed with the State of Minas Gerais, as Granting Authority, the Third Amendment to the Concession Agreement, assuring Gasmig the extension of its concession term until 2053. For further information, please see Note 20 - Intangible Assets. | |
[3] | These refer to transmission concession contracts, for which a contract asset was recognized upon the application of IFRS 15, for being subject to satisfaction of performance obligations. | |
[4] | This refers to concessions, given by the process of authorization, for generation, as an independent power producer, of wind power, sold under the Proinfa program. The assets tied to the right of commercial operation are recorded in PP&E. The rights of authorization of commercial operation that are classified as an Intangible. | |
[5] | Generation concession contracts that are not within the scope of IFRIC 12, whose infrastructure assets are recorded as PP&E since the concession grantor does not have control over whom the service is provided to as the output is being sold mainly in the Free Market ('ACL'). | |
[6] | On December 6, 2019, Aneel suspended Igarape Plant commercial operation upon Cemig GT's claim for early termination of its concession contract. | |
[7] | Generation concession contracts within the scope of IFRIC 12, under which Cemig has the right to receive cash and therefore, recognizes a concession financial assets. |
4. CONCESSIONS AND AUTHORIZAT_4
4. CONCESSIONS AND AUTHORIZATIONS (Details 1) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019BRL (R$) | ||
Irape Enterprise [Member] | ||
Disclosure Of Concession And Amount To Be Paid [line items] | ||
Nominal value in 2019 | R$ 33 | |
Present value in 2019 | R$ 15 | |
Period of the concession | 03/2006 – 02/2035 | |
Updating indexer | IGPM | |
Queimadao Consortium Enterprise [Member] | ||
Disclosure Of Concession And Amount To Be Paid [line items] | ||
Nominal value in 2019 | R$ 8 | |
Present value in 2019 | R$ 4 | |
Period of the concession | 01/2004 – 12/2032 | |
Updating indexer | IGPM | |
Salto Morais Small Hydro Plant Enterprise [Member] | ||
Disclosure Of Concession And Amount To Be Paid [line items] | ||
Period of the concession | 06/2013 – 07/2020 | [1] |
Updating indexer | IPCA | [1] |
Rio De Pedras Small Hydro Plant Enterprise [Member] | ||
Disclosure Of Concession And Amount To Be Paid [line items] | ||
Period of the concession | 06/2013 – 09/2024 | [1] |
Updating indexer | IPCA | [1] |
Various Small Hydro Plants Enterprise [Member] | ||
Disclosure Of Concession And Amount To Be Paid [line items] | ||
Period of the concession | 06/2013 – 08/2025 | [1],[2] |
Updating indexer | IPCA | [1],[2] |
[1] | Under Aneel Resolution 467/2011 the power plants with total installed generation capacity of 1 to 50 MW must pay Aneel for five years, starting on the date that the concession contract is signed. The power plants contracts of Salto Morais, Rio de Pedras, Luis Dias, Poco Fundo, Sao Bernardo and Xicao were signed in 06/2013, completing five years in 2018, therefore, they didn't make any payments in 2019. | |
[2] | SHPs, with installed capacity less than 50 MW: Luiz Dias, Poco Fundo, Sao Bernardo and Xicao. |
4. CONCESSIONS AND AUTHORIZAT_5
4. CONCESSIONS AND AUTHORIZATIONS (Details 2) R$ in Millions | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Irape Enterprise [Member] | |
Disclosure Of Present Value And Nominal Value Portion To Be Paid [line items] | |
Percentage interest | 100.00% |
Amounts paid in 2019 | R$ 2 |
Nominal value of amounts to be paid in the next 12 months | R$ 2 |
Queimadao Consortium Enterprise [Member] | |
Disclosure Of Present Value And Nominal Value Portion To Be Paid [line items] | |
Percentage interest | 82.50% |
Amounts paid in 2019 | R$ 1 |
Nominal value of amounts to be paid in the next 12 months | R$ 1 |
4. CONCESSIONS AND AUTHORIZAT_6
4. CONCESSIONS AND AUTHORIZATIONS (Details Narrative) - BRL (R$) R$ in Millions | Sep. 26, 2019 | Sep. 19, 2019 | Dec. 14, 2018 | Dec. 31, 2019 |
Disclosure Of Electricity Concessions And Authorizations [line items] | ||||
Discount of future payments | 107.00% | |||
Concession grant fee | R$ 891 | R$ 852 | R$ 852 | |
Small Hydro Plants Enterprise [Member] | ||||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||||
Discount of future payments | 12.50% | |||
Cemig Distribution [Member] | ||||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||||
Concession expired | Dec. 31, 2045 | |||
Two Thousand and Nineteen [Member] | ||||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||||
Percentage of Selic rate | 80.00% | |||
Two Thousand Twenty [Member] | ||||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||||
Percentage of Selic rate | 111.00% |
5. OPERATING SEGMENTS (Details)
5. OPERATING SEGMENTS (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of operating segments [line items] | |||||
SEGMENT ASSETS | R$ 49926 | R$ 59855 | R$ 42239 | ||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | 5,400 | 5,235 | 7,792 | ||
INVESTMENTS IN AFFILIATES CLASSIFIED AS HELD FOR SALE | 1,258 | ||||
ADDITIONS TO THE SEGMENT | 2,202 | 1,590 | 1,520 | ||
NET REVENUE | 25,390 | 22,266 | 21,712 | ||
COST OF ENERGY AND GAS | |||||
Energy bought for resale | (11,286) | (11,084) | (10,919) | ||
Charges for use of the national grid | (1,426) | (1,480) | (1,174) | ||
Gas bought for resale | (1,436) | (1,238) | (1,071) | ||
Operating costs, total | 14,148 | (13,802) | (13,164) | ||
OPERATING COSTS AND EXPENSES | |||||
Personnel | (1,272) | (1,410) | (1,627) | ||
Employees' and managers' profit sharing | (263) | (77) | (5) | ||
Post-employment obligations | (408) | (337) | 229 | ||
Materials | (91) | (104) | (61) | ||
Raw materials and inputs for production of energy | (10) | ||||
Outsourced services | (1,239) | (1,087) | (974) | ||
Depreciation and amortization | (958) | (835) | (850) | ||
Operating provisions (reversals) | (2,401) | (466) | (854) | ||
Construction costs | (1,200) | (897) | (1,119) | ||
Other operating expenses, net | (499) | (405) | (383) | ||
Total cost of operation | (8,331) | (5,618) | (5,654) | ||
OPERATING COSTS AND EXPENSES | (22,479) | (19,420) | (18,818) | ||
OPERATING INCOME BEFORE EQUITY GAINS (LOSSES) AND FINANCE INCOME (EXPENSES) | 3,109 | 2,894 | |||
Equity in earnings of unconsolidated investees, net | 125 | (104) | (252) | ||
Dividends declared by investee classified as held for sale | 73 | ||||
Remeasurement of previously held equity interest in subsidiaries acquired | (119) | ||||
Impairment for investments | (127) | ||||
OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) | 3,109 | 2,496 | 2,642 | ||
Finance income | 3,207 | 1,706 | 804 | ||
Finance expenses | (1,847) | (2,224) | (1,800) | ||
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX | 4,469 | 1,978 | 1,646 | ||
Income tax and social contribution tax | (1,565) | (599) | (644) | ||
Net income for the year from continuing operations | 2,904 | 1,379 | 1,002 | ||
DISCONTINUED OPERATIONS | |||||
NET INCOME AFTER TAX FROM DISCONTINUED OPERATIONS | 224 | 363 | |||
Items that will not be reclassified to profit or loss | |||||
Post retirement liabilities - restatement of obligations of the defined benefit plans, net of taxes | (1,055) | (463) | (261) | ||
Equity gain (loss) on Other comprehensive income in subsidiary and jointly-controlled entity, net of tax | (3) | ||||
Other comprehensive income that will not be reclassified to profit or loss, net of tax | (1,055) | (463) | (264) | ||
Items that may be reclassified to profit or loss | |||||
Equity gain (loss) on Other comprehensive income in subsidiary and jointly-controlled entity, net of tax | (38) | ||||
Items that may be reclassified to profit or loss | (38) | ||||
COMPREHENSIVE INCOME FOR THE YEAR | 7 | ||||
Net income (loss) for the year | 3,128 | 1,742 | 1,002 | ||
Equity holders of the parent | 3,127 | 1,700 | 699 | ||
Non-controlling interests | 1 | 42 | 1 | ||
Operating Segments [Member] | Elimination Segments [Member] | |||||
Disclosure of operating segments [line items] | |||||
SEGMENT ASSETS | (1,128) | (957) | (32) | ||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | |||||
INVESTMENTS IN AFFILIATES CLASSIFIED AS HELD FOR SALE | |||||
ADDITIONS TO THE SEGMENT | |||||
NET REVENUE | (307) | (293) | (288) | ||
COST OF ENERGY AND GAS | |||||
Energy bought for resale | 72 | 71 | 73 | ||
Charges for use of the national grid | 223 | 200 | 181 | ||
Gas bought for resale | |||||
Operating costs, total | 295 | 271 | 254 | ||
OPERATING COSTS AND EXPENSES | |||||
Personnel | |||||
Employees' and managers' profit sharing | |||||
Post-employment obligations | |||||
Materials | |||||
Outsourced services | 7 | 15 | 30 | ||
Depreciation and amortization | |||||
Operating provisions (reversals) | |||||
Construction costs | |||||
Other operating expenses, net | 5 | 7 | 4 | ||
Total cost of operation | 12 | 22 | 34 | ||
OPERATING COSTS AND EXPENSES | (307) | (293) | (288) | ||
Equity in earnings of unconsolidated investees, net | |||||
Operating Segments [Member] | Gas Segment [Member] | |||||
Disclosure of operating segments [line items] | |||||
SEGMENT ASSETS | 2,689 | 1,822 | 2 | ||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | |||||
INVESTMENTS IN AFFILIATES CLASSIFIED AS HELD FOR SALE | |||||
ADDITIONS TO THE SEGMENT | 934 | 7 | 56 | ||
NET REVENUE | 1,858 | 1,619 | 1,482 | ||
COST OF ENERGY AND GAS | |||||
Energy bought for resale | |||||
Charges for use of the national grid | |||||
Gas bought for resale | (1,436) | (1,238) | (1,071) | ||
Operating costs, total | (1,436) | (1,238) | (1,071) | ||
OPERATING COSTS AND EXPENSES | |||||
Personnel | (46) | (60) | (56) | ||
Employees' and managers' profit sharing | |||||
Post-employment obligations | |||||
Materials | (20) | (20) | (2) | ||
Outsourced services | (2) | (2) | (17) | ||
Depreciation and amortization | (86) | (74) | (71) | ||
Operating provisions (reversals) | (2) | 2 | (2) | ||
Construction costs | (43) | (45) | (49) | ||
Other operating expenses, net | (10) | (13) | (15) | ||
Total cost of operation | (290) | (212) | 212 | ||
OPERATING COSTS AND EXPENSES | (1,645) | (1,450) | (1,283) | ||
OPERATING INCOME BEFORE EQUITY GAINS (LOSSES) AND FINANCE INCOME (EXPENSES) | 213 | 199 | |||
Equity in earnings of unconsolidated investees, net | |||||
OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) | 169 | ||||
Finance income | 21 | 84 | 49 | ||
Finance expenses | (46) | (38) | (43) | ||
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX | 188 | 215 | 205 | ||
Income tax and social contribution tax | (47) | (53) | (71) | ||
Net income for the year from continuing operations | 141 | 162 | |||
Items that may be reclassified to profit or loss | |||||
COMPREHENSIVE INCOME FOR THE YEAR | 134 | ||||
Net income (loss) for the year | 141 | 162 | 134 | ||
Equity holders of the parent | 14 | 161 | 133 | ||
Non-controlling interests | 1 | 1 | |||
Operating Segments [Member] | Energy Distribution Segment [Member] | |||||
Disclosure of operating segments [line items] | |||||
SEGMENT ASSETS | 25,616 | 37,840 | 20,021 | ||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | 1,918 | ||||
INVESTMENTS IN AFFILIATES CLASSIFIED AS HELD FOR SALE | 1,258 | ||||
ADDITIONS TO THE SEGMENT | 936 | 856 | 1,083 | ||
NET REVENUE | 15,919 | 13,757 | 12,125 | ||
COST OF ENERGY AND GAS | |||||
Energy bought for resale | (7,517) | (7,238) | (6,783) | ||
Charges for use of the national grid | (1,459) | (1,463) | (1,002) | ||
Gas bought for resale | |||||
Operating costs, total | (8,976) | (8,701) | (7,785) | ||
OPERATING COSTS AND EXPENSES | |||||
Personnel | (869) | (965) | (1,123) | ||
Employees' and managers' profit sharing | (183) | (51) | (3) | ||
Post-employment obligations | (276) | (224) | 180 | ||
Materials | (63) | (58) | (43) | ||
Outsourced services | (1,016) | (88) | (785) | ||
Depreciation and amortization | (652) | (595) | (567) | ||
Operating provisions (reversals) | (1,102) | (332) | (469) | ||
Construction costs | (936) | (757) | (1,045) | ||
Other operating expenses, net | (298) | (203) | (408) | ||
Total cost of operation | 5,395 | (4,065) | (4,263) | ||
OPERATING COSTS AND EXPENSES | 14,371 | (12,766) | (12,048) | ||
OPERATING INCOME BEFORE EQUITY GAINS (LOSSES) AND FINANCE INCOME (EXPENSES) | 1,621 | 264 | |||
Equity in earnings of unconsolidated investees, net | 33 | 42 | |||
Dividends declared by investee classified as held for sale | 73 | ||||
Remeasurement of previously held equity interest in subsidiaries acquired | (52) | ||||
OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) | 972 | ||||
Finance income | 1,535 | 434 | 397 | ||
Finance expenses | (632) | (621) | (815) | ||
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX | 2,524 | 785 | (112) | ||
Income tax and social contribution tax | (806) | (217) | 31 | ||
Net income for the year from continuing operations | 1,718 | 568 | |||
DISCONTINUED OPERATIONS | |||||
NET INCOME AFTER TAX FROM DISCONTINUED OPERATIONS | 224 | 62 | |||
Items that will not be reclassified to profit or loss | |||||
Post retirement liabilities - restatement of obligations of the defined benefit plans, net of taxes | (145) | ||||
Other comprehensive income that will not be reclassified to profit or loss, net of tax | (145) | ||||
Items that may be reclassified to profit or loss | |||||
COMPREHENSIVE INCOME FOR THE YEAR | (226) | ||||
Net income (loss) for the year | 1,942 | 630 | (81) | ||
Equity holders of the parent | 1,942 | 599 | (226) | ||
Non-controlling interests | 31 | ||||
Operating Segments [Member] | Energy Generation Segment [Member] | |||||
Disclosure of operating segments [line items] | |||||
SEGMENT ASSETS | 14,749 | 14,671 | 14,366 | ||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | 4,133 | 4,055 | 4,723 | ||
INVESTMENTS IN AFFILIATES CLASSIFIED AS HELD FOR SALE | |||||
ADDITIONS TO THE SEGMENT | 102 | 559 | 308 | ||
NET REVENUE | 6,882 | 6,374 | 7,190 | ||
COST OF ENERGY AND GAS | |||||
Energy bought for resale | (3,841) | (3,917) | (4,209) | ||
Charges for use of the national grid | (190) | (216) | (353) | ||
Gas bought for resale | |||||
Operating costs, total | (4,031) | (4,133) | (4,562) | ||
OPERATING COSTS AND EXPENSES | |||||
Personnel | (208) | (230) | (281) | ||
Employees' and managers' profit sharing | (36) | (10) | (1) | ||
Post-employment obligations | (50) | (46) | 39 | ||
Materials | (17) | (39) | (11) | ||
Raw materials and inputs for production of energy | (1) | ||||
Outsourced services | (125) | (123) | (127) | ||
Depreciation and amortization | (210) | (164) | (176) | ||
Operating provisions (reversals) | (975) | (107) | (139) | ||
Construction costs | |||||
Other operating expenses, net | (176) | (65) | (117) | ||
Total cost of operation | (1,797) | (784) | (823) | ||
OPERATING COSTS AND EXPENSES | (5,828) | (4,917) | (5,385) | ||
OPERATING INCOME BEFORE EQUITY GAINS (LOSSES) AND FINANCE INCOME (EXPENSES) | 966 | 1,805 | |||
Equity in earnings of unconsolidated investees, net | (88) | (353) | (519) | ||
Remeasurement of previously held equity interest in subsidiaries acquired | 80 | ||||
Impairment for investments | (127) | ||||
OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) | 1,057 | ||||
Finance income | 1,282 | 1,113 | 226 | ||
Finance expenses | (1,035) | (1,536) | (1,161) | ||
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX | 1,213 | 634 | 351 | ||
Income tax and social contribution tax | (551) | (276) | (257) | ||
Net income for the year from continuing operations | 662 | 358 | |||
DISCONTINUED OPERATIONS | |||||
NET INCOME AFTER TAX FROM DISCONTINUED OPERATIONS | 11 | ||||
Items that will not be reclassified to profit or loss | |||||
Post retirement liabilities - restatement of obligations of the defined benefit plans, net of taxes | (47) | ||||
Other comprehensive income that will not be reclassified to profit or loss, net of tax | (47) | ||||
Items that may be reclassified to profit or loss | |||||
Equity gain (loss) on Other comprehensive income in subsidiary and jointly-controlled entity, net of tax | (34) | ||||
Items that may be reclassified to profit or loss | (34) | ||||
COMPREHENSIVE INCOME FOR THE YEAR | 13 | ||||
Net income (loss) for the year | 662 | 369 | 94 | ||
Equity holders of the parent | 662 | 361 | 13 | ||
Non-controlling interests | 8 | ||||
Operating Segments [Member] | Telecommunications Segment [Member] | |||||
Disclosure of operating segments [line items] | |||||
SEGMENT ASSETS | 10 | 347 | |||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | |||||
ADDITIONS TO THE SEGMENT | 9 | [1] | 47 | ||
NET REVENUE | 127 | ||||
OPERATING COSTS AND EXPENSES | |||||
Personnel | (18) | [1] | (20) | ||
Materials | [1] | (1) | |||
Outsourced services | (9) | [1] | (28) | ||
Depreciation and amortization | (1) | [1] | (35) | ||
Operating provisions (reversals) | 1 | [1] | (1) | ||
Other operating expenses, net | (3) | [1] | (23) | ||
Total cost of operation | (31) | [1] | (107) | ||
OPERATING COSTS AND EXPENSES | (31) | (107) | |||
OPERATING INCOME BEFORE EQUITY GAINS (LOSSES) AND FINANCE INCOME (EXPENSES) | 20 | ||||
Equity in earnings of unconsolidated investees, net | (1) | [1] | (2) | ||
OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) | [1] | (32) | |||
Finance income | 1 | [1] | 3 | ||
Finance expenses | (5) | [1] | (15) | ||
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX | (36) | [1] | 6 | ||
Income tax and social contribution tax | 12 | [1] | (3) | ||
Net income for the year from continuing operations | [1] | (24) | |||
DISCONTINUED OPERATIONS | |||||
NET INCOME AFTER TAX FROM DISCONTINUED OPERATIONS | [1] | 290 | |||
Items that may be reclassified to profit or loss | |||||
COMPREHENSIVE INCOME FOR THE YEAR | 3 | ||||
Net income (loss) for the year | 266 | [1] | 3 | ||
Equity holders of the parent | 266 | [1] | 3 | ||
Operating Segments [Member] | Energy Transmission Segment [Member] | |||||
Disclosure of operating segments [line items] | |||||
SEGMENT ASSETS | 4,113 | 3,862 | 3,955 | ||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | 1,237 | 1,163 | 1,122 | ||
INVESTMENTS IN AFFILIATES CLASSIFIED AS HELD FOR SALE | |||||
ADDITIONS TO THE SEGMENT | 221 | 96 | 25 | ||
NET REVENUE | 714 | 676 | 777 | ||
COST OF ENERGY AND GAS | |||||
Energy bought for resale | |||||
Charges for use of the national grid | |||||
Gas bought for resale | |||||
Operating costs, total | |||||
OPERATING COSTS AND EXPENSES | |||||
Personnel | (115) | (108) | (106) | ||
Employees' and managers' profit sharing | (27) | (7) | |||
Post-employment obligations | (38) | (27) | 19 | ||
Materials | (6) | (4) | (4) | ||
Outsourced services | (45) | (40) | (31) | ||
Depreciation and amortization | (5) | ||||
Operating provisions (reversals) | (134) | (12) | (10) | ||
Construction costs | (221) | (96) | (25) | ||
Other operating expenses, net | (20) | (17) | (11) | ||
Total cost of operation | 611 | (311) | (168) | ||
OPERATING COSTS AND EXPENSES | 611 | (311) | (168) | ||
OPERATING INCOME BEFORE EQUITY GAINS (LOSSES) AND FINANCE INCOME (EXPENSES) | 317 | 609 | |||
Equity in earnings of unconsolidated investees, net | 214 | 231 | 234 | ||
OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) | 595 | ||||
Finance income | 98 | 61 | 9 | ||
Finance expenses | (115) | (5) | (3) | ||
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX | 300 | 651 | 849 | ||
Income tax and social contribution tax | (36) | (122) | (189) | ||
Net income for the year from continuing operations | 264 | 529 | |||
Items that will not be reclassified to profit or loss | |||||
Post retirement liabilities - restatement of obligations of the defined benefit plans, net of taxes | (23) | ||||
Other comprehensive income that will not be reclassified to profit or loss, net of tax | (23) | ||||
Items that may be reclassified to profit or loss | |||||
COMPREHENSIVE INCOME FOR THE YEAR | 637 | ||||
Net income (loss) for the year | 264 | 529 | 660 | ||
Equity holders of the parent | 264 | 529 | 637 | ||
Operating Segments [Member] | Other Segments [Member] | |||||
Disclosure of operating segments [line items] | |||||
SEGMENT ASSETS | 3,887 | 2,607 | 1,582 | ||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | 30 | 17 | 29 | ||
INVESTMENTS IN AFFILIATES CLASSIFIED AS HELD FOR SALE | |||||
ADDITIONS TO THE SEGMENT | 9 | 1 | |||
NET REVENUE | 324 | 134 | 112 | ||
COST OF ENERGY AND GAS | |||||
Energy bought for resale | |||||
Charges for use of the national grid | |||||
Gas bought for resale | |||||
Operating costs, total | |||||
OPERATING COSTS AND EXPENSES | |||||
Personnel | (34) | (29) | (41) | ||
Employees' and managers' profit sharing | (17) | (10) | (1) | ||
Post-employment obligations | (44) | (41) | (9) | ||
Materials | (3) | (1) | |||
Outsourced services | (40) | (30) | (16) | ||
Depreciation and amortization | (5) | (1) | (1) | ||
Operating provisions (reversals) | (188) | (18) | (233) | ||
Construction costs | |||||
Other operating expenses, net | (109) | 187 | |||
Total cost of operation | (331) | (238) | (115) | ||
OPERATING COSTS AND EXPENSES | (331) | (238) | (115) | ||
OPERATING INCOME BEFORE EQUITY GAINS (LOSSES) AND FINANCE INCOME (EXPENSES) | (8) | (3) | |||
Equity in earnings of unconsolidated investees, net | (1) | (14) | (7) | ||
Remeasurement of previously held equity interest in subsidiaries acquired | (147) | ||||
OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) | (265) | ||||
Finance income | 271 | 13 | 120 | ||
Finance expenses | (19) | (19) | 237 | ||
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX | 244 | (271) | 347 | ||
Income tax and social contribution tax | (125) | 57 | (155) | ||
Net income for the year from continuing operations | 119 | (214) | |||
Items that will not be reclassified to profit or loss | |||||
Post retirement liabilities - restatement of obligations of the defined benefit plans, net of taxes | (46) | ||||
Equity gain (loss) on Other comprehensive income in subsidiary and jointly-controlled entity, net of tax | (3) | ||||
Other comprehensive income that will not be reclassified to profit or loss, net of tax | (49) | ||||
Items that may be reclassified to profit or loss | |||||
Equity gain (loss) on Other comprehensive income in subsidiary and jointly-controlled entity, net of tax | (4) | ||||
Items that may be reclassified to profit or loss | (4) | ||||
COMPREHENSIVE INCOME FOR THE YEAR | 139 | ||||
Net income (loss) for the year | 119 | (214) | 192 | ||
Equity holders of the parent | R$ 119 | (216) | R$ 139 | ||
Non-controlling interests | R$ 2 | ||||
[1] | On March 31, 2018 Cemig Telecom assets and liabilities were merged into the Company. |
5. OPERATING SEGMENTS (Details
5. OPERATING SEGMENTS (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of revenue [line items] | |||
Revenue from supply of energy | R$ 26928 | R$ 24872 | R$ 23701 |
Revenue from Use of Distribution Systems (the TUSD charge) | 2,722 | 2,045 | 1,611 |
CVA and Other financial components in tariff adjustment | 58 | 1,973 | 988 |
Transmission concession revenue | 504 | 411 | 371 |
Transmission construction revenue | 220 | 96 | 25 |
Concession assets - indemnity revenue | 250 | 373 | |
Generation assets - indemnity revenue | 55 | 271 | |
Transmission assets - indemnity revenue | 156 | ||
Distribution construction revenue | 980 | 802 | 1,094 |
Adjustment to expectation of cash flow from Financial assets of distribution concession to be indemnified | 18 | 9 | |
Gain on inflation updating of concession grant fee | 318 | 321 | 317 |
Transactions in energy on the CCEE | 432 | 217 | 860 |
Supply of gas | 2,298 | 1,995 | 1,759 |
Fine for violation of continuity indicator | (58) | (44) | |
PIS/Pasep and Cofins taxes credits over ICMS | 1,428 | ||
Other operating revenues | 1,722 | 1,585 | 1,484 |
Sector / Regulatory charges reported as Deductions from revenue | (12,336) | (12,312) | (11,151) |
Net operating revenue | 25,390 | 22,266 | 21,712 |
Operating Segments [Member] | Elimination Segments [Member] | |||
Disclosure of revenue [line items] | |||
Revenue from supply of energy | (77) | (78) | (81) |
Revenue from Use of Distribution Systems (the TUSD charge) | (24) | (22) | (32) |
CVA and Other financial components in tariff adjustment | |||
Transmission concession revenue | (199) | (178) | (148) |
Transmission construction revenue | |||
Transmission assets - indemnity revenue | |||
Distribution construction revenue | |||
Adjustment to expectation of cash flow from Financial assets of distribution concession to be indemnified | |||
Gain on inflation updating of concession grant fee | |||
Transactions in energy on the CCEE | |||
Supply of gas | |||
Fine for violation of continuity indicator | |||
PIS/Pasep and Cofins taxes credits over ICMS | |||
Other operating revenues | (7) | (15) | (26) |
Sector / Regulatory charges reported as Deductions from revenue | |||
Net operating revenue | (307) | (293) | (288) |
Operating Segments [Member] | Energy Distribution Segment [Member] | |||
Disclosure of revenue [line items] | |||
Revenue from supply of energy | 19,967 | 17,885 | 16,442 |
Revenue from Use of Distribution Systems (the TUSD charge) | 2,746 | 2,067 | 1,643 |
CVA and Other financial components in tariff adjustment | 58 | 1,973 | 988 |
Transmission concession revenue | |||
Transmission construction revenue | |||
Transmission assets - indemnity revenue | |||
Distribution construction revenue | 937 | 757 | 1,045 |
Adjustment to expectation of cash flow from Financial assets of distribution concession to be indemnified | 18 | 9 | |
Gain on inflation updating of concession grant fee | |||
Transactions in energy on the CCEE | (7) | ||
Supply of gas | |||
Fine for violation of continuity indicator | (58) | (44) | |
PIS/Pasep and Cofins taxes credits over ICMS | 830 | ||
Other operating revenues | 1,469 | 1,345 | 1,175 |
Sector / Regulatory charges reported as Deductions from revenue | (10,041) | (10,226) | (9,177) |
Net operating revenue | 15,919 | 13,757 | 12,125 |
Operating Segments [Member] | Energy Transmission Segment [Member] | |||
Disclosure of revenue [line items] | |||
Revenue from supply of energy | |||
Revenue from Use of Distribution Systems (the TUSD charge) | |||
CVA and Other financial components in tariff adjustment | |||
Transmission concession revenue | 703 | 589 | 519 |
Transmission construction revenue | 220 | 96 | 25 |
Concession assets - indemnity revenue | 250 | 373 | |
Transmission assets - indemnity revenue | 156 | ||
Distribution construction revenue | |||
Adjustment to expectation of cash flow from Financial assets of distribution concession to be indemnified | |||
Gain on inflation updating of concession grant fee | |||
Transactions in energy on the CCEE | |||
Supply of gas | |||
Fine for violation of continuity indicator | |||
PIS/Pasep and Cofins taxes credits over ICMS | |||
Other operating revenues | 27 | 29 | 9 |
Sector / Regulatory charges reported as Deductions from revenue | (392) | (288) | (167) |
Net operating revenue | 714 | 676 | 777 |
Operating Segments [Member] | Other Segments [Member] | |||
Disclosure of revenue [line items] | |||
Revenue from supply of energy | |||
Revenue from Use of Distribution Systems (the TUSD charge) | |||
CVA and Other financial components in tariff adjustment | |||
Transmission concession revenue | |||
Transmission construction revenue | |||
Transmission assets - indemnity revenue | |||
Distribution construction revenue | |||
Adjustment to expectation of cash flow from Financial assets of distribution concession to be indemnified | |||
Gain on inflation updating of concession grant fee | |||
Transactions in energy on the CCEE | |||
Supply of gas | |||
Fine for violation of continuity indicator | |||
PIS/Pasep and Cofins taxes credits over ICMS | 184 | ||
Other operating revenues | 152 | 144 | 120 |
Sector / Regulatory charges reported as Deductions from revenue | (12) | (11) | (9) |
Net operating revenue | 324 | 134 | 112 |
Operating Segments [Member] | Gas Segment [Member] | |||
Disclosure of revenue [line items] | |||
Revenue from supply of energy | |||
Revenue from Use of Distribution Systems (the TUSD charge) | |||
CVA and Other financial components in tariff adjustment | |||
Transmission concession revenue | |||
Transmission construction revenue | |||
Transmission assets - indemnity revenue | |||
Distribution construction revenue | 43 | 45 | 49 |
Adjustment to expectation of cash flow from Financial assets of distribution concession to be indemnified | |||
Gain on inflation updating of concession grant fee | |||
Transactions in energy on the CCEE | |||
Supply of gas | 2,298 | 1,995 | 1,759 |
Fine for violation of continuity indicator | |||
PIS/Pasep and Cofins taxes credits over ICMS | |||
Other operating revenues | 1 | ||
Sector / Regulatory charges reported as Deductions from revenue | (483) | (421) | (327) |
Net operating revenue | 1,858 | 1,619 | 1,482 |
Operating Segments [Member] | Energy Generation Segment [Member] | |||
Disclosure of revenue [line items] | |||
Revenue from supply of energy | 7,038 | 7,065 | 7,340 |
Revenue from Use of Distribution Systems (the TUSD charge) | |||
CVA and Other financial components in tariff adjustment | |||
Transmission concession revenue | |||
Transmission construction revenue | |||
Generation assets - indemnity revenue | 55 | 271 | |
Transmission assets - indemnity revenue | |||
Distribution construction revenue | |||
Adjustment to expectation of cash flow from Financial assets of distribution concession to be indemnified | |||
Gain on inflation updating of concession grant fee | 318 | 321 | 317 |
Transactions in energy on the CCEE | 439 | 217 | 860 |
Supply of gas | |||
Fine for violation of continuity indicator | |||
PIS/Pasep and Cofins taxes credits over ICMS | 414 | ||
Other operating revenues | 81 | 81 | 37 |
Sector / Regulatory charges reported as Deductions from revenue | (1,408) | (1,366) | (1,430) |
Net operating revenue | R$ 6882 | R$ 6374 | 7,190 |
Operating Segments [Member] | Telecommunications Segment [Member] | |||
Disclosure of revenue [line items] | |||
Other operating revenues | 168 | ||
Sector / Regulatory charges reported as Deductions from revenue | (41) | ||
Net operating revenue | R$ 127 |
6. CASH AND CASH EQUIVALENTS (D
6. CASH AND CASH EQUIVALENTS (Details) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash and cash equivalents [abstract] | |||
Bank accounts | R$ 210 | R$ 108 | |
Cash equivalents | |||
Bank certificates of deposit (CDBs) | [1] | 290 | 555 |
Overnight | [2] | 36 | 228 |
Short term investments | 326 | 783 | |
Cash and cash equivalents | R$ 536 | R$ 891 | |
[1] | Bank Certificates of Deposit (Certificados de Deposito Bancario, or CBDs), accrued interest at 80% to 106%, of the CDI Rate (Interbank Rate for Interbank Certificates of Deposit or Certificados de Deposito Inter-bancario - CDIs) published by the Custody and Settlement Chamber (Camara de Custodia e Liquidacao, or Cetip) in 2019 (40% to 106% in 2018 and 50% to 106% in 2017). For these CDBs, the Company has repo transactions which state, on their trading notes, the bank's commitment to repurchase the security, on demand, on the maturity date of the transaction, or earlier. | ||
[2] | Overnight transactions are repos available for redemption on the following day. They are usually backed by Treasury Bills, Notes or Bonds and referenced to a pre-fixed rate of 4.39% in 2019 (6.39%, in 2018 and 6.89% in 2017). Their purpose is to settle the short-term obligations of the Company, or to be used in the acquisition of other assets with better return to replenish the portfolio. |
6. CASH AND CASH EQUIVALENTS _2
6. CASH AND CASH EQUIVALENTS (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash and cash equivalents1 [line items] | |||
Percentage of fixed interest rate | 4.39% | 6.39% | 6.89% |
Top of Range [Member] | |||
Cash and cash equivalents1 [line items] | |||
Percentage of accrued interest on certificate of deposits | 106.00% | 106.00% | 106.00% |
Bottom Of Range [Member] | |||
Cash and cash equivalents1 [line items] | |||
Percentage of accrued interest on certificate of deposits | 80.00% | 40.00% | 50.00% |
7. MARKETABLE SECURITIES (Detai
7. MARKETABLE SECURITIES (Details) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Investment Securities [line items] | |||
Current investments | R$ 740 | R$ 704 | |
Non-current investments | 13 | 109 | |
Investments | 753 | 813 | |
Financial Notes Banks [Member] | |||
Disclosure of Investment Securities [line items] | |||
Current investments | [1] | 645 | 435 |
Non-current investments | [1] | 11 | 109 |
Treasury Financial Notes [Member] | |||
Disclosure of Investment Securities [line items] | |||
Current investments | [2] | 94 | 254 |
Debentures [Member] | |||
Disclosure of Investment Securities [line items] | |||
Current investments | [3] | 11 | |
Non-current investments | 2 | ||
Other Investment [Member] | |||
Disclosure of Investment Securities [line items] | |||
Current investments | R$ 1 | R$ 4 | |
[1] | Bank Financial Notes (Letras Financeiras, or LFs) are fixed- rate fixed-income securities, issued by banks and that accrued interest a percentage of the CDI rate published by Cetip. The LFs had remuneration rates varying between 101.95% and 113% of the CDI rate in 2019 (102% and 111.25% in 2018 and 102.01% to 112% in 2017). | ||
[2] | Treasury Financial Notes (LFTs) are fixed-rate securities, their yield follows the daily changes in the Selic rate between the date of purchase and the date of maturity. | ||
[3] | Debentures are medium and long term debt securities, which give their holders a right of credit against the issuing company. The debentures have remuneration varying from 108.25% to 113% of the CDI Rate in 2019 (104.25% to 151% of CDI in 2018 and 104.25% to 161.54% of CDI in 2017). |
7. MARKETABLE SECURITIES (Det_2
7. MARKETABLE SECURITIES (Details Narrative) - Bank Certificate Of Deposits [member] | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Bottom Of Range [Member] | |||
Disclosure of Investment Securities [line items] | |||
Investment rate remunerated at percentage of rate for interbank deposits | 101.95% | 102.00% | 102.01% |
Bottom Of Range [Member] | Debentures [Member] | |||
Disclosure of Investment Securities [line items] | |||
Investment rate remunerated at percentage of rate for interbank deposits | 108.25% | 104.25% | 104.25% |
Top of Range [Member] | |||
Disclosure of Investment Securities [line items] | |||
Investment rate remunerated at percentage of rate for interbank deposits | 113.00% | 111.25% | 112.00% |
Top of Range [Member] | Debentures [Member] | |||
Disclosure of Investment Securities [line items] | |||
Investment rate remunerated at percentage of rate for interbank deposits | 113.00% | 151.00% | 161.54% |
8. RECEIVABLES FROM CUSTOMERS_3
8. RECEIVABLES FROM CUSTOMERS, TRADERS AND POWER TRANSPORT CONCESSION HOLDERS (Details) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of trade and other receivables [line items] | ||||
Billed supply | R$ 3130 | R$ 2989 | ||
Unbilled supply | 1,204 | 1,048 | ||
Other concession holders - wholesale supply | 47 | 47 | ||
Other concession holders - wholesale supply, unbilled | 204 | 282 | ||
CCEE (Power Trading Chamber) | 386 | 166 | ||
Concession Holders - power transport | 187 | 180 | ||
Concession Holders - power transport, unbilled | 253 | 212 | ||
Provision for doubtful receivables | (810) | (751) | R$ 568 | R$ 660 |
Trade and other receivables | 4,601 | 4,173 | ||
Current assets | 4,524 | 4,092 | ||
Non-current assets | 77 | R$ 81 | ||
Balances Not Yet Due [Member] | ||||
Disclosure of trade and other receivables [line items] | ||||
Billed supply | 1,396 | |||
Unbilled supply | 1,204 | |||
Other concession holders - wholesale supply | ||||
Other concession holders - wholesale supply, unbilled | 204 | |||
CCEE (Power Trading Chamber) | ||||
Concession Holders - power transport | 80 | |||
Concession Holders - power transport, unbilled | 253 | |||
Provision for doubtful receivables | (171) | |||
Trade and other receivables | 2,966 | |||
Not Later Than Three Months [Member] | ||||
Disclosure of trade and other receivables [line items] | ||||
Billed supply | 707 | |||
Unbilled supply | ||||
Other concession holders - wholesale supply | 32 | |||
Other concession holders - wholesale supply, unbilled | ||||
CCEE (Power Trading Chamber) | ||||
Concession Holders - power transport | 20 | |||
Concession Holders - power transport, unbilled | ||||
Provision for doubtful receivables | (12) | |||
Trade and other receivables | 747 | |||
Later Than Three Months And Not Later Than One Year [Member] | ||||
Disclosure of trade and other receivables [line items] | ||||
Billed supply | 431 | |||
Unbilled supply | ||||
Other concession holders - wholesale supply | 15 | |||
Other concession holders - wholesale supply, unbilled | ||||
CCEE (Power Trading Chamber) | 386 | |||
Concession Holders - power transport | 6 | |||
Concession Holders - power transport, unbilled | ||||
Provision for doubtful receivables | (38) | |||
Trade and other receivables | 800 | |||
More Than One Year [member] | ||||
Disclosure of trade and other receivables [line items] | ||||
Billed supply | 596 | |||
Unbilled supply | ||||
Other concession holders - wholesale supply | ||||
Other concession holders - wholesale supply, unbilled | ||||
CCEE (Power Trading Chamber) | ||||
Concession Holders - power transport | 81 | |||
Concession Holders - power transport, unbilled | ||||
Provision for doubtful receivables | (589) | |||
Trade and other receivables | R$ 88 |
8. RECEIVABLES FROM CUSTOMERS_4
8. RECEIVABLES FROM CUSTOMERS, TRADERS AND POWER TRANSPORT CONCESSION HOLDERS (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [line items] | ||||
Allowance account for credit losses of financial assets | R$ 810 | R$ 751 | R$ 568 | R$ 660 |
Residential [Member] | ||||
Disclosure of financial assets [line items] | ||||
Allowance account for credit losses of financial assets | 131 | 137 | ||
Industrial [Member] | ||||
Disclosure of financial assets [line items] | ||||
Allowance account for credit losses of financial assets | 197 | 172 | ||
Commercial, Services and Other [Member] | ||||
Disclosure of financial assets [line items] | ||||
Allowance account for credit losses of financial assets | 161 | 189 | ||
Rural [Member] | ||||
Disclosure of financial assets [line items] | ||||
Allowance account for credit losses of financial assets | 32 | 33 | ||
Public Authorities [Member] | ||||
Disclosure of financial assets [line items] | ||||
Allowance account for credit losses of financial assets | 201 | 119 | ||
Public Lighting [Member] | ||||
Disclosure of financial assets [line items] | ||||
Allowance account for credit losses of financial assets | 2 | 6 | ||
Public Service [Member] | ||||
Disclosure of financial assets [line items] | ||||
Allowance account for credit losses of financial assets | 31 | 27 | ||
Network Fees [Member] | ||||
Disclosure of financial assets [line items] | ||||
Allowance account for credit losses of financial assets | R$ 55 | R$ 68 |
8. RECEIVABLES FROM CUSTOMERS_5
8. RECEIVABLES FROM CUSTOMERS, TRADERS AND POWER TRANSPORT CONCESSION HOLDERS (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in allowance account for credit losses of financial assets [abstract] | |||
Beginning balance | R$ 751 | R$ 568 | R$ 660 |
Effect of adoption of IFRS 9 on Jan. 1, 2018 (1) (Note 2.4) | 150 | ||
Additions, net | 238 | 264 | 248 |
Disposals / Write-off | (179) | (231) | (340) |
Ending balance | R$ 810 | R$ 751 | R$ 568 |
8. RECEIVABLES FROM CUSTOMERS_6
8. RECEIVABLES FROM CUSTOMERS, TRADERS AND POWER TRANSPORT CONCESSION HOLDERS (Details 3) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Advances From Customers [line items] | ||
Beginning balance | R$ 79 | |
Ending Balance | R$ 79 | |
Cemig GT [Member] | ||
Disclosure Of Advances From Customers [line items] | ||
Beginning balance | 233 | |
Additions | 50 | |
Energy supplied | (215) | |
Inflation adjustment | 11 | |
Eletrobras [Member] | ||
Disclosure Of Advances From Customers [line items] | ||
Beginning balance | 79 | |
Energy supplied | (80) | |
Inflation adjustment | 1 | |
Ending Balance | R$ 79 |
8. RECEIVABLES FROM CUSTOMERS_7
8. RECEIVABLES FROM CUSTOMERS, TRADERS AND POWER TRANSPORT CONCESSION HOLDERS (Details Narrative) R$ in Millions | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Cemig Distribuicao SA [Member] | |
Disclosure Of Advances From Customers [line items] | |
Reduction in doubtful accounts | R$ 46 |
9. RECOVERABLE TAXES (Details)
9. RECOVERABLE TAXES (Details) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of recoverable taxes [line items] | ||
Recoverable taxes, current | R$ 99 | R$ 124 |
Recoverable taxes, non-current | 6,349 | 242 |
Recoverable taxes | 6,448 | 366 |
ICMS (VAT) [Member] | ||
Disclosure of recoverable taxes [line items] | ||
Recoverable taxes, current | 65 | 80 |
Recoverable taxes, non-current | 277 | 240 |
PIS/PasepTaxes [member] | ||
Disclosure of recoverable taxes [line items] | ||
Recoverable taxes, current | 3 | 4 |
Recoverable taxes, non-current | 1,102 | |
Cofins tax [Member] | ||
Disclosure of recoverable taxes [line items] | ||
Recoverable taxes, current | 7 | 21 |
Recoverable taxes, non-current | 4,968 | |
Other Tax Recoverable [Member] | ||
Disclosure of recoverable taxes [line items] | ||
Recoverable taxes, current | 24 | 19 |
Recoverable taxes, non-current | R$ 2 | R$ 2 |
10. PIS_PASEP AND COFINS TAXE_3
10. PIS/PASEP AND COFINS TAXES CREDITS OVER ICMS - FINAL COURT JUDGMENT (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Effects on the statement of financial position | |||||
TOTAL EQUITY | R$ 15891 | R$ 15939 | R$ 14330 | R$ 12934 | |
Effects on net income | |||||
Recovery of PIS/Pasep and Cofins taxes credits - Other operating revenues | (1,051) | (640) | 34 | ||
Finance income | 3,207 | 1,706 | 804 | ||
Income tax and social contribution tax | (1,565) | (599) | (644) | ||
Net income (loss) for the year | 3,128 | R$ 1742 | R$ 1002 | ||
PIS/Pasep and Cofins Taxes Credits [Member] | |||||
Effects on the statement of financial position | |||||
Recoverable taxes (July/2003 to May/2019) | 6,070 | ||||
Amounts to be refunded to customers | [1] | (3,038) | |||
Taxes payable | [2] | (55) | |||
Income tax and social contribution tax | (1,012) | ||||
TOTAL EQUITY | 1,965 | ||||
Effects on net income | |||||
Recovery of PIS/Pasep and Cofins taxes credits - Other operating revenues | [3] | 1,428 | |||
Finance income | [4] | 1,580 | |||
PIS/Pasep and Cofins taxes charged on financial revenues | [4] | (31) | |||
Income tax and social contribution tax | (1,012) | ||||
Net income (loss) for the year | 1,965 | ||||
PIS/Pasep and Cofins Taxes Credits [Member] | Cemig Distribuicao SA [Member] | |||||
Effects on the statement of financial position | |||||
Recoverable taxes (July/2003 to May/2019) | 4,926 | ||||
Amounts to be refunded to customers | [1] | (3,038) | |||
Taxes payable | [2] | (45) | |||
Income tax and social contribution tax | (627) | ||||
TOTAL EQUITY | 1,216 | ||||
Effects on net income | |||||
Recovery of PIS/Pasep and Cofins taxes credits - Other operating revenues | [3] | 830 | |||
Finance income | [4] | 1,034 | |||
PIS/Pasep and Cofins taxes charged on financial revenues | [4] | (21) | |||
Income tax and social contribution tax | (627) | ||||
Net income (loss) for the year | 1,216 | ||||
PIS/Pasep and Cofins Taxes Credits [Member] | Cemig Geracao e Transmissao S.A. [Member] | |||||
Effects on the statement of financial position | |||||
Recoverable taxes (July/2003 to May/2019) | 626 | ||||
Amounts to be refunded to customers | [1] | ||||
Taxes payable | [2] | (6) | |||
Income tax and social contribution tax | (211) | ||||
TOTAL EQUITY | 409 | ||||
Effects on net income | |||||
Recovery of PIS/Pasep and Cofins taxes credits - Other operating revenues | [3] | 397 | |||
Finance income | [4] | 229 | |||
PIS/Pasep and Cofins taxes charged on financial revenues | [4] | (6) | |||
Income tax and social contribution tax | (211) | ||||
Net income (loss) for the year | 409 | ||||
PIS/Pasep and Cofins Taxes Credits [Member] | Other Subsidiaries [Member] | |||||
Effects on the statement of financial position | |||||
Recoverable taxes (July/2003 to May/2019) | [5] | 28 | |||
Amounts to be refunded to customers | [1],[5] | ||||
Taxes payable | [2],[5] | ||||
Income tax and social contribution tax | [5] | (9) | |||
TOTAL EQUITY | [5] | 19 | |||
Effects on net income | |||||
Recovery of PIS/Pasep and Cofins taxes credits - Other operating revenues | [3] | 17 | |||
Finance income | [4] | 11 | |||
PIS/Pasep and Cofins taxes charged on financial revenues | [4] | ||||
Income tax and social contribution tax | (9) | ||||
Net income (loss) for the year | 19 | ||||
PIS/Pasep and Cofins Taxes Credits [Member] | Parent [Member] | |||||
Effects on the statement of financial position | |||||
Recoverable taxes (July/2003 to May/2019) | 490 | ||||
Amounts to be refunded to customers | [1] | ||||
Taxes payable | [2] | (4) | |||
Income tax and social contribution tax | (165) | ||||
TOTAL EQUITY | 321 | ||||
Effects on net income | |||||
Recovery of PIS/Pasep and Cofins taxes credits - Other operating revenues | [3] | 184 | |||
Finance income | [4] | 306 | |||
PIS/Pasep and Cofins taxes charged on financial revenues | [4] | (4) | |||
Income tax and social contribution tax | (165) | ||||
Net income (loss) for the year | R$ 321 | ||||
[1] | Amounts to be refunded to customers on the PIS/Pasep and Cofins taxes credits for Cemig D, recognized in 2019. The total amount to be restituted to customers presented in the consolidated Statements of Financial Position, as Pasep and Cofins taxes to be refunded to customers - Note 23, is R$ 4,193. The difference of R$ 1,155 is due to the constitution of a liability corresponding to the reversal of the provision related to the escrow deposits made from 2008 to 2011, recorded in 2017. | ||||
[2] | PIS/Pasep and Cofins taxes on the financial revenues comprising the monetary updating of the tax credits that have been recognized. These taxes applicable to the credits to be refunded to customers reduce their total, without effects in the Statement of income. | ||||
[3] | This refers to the credits recognized in operating profit of 2019, amounting R$ 3,826, net of the amounts to be refunded to customers, of R$ 2,398. | ||||
[4] | It includes financial updating from the date of credits recognition until December 31, 2019, net of PIS/Pasep and Cofins taxes on finance income, in the amounts o R$25. | ||||
[5] | This refers to the credits recognized by the wholly-owned subsidiaries Sa Carvalho, Cemig Geracao Distribuida, Cemig Geracao Poco Fundo S.A. (previously denominated UTE Barreiro S.A.) and Horizontes Energia S.A.. |
10. PIS_PASEP AND COFINS TAXE_4
10. PIS/PASEP AND COFINS TAXES CREDITS OVER ICMS - FINAL COURT JUDGMENT (Details Narrative) - BRL (R$) R$ in Millions | Jun. 11, 2019 | Jul. 16, 2008 | Dec. 31, 2019 | Dec. 31, 2018 |
Pispasep And Cofins Taxes Credits Over Icms - Final Court Judgment | ||||
Term of offsetting of amounts unduly paid | 10 years | |||
Description of judgment | Judgment against which there is no further appeal, the subsidiaries Cemig D and Cemig GT applied for release of the escrow deposits amounting R$1.377 as of December 31, 2019. On February 13, 2020, the escrow deposits were released amounting R$1,382, including monetary update. Of this amount, R$1,155 will be restituted to customers of the distribution segment, after Aneel specifies the mechanisms and criteria for reimbursement. | |||
Descritption of maximum period for calculation of the reimbursement | the Company believes that a portion of the credits to be received by Cemig D should be reimbursed to its customers, considering a maximum period for calculation of the reimbursement of 10 years. Thus, Cemig D has constituted a liability corresponding to the credits to be reimbursed to its customers, which comprises the period of the last 10 years, from June 2009 to May 2019, net of PIS/Pasep and Cofins taxes over monetary updating | |||
Pasep and Cofins taxes to be reimbursed to customers | R$ 4193 | R$ 1124 | ||
Difference amount of pasep and Cofins taxes to be reimbursed to customers | 1,155 | |||
Credits recognized in operating profit | 3,826 | |||
Amounts to be reimbursed to customers | 2,398 | |||
Net of PIS/Pasep and Cofins taxes on finance income | R$ 25 | |||
Average reduction in the invoice amount | 1.00% |
11. INCOME AND SOCIAL CONTRIB_3
11. INCOME AND SOCIAL CONTRIBUTION TAXES (Details) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of income and social contribution taxes [abstract] | ||
Income tax | R$ 608 | R$ 253 |
Social contribution tax | 241 | 140 |
Income and social contribution tax credits | 849 | 393 |
Current | 621 | 387 |
Non-current | 228 | 6 |
Current | ||
Income tax | 99 | 83 |
Social contribution tax | 35 | 29 |
Total | R$ 134 | R$ 112 |
11. INCOME AND SOCIAL CONTRIB_4
11. INCOME AND SOCIAL CONTRIBUTION TAXES (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | ||||
Deferred tax assets | R$ 4028 | R$ 3471 | ||
Deferred tax liabilities | (2,259) | (2,052) | ||
Total, net | 1,769 | 1,419 | R$ 1419 | R$ 1136 |
Total assets | 2,430 | 2,147 | ||
Total liabilities | (661) | (728) | ||
Tax Loss Carryforwards [Member] | ||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | ||||
Deferred tax assets | 116 | 373 | ||
Provisions For Contingencies [Member] | ||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | ||||
Deferred tax assets | 544 | 218 | ||
Impairment On Investments [Member] | ||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | ||||
Deferred tax assets | 660 | 882 | ||
Fair Value Of Derivative Financial Instruments (PUT SAAG ) [Member] | ||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | ||||
Deferred tax assets | 164 | 143 | ||
Operating Provisions [Member] | ||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | ||||
Deferred tax assets | 66 | 39 | ||
Provision For Profit Sharing [Member] | ||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | ||||
Deferred tax assets | 72 | 25 | ||
Post Employment Obligations [Member] | ||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | ||||
Deferred tax assets | 2,090 | 1,477 | ||
Estimated Provision For Doubtful Receivables [Member] | ||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | ||||
Deferred tax assets | 283 | 279 | ||
Onerous Concessions [Member] | ||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | ||||
Deferred tax assets | 8 | 8 | ||
Other [Member] | ||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | ||||
Deferred tax assets | 25 | 27 | ||
Deferred tax liabilities | (5) | (33) | ||
Funding Cost [Member] | ||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | ||||
Deferred tax liabilities | (16) | (25) | ||
Deemed Cost [Member] | ||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | ||||
Deferred tax liabilities | (232) | (239) | ||
Acquisition Costs Of Equity Interests [Member] | ||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | ||||
Deferred tax liabilities | (503) | (501) | ||
Borrowing Costs Capitalized [Member] | ||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | ||||
Deferred tax liabilities | (166) | (168) | ||
Taxes On Revenues Not Redeemed - Presumed Profit Accounting Method [Member] | ||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | ||||
Deferred tax liabilities | (1) | (5) | ||
Adjustment To Expectation Of Cash Flow Concession Assets [Member] | ||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | ||||
Deferred tax liabilities | (761) | (804) | ||
Adjustment To Fair Value: Swap/Gains [Member] | ||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | ||||
Deferred tax liabilities | R$ 575 | R$ 277 |
11. INCOME AND SOCIAL CONTRIB_5
11. INCOME AND SOCIAL CONTRIBUTION TAXES (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of deferred income and social contribution taxes [abstract] | |||
Beginning balance | R$ 1419 | R$ 1419 | R$ 1136 |
Effects allocated to net profit from continuing operations | (198) | ||
Effect allocated to other comprehensive income | 544 | 133 | |
Effects allocated to Equity | |||
Effects allocated to net profit from continuing operations | (111) | (16) | |
Effect allocated to other comprehensive income | 239 | ||
Effects allocated to net profit from discontinuing operations (note 34) | (85) | ||
First-time adoption of IFRS 9 - effects allocated to equity | 51 | ||
Reversal of deemed cost | 18 | ||
Transfer to assets held for sale | (3) | ||
Variations in deferred tax assets and liabilities | (3) | (14) | |
Deferred taxes arising from business combination | (3) | ||
Others | 2 | ||
Ending balance | R$ 1769 | R$ 1419 | R$ 1419 |
11. INCOME AND SOCIAL CONTRIB_6
11. INCOME AND SOCIAL CONTRIBUTION TAXES (Details 3) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Future Taxable Profits Enable Deferred Tax Assets [line items] | ||
Deferred tax assets future taxable profits | R$ 4028 | R$ 3471 |
2020 [Member] | ||
Disclosure Of Future Taxable Profits Enable Deferred Tax Assets [line items] | ||
Deferred tax assets future taxable profits | 659 | |
2021 [Member] | ||
Disclosure Of Future Taxable Profits Enable Deferred Tax Assets [line items] | ||
Deferred tax assets future taxable profits | 571 | |
2024 [Member] | ||
Disclosure Of Future Taxable Profits Enable Deferred Tax Assets [line items] | ||
Deferred tax assets future taxable profits | 571 | |
2022 [Member] | ||
Disclosure Of Future Taxable Profits Enable Deferred Tax Assets [line items] | ||
Deferred tax assets future taxable profits | 572 | |
2023 [Member] | ||
Disclosure Of Future Taxable Profits Enable Deferred Tax Assets [line items] | ||
Deferred tax assets future taxable profits | 571 | |
2025 To 2027 [Member] | ||
Disclosure Of Future Taxable Profits Enable Deferred Tax Assets [line items] | ||
Deferred tax assets future taxable profits | 659 | |
2028 To 2029 [Member] | ||
Disclosure Of Future Taxable Profits Enable Deferred Tax Assets [line items] | ||
Deferred tax assets future taxable profits | R$ 425 |
11. INCOME AND SOCIAL CONTRIB_7
11. INCOME AND SOCIAL CONTRIBUTION TAXES (Details 4) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Reconciliation Of Expense On Income And Social Contribution Taxes [abstract] | |||
Profit before income and Social Contribution taxes | R$ 4469 | R$ 1978 | R$ 1646 |
Income tax and Social Contribution tax - nominal expense (34%) | (1,520) | (672) | (560) |
Tax effects applicable to: | |||
Gain (loss) in subsidiaries by equity method (net of effects of Interest on Equity) | 8 | (61) | (129) |
Interest on Equity | 136 | 71 | |
Gain on dilution of an equity interest | 8 | ||
Non-deductible contributions and donations | (13) | (6) | (6) |
Tax incentives | 66 | 29 | 11 |
Tax credits not recognized | (1) | ||
Effects from subsidiaries taxed based on gross revenues | 89 | 89 | 81 |
Non-deductible penalties | (135) | (12) | (14) |
Impairment of accounts receivable from related parties | (234) | ||
Excess reactive power and demand | (2) | ||
Others | 38 | (36) | (33) |
Income tax and Social Contribution - effective gain (expense) | (1,565) | (599) | (644) |
Current tax | (1,454) | (583) | (446) |
Deferred tax | (111) | (16) | (198) |
Income tax and social contribution tax - effective expense | R$ 1565 | R$ 599 | R$ 644 |
Effective rate | 35.03% | 30.30% | 39.13% |
11. INCOME AND SOCIAL CONTRIB_8
11. INCOME AND SOCIAL CONTRIBUTION TAXES (Details Narrative) | 12 Months Ended |
Dec. 31, 2019 | |
Income And Social Contribution Taxes | |
Income tax and Social Contribution tax rate | 34.00% |
Income tax rate | 25.00% |
Social contribution tax rate | 9.00% |
12. RESTRICTED CASH (Details Na
12. RESTRICTED CASH (Details Narrative) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Restricted Cash And Cash Equivalents [abstract] | ||
Restricted cash | R$ 12 | R$ 91 |
13. ACCOUNTS RECEIVABLE FROM _2
13. ACCOUNTS RECEIVABLE FROM THE STATE OF MINAS GERAIS (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of accounts receivables [abstract] | ||
Description of payment from state of minas gerais | 12 consecutive monthly installments | |
Amounts received from minas gerais state government | R$ 148 | |
Remaining amounts receivable from recognized in non current assets | R$ 115 | R$ 246 |
14. ESCROW DEPOSITS (Details)
14. ESCROW DEPOSITS (Details) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of escrow deposits [abstract] | |||
Labor claims | R$ 355 | R$ 335 | |
Tax contingencies | |||
Income tax on Interest on Equity | 29 | 28 | |
PIS/Pasep and Cofins taxes | [1] | 1,448 | 1,402 |
Donations and legacy tax (ITCD) | 53 | 51 | |
Urban property tax (IPTU) | 79 | 87 | |
Finsocial tax | 40 | 38 | |
Income tax and social contr. tax on indemnity for employees' 'Anuenio' benefit | [2] | 282 | 275 |
Income tax withheld at source on inflationary profit | 9 | 8 | |
Contribution tax effective rate | [3] | 18 | 18 |
ICMS (VAT) credits on PP&E | 39 | 38 | |
Others | [4] | 92 | 118 |
Escrow deposits tax issues | 2,089 | 2,063 | |
Others | |||
Regulatory | 43 | 53 | |
Third party | 11 | 9 | |
Customer relations | 7 | 6 | |
Court embargo | 12 | 12 | |
Others | 23 | 24 | |
Escrow deposits other | 96 | 104 | |
Long term escrow deposit | R$ 2540 | R$ 2502 | |
[1] | This refers to escrow deposits in the action challenging the constitutionality of inclusion of ICMS value added tax within the taxable amount for calculation of PIS/Pasep and Cofins taxes. On February 13, 2020 Company's wholly-owned subsidiaries Cemig D and Cemig GT escrow deposits were released, totaling R$1,382, comprising monetary update. The expectation is that the escrow deposits from the others wholly-owned subsidiaries will be received as their judicial claims reach the final judgement. See more details in Note 10 - PIS/Pasep and Cofins taxes credits over ICMS - Final court judgement. | ||
[2] | See more details in Note 27 - Provisions under the section relating to the 'Anuenio indemnity'. | ||
[3] | Escrow deposit in the legal action challenging an infringement claim relating to application of social contribution tax to amounts of cultural and artistic donations and sponsorship, expenses on punitive fines, and taxes with liability suspended. | ||
[4] | Includes escrow deposits from legal actions related to INSS and PIS/Pasep and Cofins taxes |
14. ESCROW DEPOSITS (Details Na
14. ESCROW DEPOSITS (Details Narrative) R$ in Millions | Feb. 13, 2020BRL (R$) |
Cemig D and Cemig GT [Member] | |
Disclosure of escrow deposits [line items] | |
Escrow deposits | R$ 1382 |
Ceming GT [Member] | |
Disclosure of escrow deposits [line items] | |
Escrow deposits | 1,186 |
Cemig D [Member] | |
Disclosure of escrow deposits [line items] | |
Escrow deposits | R$ 196 |
15. REIMBURSEMENT OF TARIFF S_2
15. REIMBURSEMENT OF TARIFF SUBSIDIES (Details Narrative) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Energy Development Account [line items] | |||
Subsidies revenue recognized | R$ 1097 | R$ 953 | R$ 842 |
Ceming GT [Member] | |||
Disclosure Of Energy Development Account [line items] | |||
Current subsidy receivable | 3 | 9 | |
Cemig D [Member] | |||
Disclosure Of Energy Development Account [line items] | |||
Current subsidy receivable | R$ 94 | R$ 82 |
16. CONCESSION FINANCIAL AND _3
16. CONCESSION FINANCIAL AND SECTOR ASSETS AND LIABILITIES (Details) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets of the concession | ||
Current assets | R$ 1080 | R$ 1071 |
Non-current assets | 4,851 | 4,927 |
Assets Related To Infrastructure [Member] | ||
Financial assets of the concession | ||
Financial assets | 5,049 | 4,917 |
Concession Financial Assets [member] | ||
Financial assets of the concession | ||
Financial assets | 5,931 | 5,998 |
Energy Distribution Concession [Member] | Assets Related To Infrastructure [Member] | ||
Financial assets of the concession | ||
Financial assets | 460 | 396 |
Transmission Receivable [Member] | Assets Related To Infrastructure [Member] | ||
Financial assets of the concession | ||
Financial assets | 1,281 | 1,296 |
Generation Receivable [Member] | Assets Related To Infrastructure [Member] | ||
Financial assets of the concession | ||
Financial assets | 816 | 816 |
Concession Grant Fee [Member] | Assets Related To Infrastructure [Member] | ||
Financial assets of the concession | ||
Financial assets | 2,468 | 2,409 |
Cva and Other Financial Components In Tariff Adjustments [Member] | Assets Related To Infrastructure [Member] | ||
Financial assets of the concession | ||
Financial assets | 882 | R$ 1081 |
Gas Distribution Concession [Member] | Assets Related To Infrastructure [Member] | ||
Financial assets of the concession | ||
Financial assets | R$ 24 |
16. CONCESSION FINANCIAL AND _4
16. CONCESSION FINANCIAL AND SECTOR ASSETS AND LIABILITIES (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of financial assets [line items] | |||
Additions | R$ 1167 | R$ 893 | |
Amounts received | (250) | (250) | R$ 234 |
Monetary updating | 317 | 322 | 317 |
Infrastructure [Member] | |||
Disclosure of financial assets [line items] | |||
Beginning Balance | 4,917 | 7,084 | 5,303 |
Effects of first - time adoption of IFRS | (1,092) | ||
Additions | 25 | ||
Transfers of indemnity - plants not renewed | 1,082 | ||
Amounts received | (440) | (1,638) | (496) |
Transfers between PP&E, Financial assets and Intangible assets | 148 | ||
Transfers from PP&E | 27 | ||
Transfers from (to) intangible assets | 23 | ||
Transfers from contract assets | 92 | ||
Others transfers | (2) | ||
Monetary updating | 458 | 539 | 541 |
Adjustment of expectation of cash flow from the Concession financial assets | 63 | ||
Disposals | (1) | (1) | (2) |
Adjustment of BRR of Transmission Assets | 149 | ||
Adjustment on indemnities of plants not renewed (Ministerial Order 291) - including financial updating | 271 | ||
Ending Balance | 5,049 | 4,917 | 7,084 |
Infrastructure [Member] | Transmission [Member] | |||
Disclosure of financial assets [line items] | |||
Beginning Balance | 1,296 | 2,475 | 2,287 |
Effects of first - time adoption of IFRS | (1,092) | ||
Additions | 25 | ||
Amounts received | (181) | (249) | (264) |
Transfers between PP&E, Financial assets and Intangible assets | 2 | ||
Transfers from PP&E | |||
Transfers from contract assets | 44 | ||
Others transfers | |||
Monetary updating | 122 | 162 | 224 |
Adjustment of expectation of cash flow from the Concession financial assets | 54 | ||
Disposals | (2) | ||
Adjustment of BRR of Transmission Assets | 149 | ||
Ending Balance | 1,281 | 1,296 | 2,475 |
Infrastructure [Member] | Generation [Member] | |||
Disclosure of financial assets [line items] | |||
Beginning Balance | 3,225 | 4,238 | 2,800 |
Transfers of indemnity - plants not renewed | 1,082 | ||
Amounts received | (259) | (1,389) | (232) |
Transfers from PP&E | |||
Transfers from contract assets | |||
Others transfers | (1) | ||
Monetary updating | 318 | 317 | |
Disposals | |||
Adjustment on indemnities of plants not renewed (Ministerial Order 291) - including financial updating | 271 | ||
Ending Balance | 3,284 | 3,225 | 4,238 |
Infrastructure [Member] | Distribution [Member] | |||
Disclosure of financial assets [line items] | |||
Beginning Balance | 396 | 371 | 216 |
Transfers between PP&E, Financial assets and Intangible assets | 146 | ||
Transfers from PP&E | 27 | ||
Transfers from (to) intangible assets | (1) | ||
Transfers from contract assets | 48 | ||
Others transfers | (1) | ||
Monetary updating | 18 | ||
Adjustment of expectation of cash flow from the Concession financial assets | 9 | ||
Disposals | (1) | (1) | |
Ending Balance | 460 | 396 | R$ 371 |
Infrastructure [Member] | Gas [Member] | |||
Disclosure of financial assets [line items] | |||
Beginning Balance | |||
Transfers from PP&E | |||
Transfers from (to) intangible assets | 24 | ||
Transfers from contract assets | |||
Others transfers | |||
Disposals | |||
Ending Balance | R$ 24 |
16. CONCESSION FINANCIAL AND _5
16. CONCESSION FINANCIAL AND SECTOR ASSETS AND LIABILITIES (Details 2) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2019BRL (R$)MW | Dec. 31, 2018BRL (R$) | Dec. 31, 2017BRL (R$) | ||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||
Installed capacity (MW) | MW | 3,601.70 | |||
Net balance of assets based on historical cost | R$ 204 | |||
Net balance of assets based on fair value (replacement cost) | 816 | R$ 816 | ||
Amounts received | R$ 250 | R$ 250 | R$ 234 | |
Cemig PCH Marmelos [Member] | ||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||
Concession expiration date | 2015-07 | |||
Installed capacity (MW) | MW | 4 | |||
Net balance of assets based on historical cost | R$ 1 | |||
Net balance of assets based on fair value (replacement cost) | R$ 4 | |||
Cemig PCH Paciencia [Member] | ||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||
Concession expiration date | 2015-07 | |||
Installed capacity (MW) | MW | 4.08 | |||
Net balance of assets based on historical cost | R$ 1 | |||
Net balance of assets based on fair value (replacement cost) | R$ 4 | |||
Cemig PCH Cajuru [Member] | ||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||
Concession expiration date | 2015-07 | |||
Installed capacity (MW) | MW | 7.20 | |||
Net balance of assets based on historical cost | R$ 4 | |||
Net balance of assets based on fair value (replacement cost) | R$ 4 | |||
Cemig PCH Martins [Member] | ||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||
Concession expiration date | 2015-07 | |||
Installed capacity (MW) | MW | 7.70 | |||
Net balance of assets based on historical cost | R$ 2 | |||
Net balance of assets based on fair value (replacement cost) | R$ 4 | |||
Cemig PCH Joasal [Member] | ||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||
Concession expiration date | 2015-07 | |||
Installed capacity (MW) | MW | 8.40 | |||
Net balance of assets based on historical cost | R$ 1 | |||
Net balance of assets based on fair value (replacement cost) | R$ 8 | |||
Cemig PCH Tronqueiras [Member] | ||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||
Concession expiration date | 2015-07 | |||
Installed capacity (MW) | MW | 8.50 | |||
Net balance of assets based on historical cost | R$ 2 | |||
Net balance of assets based on fair value (replacement cost) | R$ 12 | |||
Cemig PCH Dona Rita [Member] | ||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||
Concession expiration date | 2013-09 | |||
Installed capacity (MW) | MW | 2.41 | |||
Net balance of assets based on historical cost | R$ 1 | |||
Net balance of assets based on fair value (replacement cost) | R$ 1 | |||
Cemig PCH Peti [Member] | ||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||
Concession expiration date | 2015-07 | |||
Installed capacity (MW) | MW | 9.40 | |||
Net balance of assets based on historical cost | R$ 1 | |||
Net balance of assets based on fair value (replacement cost) | R$ 8 | |||
Cemig PCH Gafanhoto [Member] | ||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||
Concession expiration date | 2015-07 | |||
Installed capacity (MW) | MW | 14 | |||
Net balance of assets based on historical cost | R$ 1 | |||
Net balance of assets based on fair value (replacement cost) | R$ 10 | |||
Cemig PCH Piau [Member] | ||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||
Concession expiration date | 2015-07 | |||
Installed capacity (MW) | MW | 18.01 | |||
Net balance of assets based on historical cost | R$ 2 | |||
Net balance of assets based on fair value (replacement cost) | R$ 9 | |||
Usina Hidreletrica Sao Simao [Member] | ||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||
Concession expiration date | [1] | 2015-01 | ||
Installed capacity (MW) | MW | [1] | 1.710 | ||
Net balance of assets based on historical cost | [1] | R$ 2 | ||
Net balance of assets based on fair value (replacement cost) | [1] | R$ 3 | ||
Usina Hidreletrica Jaguara [Member] | ||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||
Concession expiration date | [1] | 2013-08 | ||
Installed capacity (MW) | MW | [1] | 424 | ||
Net balance of assets based on historical cost | [1] | R$ 40 | ||
Net balance of assets based on fair value (replacement cost) | [1] | R$ 174 | ||
Usina Hidreletrica Miranda [Member] | ||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||
Concession expiration date | [1] | 2016-12 | ||
Installed capacity (MW) | MW | [1] | 408 | ||
Net balance of assets based on historical cost | [1] | R$ 27 | ||
Net balance of assets based on fair value (replacement cost) | [1] | R$ 23 | ||
Usina Hidreletrica Volta Grande [Member] | ||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||
Concession expiration date | 2017-02 | |||
Installed capacity (MW) | MW | 380 | |||
Net balance of assets based on historical cost | R$ 26 | |||
Net balance of assets based on fair value (replacement cost) | R$ 70 | |||
Usina Hidreletrica Camargos [Member] | ||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||
Concession expiration date | 2015-07 | |||
Installed capacity (MW) | MW | 46 | |||
Net balance of assets based on historical cost | R$ 8 | |||
Net balance of assets based on fair value (replacement cost) | R$ 23 | |||
Usina Hidreletrica Itutinga [Member] | ||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||
Concession expiration date | 2015-07 | |||
Installed capacity (MW) | MW | 52 | |||
Net balance of assets based on historical cost | R$ 3 | |||
Net balance of assets based on fair value (replacement cost) | R$ 7 | |||
Usina Hidreletrica Salto Grande [Member] | ||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||
Concession expiration date | 2015-07 | |||
Installed capacity (MW) | MW | 102 | |||
Net balance of assets based on historical cost | R$ 11 | |||
Net balance of assets based on fair value (replacement cost) | R$ 39 | |||
Usina Hidreletrica Tres Marias [Member] | ||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||
Concession expiration date | 2015-07 | |||
Installed capacity (MW) | MW | 396 | |||
Net balance of assets based on historical cost | R$ 71 | |||
Net balance of assets based on fair value (replacement cost) | R$ 413 | |||
[1] | Investments made after the Jaguara, Sao Simao and Miranda plants came into operation, in the amounts of R$174, R$3 and R$23, respectively, are recorded as concession financial assets, and the determination of the final amounts to be paid to the Company is in a process of discussion with Aneel (the regulator). Company does not expect losses in realization of these amounts. |
16. CONCESSION FINANCIAL AND _6
16. CONCESSION FINANCIAL AND SECTOR ASSETS AND LIABILITIES (Details 3) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | |||
Beginning Balance | R$ 2468 | R$ 2337 | R$ 2254 |
Monetary updating | 317 | 322 | 317 |
Amounts received | (250) | (250) | (234) |
Ending Balance | 2,468 | 2,468 | 2,337 |
Cemig Geracao Tres Marias Sa [Member] | |||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | |||
Beginning Balance | 1,370 | 1,330 | 1,283 |
Monetary updating | 171 | 174 | 172 |
Amounts received | (139) | (134) | (125) |
Ending Balance | 1,402 | 1,370 | 1,330 |
Cemig Geracao Salto Grande Sa [Member] | |||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | |||
Beginning Balance | 430 | 417 | 417 |
Monetary updating | 54 | 55 | 54 |
Amounts received | (44) | (42) | (40) |
Ending Balance | 440 | 430 | 417 |
Cemig Geracao Itutinga Sa [Member] | |||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | |||
Beginning Balance | 161 | 156 | 150 |
Monetary updating | 23 | 23 | 23 |
Amounts received | (19) | (18) | (17) |
Ending Balance | 165 | 161 | 156 |
Cemig Geracao Camargos S.A. [Member] | |||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | |||
Beginning Balance | 120 | 116 | 112 |
Monetary updating | 17 | 17 | 17 |
Amounts received | (13) | (13) | (13) |
Ending Balance | 124 | 120 | 116 |
Cemig Geracao Sul S.A. [Member] | |||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | |||
Beginning Balance | 157 | 152 | 147 |
Monetary updating | 24 | 24 | 23 |
Amounts received | (20) | (19) | (18) |
Ending Balance | 161 | 157 | 152 |
Cemig Geracao Leste S.A. [Member] | |||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | |||
Beginning Balance | 107 | 103 | 99 |
Monetary updating | 18 | 18 | 17 |
Amounts received | (15) | (14) | (13) |
Ending Balance | 110 | 107 | 103 |
Cemig Geracao Oeste S.A. [Member] | |||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | |||
Beginning Balance | 64 | 63 | 60 |
Monetary updating | 11 | 11 | 11 |
Amounts received | (9) | (10) | (8) |
Ending Balance | R$ 66 | R$ 64 | R$ 63 |
16. CONCESSION FINANCIAL AND _7
16. CONCESSION FINANCIAL AND SECTOR ASSETS AND LIABILITIES (Details 4) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Current assets | R$ 1080 | R$ 1071 | |||
Non-current assets | 4,851 | 4,927 | |||
Liabilities | 18,764 | (18,120) | |||
Current liabilities | 415 | ||||
Financial assets (liabilities), net | 882 | 1,080 | R$ 46 | R$ 407 | |
CVA Account for Compensation Of Changes In Portion A Costs [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Assets | 3,430 | 3,729 | |||
Current assets | 2,555 | 2,689 | |||
Non-current assets | 875 | 1,040 | |||
Liabilities | (2,548) | (2,649) | |||
Current liabilities | (1,915) | (2,042) | |||
Non-current liabilities | (633) | (607) | |||
Total current, net | 640 | 647 | |||
Total non-current,net | 242 | 433 | |||
Financial assets (liabilities), net | 882 | 1,080 | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Quota For The Energy Development Account [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | 148 | 221 | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Tariff For Use Of Transmission Facilities Of Grid Participants [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | 96 | 18 | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Tariff For Transport Of Electricity Provided By Itaiputs [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | 25 | 18 | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Program To Encourage Alternative Sources Of Electricity Proinfa [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | 5 | 8 | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | System Service Charges And Reserve Energy Charge [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | (297) | (533) | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Energy Purchased For Resale [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | 1,293 | 2,069 | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Overcontracting Of Supply [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | [1] | 132 | (217) | ||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Neutrality of Portion A [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | (42) | 38 | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Other Financial Items [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | (277) | (448) | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Tariff Flag [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | [2] | (103) | (11) | ||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Excess Demand and Reactive Power [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | (98) | (83) | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Last Tariff Adjustment [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Assets | 1,286 | 1,184 | |||
Current assets | 1,286 | 1,184 | |||
Liabilities | (882) | (1,140) | |||
Current liabilities | (882) | (1,140) | |||
Total current, net | 404 | 44 | |||
Financial assets (liabilities), net | 404 | 44 | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Last Tariff Adjustment [Member] | Quota For The Energy Development Account [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Current assets | |||||
Liabilities | |||||
Financial assets (liabilities), net | 119 | 1 | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Last Tariff Adjustment [Member] | Tariff For Use Of Transmission Facilities Of Grid Participants [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | (18) | 24 | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Last Tariff Adjustment [Member] | Tariff For Transport Of Electricity Provided By Itaiputs [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | 9 | 2 | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Last Tariff Adjustment [Member] | Program To Encourage Alternative Sources Of Electricity Proinfa [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | 11 | 3 | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Last Tariff Adjustment [Member] | System Service Charges And Reserve Energy Charge [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | (161) | (246) | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Last Tariff Adjustment [Member] | Energy Purchased For Resale [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | 661 | 667 | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Last Tariff Adjustment [Member] | Overcontracting Of Supply [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | [1] | (84) | (204) | ||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Last Tariff Adjustment [Member] | Neutrality of Portion A [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | (30) | 53 | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Last Tariff Adjustment [Member] | Other Financial Items [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | (71) | (236) | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Last Tariff Adjustment [Member] | Tariff Flag [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | [2] | ||||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Last Tariff Adjustment [Member] | Excess Demand and Reactive Power [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | (32) | (21) | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Next Tariff Adjustment [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Assets | 2,144 | 2,545 | |||
Current assets | 1,269 | 1,505 | |||
Non-current assets | 875 | 1,040 | |||
Liabilities | (1,666) | (1,509) | |||
Current liabilities | (1,033) | (902) | |||
Non-current liabilities | (633) | (607) | |||
Total current, net | 236 | 603 | |||
Total non-current,net | 242 | 433 | |||
Financial assets (liabilities), net | 478 | 1,036 | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Next Tariff Adjustment [Member] | Quota For The Energy Development Account [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | 29 | 220 | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Next Tariff Adjustment [Member] | Tariff For Use Of Transmission Facilities Of Grid Participants [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | 114 | (6) | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Next Tariff Adjustment [Member] | Tariff For Transport Of Electricity Provided By Itaiputs [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | 16 | 16 | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Next Tariff Adjustment [Member] | Program To Encourage Alternative Sources Of Electricity Proinfa [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | (6) | 5 | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Next Tariff Adjustment [Member] | System Service Charges And Reserve Energy Charge [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | (136) | (287) | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Next Tariff Adjustment [Member] | Energy Purchased For Resale [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | 632 | 1,402 | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Next Tariff Adjustment [Member] | Overcontracting Of Supply [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | [1] | 216 | (13) | ||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Next Tariff Adjustment [Member] | Neutrality of Portion A [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | (12) | (15) | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Next Tariff Adjustment [Member] | Other Financial Items [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | (206) | (212) | |||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Next Tariff Adjustment [Member] | Tariff Flag [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | [2] | (103) | (11) | ||
CVA Account for Compensation Of Changes In Portion A Costs [Member] | Amounts Ratified By Aneel In The Next Tariff Adjustment [Member] | Excess Demand and Reactive Power [Member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | R$ 66 | R$ 62 | |||
[1] | The wholly-owned subsidiary Cemig D was over contracted in 2017 and 2018 and the gain arising from the sale of the excess of energy in the spot market was provisionally passed through to customers by Aneel in the tariff adjustments of 2018 and 2019, including the portion in excess of the limit of 105% of the regulatory load - thus reducing the tariff that was determined. To establish whether this is a voluntary over contracting, the Company considers that the portion above the regulatory limit will be recovered in the subsequent tariff adjustment, when Aneel approves them. The Company has no expectation of loss in relation to realization of these amounts. The Company recognizes this right, in the amount of R$ 216,852, as 'Other financial components', to be approved by Aneel in the next forthcoming tariff adjustments. | ||||
[2] | Billing arising from the 'Flag' Tariff System (see below) not yet approved by the regulator (Aneel). |
16. CONCESSION FINANCIAL AND _8
16. CONCESSION FINANCIAL AND SECTOR ASSETS AND LIABILITIES (Details 5) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Financial Assets And Financial Liabilities With The Tariff Adjustments [abstract] | |||
Beginning balance | R$ 1080 | R$ 46 | R$ 407 |
Additions | 724 | 1,638 | 811 |
Amortization | (666) | 335 | 177 |
Others - R&D Reimbursement | (115) | ||
Payments from the Flag Tariff Centralizing Account | (361) | (794) | (586) |
Updating - Selic rate (Note 31) | 105 | 62 | (41) |
Ending balance | R$ 882 | R$ 1080 | R$ 46 |
16. CONCESSION FINANCIAL AND _9
16. CONCESSION FINANCIAL AND SECTOR ASSETS AND LIABILITIES (Details Narrative) R$ in Millions | Aug. 31, 2018BRL (R$) | Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$)Plant | Dec. 31, 2017BRL (R$) | Aug. 16, 2016BRL (R$) | |
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||||
Homologated amount | R$ 892 | |||||
Remuneration payment period | 8 years | |||||
Extensions of concessions, tariff maximum amount | R$ 833 | R$ 937 | ||||
Extension of the concessions | 448 | 359 | ||||
Net balance of assets deemed cost | R$ 816 | 816 | ||||
Grant acquisition period | 30 years | |||||
Pass-throughs of funds | R$ 361 | 794 | R$ 586 | |||
Aneel [Member] | ||||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||||
Percentage of regulatory load | 105.00% | |||||
Receivable asset | R$ 216852 | |||||
Assets Related To Infrastructure [Member] | ||||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||||
Financial assets | 5,049 | 4,917 | ||||
Transmission Indemnity Receivable [Member] | Assets Related To Infrastructure [Member] | ||||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||||
Financial assets | 1,281 | R$ 1296 | ||||
Hydro Electric Plant [Member] | ||||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||||
Number of plants | Plant | 18 | |||||
Cost of acquisition | 2,216 | |||||
Usina Hidreletrica Miranda [Member] | ||||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||||
Net balance of assets deemed cost | [1] | 23 | ||||
Usina Hidreletrica Jaguara [Member] | ||||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||||
Net balance of assets deemed cost | [1] | 174 | ||||
Usina Hidreletrica Sao Simao [Member] | ||||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||||
Net balance of assets deemed cost | [1] | R$ 3 | ||||
Sao Simao and Miranda Plants [Member] | ||||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||||
Generation - Indemnity receivable | R$ 1139 | |||||
Other Disposals Of Assets [Member] | Free Market [Member] | ||||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||||
Output sales percentage | 30.00% | |||||
Other Disposals Of Assets [Member] | Regulated Market [Member] | ||||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||||
Output sales percentage | 70.00% | |||||
[1] | Investments made after the Jaguara, Sao Simao and Miranda plants came into operation, in the amounts of R$174, R$3 and R$23, respectively, are recorded as concession financial assets, and the determination of the final amounts to be paid to the Company is in a process of discussion with Aneel (the regulator). Company does not expect losses in realization of these amounts. |
17. CONCESSION CONTRACT ASSET_2
17. CONCESSION CONTRACT ASSETS (Details) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Contract assets | R$ 2005 | R$ 1729 | |
Current | 172 | 131 | |
Non current | 1,833 | 1,598 | |
Distribution - Infrastructure Assets Under Construction [Member] | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Contract assets | 740 | 518 | |
Gas - Infrastructure Assets Under Construction [Member] | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Contract assets | 68 | 82 | |
Transmission - Assets Reincorporated Into The Assets Remuneration Base [Member] | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Contract assets | 348 | 492 | |
Transmission - Assets Remunerated by Tariff [Member] | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Contract assets | R$ 849 | R$ 637 |
17. CONCESSION CONTRACT ASSET_3
17. CONCESSION CONTRACT ASSETS (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||
Balance at December 31, 2017 | R$ 1729 | |
Effects of IFRS 15 first-time adoption | 1,714 | |
Additions | 1,167 | 893 |
Inflation adjustment | 34 | 88 |
Adjustment to expected contract cash flow from the concession | 15 | 13 |
Amounts received | (154) | (161) |
Disposals | (6) | |
Transfers to financial assets | (92) | (27) |
Transfers to intangible assets | (685) | (750) |
Transfers from PP&E | 1 | |
Impairment | (3) | |
Ending balance | 2,005 | 1,729 |
Energy Transmission Segment [Member] | ||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||
Balance at December 31, 2017 | 1,129 | |
Effects of IFRS 15 first-time adoption | 1,092 | |
Additions | 221 | 96 |
Inflation adjustment | 34 | 88 |
Adjustment to expected contract cash flow from the concession | 15 | 13 |
Amounts received | (154) | (161) |
Disposals | (4) | |
Transfers to financial assets | (44) | |
Transfers from PP&E | 1 | |
Ending balance | 1,197 | 1,129 |
Energy Distribution Segment [Member] | ||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||
Balance at December 31, 2017 | 518 | |
Effects of IFRS 15 first-time adoption | 532 | |
Additions | 903 | 727 |
Transfers to financial assets | (48) | (27) |
Transfers to intangible assets | (630) | (672) |
Impairment | (3) | (42) |
Ending balance | 740 | 518 |
Gas Segment [Member] | ||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||
Balance at December 31, 2017 | 82 | |
Effects of IFRS 15 first-time adoption | 90 | |
Additions | 43 | 70 |
Disposals | (2) | |
Transfers to intangible assets | (55) | (78) |
Ending balance | R$ 68 | R$ 82 |
17. CONCESSION CONTRACT ASSET_4
17. CONCESSION CONTRACT ASSETS (Details Narrative) - BRL (R$) R$ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||||
Borrowing costs capitalised | R$ 21 | |||
Impairment on assets | 29 | R$ 42 | ||
Impairment loss | R$ 26 | |||
Remaining balance of indemnity for transmission | 348 | 492 | ||
Contract assets | 2,005 | 1,729 | ||
Transmission - Assets Remunerated by Tariff [Member] | ||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||||
Contract assets | R$ 849 | R$ 637 |
18. INVESTMENTS (Details)
18. INVESTMENTS (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | ||||
Disclosure of detailed information about investment property [line items] | |||||
Total investments | R$ 5378 | R$ 5235 | |||
Hidreletrica Cachoeirao [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Control | Jointly-controlled | ||||
Total investments | R$ 54 | 49 | |||
Guanhaes Energia [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Control | [1] | Jointly-controlled | |||
Total investments | [1] | R$ 131 | |||
Hidreletrica Pipoca [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Control | Jointly-controlled | ||||
Total investments | R$ 31 | 31 | |||
Retiro Baixo [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Control | Jointly-controlled | ||||
Total investments | R$ 180 | 171 | |||
Alianca Norte (Belo Monte plant) [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Control | Jointly-controlled | ||||
Total investments | R$ 671 | 664 | |||
Madeira Energia (Santo Antonio plant) [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Control | Affiliated | ||||
Total investments | R$ 167 | 270 | |||
FIP Melbourne (Santo Antonio plant) [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Control | Affiliated | ||||
Total investments | R$ 385 | 470 | |||
Lightger [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Control | [1] | Jointly-controlled | |||
Total investments | [1] | R$ 128 | |||
Baguari Energia [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Control | Jointly-controlled | ||||
Total investments | R$ 157 | 162 | |||
Alianca Geracao [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Control | Jointly-controlled | ||||
Total investments | R$ 1192 | 1,217 | |||
Amazonia Energia (Belo Monte plant) [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Control | Jointly-controlled | ||||
Total investments | R$ 1028 | 1,013 | |||
TAESA [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Control | Jointly-controlled | ||||
Total investments | R$ 1213 | 1,143 | |||
Ativas Data Center [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Control | Affiliated | ||||
Total investments | R$ 16 | 16 | |||
UFV Janauba Geracao De Energia Eletrica Distribuida [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Control | Affiliated | ||||
Total investments | R$ 10 | 9 | |||
Companhia De Transmissao Centroeste De Minas [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Control | Jointly-controlled | ||||
Total investments | R$ 24 | 20 | |||
Axxiom Solucoes Tecnologicas [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Control | [1] | Jointly-controlled | |||
Total investments | [1] | R$ 13 | |||
Total of Investments [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Total investments | R$ 5400 | 5,235 | |||
Itaocara - Equity Deficit [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Control | [2] | Jointly-controlled | |||
Total investments | R$ 22 | [2] | [3] | ||
[1] | With the cessation of control of Light, the remaining equity interest in these investees was recognized as an investment in affiliate or jointly-controlled entities, and measured by the equity method, in accordance with IFRS 10. For more details please see Notes 1 and 34. | ||||
[2] | On December 31, 2019, the investee has negative net equity. Thus, after reducing the accounting value of its interest to zero, the Company recognized the provision for losses to the extent of its obligations , in the amount of R$22, resulting from contractual obligations assumed with the jointly-controlled entity and the other shareholders. | ||||
[3] | An Extraordinary General Shareholders' Meeting held on August 7, 2019 approved increase in the share capital of Cemig D by R$2,600, through subscription of funds from Advances for Future Capital Increase (AFACs), paid in by the Company, without issuance of new shares. |
18. INVESTMENTS (Details 1)
18. INVESTMENTS (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of detailed information about investment property [line items] | |||||
Beginning balance | R$ 745 | R$ 1108 | R$ 1325 | ||
Additions | 110 | ||||
Amortization | (41) | (74) | (84) | ||
Written off | (399) | (133) | |||
Ending balance | 704 | 745 | 1,108 | ||
TAESA [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Beginning balance | 180 | 189 | 288 | ||
Additions | |||||
Amortization | (9) | (9) | (13) | ||
Written off | (86) | ||||
Ending balance | 171 | 180 | 189 | ||
Retiro Baixo [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Beginning balance | 32 | 28 | 29 | ||
Additions | 6 | ||||
Amortization | (1) | (2) | (1) | ||
Written off | |||||
Ending balance | 31 | 32 | 28 | ||
Central Eolica Praias De Parajuru [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Beginning balance | [1] | 17 | 19 | ||
Additions | [1] | ||||
Amortization | [1] | [2] | (2) | (1) | |
Written off | [1] | (15) | (1) | ||
Ending balance | [1] | [2] | 17 | ||
Central Eolica Volta do Rio [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Beginning balance | [3] | 11 | 14 | ||
Additions | [3] | ||||
Amortization | [3] | (1) | (1) | ||
Written off | [3] | (10) | (2) | ||
Ending balance | [3] | 11 | |||
Central Eolica Praias De Morgado [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Beginning balance | [3] | 24 | 27 | ||
Additions | [3] | ||||
Amortization | [3] | (2) | (2) | ||
Written off | [3] | (22) | (1) | ||
Ending balance | [3] | 24 | |||
Madeira Energia (Santo Antonio plant) [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Beginning balance | 18 | 151 | 157 | ||
Additions | |||||
Amortization | (1) | (6) | (6) | ||
Written off | (127) | ||||
Ending balance | 17 | 18 | 151 | ||
Lightger [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Beginning balance | 84 | ||||
Additions | 84 | ||||
Amortization | (3) | ||||
Written off | |||||
Ending balance | 81 | 84 | |||
Light [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Beginning balance | 186 | 209 | |||
Additions | |||||
Amortization | (20) | (23) | |||
Written off | (166) | ||||
Ending balance | 186 | ||||
Alianca Geracao [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Beginning balance | 378 | 403 | 428 | ||
Additions | |||||
Amortization | (25) | (25) | (25) | ||
Written off | |||||
Ending balance | 353 | 378 | 403 | ||
Alianca Norte (Belo Monte plant) [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Beginning balance | 53 | 55 | 57 | ||
Additions | |||||
Amortization | (2) | (2) | (2) | ||
Written off | |||||
Ending balance | 51 | 53 | 55 | ||
Lepsa [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Beginning balance | 49 | ||||
Additions | |||||
Amortization | (6) | ||||
Written off | (43) | ||||
Ending balance | |||||
RME [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Beginning balance | 44 | 48 | |||
Additions | 20 | ||||
Amortization | (5) | (4) | |||
Written off | (59) | ||||
Ending balance | R$ 44 | ||||
[1] | As from 2018 the investees Central Eolica Praias de Parajuru and Central Eolica Volta do Rio are being consolidated | ||||
[2] | With the cessation of control of Light, the remaining equity interest in these investees was recognized as an investment in affiliates or jointly- controlled subsidiaries, and measured by the equity method, in accordance with IFRS 10. For more details please see Notes 1 and 34. | ||||
[3] | Changes arising from the elimination of crossover holding of the assets between Cemig GT and Energimp that occurred in 2018. As from 2018 the investees Central Eolica Praias de Parajuru and Central Eolica Volta do Rio are being consolidated by Cemig GT. |
18. INVESTMENTS (Details 2)
18. INVESTMENTS (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | R$ 5235 | R$ 7792 | R$ 8694 | ||||
Gain (loss) by equity method (Income statement) | 125 | (104) | (252) | ||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | 268 | (119) | |||||
Dividends | (284) | (354) | (420) | ||||
Additions / acquisitions | 33 | 511 | 292 | ||||
Other | 1 | (626) | 88 | ||||
Disposals | (37) | (569) | |||||
Reclassification to held for sale | (1,828) | ||||||
Gain (loss) by equity method (Other comprehensive income) | (41) | ||||||
Ending balance | 5,378 | 5,235 | 7,792 | ||||
Companhia Transleste De Transmissao [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 22 | ||||||
Gain (loss) by equity method (Income statement) | 5 | ||||||
Dividends | (7) | ||||||
Additions / acquisitions | |||||||
Other | |||||||
Disposals | (20) | ||||||
Gain (loss) by equity method (Other comprehensive income) | |||||||
Ending balance | |||||||
Companhia Transudeste De Transmissao [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 21 | ||||||
Gain (loss) by equity method (Income statement) | 3 | ||||||
Dividends | (12) | ||||||
Additions / acquisitions | |||||||
Other | |||||||
Disposals | (12) | ||||||
Gain (loss) by equity method (Other comprehensive income) | |||||||
Ending balance | |||||||
Companhia Transirape De Transmissao [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 24 | ||||||
Gain (loss) by equity method (Income statement) | 4 | ||||||
Dividends | (6) | ||||||
Additions / acquisitions | |||||||
Other | |||||||
Disposals | (22) | ||||||
Gain (loss) by equity method (Other comprehensive income) | |||||||
Ending balance | |||||||
Companhia De Transmissao Centroeste De Minas [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 20 | 21 | 21 | ||||
Gain (loss) by equity method (Income statement) | 4 | 5 | 5 | ||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | (6) | (5) | |||||
Additions / acquisitions | |||||||
Other | |||||||
Disposals | |||||||
Reclassification to held for sale | |||||||
Gain (loss) by equity method (Other comprehensive income) | |||||||
Ending balance | 24 | 20 | 21 | ||||
Light [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | [1] | 1,534 | [1] | 1,070 | [2] | ||
Gain (loss) by equity method (Income statement) | 19 | [1] | 35 | [2] | |||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | [1] | (231) | |||||
Dividends | (8) | [1] | [2] | ||||
Additions / acquisitions | [1] | [2] | |||||
Other | (59) | [1] | 432 | [2] | |||
Disposals | [1] | [2] | |||||
Reclassification to held for sale | [1] | (1,255) | |||||
Gain (loss) by equity method (Other comprehensive income) | [2] | (3) | |||||
Ending balance | [1] | 1,534 | |||||
Axxiom Solucoes Tecnologicas [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | [1] | 12 | [1] | 19 | |||
Gain (loss) by equity method (Income statement) | (7) | [1] | (7) | ||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | 4 | [1] | |||||
Dividends | [1] | ||||||
Additions / acquisitions | 9 | [1] | |||||
Other | (1) | [1] | |||||
Disposals | [1] | ||||||
Reclassification to held for sale | [1] | (4) | |||||
Gain (loss) by equity method (Other comprehensive income) | |||||||
Ending balance | 13 | [1] | 12 | [1] | |||
Lepsa [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | [2] | 344 | |||||
Gain (loss) by equity method (Income statement) | [2] | ||||||
Dividends | [2] | ||||||
Additions / acquisitions | [2] | ||||||
Other | [2] | (342) | |||||
Disposals | [2] | ||||||
Gain (loss) by equity method (Other comprehensive income) | [2] | (2) | |||||
Ending balance | [2] | ||||||
RME [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | [1] | 383 | [1] | 339 | |||
Gain (loss) by equity method (Income statement) | 3 | [1] | 7 | ||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | [1] | (52) | |||||
Dividends | (1) | [1] | |||||
Additions / acquisitions | 104 | [1] | 38 | ||||
Other | (111) | [1] | 1 | ||||
Disposals | [1] | ||||||
Reclassification to held for sale | [1] | (326) | |||||
Gain (loss) by equity method (Other comprehensive income) | (2) | ||||||
Ending balance | [1] | 383 | |||||
Hidreletrica Cachoeirao [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 49 | 58 | 50 | ||||
Gain (loss) by equity method (Income statement) | 11 | 10 | 10 | ||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | (6) | (19) | (3) | ||||
Additions / acquisitions | |||||||
Other | 1 | ||||||
Disposals | |||||||
Reclassification to held for sale | |||||||
Gain (loss) by equity method (Other comprehensive income) | |||||||
Ending balance | 54 | 49 | 58 | ||||
Guanhaes Energia [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | [1] | 25 | [1],[3] | [3] | |||
Gain (loss) by equity method (Income statement) | 30 | [1] | (13) | [3] | |||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | 131 | [1] | |||||
Dividends | [1] | [3] | |||||
Additions / acquisitions | 57 | [1] | 97 | [3] | |||
Other | [1] | (59) | [3] | ||||
Disposals | [1] | [3] | |||||
Reclassification to held for sale | [1] | (112) | |||||
Gain (loss) by equity method (Other comprehensive income) | [3] | ||||||
Ending balance | 131 | [1] | 25 | [1],[3] | |||
Hidreletrica Pipoca [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 31 | 26 | 32 | ||||
Gain (loss) by equity method (Income statement) | 4 | 7 | 2 | ||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | (4) | (2) | (8) | ||||
Additions / acquisitions | |||||||
Other | |||||||
Disposals | |||||||
Reclassification to held for sale | |||||||
Gain (loss) by equity method (Other comprehensive income) | |||||||
Ending balance | 31 | 31 | 26 | ||||
Madeira Energia (Santo Antonio plant) [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 270 | [4],[5] | 535 | [4],[5] | 644 | ||
Gain (loss) by equity method (Income statement) | (103) | (163) | [4],[5] | (109) | |||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | [4],[5] | ||||||
Dividends | [4],[5] | ||||||
Additions / acquisitions | 25 | [4],[5] | |||||
Other | (127) | [4],[5] | |||||
Disposals | [4],[5] | ||||||
Reclassification to held for sale | [4],[5] | ||||||
Gain (loss) by equity method (Other comprehensive income) | |||||||
Ending balance | 167 | 270 | [4],[5] | 535 | [4],[5] | ||
FIP Melbourne (Santo Antonio plant) [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 470 | [5] | 582 | [5] | 677 | ||
Gain (loss) by equity method (Income statement) | (139) | [5] | (95) | ||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | [5] | ||||||
Dividends | [5] | ||||||
Additions / acquisitions | 27 | [5] | |||||
Other | [5] | ||||||
Disposals | [5] | ||||||
Reclassification to held for sale | [5] | ||||||
Gain (loss) by equity method (Other comprehensive income) | |||||||
Ending balance | 385 | 470 | [5] | 582 | [5] | ||
Lightger [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | [1] | 41 | [1] | 42 | |||
Gain (loss) by equity method (Income statement) | 3 | [1] | 2 | ||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | 128 | 84 | [1] | ||||
Dividends | (2) | [1] | (3) | ||||
Additions / acquisitions | [1] | ||||||
Other | [1] | ||||||
Disposals | [1] | ||||||
Reclassification to held for sale | [1] | (126) | |||||
Gain (loss) by equity method (Other comprehensive income) | |||||||
Ending balance | 128 | [1] | 41 | [1] | |||
Baguari Energia [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 162 | 148 | 162 | ||||
Gain (loss) by equity method (Income statement) | 22 | 28 | 17 | ||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | (27) | (15) | (30) | ||||
Additions / acquisitions | |||||||
Other | 1 | (1) | |||||
Disposals | |||||||
Reclassification to held for sale | |||||||
Gain (loss) by equity method (Other comprehensive income) | |||||||
Ending balance | 157 | 162 | 148 | ||||
Central Eolica Praias De Parajuru [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | [6] | 60 | [6] | 63 | |||
Gain (loss) by equity method (Income statement) | (6) | [6] | (1) | ||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | [6] | 21 | |||||
Dividends | [6] | ||||||
Additions / acquisitions | 74 | [6] | |||||
Other | (146) | [6] | (2) | ||||
Disposals | (3) | [6] | |||||
Reclassification to held for sale | [6] | ||||||
Gain (loss) by equity method (Other comprehensive income) | |||||||
Ending balance | [6] | 60 | |||||
Central Eolica Volta do Rio [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | [6] | 68 | [6] | 81 | |||
Gain (loss) by equity method (Income statement) | (16) | [6] | (12) | ||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | [6] | 59 | |||||
Dividends | [6] | ||||||
Additions / acquisitions | 92 | [6] | |||||
Other | (181) | [6] | (1) | ||||
Disposals | (22) | [6] | |||||
Reclassification to held for sale | [6] | ||||||
Gain (loss) by equity method (Other comprehensive income) | |||||||
Ending balance | [6] | 68 | |||||
Central Eolica Praias De Morgado [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | [6] | 51 | [6] | 60 | |||
Gain (loss) by equity method (Income statement) | (15) | [6] | (8) | ||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | [6] | ||||||
Dividends | [6] | ||||||
Additions / acquisitions | [6] | ||||||
Other | (24) | [6] | (1) | ||||
Disposals | (12) | [6] | |||||
Reclassification to held for sale | [6] | ||||||
Gain (loss) by equity method (Other comprehensive income) | |||||||
Ending balance | [6] | 51 | |||||
Amazonia Energia (Belo Monte plant) [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 1,013 | 867 | 781 | ||||
Gain (loss) by equity method (Income statement) | 15 | 80 | 1 | ||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | |||||||
Additions / acquisitions | 69 | 85 | |||||
Other | (3) | ||||||
Disposals | |||||||
Reclassification to held for sale | |||||||
Gain (loss) by equity method (Other comprehensive income) | |||||||
Ending balance | 1,028 | 1,013 | 867 | ||||
Ativas Data Center [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 16 | 17 | 18 | ||||
Gain (loss) by equity method (Income statement) | (1) | (2) | |||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | |||||||
Additions / acquisitions | |||||||
Other | 1 | ||||||
Disposals | |||||||
Reclassification to held for sale | |||||||
Gain (loss) by equity method (Other comprehensive income) | |||||||
Ending balance | 16 | 16 | 17 | ||||
TAESA [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 1,143 | [1] | 1,101 | [1] | 1,583 | [7] | |
Gain (loss) by equity method (Income statement) | 210 | 225 | [1] | 216 | [7] | ||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | [1] | ||||||
Dividends | (141) | (208) | [1] | (183) | [7] | ||
Additions / acquisitions | [1] | [7] | |||||
Other | 1 | 25 | [1] | [7] | |||
Disposals | [1] | (515) | [7] | ||||
Reclassification to held for sale | [1] | ||||||
Gain (loss) by equity method (Other comprehensive income) | [7] | ||||||
Ending balance | 1,213 | 1,143 | [1] | 1,101 | [1] | ||
Renova [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 282 | 689 | |||||
Gain (loss) by equity method (Income statement) | (282) | (390) | |||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | |||||||
Additions / acquisitions | 18 | ||||||
Other | (1) | ||||||
Disposals | |||||||
Reclassification to held for sale | |||||||
Gain (loss) by equity method (Other comprehensive income) | (34) | ||||||
Ending balance | 282 | ||||||
Usina Hidreletrica Itaocara S.A. [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | [1] | 4 | [1] | 3 | |||
Gain (loss) by equity method (Income statement) | (50) | (4) | [1] | (2) | |||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | 5 | [1] | |||||
Dividends | [1] | ||||||
Additions / acquisitions | 23 | 5 | [1] | 3 | |||
Other | 22 | [1] | |||||
Disposals | [1] | ||||||
Reclassification to held for sale | [1] | (5) | |||||
Gain (loss) by equity method (Other comprehensive income) | |||||||
Ending balance | [1] | 4 | [1] | ||||
Alianca Geracao [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 1,217 | 1,242 | 1,319 | ||||
Gain (loss) by equity method (Income statement) | 78 | 65 | 72 | ||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | (103) | (90) | (149) | ||||
Additions / acquisitions | |||||||
Other | |||||||
Disposals | |||||||
Reclassification to held for sale | |||||||
Gain (loss) by equity method (Other comprehensive income) | |||||||
Ending balance | 1,192 | 1,217 | 1,242 | ||||
Alianca Norte (Belo Monte plant) [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 664 | 577 | 527 | ||||
Gain (loss) by equity method (Income statement) | 6 | 44 | (2) | ||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | |||||||
Additions / acquisitions | 1 | 43 | 51 | ||||
Other | 1 | ||||||
Disposals | |||||||
Reclassification to held for sale | |||||||
Gain (loss) by equity method (Other comprehensive income) | |||||||
Ending balance | 671 | 664 | 577 | ||||
Retiro Baixo [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 171 | 158 | 162 | ||||
Gain (loss) by equity method (Income statement) | 12 | 10 | 10 | ||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | (3) | (3) | (14) | ||||
Additions / acquisitions | 6 | ||||||
Other | |||||||
Disposals | |||||||
Reclassification to held for sale | |||||||
Gain (loss) by equity method (Other comprehensive income) | |||||||
Ending balance | 180 | 171 | 158 | ||||
Total of Investments [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 5,235 | 7,792 | 8,753 | ||||
Gain (loss) by equity method (Income statement) | 125 | (252) | |||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | 268 | ||||||
Dividends | (284) | (420) | |||||
Additions / acquisitions | 33 | 292 | |||||
Other | 23 | 29 | |||||
Disposals | (569) | ||||||
Gain (loss) by equity method (Other comprehensive income) | (41) | ||||||
Ending balance | 5,400 | 5,235 | 7,792 | ||||
Guanhaes Energia - Equity Deficit [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | [3] | (59) | |||||
Gain (loss) by equity method (Income statement) | [3] | ||||||
Dividends | [3] | ||||||
Additions / acquisitions | [3] | ||||||
Other | [3] | 59 | |||||
Disposals | [3] | ||||||
Gain (loss) by equity method (Other comprehensive income) | [3] | ||||||
Ending balance | [3] | ||||||
UFV Janauba Geracao De Energia Eletrica Distribuida [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 9 | ||||||
Gain (loss) by equity method (Income statement) | 1 | ||||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | |||||||
Additions / acquisitions | 9 | ||||||
Other | |||||||
Disposals | |||||||
Reclassification to held for sale | |||||||
Ending balance | 10 | 9 | |||||
FIP Melbourne (Santo Antonio plant) [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Gain (loss) by equity method (Income statement) | (85) | ||||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | |||||||
Additions / acquisitions | |||||||
Other | |||||||
Itaocara - Equity Deficit [Member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | |||||||
Gain (loss) by equity method (Income statement) | |||||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | |||||||
Additions / acquisitions | |||||||
Other | (22) | ||||||
Ending balance | R$ 22 | ||||||
[1] | Others arises from first adoption of the new accounting standards on January 1, 2018, recognized by the investees directly in equity without inclusion in the Income statement. The column Reclassification to held for sale includes the effect of the reclassification of the investment in Light, Axxion, Lightger, Guanhaes and Itaocara to Non-current assets held for sale, in accordance with IFRS 5. | ||||||
[2] | On November 30, 2017 the Company acquired all Lepsa's shares, and therefore as from that date on it consolidates that company in its financial statements. Lepsa's sole asset is its holdings in the share capital of Light. Hence, the Company no longer presents the investment that it previously held at Lepsa in its consolidated statement, presenting only the interest in Light. | ||||||
[3] | Equity deficit reversed through injection of capital. | ||||||
[4] | Due to the result of analysis of impairment indication, due to the recurring losses incurred by Madeira, a provision was recognized for loss of part of the residual added value of the investment in Madeira, to limit its balance to the minimum value of the excess of future economic benefits arising from use of the net fixed asset on December, 31, 2018, using the nominal WACC of 9.59% as the discount rate. The provision is presented in the statement of income for the year ended December 31, 2018 as Impairment loss on Investments. | ||||||
[5] | In October 2018 the Company subscribed capital increases in Mesa and FIP Melbourne, of R$25 and R$26, respectively. These funds were entirely applied in capital contributions to Santo Antonio Energia S.A. ('Saesa' or 'Santo Antonio Hydroelectric Plant'). | ||||||
[6] | Arising from the business combination between the Company and Energimp. The rights to exploitation of the regulated activity are classified in the consolidated statement of financial position under Intangible. | ||||||
[7] | On November 2017 the Company sold part of its equity interest in the jointly-controlled entity Taesa. The Company sold 34 million Units of Taesa at the price of R$ 21.10 per Unit. With the sale, the Company's holding in the share capital of Taesa was reduced from 31.54% to 21.68%. The shares that were sold are not part of the controlling shareholding block of Taesa, and as a result Cemig continues to be in the controlling block of Taesa. |
18. INVESTMENTS (Details 3)
18. INVESTMENTS (Details 3) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about investment property [abstract] | ||
Opening balances | R$ 120 | R$ 77 |
Dividends proposed by investees | 285 | 354 |
Dividends proposed by investee classified as held for sale | 73 | |
Withholding income tax on Interest on equity | (8) | (7) |
Amounts received | (283) | (304) |
Ending balances | R$ 186 | R$ 120 |
18. INVESTMENTS (Details 4)
18. INVESTMENTS (Details 4) - BRL (R$) R$ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure of detailed information about investment property [line items] | |||||
Share capital | R$ 7294 | R$ 7294 | R$ 7294 | ||
Equity | R$ 15891 | R$ 15939 | R$ 14330 | R$ 12934 | |
Cemig Geracao E Transmissao [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Cemig Geração e Transmissão | ||||
Number of shares | 2,896,785,358 | ||||
Cemig interest % | 100.00% | 100.00% | 100.00% | ||
Share capital | R$ 2600 | R$ 2600 | R$ 1838 | ||
Equity | R$ 5136 | R$ 4980 | R$ 4794 | ||
Madeira Energia (Santo Antonio plant) [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Madeira Energia (Santo Antônio plant) | ||||
Number of shares | 12,034,025,147 | ||||
Cemig interest % | 15.51% | 15.51% | 18.13% | ||
Share capital | R$ 10620 | R$ 10620 | R$ 9547 | ||
Equity | R$ 3705 | R$ 4657 | R$ 5327 | ||
Hidreletrica Cachoeirao [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Hidrelétrica Cachoeirão | ||||
Number of shares | 35,000,000 | ||||
Cemig interest % | 49.00% | 49.00% | 49.00% | ||
Share capital | R$ 35 | R$ 35 | R$ 35 | ||
Equity | R$ 110 | R$ 100 | R$ 118 | ||
Guanhaes Energia [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Guanhães Energia | ||||
Number of shares | 548,626,000 | ||||
Cemig interest % | 49.00% | 49.00% | 49.00% | ||
Share capital | R$ 549 | R$ 396 | R$ 331 | ||
Equity | R$ 268 | R$ 228 | R$ 51 | ||
Hidreletrica Pipoca [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Hidrelétrica Pipoca | ||||
Number of shares | 41,360,000 | ||||
Cemig interest % | 49.00% | 49.00% | 49.00% | ||
Share capital | R$ 41 | R$ 41 | R$ 41 | ||
Equity | R$ 63 | R$ 63 | R$ 53 | ||
Baguari Energia [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | [1] | Baguari Energia | |||
Number of shares | [1] | 26,157,300,278 | |||
Cemig interest % | [1] | 69.39% | 69.39% | 69.39% | |
Share capital | [1] | R$ 187 | R$ 187 | R$ 187 | |
Equity | [1] | R$ 227 | R$ 234 | R$ 214 | |
Central Eolica Praias De Parajuru [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Central Eólica Praias de Parajuru | ||||
Number of shares | 71,834,843 | ||||
Cemig interest % | 100.00% | 100.00% | 49.00% | ||
Share capital | R$ 72 | R$ 72 | R$ 71 | ||
Equity | R$ 89 | R$ 80 | R$ 89 | ||
Central Eolica Volta do Rio [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Central Eólica Volta do Rio | ||||
Number of shares | 138,867,440 | ||||
Cemig interest % | 100.00% | 100.00% | 49.00% | ||
Share capital | R$ 139 | R$ 139 | R$ 117 | ||
Equity | R$ 58 | R$ 84 | R$ 116 | ||
Central Eolica Praias De Morgado [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Number of shares | |||||
Cemig interest % | 49.00% | ||||
Share capital | R$ 53 | ||||
Equity | R$ 54 | ||||
Lightger [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Lightger | ||||
Number of shares | 79,078,937 | ||||
Cemig interest % | 49.00% | 49.00% | 49.00% | ||
Share capital | R$ 79 | R$ 79 | R$ 79 | ||
Equity | R$ 95 | R$ 86 | R$ 83 | ||
Alianca Norte (Belo Monte plant) [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Aliança Norte (Belo Monte plant) | ||||
Number of shares | 41,893,675,837 | ||||
Cemig interest % | 49.00% | 49.00% | 49.00% | ||
Share capital | R$ 1208 | R$ 1206 | R$ 1119 | ||
Equity | R$ 1266 | R$ 1247 | R$ 1066 | ||
Amazonia Energia (Belo Monte plant) [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | [1] | Amazônia Energia (Belo Monte plant) | |||
Number of shares | [1] | 1,322,597,723 | |||
Cemig interest % | [1] | 74.50% | 74.50% | 74.50% | |
Share capital | [1] | R$ 1323 | R$ 1322 | R$ 1230 | |
Equity | [1] | R$ 1380 | R$ 1359 | R$ 1163 | |
Alianca Geracao [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Aliança Geração | ||||
Number of shares | 1,291,582 | ||||
Cemig interest % | 45.00% | 45.00% | 45.00% | ||
Share capital | R$ 1291 | R$ 1291 | R$ 1291 | ||
Equity | R$ 1858 | R$ 1858 | R$ 1858 | ||
Retiro Baixo [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Retiro Baixo | ||||
Number of shares | 225,350,000 | ||||
Cemig interest % | 49.90% | 49.90% | 49.90% | ||
Share capital | R$ 225 | R$ 223 | R$ 223 | ||
Equity | R$ 300 | R$ 278 | R$ 258 | ||
Renova [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | [1],[2] | Renova | |||
Number of shares | [1],[2] | 41,719,724 | |||
Cemig interest % | [1],[2] | 36.23% | 36.23% | 36.23% | |
Share capital | [1],[2] | R$ 2961 | R$ 2919 | R$ 2919 | |
Equity | [1],[2] | R$ 1091 | R$ 76 | R$ 780 | |
Usina Hidreletrica Itaocara S.A. [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | [3] | Usina Hidrelétrica Itaocara S.A | |||
Number of shares | [3] | 69,282,514 | |||
Cemig interest % | [3] | 49.00% | 49.00% | 49.00% | |
Share capital | [3] | R$ 69 | R$ 22 | R$ 11 | |
Equity | [3] | R$ 45 | R$ 10 | R$ 8 | |
Cemig Ger.Tres Marias S.A. [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Cemig Ger.Três Marias S.A. | ||||
Number of shares | 1,291,423,369 | ||||
Cemig interest % | 100.00% | 100.00% | 100.00% | ||
Share capital | R$ 1291 | R$ 1291 | R$ 1291 | ||
Equity | R$ 1408 | R$ 1396 | R$ 1392 | ||
Cemig Ger.Salto Grande S.A [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Cemig Ger.Salto Grande S.A | ||||
Number of shares | 405,267,607 | ||||
Cemig interest % | 100.00% | 100.00% | 100.00% | ||
Share capital | R$ 405 | R$ 405 | R$ 405 | ||
Equity | R$ 446 | R$ 440 | R$ 440 | ||
Cemig Ger. Itutinga S.A. [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Cemig Ger. Itutinga S.A. | ||||
Number of shares | 151,309,332 | ||||
Cemig interest % | 100.00% | 100.00% | 100.00% | ||
Share capital | R$ 151 | R$ 151 | R$ 151 | ||
Equity | R$ 184 | R$ 179 | R$ 171 | ||
Cemig Geracao Camargos S.A. [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Cemig Geração Camargos S.A. | ||||
Number of shares | 113,499,102 | ||||
Cemig interest % | 100.00% | 100.00% | 100.00% | ||
Share capital | R$ 113 | R$ 113 | R$ 113 | ||
Equity | R$ 136 | R$ 132 | R$ 130 | ||
Cemig Geracao Sul S.A. [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Cemig Geração Sul S.A. | ||||
Number of shares | 148,146,505 | ||||
Cemig interest % | 100.00% | 100.00% | 100.00% | ||
Share capital | R$ 148 | R$ 148 | R$ 148 | ||
Equity | R$ 179 | R$ 176 | R$ 168 | ||
Cemig Geracao Leste S.A. [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Cemig Geração Leste S.A. | ||||
Number of shares | 100,568,929 | ||||
Cemig interest % | 100.00% | 100.00% | 100.00% | ||
Share capital | R$ 101 | R$ 101 | R$ 101 | ||
Equity | R$ 127 | R$ 121 | R$ 116 | ||
Cemig Geracao Oeste S.A. [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Cemig Geração Oeste S.A. | ||||
Number of shares | 60,595,484 | ||||
Cemig interest % | 100.00% | 100.00% | 100.00% | ||
Share capital | R$ 61 | R$ 61 | R$ 61 | ||
Equity | R$ 73 | R$ 70 | R$ 69 | ||
Rosal Energia S.A. [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Rosal Energia S.A. (‘Rosal’) | ||||
Number of shares | 46,944,467 | ||||
Cemig interest % | 100.00% | 100.00% | 100.00% | ||
Share capital | R$ 47 | R$ 47 | R$ 47 | ||
Equity | R$ 128 | R$ 125 | R$ 107 | ||
Sa Carvalho S.A. [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Sá Carvalho S.A. (‘Sá Carvalho’) | ||||
Number of shares | 361,200,000 | ||||
Cemig interest % | 100.00% | 100.00% | 100.00% | ||
Share capital | R$ 37 | R$ 37 | R$ 37 | ||
Equity | R$ 124 | R$ 94 | R$ 103 | ||
Horizontes Energia S.A [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Horizontes Energia S.A. (‘Horizontes’) | ||||
Number of shares | 39,257,563 | ||||
Cemig interest % | 100.00% | 100.00% | 100.00% | ||
Share capital | R$ 39 | R$ 39 | R$ 39 | ||
Equity | R$ 57 | R$ 55 | R$ 53 | ||
Cemig PCH S.A. [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Cemig PCH S.A. (‘PCH’) | ||||
Number of shares | 45,952,000 | ||||
Cemig interest % | 100.00% | 100.00% | 100.00% | ||
Share capital | R$ 46 | R$ 46 | R$ 36 | ||
Equity | R$ 98 | R$ 93 | R$ 97 | ||
Cemig Geracao Poco Fundo S.A. [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | [4] | Cemig Geração Poço Fundo S.A. | |||
Number of shares | [4] | 1,402,000 | |||
Cemig interest % | [4] | 100.00% | 100.00% | 100.00% | |
Share capital | [4] | R$ 1 | R$ 17 | R$ 17 | |
Equity | [4] | R$ 4 | R$ 18 | R$ 18 | |
Empresa De Servicos De Comercializacao De Energia Eletrica S.A. [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Empresa de Serviços de Comercialização de Energia Elétrica S.A. | ||||
Number of shares | 486,000 | ||||
Cemig interest % | 100.00% | 100.00% | 100.00% | ||
Share capital | |||||
Equity | R$ 28 | R$ 27 | R$ 18 | ||
Cemig Comercializadora De Energia Incentivada S.A. [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Cemig Comercializadora de Energia Incentivada S.A. | ||||
Number of shares | 1,000,000 | ||||
Cemig interest % | 100.00% | 100.00% | 100.00% | ||
Share capital | R$ 1 | R$ 1 | R$ 1 | ||
Equity | R$ 3 | R$ 3 | R$ 2 | ||
Cemig Trading S.A. [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Cemig Trading S.A. (‘Cemig Trading’) | ||||
Number of shares | 1,000,000 | ||||
Cemig interest % | 100.00% | 100.00% | 100.00% | ||
Share capital | R$ 1 | R$ 1 | R$ 1 | ||
Equity | R$ 31 | R$ 28 | R$ 29 | ||
Cemig Distribuicao [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | [3] | Cemig Distribuição | |||
Number of shares | [3] | 2,359,113,452 | |||
Cemig interest % | [3] | 100.00% | 100.00% | 100.00% | |
Share capital | [3] | R$ 5372 | R$ 2772 | R$ 2772 | |
Equity | [3] | R$ 4708 | R$ 4642 | R$ 3737 | |
Light [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Light | ||||
Number of shares | 303,934,060 | ||||
Cemig interest % | 22.58% | 26.06% | 26.06% | ||
Share capital | R$ 4051 | R$ 2226 | R$ 2226 | ||
Equity | R$ 5983 | R$ 3389 | R$ 3462 | ||
TAESA [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | TAESA | ||||
Number of shares | 1,033,496,721 | ||||
Cemig interest % | 21.68% | 21.68% | 21.68% | ||
Share capital | R$ 3042 | R$ 3042 | R$ 3042 | ||
Equity | R$ 4927 | R$ 4572 | R$ 4347 | ||
Cemig Telecom [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Cemig Telecom | ||||
Number of shares | |||||
Cemig interest % | 100.00% | ||||
Share capital | R$ 292 | ||||
Equity | R$ 247 | ||||
Ativas Data Center [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Ativas Data Center | ||||
Number of shares | 456,540,718 | ||||
Cemig interest % | 19.60% | 19.60% | |||
Share capital | R$ 182 | R$ 182 | |||
Equity | R$ 82 | R$ 84 | |||
GASMIG [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Gasmig | ||||
Number of shares | 409,255,483 | ||||
Cemig interest % | 99.57% | 99.57% | 99.57% | ||
Share capital | R$ 665 | R$ 665 | R$ 665 | ||
Equity | R$ 988 | R$ 1001 | R$ 1224 | ||
Cemig Geracao Distribuida [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Cemig Geração Distribuída | ||||
Number of shares | 174,281 | ||||
Cemig interest % | 100.00% | 100.00% | 100.00% | ||
Share capital | R$ 0 | R$ 0 | |||
Equity | R$ 11 | R$ 3 | R$ 5 | ||
LEPSA [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | [5] | LEPSA | |||
Number of shares | [5] | ||||
Cemig interest % | [5] | 100.00% | 100.00% | ||
Share capital | [5] | R$ 406 | R$ 406 | ||
Equity | [5] | R$ 447 | R$ 456 | ||
RME [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | [5] | RME | |||
Number of shares | [5] | ||||
Cemig interest % | [5] | 100.00% | 75.00% | ||
Share capital | [5] | R$ 403 | R$ 403 | ||
Equity | [5] | R$ 423 | R$ 453 | ||
Efficientia [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Efficientia | ||||
Number of shares | 15,121,845 | ||||
Cemig interest % | 100.00% | 100.00% | 100.00% | ||
Share capital | R$ 15 | R$ 15 | R$ 6 | ||
Equity | R$ 17 | R$ 18 | R$ 7 | ||
Companhia De Transmissao Centroeste De Minas [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Companhia de Transmissão Centroeste de Minas | ||||
Number of shares | 28,000,000 | ||||
Cemig interest % | 51.00% | 51.00% | 51.00% | ||
Share capital | R$ 28 | R$ 28 | R$ 28 | ||
Equity | R$ 47 | R$ 39 | R$ 40 | ||
Axxiom Solucoes Tecnologicas [Member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Name of subsidiary | Axxiom Soluções Tecnológicas | ||||
Number of shares | 58,365,000 | ||||
Cemig interest % | 49.00% | 49.00% | 49.00% | ||
Share capital | R$ 58 | R$ 47 | R$ 47 | ||
Equity | R$ 27 | R$ 17 | R$ 24 | ||
[1] | Jointly-control under a Shareholders' Agreement. | ||||
[2] | In view of Renova's negative net equity, the Company reduced to zero the carrying value of its equity interests in this investee, at December 31, 2018. | ||||
[3] | An Extraordinary General Shareholders' Meeting held on August 7, 2019 approved increase in the share capital of Cemig D by R$2,600, through subscription of funds from Advances for Future Capital Increase (AFACs), paid in by the Company, without issuance of new shares. | ||||
[4] | The Extraordinary General Meeting of Shareholders held on August 29, 2019 approved changes to the bylaws of the subsidiary, changing its name and its corporate objects. With the alteration, the name of Usina Termeletrica Barreiro S.A. was changed to Cemig Geracao Poco Fundo S.A. | ||||
[5] | These investees were merged on April 24, 2019. |
18. INVESTMENTS (Details 5)
18. INVESTMENTS (Details 5) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Amazonia [Member] | ||||
Disclosure of detailed information about investment property [line items] | ||||
Direct stake | 74.50% | 74.50% | ||
Indirect stake | 5.76% | 12.46% | ||
Renova [Member] | ||||
Disclosure of detailed information about investment property [line items] | ||||
Direct stake | 36.23% | [1] | 36.23% | [2] |
Indirect stake | [1] | 8.39% | [2] | |
Lightger [Member] | ||||
Disclosure of detailed information about investment property [line items] | ||||
Direct stake | 49.00% | 49.00% | ||
Indirect stake | 11.52% | 24.92% | ||
Guanhaes [Member] | ||||
Disclosure of detailed information about investment property [line items] | ||||
Direct stake | 49.00% | 49.00% | ||
Indirect stake | 11.52% | 24.92% | ||
Axxion [Member] | ||||
Disclosure of detailed information about investment property [line items] | ||||
Direct stake | 49.00% | 49.00% | ||
Indirect stake | 11.52% | 24.92% | ||
UHE Itaocara [Member] | ||||
Disclosure of detailed information about investment property [line items] | ||||
Direct stake | 49.00% | 49.00% | ||
Indirect stake | 11.52% | 24.92% | ||
Light [Member] | ||||
Disclosure of detailed information about investment property [line items] | ||||
Direct stake | 22.58% | 26.06% | ||
Indirect stake | 22.80% | |||
[1] | On October 15, 2019, Light sold the totality of its shares in the jointly-controlled entity Renova to CG I Fundo de Investimento em Participacoes. Further details as follows. | |||
[2] | Bank Financial Notes (Letras Financeiras, or LFs) are fixed- rate fixed-income securities, issued by banks and that accrued interest a percentage of the CDI rate published by Cetip. The LFs had remuneration rates varying between 101.95% and 113% of the CDI rate in 2019 (102% and 111.25% in 2018 and 102.01% to 112% in 2017). |
18. INVESTMENTS (Details 6)
18. INVESTMENTS (Details 6) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets | ||||
Current | R$ 10138 | R$ 27796 | ||
Cash and cash equivalents | 536 | 891 | ||
Non-current | 39,788 | 32,059 | ||
TOTAL ASSETS | 49,926 | 59,855 | ||
Liabilities | ||||
Current | 7,913 | 23,394 | ||
Suppliers | 2,080 | 1,801 | ||
Non-current | 26,122 | 20,522 | ||
Equity | 15,891 | 15,939 | R$ 14330 | R$ 12934 |
TOTAL LIABILITIES | 34,035 | 43,916 | ||
Statement of income | ||||
Net sales revenue | 25,390 | 22,266 | 21,712 | |
Cost of sales | (19,598) | (17,677) | (17,488) | |
Depreciation and amortization | (815) | (761) | (787) | |
Gross profit (loss) | 5,792 | 4,589 | 4,224 | |
General and administrative expenses | (642) | (672) | (763) | |
Finance income | 3,207 | 1,706 | 804 | |
Finance expenses | (1,847) | (2,224) | (1,800) | |
Share of (loss) profit, net, of subsidiaries and joint ventures | 125 | (104) | (252) | |
Net income (loss) for the year | 3,128 | 1,742 | 1,002 | |
COMPREHENSIVE INCOME FOR THE YEAR | 2,073 | 1,279 | 700 | |
Renova [Member] | ||||
Assets | ||||
Current | 21 | 1,738 | 144 | |
Cash and cash equivalents | 5 | 15 | 25 | |
Non-current | 2,309 | 891 | 2,786 | |
TOTAL ASSETS | 2,330 | 2,629 | 2,930 | |
Liabilities | ||||
Current | 2,928 | 2,195 | 1,751 | |
Suppliers | 259 | |||
Loans and financings - Current | 1,507 | 349 | ||
Non-current | 493 | 510 | 399 | |
Loans and financings - Non-Current | 55 | 64 | ||
Equity | (1,091) | (76) | 780 | |
TOTAL LIABILITIES | 2,330 | 2,629 | 2,930 | |
Statement of income | ||||
Net sales revenue | 98 | 710 | 734 | |
Cost of sales | (66) | (834) | (677) | |
Depreciation and amortization | (9) | (10) | (10) | |
Gross profit (loss) | 32 | (124) | 57 | |
General and administrative expenses | (660) | (458) | (942) | |
Provision for loss | ||||
Finance income | 3 | 3 | 12 | |
Finance expenses | (448) | (320) | (470) | |
Operational profit (loss) | (1,073) | (899) | (1,343) | |
Share of (loss) profit, net, of subsidiaries and joint ventures | 66 | 49 | 96 | |
Income tax and social contribution tax | (7) | (6) | 107 | |
Net income (loss) for the year | (1,014) | (856) | (1,140) | |
COMPREHENSIVE INCOME FOR THE YEAR | (1,014) | (856) | (1,140) | |
Madeira Energia (Santo Antonio plant) [Member] | ||||
Assets | ||||
Current | 750 | 618 | 557 | |
Cash and cash equivalents | 78 | 69 | 55 | |
Non-current | 21,680 | 22,453 | 23,593 | |
TOTAL ASSETS | 22,430 | 23,071 | 24,150 | |
Liabilities | ||||
Current | 1,177 | 1,281 | 2,030 | |
Suppliers | 203 | |||
Loans and financings - Current | 73 | 53 | ||
Non-current | 17,548 | 17,134 | 16,793 | |
Loans and financings - Non-Current | 10,925 | 10,220 | ||
Equity | 3,705 | 4,656 | 5,327 | |
TOTAL LIABILITIES | 22,430 | 23,071 | 24,150 | |
Statement of income | ||||
Net sales revenue | 3,198 | 3,006 | 2,971 | |
Cost of sales | (2,508) | (2,689) | (1,858) | |
Depreciation and amortization | (869) | (887) | (838) | |
Gross profit (loss) | 690 | 317 | 1,113 | |
General and administrative expenses | (99) | (195) | (817) | |
Provision for loss | ||||
Finance income | 131 | 128 | 115 | |
Finance expenses | (1,683) | (1,881) | (1,551) | |
Operational profit (loss) | (961) | (1,631) | (1,140) | |
Share of (loss) profit, net, of subsidiaries and joint ventures | ||||
Income tax and social contribution tax | 10 | (112) | 49 | |
Net income (loss) for the year | (951) | (1,743) | (1,091) | |
COMPREHENSIVE INCOME FOR THE YEAR | (951) | (1,743) | (1,091) | |
Guanhaes Energia [Member] | ||||
Assets | ||||
Current | 11 | 8 | ||
Cash and cash equivalents | 5 | 4 | ||
Non-current | 419 | 223 | ||
TOTAL ASSETS | 430 | 231 | ||
Liabilities | ||||
Current | 27 | 25 | ||
Suppliers | 12 | |||
Loans and financings - Current | 12 | |||
Non-current | 136 | 155 | ||
Loans and financings - Non-Current | 127 | |||
Equity | 267 | 51 | ||
TOTAL LIABILITIES | 430 | 231 | ||
Statement of income | ||||
Net sales revenue | 51 | |||
Cost of sales | (38) | |||
Depreciation and amortization | (14) | |||
Gross profit (loss) | 13 | |||
General and administrative expenses | (5) | (10) | ||
Provision for loss | ||||
Finance income | 1 | 1 | ||
Finance expenses | (9) | (16) | ||
Operational profit (loss) | (25) | |||
Share of (loss) profit, net, of subsidiaries and joint ventures | ||||
Income tax and social contribution tax | (2) | |||
Net income (loss) for the year | (2) | (25) | ||
COMPREHENSIVE INCOME FOR THE YEAR | (2) | (25) | ||
Alianca Geracao [Member] | ||||
Assets | ||||
Current | 935 | 791 | 706 | |
Cash and cash equivalents | 435 | 381 | 540 | |
Non-current | 2,409 | 2,440 | 2,593 | |
TOTAL ASSETS | 3,344 | 3,231 | 3,299 | |
Liabilities | ||||
Current | 610 | 564 | 511 | |
Suppliers | ||||
Loans and financings - Current | 161 | 168 | 98 | |
Non-current | 876 | 809 | 930 | |
Loans and financings - Non-Current | 276 | 348 | ||
Equity | 1,858 | 1,858 | 1,858 | |
TOTAL LIABILITIES | 3,344 | 3,231 | 3,299 | |
Statement of income | ||||
Net sales revenue | 1,103 | 984 | 930 | |
Cost of sales | (681) | (599) | (560) | |
Depreciation and amortization | (151) | (153) | (123) | |
Gross profit (loss) | 422 | 385 | 370 | |
General and administrative expenses | (31) | (31) | 4 | |
Finance income | 39 | 33 | 28 | |
Finance expenses | (90) | (89) | (73) | |
Operational profit (loss) | 340 | 298 | 329 | |
Share of (loss) profit, net, of subsidiaries and joint ventures | ||||
Income tax and social contribution tax | (111) | (100) | (114) | |
Net income (loss) for the year | 229 | 198 | 215 | |
COMPREHENSIVE INCOME FOR THE YEAR | 229 | 198 | 215 | |
Amazonia Energia (Belo Monte plant) [Member] | ||||
Assets | ||||
Current | ||||
Cash and cash equivalents | ||||
Non-current | 1,380 | 1,360 | 1,163 | |
TOTAL ASSETS | 1,380 | 1,360 | 1,163 | |
Liabilities | ||||
Current | 1 | 1 | ||
Suppliers | ||||
Loans and financings - Current | ||||
Non-current | ||||
Loans and financings - Non-Current | ||||
Equity | 1,379 | 1,359 | 1,163 | |
TOTAL LIABILITIES | 1,380 | 1,360 | 1,163 | |
Statement of income | ||||
Net sales revenue | ||||
Cost of sales | ||||
Depreciation and amortization | ||||
Gross profit (loss) | ||||
General and administrative expenses | (1) | (1) | ||
Finance income | 2 | 2 | ||
Finance expenses | (2) | |||
Operational profit (loss) | (1) | 1 | ||
Share of (loss) profit, net, of subsidiaries and joint ventures | 20 | 105 | ||
Income tax and social contribution tax | (1) | |||
Net income (loss) for the year | 20 | 103 | 1 | |
COMPREHENSIVE INCOME FOR THE YEAR | 20 | 103 | 1 | |
Baguari Energia [Member] | ||||
Assets | ||||
Current | 60 | 44 | 29 | |
Cash and cash equivalents | 9 | 8 | 5 | |
Non-current | 187 | 201 | 209 | |
TOTAL ASSETS | 247 | 245 | 238 | |
Liabilities | ||||
Current | 16 | 7 | 18 | |
Suppliers | 10 | |||
Loans and financings - Current | ||||
Non-current | 4 | 5 | 6 | |
Loans and financings - Non-Current | ||||
Equity | 227 | 233 | 214 | |
TOTAL LIABILITIES | 247 | 245 | 238 | |
Statement of income | ||||
Net sales revenue | 68 | 74 | 64 | |
Cost of sales | (23) | (31) | (37) | |
Depreciation and amortization | (9) | (9) | (9) | |
Gross profit (loss) | 45 | 43 | 27 | |
General and administrative expenses | ||||
Provision for loss | ||||
Finance income | 4 | 3 | 6 | |
Finance expenses | (1) | (1) | ||
Operational profit (loss) | 48 | 45 | 33 | |
Share of (loss) profit, net, of subsidiaries and joint ventures | ||||
Income tax and social contribution tax | (16) | (4) | (11) | |
Net income (loss) for the year | 32 | 41 | 22 | |
COMPREHENSIVE INCOME FOR THE YEAR | 32 | 41 | 22 | |
Lightger [Member] | ||||
Assets | ||||
Current | 87 | 51 | ||
Cash and cash equivalents | 69 | 1 | ||
Non-current | 124 | 142 | ||
TOTAL ASSETS | 211 | 193 | ||
Liabilities | ||||
Current | 53 | 31 | ||
Suppliers | 20 | |||
Loans and financings - Current | 9 | |||
Non-current | 63 | 79 | ||
Loans and financings - Non-Current | 63 | |||
Equity | 95 | 83 | ||
TOTAL LIABILITIES | 211 | 193 | ||
Statement of income | ||||
Net sales revenue | 50 | 42 | ||
Cost of sales | (27) | (28) | ||
Depreciation and amortization | (11) | (11) | ||
Gross profit (loss) | 23 | 14 | ||
General and administrative expenses | (2) | (2) | ||
Finance income | 4 | 4 | ||
Finance expenses | (7) | (9) | ||
Operational profit (loss) | 18 | 7 | ||
Share of (loss) profit, net, of subsidiaries and joint ventures | ||||
Income tax and social contribution tax | (3) | (3) | ||
Net income (loss) for the year | 15 | 4 | ||
COMPREHENSIVE INCOME FOR THE YEAR | 15 | 4 | ||
Itaocara [Member] | ||||
Assets | ||||
Current | 5 | |||
Cash and cash equivalents | 5 | |||
Non-current | 11 | |||
TOTAL ASSETS | 16 | |||
Liabilities | ||||
Current | 1 | |||
Suppliers | 1 | |||
Loans and financings - Current | ||||
Non-current | 7 | |||
Equity | 8 | |||
TOTAL LIABILITIES | 16 | |||
Statement of income | ||||
Net sales revenue | ||||
Cost of sales | (4) | |||
Depreciation and amortization | ||||
Gross profit (loss) | (4) | |||
General and administrative expenses | ||||
Finance income | ||||
Finance expenses | ||||
Operational profit (loss) | (4) | |||
Income tax and social contribution tax | ||||
Net income (loss) for the year | (4) | |||
COMPREHENSIVE INCOME FOR THE YEAR | (4) | |||
Central Eolica de Parajuru [Member] | ||||
Assets | ||||
Current | 41 | |||
Cash and cash equivalents | 35 | |||
Non-current | 121 | |||
TOTAL ASSETS | 162 | |||
Liabilities | ||||
Current | 26 | |||
Suppliers | 1 | |||
Non-current | 47 | |||
Equity | 89 | |||
TOTAL LIABILITIES | 162 | |||
Statement of income | ||||
Net sales revenue | 21 | |||
Cost of sales | (16) | |||
Depreciation and amortization | (10) | |||
Gross profit (loss) | 5 | |||
General and administrative expenses | (2) | |||
Provision for loss | ||||
Finance income | 3 | |||
Finance expenses | (6) | |||
Operational profit (loss) | ||||
Income tax and social contribution tax | ||||
Net income (loss) for the year | ||||
COMPREHENSIVE INCOME FOR THE YEAR | ||||
Central Eolica de Morgado [Member] | ||||
Assets | ||||
Current | 11 | |||
Cash and cash equivalents | 7 | |||
Non-current | 136 | |||
TOTAL ASSETS | 147 | |||
Liabilities | ||||
Current | 90 | |||
Suppliers | 2 | |||
Non-current | 3 | |||
Equity | 54 | |||
TOTAL LIABILITIES | 147 | |||
Statement of income | ||||
Net sales revenue | 14 | |||
Cost of sales | (17) | |||
Depreciation and amortization | (10) | |||
Gross profit (loss) | (3) | |||
General and administrative expenses | (1) | |||
Provision for loss | ||||
Finance income | 2 | |||
Finance expenses | (8) | |||
Operational profit (loss) | (10) | |||
Income tax and social contribution tax | (1) | |||
Net income (loss) for the year | (11) | |||
COMPREHENSIVE INCOME FOR THE YEAR | (11) | |||
Central Eolica Volta do Rio [Member] | ||||
Assets | ||||
Current | 16 | |||
Cash and cash equivalents | 5 | |||
Non-current | 233 | |||
TOTAL ASSETS | 249 | |||
Liabilities | ||||
Current | 126 | |||
Suppliers | 1 | |||
Non-current | 7 | |||
Equity | 116 | |||
TOTAL LIABILITIES | 249 | |||
Statement of income | ||||
Net sales revenue | 22 | |||
Cost of sales | (28) | |||
Depreciation and amortization | (17) | |||
Gross profit (loss) | (6) | |||
General and administrative expenses | (3) | |||
Provision for loss | ||||
Finance income | 3 | |||
Finance expenses | (12) | |||
Operational profit (loss) | (18) | |||
Income tax and social contribution tax | (3) | |||
Net income (loss) for the year | (21) | |||
COMPREHENSIVE INCOME FOR THE YEAR | (21) | |||
TAESA [Member] | ||||
Assets | ||||
Current | 3,568 | 1,927 | 1,947 | |
Cash and cash equivalents | 83 | 21 | 57 | |
Non-current | 7,662 | 6,689 | 6,108 | |
TOTAL ASSETS | 11,230 | 8,616 | 8,055 | |
Liabilities | ||||
Current | 996 | 647 | 645 | |
Suppliers | ||||
Loans and financings - Current | 10 | 11 | 9 | |
Non-current | 5,307 | 3,397 | 3,062 | |
Loans and financings - Non-Current | 4,159 | 410 | ||
Equity | 4,927 | 4,572 | 4,348 | |
TOTAL LIABILITIES | 11,230 | 8,616 | 8,055 | |
Statement of income | ||||
Net sales revenue | 1,795 | 1,635 | 1,077 | |
Cost of sales | (574) | (362) | (198) | |
Depreciation and amortization | (5) | (1) | ||
Gross profit (loss) | 1,221 | 1,273 | 879 | |
General and administrative expenses | (122) | (144) | (122) | |
Finance income | 97 | 63 | 70 | |
Finance expenses | (356) | (274) | (292) | |
Operational profit (loss) | 840 | 918 | 535 | |
Share of (loss) profit, net, of subsidiaries and joint ventures | 306 | 301 | 168 | |
Income tax and social contribution tax | (144) | (147) | (55) | |
Net income (loss) for the year | 1,002 | 1,072 | 648 | |
COMPREHENSIVE INCOME FOR THE YEAR | 1,002 | 1,072 | 648 | |
Light [Member] | ||||
Assets | ||||
Current | 4,137 | |||
Cash and cash equivalents | 270 | |||
Non-current | 10,807 | |||
TOTAL ASSETS | 14,944 | |||
Liabilities | ||||
Current | 5,493 | |||
Suppliers | ||||
Loans and financings - Current | 1,395 | |||
Non-current | 6,019 | |||
Equity | 3,432 | |||
TOTAL LIABILITIES | 14,944 | |||
Statement of income | ||||
Net sales revenue | 11,315 | |||
Cost of sales | (8,869) | |||
Depreciation and amortization | (493) | |||
Gross profit (loss) | 2,446 | |||
General and administrative expenses | (1,071) | |||
Finance income | 100 | |||
Finance expenses | (977) | |||
Operational profit (loss) | 498 | |||
Share of (loss) profit, net, of subsidiaries and joint ventures | (199) | |||
Income tax and social contribution tax | (175) | |||
Net income (loss) for the year | 124 | |||
COMPREHENSIVE INCOME FOR THE YEAR | 124 | |||
Centroeste [Member] | ||||
Assets | ||||
Current | 29 | 19 | 56 | |
Cash and cash equivalents | 27 | 17 | ||
Non-current | 35 | 36 | 1 | |
TOTAL ASSETS | 64 | 55 | 57 | |
Liabilities | ||||
Current | 6 | 6 | 4 | |
Suppliers | ||||
Loans and financings - Current | 3 | 3 | 3 | |
Non-current | 11 | 10 | 13 | |
Loans and financings - Non-Current | 8 | 10 | ||
Equity | 47 | 39 | 40 | |
TOTAL LIABILITIES | 64 | 55 | 57 | |
Statement of income | ||||
Net sales revenue | 17 | 14 | 15 | |
Cost of sales | (5) | (1) | (4) | |
Depreciation and amortization | (1) | (1) | ||
Gross profit (loss) | 12 | 13 | 11 | |
General and administrative expenses | (2) | |||
Finance income | 2 | 1 | 2 | |
Finance expenses | (2) | (3) | (2) | |
Operational profit (loss) | 10 | 11 | 11 | |
Share of (loss) profit, net, of subsidiaries and joint ventures | ||||
Income tax and social contribution tax | (1) | (1) | (1) | |
Net income (loss) for the year | 9 | 10 | 10 | |
COMPREHENSIVE INCOME FOR THE YEAR | 9 | 10 | 10 | |
Ativas Data Center [Member] | ||||
Assets | ||||
Current | 33 | 17 | ||
Cash and cash equivalents | 8 | 1 | ||
Non-current | 107 | 106 | ||
TOTAL ASSETS | 140 | 123 | ||
Liabilities | ||||
Current | 24 | 23 | ||
Loans and financings - Current | 13 | 9 | ||
Non-current | 34 | 16 | ||
Loans and financings - Non-Current | 31 | 13 | ||
Equity | 82 | 84 | ||
TOTAL LIABILITIES | 140 | 123 | ||
Statement of income | ||||
Net sales revenue | 83 | 70 | ||
Cost of sales | (75) | (72) | ||
Depreciation and amortization | (18) | |||
Gross profit (loss) | 8 | (2) | ||
General and administrative expenses | (7) | (16) | ||
Finance income | ||||
Finance expenses | (3) | (3) | ||
Operational profit (loss) | (2) | (21) | ||
Share of (loss) profit, net, of subsidiaries and joint ventures | ||||
Income tax and social contribution tax | ||||
Net income (loss) for the year | (2) | (21) | ||
COMPREHENSIVE INCOME FOR THE YEAR | (2) | (21) | ||
Axxiom Solucoes Tecnologicas [Member] | ||||
Assets | ||||
Current | 34 | 46 | ||
Cash and cash equivalents | 7 | 3 | ||
Non-current | 26 | 11 | ||
TOTAL ASSETS | 60 | 57 | ||
Liabilities | ||||
Current | 28 | 29 | ||
Suppliers | 1 | |||
Loans and financings - Current | 8 | 5 | ||
Non-current | 5 | 4 | ||
Loans and financings - Non-Current | ||||
Equity | 27 | 24 | ||
TOTAL LIABILITIES | 60 | 57 | ||
Statement of income | ||||
Net sales revenue | 53 | 43 | ||
Cost of sales | (54) | (55) | ||
Depreciation and amortization | (2) | (2) | ||
Gross profit (loss) | (1) | (12) | ||
General and administrative expenses | (11) | (7) | ||
Finance income | 1 | |||
Finance expenses | (2) | (1) | ||
Operational profit (loss) | (14) | (19) | ||
Share of (loss) profit, net, of subsidiaries and joint ventures | ||||
Income tax and social contribution tax | 5 | 6 | ||
Net income (loss) for the year | (9) | (13) | ||
COMPREHENSIVE INCOME FOR THE YEAR | (9) | (13) | ||
Hidreletrica Cachoeirao [Member] | ||||
Assets | ||||
Current | 35 | 23 | 51 | |
Cash and cash equivalents | 30 | 18 | 46 | |
Non-current | 82 | 85 | 87 | |
TOTAL ASSETS | 117 | 108 | 138 | |
Liabilities | ||||
Current | 7 | 8 | 10 | |
Suppliers | 1 | |||
Loans and financings - Current | ||||
Non-current | 10 | |||
Loans and financings - Non-Current | ||||
Equity | 110 | 100 | 118 | |
TOTAL LIABILITIES | 117 | 108 | 138 | |
Statement of income | ||||
Net sales revenue | 38 | 50 | 39 | |
Cost of sales | (17) | (29) | (17) | |
Depreciation and amortization | (3) | (3) | (4) | |
Gross profit (loss) | 21 | 21 | 22 | |
General and administrative expenses | ||||
Provision for loss | ||||
Finance income | 1 | 1 | 4 | |
Finance expenses | (2) | |||
Operational profit (loss) | 22 | 22 | 24 | |
Share of (loss) profit, net, of subsidiaries and joint ventures | ||||
Income tax and social contribution tax | (2) | (2) | (3) | |
Net income (loss) for the year | 20 | 20 | 21 | |
COMPREHENSIVE INCOME FOR THE YEAR | 20 | 20 | 21 | |
Hidreletrica Pipoca [Member] | ||||
Assets | ||||
Current | 11 | 12 | 15 | |
Cash and cash equivalents | 2 | 4 | 6 | |
Non-current | 89 | 95 | 95 | |
TOTAL ASSETS | 100 | 107 | 110 | |
Liabilities | ||||
Current | 11 | 11 | 18 | |
Suppliers | 6 | |||
Loans and financings - Current | 7 | 7 | ||
Non-current | 26 | 33 | 39 | |
Loans and financings - Non-Current | 26 | 33 | ||
Equity | 63 | 63 | 53 | |
TOTAL LIABILITIES | 100 | 107 | 110 | |
Statement of income | ||||
Net sales revenue | 30 | 29 | 29 | |
Cost of sales | (15) | (12) | (18) | |
Depreciation and amortization | (3) | (3) | (3) | |
Gross profit (loss) | 15 | 17 | 11 | |
General and administrative expenses | (1) | |||
Provision for loss | ||||
Finance income | 2 | |||
Finance expenses | (3) | (4) | (5) | |
Operational profit (loss) | 12 | 13 | 7 | |
Share of (loss) profit, net, of subsidiaries and joint ventures | ||||
Income tax and social contribution tax | (1) | (1) | (2) | |
Net income (loss) for the year | 11 | 12 | 5 | |
COMPREHENSIVE INCOME FOR THE YEAR | 11 | 12 | 5 | |
Retiro Baixo [Member] | ||||
Assets | ||||
Current | 68 | 47 | 23 | |
Cash and cash equivalents | 56 | 36 | 14 | |
Non-current | 343 | 354 | 366 | |
TOTAL ASSETS | 411 | 401 | 389 | |
Liabilities | ||||
Current | 34 | 32 | 27 | |
Suppliers | 3 | |||
Loans and financings - Current | 14 | 14 | ||
Non-current | 77 | 91 | 104 | |
Loans and financings - Non-Current | 68 | 82 | ||
Equity | 300 | 278 | 258 | |
TOTAL LIABILITIES | 411 | 401 | 389 | |
Statement of income | ||||
Net sales revenue | 70 | 71 | 67 | |
Cost of sales | (30) | (29) | (34) | |
Depreciation and amortization | (9) | (10) | (10) | |
Gross profit (loss) | 40 | 42 | 33 | |
General and administrative expenses | (4) | (4) | ||
Provision for loss | ||||
Finance income | 3 | 2 | 3 | |
Finance expenses | (8) | (11) | (11) | |
Operational profit (loss) | 31 | 29 | 25 | |
Share of (loss) profit, net, of subsidiaries and joint ventures | ||||
Income tax and social contribution tax | (3) | (3) | (3) | |
Net income (loss) for the year | 28 | 26 | 22 | |
COMPREHENSIVE INCOME FOR THE YEAR | 28 | 26 | 22 | |
Alianca Norte (Belo Monte plant) [Member] | ||||
Assets | ||||
Current | 1 | 1 | ||
Cash and cash equivalents | 1 | |||
Non-current | 1,266 | 1,247 | 1,065 | |
TOTAL ASSETS | 1,267 | 1,247 | 1,066 | |
Liabilities | ||||
Current | 1 | |||
Suppliers | ||||
Loans and financings - Current | ||||
Non-current | ||||
Loans and financings - Non-Current | ||||
Equity | 1,266 | 1,247 | 1,066 | |
TOTAL LIABILITIES | 1,267 | 1,247 | 1,066 | |
Statement of income | ||||
Net sales revenue | ||||
Cost of sales | ||||
Depreciation and amortization | ||||
Gross profit (loss) | ||||
General and administrative expenses | (2) | (3) | (1) | |
Finance income | 1 | |||
Finance expenses | (1) | |||
Operational profit (loss) | (2) | (3) | (1) | |
Share of (loss) profit, net, of subsidiaries and joint ventures | 19 | 97 | ||
Income tax and social contribution tax | ||||
Net income (loss) for the year | 17 | 94 | (1) | |
COMPREHENSIVE INCOME FOR THE YEAR | R$ 17 | R$ 94 | (1) | |
RME [Member] | ||||
Assets | ||||
Current | 2 | |||
Cash and cash equivalents | 1 | |||
Non-current | 451 | |||
TOTAL ASSETS | 453 | |||
Liabilities | ||||
Current | ||||
Suppliers | ||||
Loans and financings - Current | ||||
Non-current | ||||
Equity | 453 | |||
TOTAL LIABILITIES | 453 | |||
Statement of income | ||||
Net sales revenue | ||||
Cost of sales | ||||
Depreciation and amortization | ||||
Gross profit (loss) | ||||
General and administrative expenses | (1) | |||
Finance income | 16 | |||
Finance expenses | ||||
Operational profit (loss) | 15 | |||
Income tax and social contribution tax | ||||
Net income (loss) for the year | 15 | |||
COMPREHENSIVE INCOME FOR THE YEAR | R$ 15 |
18. INVESTMENTS (Details 7)
18. INVESTMENTS (Details 7) - Centroeste [Member] R$ in Millions | Dec. 31, 2019BRL (R$) |
Disclosure of detailed information about business combination [line items] | |
Fair value on the acquisition date | R$ 120 |
Equity interest held by the Company before the acquisition of control | 51.00% |
Previously held interest, valued at fair value on the date control was obtained | R$ 61 |
Carrying value of the investment | (24) |
Gain on remeasurement of previously held equity interest in subsidiaries acquired to be recognized in 2020 | R$ 37 |
18. INVESTMENTS (Details 8)
18. INVESTMENTS (Details 8) - Centroeste [Member] R$ in Millions | Dec. 31, 2019BRL (R$) |
Disclosure of detailed information about business combination [line items] | |
Cash consideration paid | R$ 45 |
Previously held interest, valued at fair value on the acquisition date | 61 |
Bargain purchase | 14 |
Total | R$ 120 |
18. INVESTMENTS (Details 9)
18. INVESTMENTS (Details 9) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Cash and cash equivalents | R$ 536 | R$ 891 | ||
Total, current assets | 10,138 | 27,796 | ||
Contract assets | 2,005 | 1,729 | ||
Concession intangible assets | 11,624 | 10,777 | R$ 11156 | R$ 10820 |
TOTAL NON-CURRENT | 39,788 | 32,059 | ||
Liabilities | ||||
TOTAL CURRENT | 7,913 | 23,394 | ||
Provisions | 1,888 | 641 | ||
TOTAL NON-CURRENT | 26,122 | R$ 20522 | ||
At Fair Value [Member] | ||||
Assets | ||||
Cash and cash equivalents | 27 | |||
Other current assets | 2 | |||
Total, current assets | 29 | |||
TOTAL NON-CURRENT | 108 | |||
Contract assets and Right to exploitation of the regulated activity | 108 | |||
Liabilities | ||||
Loans and financings | 3 | |||
Interest on equity and dividends payable | 2 | |||
Other current liabilities | 1 | |||
TOTAL CURRENT | 6 | |||
Loans and financings | 8 | |||
Provisions | 3 | |||
TOTAL NON-CURRENT | 11 | |||
Fair value of net identifiable assets | R$ 120 |
18. INVESTMENTS (Details Narrat
18. INVESTMENTS (Details Narrative) - BRL (R$) R$ / shares in Units, R$ in Millions | Jan. 23, 2020 | Dec. 27, 2019 | Jan. 28, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2014 | Oct. 25, 2019 | Oct. 15, 2019 | Aug. 07, 2019 | Nov. 30, 2018 | Oct. 31, 2018 | Apr. 23, 2018 |
Disclosure of detailed information about investment property [line items] | |||||||||||||
Provision for losses on investments | R$ 22 | ||||||||||||
Investment Write Downs | 183 | ||||||||||||
Net income (loss) for the year | 3,128 | 1,742 | R$ 1002 | ||||||||||
Accumulated loss | (2,993) | R$ 1938 | |||||||||||
Negative net working capital | R$ 3309 | ||||||||||||
Number of shares issued | 1,258,841,654 | 1,458,752,601 | 1,258,841,654 | 199,910,947 | |||||||||
Share price | R$ 5.00 | R$ 5.00 | |||||||||||
Increase in the share capitaL | R$ 2600 | ||||||||||||
Consideration paid for the acquisition | R$ 45 | ||||||||||||
Equity deficit | R$ 8750 | R$ 6362 | R$ 5729 | ||||||||||
Parajuru, Volta do Rio and Morgado [member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Percentage Of Minority Interest | 49.00% | ||||||||||||
Light [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Interest acquisition percentage | 47.25% | ||||||||||||
Light SA [member] | Cemig GT [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Interest acquisition percentage | 49.99% | ||||||||||||
Renova [Member] | Cemig GT [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Advance against future capital increase | R$ 5 | ||||||||||||
Mesa [Member] | Cemig GT [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Subscribed capital increases | R$ 25 | ||||||||||||
FIP Melbourne [Member] | Cemig GT [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Subscribed capital increases | R$ 26 | ||||||||||||
Eletrobras [Member] | Centroeste [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Interest acquisition percentage | 49.00% | ||||||||||||
Percentage of holding by investee | 100.00% | ||||||||||||
Belo Monte Plant Through Amaznia Energia S A A And Alianca Norte [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Loss contingencies | R$ 1962 | R$ 1643 | |||||||||||
Renova Energia SA [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Current liabilities in excess of consolidated current assets | 2,907 | 458 | |||||||||||
Net income (loss) for the year | 688 | (856) | |||||||||||
Accumulated loss | 4,010 | 3,051 | |||||||||||
Equity deficit | 1,091 | 76 | |||||||||||
Effective assets | 35 | ||||||||||||
Impaired assets | 142 | ||||||||||||
Renova Energia SA [Member] | Preferred Shares [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Interest acquisition percentage | 17.17% | ||||||||||||
Number of shares issued | 98 | ||||||||||||
Cemig GT [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Investment Write Downs | R$ 678 | ||||||||||||
Madeira Energia SA Mesa and FIP Melbourne [member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Loss contingencies | 951 | 1,743 | |||||||||||
Current liabilities in excess of consolidated current assets | 427 | 663 | |||||||||||
Madeira Energia (Santo Antonio plant) [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Net income (loss) for the year | R$ 951 | (1,743) | (1,091) | ||||||||||
Nominal WACC discount rate | 9.59% | ||||||||||||
Baguari Energia [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Net income (loss) for the year | R$ 32 | R$ 41 | 22 | ||||||||||
Belo Monte Plant Through Amaznia Energia SAA and Aliana Norte [member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Percentage of indirect equity interest | 11.69% | ||||||||||||
TAESA [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Net income (loss) for the year | R$ 1071 | ||||||||||||
Number of unit sold | 34,000,000 | ||||||||||||
Sold price (in dollar per share) | R$ 21.1 | ||||||||||||
Percentage of share capital | 31.54% | ||||||||||||
Percentage of reduced share capital | 21.68% | ||||||||||||
Alianca Norte Energia Participacoes S A [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Net income (loss) for the year | 94 | ||||||||||||
Retiro Baixo Energtica SA [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Net income (loss) for the year | 26 | ||||||||||||
Renova [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Net income (loss) for the year | R$ 1014 | (856) | (1,140) | ||||||||||
Renova [Member] | Loan Agreements [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Loan granted | R$ 17 | R$ 20 | 37 | ||||||||||
Alianca Geracao [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Net income (loss) for the year | 229 | 198 | 215 | ||||||||||
Amazonia Energia (Belo Monte plant) [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Net income (loss) for the year | R$ 20 | 103 | R$ 1 | ||||||||||
Ativas Data Center [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Net income (loss) for the year | (21) | ||||||||||||
Hidreletrica Cachoeirao SA [member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Net income (loss) for the year | 20 | ||||||||||||
Hidreletrica Pipoca [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Net income (loss) for the year | 12 | ||||||||||||
Centroeste [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Net income (loss) for the year | R$ 10 | ||||||||||||
Interest acquisition percentage | 51.00% | ||||||||||||
Espra [Member] | |||||||||||||
Disclosure of detailed information about investment property [line items] | |||||||||||||
Estimated due consideration for income tax and social contribution tax | R$ 89 |
19. PROPERTY, PLANT AND EQUIP_3
19. PROPERTY, PLANT AND EQUIPMENT (Details) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | R$ 2450 | R$ 2662 | R$ 2762 | R$ 3775 | |||
Investment Property Completed [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | 2,317 | 2,542 | 2,656 | 279 | |||
Investment Property Under Construction or Development [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | 133 | 120 | 106 | 138 | |||
Land [Member] | Investment Property Completed [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | 229 | [1] | 215 | [1] | 211 | [1] | 3,637 |
Furniture and Utensils [Member] | Investment Property Completed [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | 3 | 4 | 3 | ||||
Reservoirs Dams and Water Courses [Member] | Investment Property Completed [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | 1,080 | 1,150 | 1,234 | 1,761 | |||
Buildings Works and Improvements [Member] | Investment Property Completed [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | 274 | 314 | 3 | 3 | |||
Machinery and Equipment [Member] | Investment Property Completed [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | 729 | 854 | 874 | 1,172 | |||
Vehicles [Member] | Investment Property Completed [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | 2 | 5 | R$ 3 | R$ 4 | |||
Gross Carrying Amount [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | 7,385 | 7,568 | |||||
Gross Carrying Amount [Member] | Investment Property Completed [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | 7,252 | 7,448 | |||||
Gross Carrying Amount [Member] | Investment Property Under Construction or Development [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | 133 | 120 | |||||
Gross Carrying Amount [Member] | Land [Member] | Investment Property Completed [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | 248 | 231 | |||||
Gross Carrying Amount [Member] | Furniture and Utensils [Member] | Investment Property Completed [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | 14 | 16 | |||||
Gross Carrying Amount [Member] | Reservoirs Dams and Water Courses [Member] | Investment Property Completed [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | 3,280 | 3,282 | |||||
Gross Carrying Amount [Member] | Buildings Works and Improvements [Member] | Investment Property Completed [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | 1,092 | 1,114 | |||||
Gross Carrying Amount [Member] | Machinery and Equipment [Member] | Investment Property Completed [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | 2,598 | 2,773 | |||||
Gross Carrying Amount [Member] | Vehicles [Member] | Investment Property Completed [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | 20 | 32 | |||||
Accumulated Depreciation and Amortisation [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | (4,935) | (4,906) | |||||
Accumulated Depreciation and Amortisation [Member] | Investment Property Completed [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | (4,935) | (4,906) | |||||
Accumulated Depreciation and Amortisation [Member] | Land [Member] | Investment Property Completed [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | (19) | (16) | |||||
Accumulated Depreciation and Amortisation [Member] | Furniture and Utensils [Member] | Investment Property Completed [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | (11) | (12) | |||||
Accumulated Depreciation and Amortisation [Member] | Reservoirs Dams and Water Courses [Member] | Investment Property Completed [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | (2,200) | (2,132) | |||||
Accumulated Depreciation and Amortisation [Member] | Buildings Works and Improvements [Member] | Investment Property Completed [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | (818) | (800) | |||||
Accumulated Depreciation and Amortisation [Member] | Machinery and Equipment [Member] | Investment Property Completed [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | (1,869) | (1,919) | |||||
Accumulated Depreciation and Amortisation [Member] | Vehicles [Member] | Investment Property Completed [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Net PP&E | R$ 18 | R$ 27 | |||||
[1] | Certain land sites linked to concession contracts and without provision for reimbursement are amortized in accordance with the period of the concession. |
19. PROPERTY, PLANT AND EQUIP_4
19. PROPERTY, PLANT AND EQUIPMENT (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property plant and equipment, Beginning balance | R$ 2662 | R$ 2762 | R$ 3775 | |||
Additions | 70 | 77 | 83 | |||
Jaguara, Miranda and Volta Grande Plants | (876) | |||||
Disposals | (103) | (33) | (27) | |||
Depreciation | (183) | (175) | (205) | |||
Transfer to Held for sale | (256) | |||||
Adjustment for business combination | 296 | |||||
Transfers / capitalizations | 4 | (9) | [1] | 12 | ||
Property plant and equipment, Ending balance | 2,450 | 2,662 | 2,762 | |||
Investment Property Completed [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property plant and equipment, Beginning balance | 2,542 | 2,656 | 279 | |||
Additions | ||||||
Jaguara, Miranda and Volta Grande Plants | (876) | |||||
Disposals | (91) | (11) | (10) | |||
Depreciation | (183) | (175) | (205) | |||
Transfer to Held for sale | (256) | |||||
Adjustment for business combination | 296 | |||||
Transfers / capitalizations | 49 | [1] | 32 | 110 | ||
Property plant and equipment, Ending balance | 2,317 | 2,542 | 2,656 | |||
Investment Property Under Construction or Development [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property plant and equipment, Beginning balance | 120 | 106 | 138 | |||
Additions | 70 | 77 | 83 | |||
Jaguara, Miranda and Volta Grande Plants | ||||||
Disposals | (12) | (22) | (17) | |||
Depreciation | ||||||
Transfer to Held for sale | ||||||
Adjustment for business combination | ||||||
Transfers / capitalizations | (45) | [1] | (41) | (98) | ||
Property plant and equipment, Ending balance | 133 | 120 | 106 | |||
Land [Member] | Investment Property Completed [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property plant and equipment, Beginning balance | 215 | [2] | 211 | [2] | 3,637 | |
Additions | ||||||
Jaguara, Miranda and Volta Grande Plants | (61) | |||||
Disposals | (1) | |||||
Depreciation | (3) | [2] | (2) | [2] | (6) | |
Transfer to Held for sale | ||||||
Adjustment for business combination | ||||||
Transfers / capitalizations | 17 | [1],[2] | 6 | [2] | ||
Property plant and equipment, Ending balance | [2] | 229 | 215 | 211 | ||
Reservoirs Dams and Water Courses [Member] | Investment Property Completed [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property plant and equipment, Beginning balance | 1,150 | 1,234 | 1,761 | |||
Additions | ||||||
Jaguara, Miranda and Volta Grande Plants | (441) | |||||
Disposals | (4) | (2) | (4) | |||
Depreciation | (80) | (82) | (85) | |||
Transfer to Held for sale | ||||||
Adjustment for business combination | ||||||
Transfers / capitalizations | 14 | [1] | 3 | |||
Property plant and equipment, Ending balance | 1,080 | 1,150 | 1,234 | |||
Buildings Works and Improvements [Member] | Investment Property Completed [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property plant and equipment, Beginning balance | 314 | 3 | 3 | |||
Additions | ||||||
Jaguara, Miranda and Volta Grande Plants | ||||||
Disposals | (5) | |||||
Depreciation | (19) | |||||
Transfer to Held for sale | ||||||
Adjustment for business combination | ||||||
Transfers / capitalizations | (16) | [1] | 1 | |||
Property plant and equipment, Ending balance | 274 | 314 | 3 | |||
Machinery and Equipment [Member] | Investment Property Completed [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property plant and equipment, Beginning balance | 854 | 874 | 1,172 | |||
Additions | ||||||
Jaguara, Miranda and Volta Grande Plants | (305) | |||||
Disposals | (81) | (9) | (5) | |||
Depreciation | (78) | (70) | (93) | |||
Transfer to Held for sale | (256) | |||||
Adjustment for business combination | 296 | |||||
Transfers / capitalizations | 34 | [1] | 19 | 105 | ||
Property plant and equipment, Ending balance | 729 | 854 | 874 | |||
Vehicles [member] | Investment Property Completed [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property plant and equipment, Beginning balance | 5 | 3 | 4 | |||
Additions | ||||||
Jaguara, Miranda and Volta Grande Plants | ||||||
Disposals | ||||||
Depreciation | (3) | (2) | (1) | |||
Transfer to Held for sale | ||||||
Adjustment for business combination | ||||||
Transfers / capitalizations | 4 | |||||
Property plant and equipment, Ending balance | 2 | 5 | 3 | |||
Furniture and Utensils [Member] | Investment Property Completed [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property plant and equipment, Beginning balance | 4 | 3 | ||||
Additions | ||||||
Disposals | ||||||
Depreciation | ||||||
Transfer to Held for sale | ||||||
Adjustment for business combination | ||||||
Transfers / capitalizations | 1 | |||||
Property plant and equipment, Ending balance | 3 | 4 | R$ 3 | |||
Furniture and utensils [Member] | Investment Property Completed [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property plant and equipment, Beginning balance | 4 | |||||
Additions | ||||||
Disposals | (1) | |||||
Depreciation | ||||||
Transfers / capitalizations | ||||||
Property plant and equipment, Ending balance | R$ 3 | R$ 4 | ||||
[1] | Balances of R$ 4 were transferred between Intangible assets, concession contract assets and PP&E. | |||||
[2] | Certain land sites linked to concession contracts and without provision for reimbursement are amortized in accordance with the period of the concession. |
19. PROPERTY, PLANT AND EQUIP_5
19. PROPERTY, PLANT AND EQUIPMENT (Details 2) | 12 Months Ended |
Dec. 31, 2019 | |
General Equipment [Member] | Administration Unit [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property plant and equipment depreciation rate | 6.25% |
IT Equipment In General [Member] | Administration Unit [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property plant and equipment depreciation rate | 16.67% |
Buildings - Other [Member] | Administration Unit [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property plant and equipment depreciation rate | 3.33% |
Buildings - Other [Member] | Generation Unit [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property plant and equipment depreciation rate | 3.33% |
Town Planning and Improvements [Member] | Generation Unit [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property plant and equipment depreciation rate | 3.33% |
Command Station, Panel and Cubicle [Member] | Generation Unit [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property plant and equipment depreciation rate | 3.57% |
Pressure tunnel [Member] | Generation Unit [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property plant and equipment depreciation rate | 3.13% |
Water Turbine [Member] | Generation Unit [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property plant and equipment depreciation rate | 2.50% |
Generator [Member] | Generation Unit [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property plant and equipment depreciation rate | 3.33% |
Buildings - Machine Room [Member] | Generation Unit [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property plant and equipment depreciation rate | 2.00% |
Reservoirs Dams and Water Courses [Member] | Generation Unit [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property plant and equipment depreciation rate | 2.00% |
Vehicles [Member] | Administration Unit [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property plant and equipment depreciation rate | 14.29% |
Computer Software [Member] | Administration Unit [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property plant and equipment depreciation rate | 20.00% |
19. PROPERTY, PLANT AND EQUIP_6
19. PROPERTY, PLANT AND EQUIPMENT (Details 3) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Average annual depreciation rate | 3.13% | 3.72% | 3.14% |
Hydroelectric Generation [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Average annual depreciation rate | 2.83% | ||
Thermoelectric Generation [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Average annual depreciation rate | 4.13% | ||
Wind Power Generation [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Average annual depreciation rate | 4.87% | ||
Administration [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Average annual depreciation rate | 8.29% |
19. PROPERTY, PLANT AND EQUIP_7
19. PROPERTY, PLANT AND EQUIPMENT (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |||
Average annual depreciation rate | 3.13% | 3.72% | 3.14% |
20. INTANGIBLE ASSETS (Details)
20. INTANGIBLE ASSETS (Details) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | R$ 11624 | R$ 10777 | R$ 11156 | R$ 10820 | |||
Temporary Easement Intangible Assets [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 8 | 8 | |||||
Assets Of Concession [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 11,517 | [1] | 10,680 | [1] | 10,435 | 9,248 | |
Temporary Easements Intangible Assets [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 8 | 8 | 10 | 10 | |||
Useful Life Defined Intangible Asset [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 11,542 | 10,714 | 11,156 | 9,285 | |||
Onerous Concession [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 7 | 7 | 8 | 9 | |||
Other Intangible Assets [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 10 | 19 | R$ 17 | R$ 18 | |||
Intangible Assets Under Development [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 82 | 63 | |||||
Gross Carrying Amount [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 20,230 | 18,852 | |||||
Gross Carrying Amount [Member] | Temporary Easement Intangible Assets [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 12 | 11 | |||||
Gross Carrying Amount [Member] | Assets Of Concession [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | [1] | 20 | 18,674 | ||||
Gross Carrying Amount [Member] | Useful Life Defined Intangible Asset [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 20,148 | 18,789 | |||||
Gross Carrying Amount [Member] | Onerous Concession [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 20,039 | 19 | [1] | ||||
Gross Carrying Amount [Member] | Other Intangible Assets [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 82 | 85 | |||||
Gross Carrying Amount [Member] | Intangible Assets Under Development [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 82 | 63 | |||||
Accumulated Depreciation and Amortisation [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | (8,606) | (8,075) | |||||
Accumulated Depreciation and Amortisation [Member] | Temporary Easement Intangible Assets [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | (4) | (3) | |||||
Accumulated Depreciation and Amortisation [Member] | Assets Of Concession [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | [1] | (8,522) | (7,994) | ||||
Accumulated Depreciation and Amortisation [Member] | Useful Life Defined Intangible Asset [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | (8,606) | (8,075) | |||||
Accumulated Depreciation and Amortisation [Member] | Onerous Concession [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | (8,522) | (12) | |||||
Accumulated Depreciation and Amortisation [Member] | Other Intangible Assets [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | R$ 67 | R$ 66 | |||||
[1] | The rights of authorization to generate wind power granted to the subsidiary Parajuru and Volta do Rio, valued at R$ 127, and of the gas distribution concession, granted to Gasmig, valued at R$ 426, are classified in the consolidated statement of financial position under intangibles assets and are amortized by the straight-line method, for the period of the concessions. |
20. INTANGIBLE ASSETS (Details
20. INTANGIBLE ASSETS (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | R$ 10777 | R$ 11156 | R$ 10820 | ||||
Assets arising from business combination | 166 | ||||||
Additions | 934 | 34 | 1,105 | ||||
Disposals | (41) | (27) | [1] | (19) | |||
Effects of first-time adoption of IFRS 15 | (621) | ||||||
Amortization | (704) | (675) | (646) | ||||
Transfer to Held for sale | (7) | ||||||
Transfer | 658 | 751 | [2] | (104) | [3] | ||
Ending balance | 11,624 | 10,777 | 11,156 | ||||
Intangible Assets Under Development [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 63 | 686 | 1,535 | ||||
Additions | 36 | 33 | 1,105 | ||||
Disposals | (4) | (8) | |||||
Effects of first-time adoption of IFRS 15 | (621) | ||||||
Transfer | (17) | [2] | (31) | (1,946) | [3] | ||
Ending balance | 82 | 63 | 686 | ||||
Temporary Easements Intangible Assets [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 8 | 10 | 10 | ||||
Amortization | (1) | (1) | |||||
Ending balance | 8 | 8 | 10 | ||||
Onerous Concession [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 7 | 8 | 9 | ||||
Amortization | (1) | (1) | |||||
Ending balance | 7 | 7 | 8 | ||||
Assets Of Concession [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 10,680 | [4] | 10,435 | 9,248 | |||
Assets arising from business combination | 162 | ||||||
Additions | 891 | ||||||
Disposals | (41) | [1] | (23) | (11) | |||
Amortization | (698) | (668) | (638) | ||||
Transfer | 685 | [2] | 774 | 1,842 | [3] | ||
Ending balance | 11,517 | [4] | 10,680 | [4] | 10,435 | ||
Other Intangible Assets [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 19 | 17 | 18 | ||||
Assets arising from business combination | 4 | ||||||
Additions | 7 | 1 | |||||
Disposals | [1] | (5) | |||||
Amortization | (5) | (7) | |||||
Transfer to Held for sale | (7) | ||||||
Transfer | (10) | [2] | 8 | 6 | [3] | ||
Ending balance | 10 | 19 | 17 | ||||
Useful Life Defined Intangible Asset [Member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 10,714 | 11,156 | 9,285 | ||||
Assets arising from business combination | 166 | ||||||
Additions | 898 | 1 | |||||
Disposals | (41) | [1] | (23) | (11) | |||
Amortization | (704) | (675) | (646) | ||||
Transfer to Held for sale | (7) | ||||||
Transfer | 675 | [2] | 782 | 1,842 | [3] | ||
Ending balance | R$ 11542 | R$ 10714 | R$ 11156 | ||||
[1] | This includes the impairment, in the amount of R$ 22 recognized in the Income Statement under "Other expenses". The test of impairment of intangible assets, relating to the authorization for wind power generation granted to Volta do Rio, recognized in 2018 as part of the its business combination, arises from non- achievement of the operational performance expected in 2019 for the wind generation assets of the subsidiary. The Value in Use of the assets was calculated based on the projection of future expected cash flows for the operation of the assets of the subsidiary, brought to present value by the weighted average cost of capital defined for the company's activity, using the Firm Cash Flow (FCFF) methodology. | ||||||
[2] | The transfers were made between Intangible assets, concession contract assets and property, plant and equipment are as follows: (1) R$685 from concession contract assets to intangible assets; (2) (R$4) from intangible assets to property, plant and equipment and; and (3) (R$23) from intangible assets to concession financial assets. | ||||||
[3] | Balances transferred to financial assets. | ||||||
[4] | The rights of authorization to generate wind power granted to the subsidiary Parajuru and Volta do Rio, valued at R$ 127, and of the gas distribution concession, granted to Gasmig, valued at R$ 426, are classified in the consolidated statement of financial position under intangibles assets and are amortized by the straight-line method, for the period of the concessions. |
20. INTANGIBLE ASSETS (Detail_2
20. INTANGIBLE ASSETS (Details 2) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 4.01% |
Administration [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 16.03% |
Improvements In Leased Properties [Member] | Gas Segment [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 10% |
Tubing [Member] | Gas Segment [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 3.33% |
Voltage Regulator - Up To 69 kV [Member] | Energy Distribution Segment [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 4.35% |
Capacitor Bank - Up To 69 kV [Member] | Energy Distribution Segment [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 6.67% |
Circuit Breaker - Up To 69 kV [Member] | Energy Distribution Segment [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 3.03% |
Overhead Distribution Transformer [Member] | Energy Distribution Segment [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 4% |
Structure - Posts [Member] | Energy Distribution Segment [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 3.57% |
System Cable - Below 69 KV [Member] | Energy Distribution Segment [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 3.57% |
System Cable - Below 69 KV One [Member] | Energy Distribution Segment [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 6.67% |
Vehicles One [Member] | Administration [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 14.29% |
General Equipment [Member] | Administration [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 6.25% |
Machinery and Equipment [Member] | Gas Segment [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 5.2% |
Furniture [Member] | Administration [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 10% |
Data Processing Equipment [Member] | Administration [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 20% |
Buildings Works and Improvements [Member] | Gas Segment [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 4% |
Vehicles [member] | Administration [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 20% |
Computer Software [Member] | Administration [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 20% |
Buildings [Member] | Administration [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 3.33% |
20. INTANGIBLE ASSETS (Detail_3
20. INTANGIBLE ASSETS (Details 3) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [line items] | |
Annual average amortization rate | 4.01% |
Hydroelectric Generation [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Annual average amortization rate | 19.74% |
Wind Power Generation [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Annual average amortization rate | 16.90% |
Administration [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Annual average amortization rate | 16.03% |
Distribution [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Annual average amortization rate | 3.88% |
Gas [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Annual average amortization rate | 2.87% |
20. INTANGIBLE ASSETS (Detail_4
20. INTANGIBLE ASSETS (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about intangible assets [abstract] | |||
Capitalized borrowing costs | R$ 2 | R$ 4 | R$ 71 |
Annual average amortization rate | 4.01% |
21. LEASING TRANSACTIONS (Detai
21. LEASING TRANSACTIONS (Details) - BRL (R$) R$ in Millions | Jan. 02, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of fair value measurement of assets [line items] | |||
Right-of-use assets | R$ 342 | R$ 277 | |
Real Estate Property [Member] | |||
Disclosure of fair value measurement of assets [line items] | |||
Right-of-use assets | 238 | 206 | 238 |
Vehicles [Member] | |||
Disclosure of fair value measurement of assets [line items] | |||
Right-of-use assets | R$ 104 | R$ 71 | R$ 104 |
21. LEASING TRANSACTIONS (Det_2
21. LEASING TRANSACTIONS (Details 1) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019BRL (R$) | ||
Disclosure of fair value measurement of assets [line items] | ||
January 1, 2019 | ||
Addition | 32 | |
Disposals (contracts terminated) | (13) | |
Amortization | (76) | [1] |
Remeasurement | (8) | [2] |
Balances at December 31, 2019 | 277 | |
Real Estate Property [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
January 1, 2019 | 238 | |
Addition | 28 | |
Disposals (contracts terminated) | (13) | |
Amortization | (37) | [1] |
Remeasurement | (10) | [2] |
Balances at December 31, 2019 | 206 | |
Vehicles [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
January 1, 2019 | 104 | |
Addition | 4 | |
Amortization | (39) | [1] |
Remeasurement | 2 | [2] |
Balances at December 31, 2019 | R$ 71 | |
[1] | Amortization of the right-of-use assets is recognized in the Income Statement is net of use of the credits of PIS, Pasep and Cofins taxes on leasing payments ofR$5. | |
[2] | The Company has identified events giving rise to modifications of their principal contracts. When occurred, the lease liabilities adjustments are recognized in counterpart of the right-of-use assets. |
21. LEASING TRANSACTIONS (Det_3
21. LEASING TRANSACTIONS (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Leasing Transactions | |||||
January 1, 2019 | [1] | R$ 342 | |||
Addition | 32 | ||||
Disposals (contracts terminated) | (13) | ||||
Accrued interest | [2] | 36 | |||
Payment of principal portion of lease liability | (96) | ||||
Payment of interest | (5) | ||||
Remeasurement | [3] | (8) | |||
Balances at December 31, 2019 | 288 | 342 | [1] | ||
Current liabilities | 85 | ||||
Non-current liabilities | R$ 203 | ||||
[1] | The Company's incremental borrowing rate applied to the lease liability recognized in the statement of financial position on the date of the initial application varied between 7.96% p.a. and 10.64% p.a., depending on the leasing contract period, and 13.17% p.a., respectively, for contracts with maturities of up to two years, two to five years and longer than five years. The rates applied to the contracts entered into during 2019 were 6.87% p.a., 7.33% p.a. and 8.08% p.a., for contracts with maturities, respectively, of up to three years, three to four years, and over four years. To determine the incremental borrowing rate, the Company used as a reference quotations obtained from financial institutions, these being a function of the Company's credit risk, and market conditions on the date of contracting. | ||||
[2] | Financial expenses recognized in the income statement are net of PIS/Pasep and Cofins taxes credits on lease payments in the amounts of R$2. | ||||
[3] | The Company identified events that give rise to modifications of their principal contracts. When occurred, the lease liabilities adjustments are recognized in counterpart of the right-of-use assets. |
21. LEASING TRANSACTIONS (Det_4
21. LEASING TRANSACTIONS (Details 3) R$ in Millions | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Nominal [Member] | |
Disclosure of fair value measurement of assets [line items] | |
Consideration for the leasing | R$ 704 |
Potential PIS/Pasep and Cofins (9.25%) | 56 |
Adjusted To Present Value [Member] | |
Disclosure of fair value measurement of assets [line items] | |
Consideration for the leasing | 288 |
Potential PIS/Pasep and Cofins (9.25%) | R$ 18 |
21. LEASING TRANSACTIONS (Det_5
21. LEASING TRANSACTIONS (Details 4) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | [1] |
Disclosure of fair value measurement of assets [line items] | |||
Undiscounted values | R$ 704 | ||
Embedded interest | (416) | ||
Lease liabilities | 288 | R$ 342 | |
2020 [Member] | |||
Disclosure of fair value measurement of assets [line items] | |||
Undiscounted values | 86 | ||
2021 [Member] | |||
Disclosure of fair value measurement of assets [line items] | |||
Undiscounted values | 58 | ||
2022 [Member] | |||
Disclosure of fair value measurement of assets [line items] | |||
Undiscounted values | 26 | ||
2023 [Member] | |||
Disclosure of fair value measurement of assets [line items] | |||
Undiscounted values | 26 | ||
2024 [Member] | |||
Disclosure of fair value measurement of assets [line items] | |||
Undiscounted values | 26 | ||
2025 To 2045 [Member] | |||
Disclosure of fair value measurement of assets [line items] | |||
Undiscounted values | R$ 482 | ||
[1] | The Company's incremental borrowing rate applied to the lease liability recognized in the statement of financial position on the date of the initial application varied between 7.96% p.a. and 10.64% p.a., depending on the leasing contract period, and 13.17% p.a., respectively, for contracts with maturities of up to two years, two to five years and longer than five years. The rates applied to the contracts entered into during 2019 were 6.87% p.a., 7.33% p.a. and 8.08% p.a., for contracts with maturities, respectively, of up to three years, three to four years, and over four years. To determine the incremental borrowing rate, the Company used as a reference quotations obtained from financial institutions, these being a function of the Company's credit risk, and market conditions on the date of contracting. |
21. LEASING TRANSACTIONS (Det_6
21. LEASING TRANSACTIONS (Details Narrative) R$ in Millions | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Up To Three Years [Member] | |
Disclosure of fair value measurement of assets [line items] | |
Borrowings interest rate | 6.87% |
Three To Four Years [Member] | |
Disclosure of fair value measurement of assets [line items] | |
Borrowings interest rate | 7.33% |
Longer Than Five Years [Member] | |
Disclosure of fair value measurement of assets [line items] | |
Borrowings interest rate | 8.08% |
Lease Liabilities [Member] | |
Disclosure of fair value measurement of assets [line items] | |
Description of varied borrowing rate | Between 7.96% p.a. and 10.64% p.a., depending on the leasing contract period, and 13.17% p.a., respectively, for contracts with maturities of up to two years, two to five years and longer than five years. |
PIS, Pasep and Cofins Taxes [Member] | |
Disclosure of fair value measurement of assets [line items] | |
Amortization | R$ 5 |
Financial revenues | R$ 2 |
22. SUPPLIERS (Details)
22. SUPPLIERS (Details) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of trade payables [line items] | ||
Total Suppliers | R$ 2080 | R$ 1801 |
Energy Purchased For Resale [Member] | ||
Disclosure of trade payables [line items] | ||
Total Suppliers | 764 | 775 |
Charges For Use Of Energy Network [Member] | ||
Disclosure of trade payables [line items] | ||
Total Suppliers | 145 | 122 |
Energy On Spot Market Cmara De Comercializao De Energia Eltrica [Member] | ||
Disclosure of trade payables [line items] | ||
Total Suppliers | 401 | 139 |
Materials And Service Suppliers [Member] | ||
Disclosure of trade payables [line items] | ||
Total Suppliers | 384 | 373 |
Gas Purchased For Resale [Member] | ||
Disclosure of trade payables [line items] | ||
Total Suppliers | 143 | 124 |
Itaipu Binacional [Member] | ||
Disclosure of trade payables [line items] | ||
Total Suppliers | R$ 243 | R$ 268 |
23. TAXES PAYABLE AND AMOUNTS_3
23. TAXES PAYABLE AND AMOUNTS TO BE REFUNDED TO CUSTOMERS (Details) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of taxes payable [line items] | |||
Current taxes payable | R$ 359 | R$ 410 | |
Non current Taxes payable | 1 | 29 | |
Total tax payable | 360 | 439 | |
Pasep and Cofins taxes to be reimbursed to customers | 4,193 | 1,124 | |
ICMS [Member] | |||
Disclosure of taxes payable [line items] | |||
Current taxes payable | 112 | 168 | |
COFINS [Member] | |||
Disclosure of taxes payable [line items] | |||
Current taxes payable | 135 | 146 | |
Non current Taxes payable | 1 | 25 | |
INSS [Member] | |||
Disclosure of taxes payable [line items] | |||
Current taxes payable | 25 | 23 | |
PASEP [Member] | |||
Disclosure of taxes payable [line items] | |||
Current taxes payable | 29 | 32 | |
Non current Taxes payable | 4 | ||
Other Tax Authority [member] | |||
Disclosure of taxes payable [line items] | |||
Current taxes payable | [1] | 58 | 41 |
Pasep and COFINS [member] | |||
Disclosure of taxes payable [line items] | |||
Pasep and Cofins taxes to be reimbursed to customers | R$ 4193 | R$ 1124 | |
[1] | This includes the withholding income tax on Interest on equity paid in January 2020, in accordance with the tax legislation. |
24. LOANS, FINANCING AND DEBE_2
24. LOANS, FINANCING AND DEBENTURES (Details) - BRL (R$) R$ in Millions | May 07, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | April 15, 2022 to April 15, 2025 | |||
Current | R$ 2747 | |||
Non-current | 12,030 | R$ 12574 | ||
Total | 14,777 | 14,772 | ||
United States of America, Dollars | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total | 6,110 | |||
United States of America, Dollars | Transaction Costs [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Current | ||||
Non-current | (19) | |||
Total | (19) | (21) | ||
United States of America, Dollars | Interest Paid in Advance [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Current | [1] | |||
Non-current | [1] | (30) | ||
Total | [1] | (30) | (34) | |
Debt In Foreign Currency [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Current | 48 | |||
Non-current | 6,013 | |||
Total | 6,061 | 5,827 | ||
Debt In Brazilian Currency [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Current | 1,065 | |||
Non-current | 60 | |||
Total | 1,125 | 1,766 | ||
Loans And Financings [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Current | 1,113 | |||
Non-current | 6,073 | |||
Total | R$ 7186 | 7,593 | ||
Banco do Brasil S.A. [member] | One Four Six Point Five Zero Percent Of Interbank Rate For Certificates Of Deposit [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [2],[3] | 2022 | ||
Annual financial cost | [2],[3] | 146.50% do CDI | ||
Currency | [2],[3] | R$ | ||
Current | [2],[3] | |||
Non-current | [2],[3] | |||
Total | [2],[3] | 503 | ||
Sonda [member] | One One Zero Percent Of Interbank Rate For Certificates Of Deposit [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [4] | 2021 | ||
Annual financial cost | [4] | 110.00% do CDI | ||
Currency | [4] | R$ | ||
Current | [4] | |||
Non-current | [4] | 49 | ||
Total | [4] | R$ 49 | 46 | |
Eletrobras [Member] | Ufir Plus Six Point Zero To Eight Point Zero Zero [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [2] | 2023 | ||
Annual financial cost | [2] | UFIR + 6.00% a 8.00% | ||
Currency | [2] | R$ | ||
Current | [2] | R$ 11 | ||
Non-current | [2] | 9 | ||
Total | [2] | R$ 20 | 33 | |
Promissory Notes Ninth Issue First Series [Member] | One Five One Percent Of Interbank Rate For Certificates Of Deposit [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [2],[3] | 2019 | ||
Annual financial cost | [2],[3] | 151.00% do CDI | ||
Currency | [2],[3] | R$ | ||
Current | [2],[3] | |||
Non-current | [2],[3] | |||
Total | [2],[3] | 426 | ||
Eurobonds [Member] | United States of America, Dollars | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [5] | 2024 | ||
Annual financial cost | [5] | 9.25 | ||
Currency | [5] | US$ | ||
Current | [5] | R$ 46 | ||
Non-current | [5] | 6,046 | ||
Total | [5] | R$ 6092 | 5,856 | |
Large Customers [Member] | General Domestic Availability Price Index Plus Six Point Zero [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [2] | 2024 | ||
Annual financial cost | [2] | IGP-DI + 6.00% | ||
Currency | [2] | R$ | ||
Current | [2] | R$ 3 | ||
Non-current | [2] | 2 | ||
Total | [2] | R$ 5 | R$ 5 | |
Debentures [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [6] | 2023 | ||
Debentures [Member] | Interbank Rate For Certificates Of Deposit Plus One Point Five Zero Percentage [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [7] | 2023 | ||
Annual financial cost | [7] | CDI + 1.50% | ||
Currency | [7] | R$ | ||
Current | [7] | R$ 20 | ||
Non-current | [7] | 60 | ||
Total | [7] | 80 | R$ 100 | |
Debentures [Member] | Transaction Costs [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Current | (10) | |||
Non-current | (19) | |||
Total | R$ 29 | (41) | ||
Debentures Third Issue Third Series [Member] | IPCA Plus Six Point Two Zero [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [5] | 2022 | ||
Annual financial cost | [5] | IPCA + 6.20% | ||
Currency | [5] | R$ | ||
Current | [5] | R$ 396 | ||
Non-current | [5] | 692 | ||
Total | [5] | R$ 1088 | 1,049 | |
Debentures Third Issue Third Series [Member] | IPCA Plus Five Point One Zero [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [2] | 2025 | ||
Annual financial cost | [2] | IPCA + 5.10% | ||
Currency | [2] | R$ | ||
Current | [2] | R$ 42 | ||
Non-current | [2] | 949 | ||
Total | [2] | R$ 991 | 957 | |
Debentures Third Issue Second Series [Member] | IPCA Plus Six Point Zero Zero [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [5] | 2019 | ||
Annual financial cost | [5] | IPCA + 6.00% | ||
Currency | [5] | R$ | ||
Current | [5] | |||
Non-current | [5] | |||
Total | [5] | 156 | ||
Debentures Third Issue Second Series [Member] | IPCA Plus Four Point Seven Zero [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [2] | 2021 | ||
Annual financial cost | [2] | IPCA + 4.70% | ||
Currency | [2] | R$ | ||
Current | [2] | R$ 568 | ||
Non-current | [2] | 541 | ||
Total | [2] | R$ 1109 | 1,596 | |
Caixa Economica Federal [Member] | One Four Six Point Five Zero Percent Of Interbank Rate For Certificates Of Deposit [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [2],[3] | 2022 | ||
Annual financial cost | [2],[3] | 146.50% of CDI | ||
Currency | [2],[3] | R$ | ||
Current | [2],[3] | |||
Non-current | [2],[3] | |||
Total | [2],[3] | 627 | ||
Caixa Economica Federal [Member] | TJLP Plus Two Point Five Zero Matured On Two Thousand And Twenty Two [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [8] | 2022 | ||
Annual financial cost | [8] | TJLP + 2.50% | ||
Currency | [8] | R$ | ||
Current | [8] | R$ 118 | ||
Non-current | [8] | |||
Total | [8] | R$ 118 | 108 | |
Caixa Economica Federal [Member] | TJLP Plus Two Point Five Zero Matured On Two Thousand And Twenty One [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [9] | 2021 | ||
Annual financial cost | [9] | TJLP + 2.50% | ||
Currency | [9] | R$ | ||
Current | [9] | R$ 61 | ||
Non-current | [9] | |||
Total | [9] | R$ 61 | 56 | |
Promissory Notes First Issue Single Series [Member] | One Zero Seven Percent Of CDI [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [7] | 2020 | ||
Annual financial cost | [7] | 107.00% of CDI | ||
Currency | [7] | R$ | ||
Current | [7] | R$ 875 | ||
Non-current | [7] | |||
Total | [7] | R$ 875 | ||
Banco do Brasil Various Bonds [Member] | United States of America, Dollars | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [2],[10] | 2024 | ||
Annual financial cost | [2],[10] | Diverse | ||
Currency | [2],[10] | US$ | ||
Current | [2],[10] | R$ 2 | ||
Non-current | [2],[10] | 16 | ||
Total | [2],[10] | 18 | 26 | |
Subsidiary Securities [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Current | (3) | |||
Non-current | ||||
Total | (3) | (25) | ||
Transaction Costs [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Current | ||||
Non-current | ||||
Total | (13) | |||
Debentures Sixth Issue Second Series [Member] | IPCA Plus Eight Point Zero Seven [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [5] | 2020 | ||
Annual financial cost | [5] | IPCA + 8.07% | ||
Currency | [5] | R$ | ||
Current | [5] | R$ 17 | ||
Non-current | [5] | |||
Total | [5] | R$ 17 | 33 | |
Debentures Seventh Issue Single Series [Member] | One Four Zero Percent of CDI [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [5],[11] | 2021 | ||
Annual financial cost | [5],[11] | 140.00% of CDI | ||
Currency | [5],[11] | R$ | ||
Current | [5],[11] | R$ 289 | ||
Non-current | [5],[11] | 289 | ||
Total | [5],[11] | R$ 578 | 1,023 | |
Debentures Fifth Issue Single Series [Member] | One Four Six Point Five Zero Percent of CDI [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [2],[3] | 2022 | ||
Annual financial cost | [2],[3] | 146.50% of CDI | ||
Currency | [2],[3] | R$ | ||
Current | [2],[3] | |||
Non-current | [2],[3] | |||
Total | [2],[3] | 1,580 | ||
Debentures Seventh Issue First Series [Member] | CDI Plus Zero Point Four Five Percent [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [2] | 2024 | ||
Annual financial cost | [2] | CDI + 0.45% | ||
Currency | [2] | R$ | ||
Current | [2] | R$ 275 | ||
Non-current | [2] | 1,890 | ||
Total | [2] | R$ 2165 | ||
Debentures Seventh Issue Second Series [member] | IPCA Plus Four Point One Zero Percent [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [2] | 2026 | ||
Annual financial cost | [2] | IPCA + 4.10% | ||
Currency | [2] | R$ | ||
Current | [2] | R$ 3 | ||
Non-current | [2] | 1,517 | ||
Total | [2] | R$ 1520 | ||
Debentures Fourth Issue First Series [member] | TJLP Plus One Point Eight Two Percent [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [7] | 2022 | ||
Annual financial cost | [7] | TJLP+1.82% | ||
Currency | [7] | R$ | ||
Current | [7] | R$ 12 | ||
Non-current | [7] | 19 | ||
Total | [7] | R$ 31 | 125 | |
Debentures Fourth Issue Second Series [member] | Selic Plus One Point Eight Two Percent [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [7] | 2022 | ||
Annual financial cost | [7] | Selic + 1,82% | ||
Currency | [7] | R$ | ||
Current | [7] | R$ 5 | ||
Non-current | [7] | 9 | ||
Total | [7] | R$ 14 | ||
Debentures Fourth Issue Third Series [member] | TJLP Plus One Point Eight Two Percent [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [7] | 2022 | ||
Annual financial cost | [7] | TJLP + 1,82% | ||
Currency | [7] | R$ | ||
Current | [7] | R$ 12 | ||
Non-current | [7] | 22 | ||
Total | [7] | R$ 34 | ||
Debentures Fourth Issue Fourth Series [member] | Selic Plus One Point Eight Two Percent [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [7] | 2022 | ||
Annual financial cost | [7] | Selic + 1,82% | ||
Currency | [7] | R$ | ||
Current | [7] | R$ 5 | ||
Non-current | [7] | 10 | ||
Total | [7] | R$ 15 | ||
Debentures Sixth Issue Single Series [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [12] | 2020 | ||
Debentures Sixth Issue Single Series [member] | One One Six Point Five Zero Percent Of CDI [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal maturity | [7] | 2019 | ||
Annual financial cost | [7] | 116.50% of CDI | ||
Currency | [7] | R$ | ||
Current | [7] | |||
Non-current | [7] | |||
Total | [7] | R$ 50 | ||
Discount On The Issuance Of Debentures [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Current | [13] | |||
Non-current | [13] | (22) | ||
Total | [13] | (22) | ||
Net Debentures [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Current | 1,634 | |||
Non-current | 5,957 | |||
Total | R$ 7591 | R$ 7179 | ||
[1] | Advance of funds to achieve the yield to maturity agreed in the Eurobonds contract. | |||
[2] | Cemig Distribuicao; | |||
[3] | The funds incorporated into the cash position of Cemig D as a result of the distribution of its Seventh Issue of non-convertible debentures, on July 22, 2019, enabled full prepayment of the debtor balances of: the Ninth Issue of Promissory Notes, with final maturity in October 2019; the Sixth Issue of Non- convertible Debentures, with final maturity in June 2020; the Fifth Issue of Non-convertible Debentures, maturing at the end of June 2022; and Bank Credit Notes with final maturities in June 2022. These prepayments, made on July 24, 2019, total R$3,644 including principal, interest and charges. These initiatives have balanced the cash flow and improved the Company's credit quality. The changes in the new debt profile consisted of extinction of existing contracts and signature of new contracts. The accounting effects of the transactions are reflected in accordance with IFRS 09. | |||
[4] | Arising from merger of Cemig Telecom. | |||
[5] | Cemig Geracao e Transmissao; | |||
[6] | In August 2018 Gasmig completed its 7th debenture issue, with maturity at 5 years, paying CDI 1.50%, with annual amortization from August 2019. | |||
[7] | Gasmig; | |||
[8] | Central Eoica Volta do Rio; | |||
[9] | Central Eolica Praias de Parajuru; | |||
[10] | Net balance of the Restructured Debt comprising bonds at par and discounted, with balance of R$ 182, less the amounts given as Deposits in guarantee, with balance of R$ 164. Interest rates vary - from 2 to 8% p.a.; six-month Libor plus spread of 0.81% to 0.88% p.a. | |||
[11] | On July 24, 2019 Cemig GT made extraordinary amortization of its Seventh Issue of Non-convertible ventures, in the amount of R$125, with final maturity in December 2021. | |||
[12] | In December 2018 the 6th Debenture Issue was placed, with maturity at 18 months, annual remuneration of CDI +1.75%, and monthly amortization in 12 payments from July 3, 2019. | |||
[13] | Discount on the sale price of the 2nd series of the Seventh issue of Cemig Distribuicao. |
24. LOANS, FINANCING AND DEBE_3
24. LOANS, FINANCING AND DEBENTURES (Detail 1) - BRL (R$) R$ in Millions | May 07, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Principal maturity | April 15, 2022 to April 15, 2025 | |||||||
Transaction costs | R$ 48 | |||||||
Discount on the issuance of debentures | (22) | |||||||
Interest paid in advance | (30) | |||||||
Debentures [Member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Signature date | [1] | Aug. 31, 2018 | ||||||
Principal maturity | [1] | 2023 | ||||||
Annual financial cost, % | [1] | CDI + 1.50% | ||||||
Amount | [1] | R$ 100 | ||||||
Debentures - 6th Issue - Single Series [Member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Signature date | [2] | Dec. 31, 2018 | ||||||
Principal maturity | [2] | 2020 | ||||||
Annual financial cost, % | [2] | CDI + 1.75% | ||||||
Amount | [2] | R$ 550 | ||||||
Transaction costs | (4) | |||||||
Brazilian Currency [Member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Transaction costs | (10) | (4) | R$ 11 | [3],[4] | ||||
Discount on the issuance of debentures | (23) | [5] | 1,042 | |||||
Total raised | R$ 4477 | R$ 2990 | R$ 4812 | |||||
Brazilian Currency [Member] | Debentures - 7th Issue - 1st Series [Member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Signature date | [6] | Jul. 31, 2019 | ||||||
Principal maturity | [6] | 2024 | ||||||
Annual financial cost, % | [6] | CDI + 0.454% | ||||||
Amount | [6] | R$ 2160 | ||||||
Brazilian Currency [Member] | Debentures - 7th Issue - 2nd Series [Member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Signature date | [6] | Jul. 31, 2019 | ||||||
Principal maturity | [6] | 2026 | ||||||
Annual financial cost, % | [6] | 4.10% of IPCA | ||||||
Amount | [6] | R$ 1500 | ||||||
Brazilian Currency [Member] | Promissory Notes - 1st Issue [Member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Signature date | [7] | Sep. 30, 2019 | ||||||
Principal maturity | [7] | 2020 | ||||||
Annual financial cost, % | [7] | 107.00% of CDI | ||||||
Amount | [7] | R$ 850 | ||||||
Brazilian Currency [Member] | Promissory Notes - 9th Issue - Single Series [Member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Signature date | [8] | May 31, 2018 | ||||||
Principal maturity | [8] | 2019 | ||||||
Annual financial cost, % | [8] | 151% of CDI | ||||||
Amount | [8] | R$ 400 | ||||||
Brazilian Currency [Member] | Debentures [Member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Signature date | [9] | Nov. 4, 2013 | ||||||
Principal maturity | [9] | 2022 | ||||||
Annual financial cost, % | [9] | CDI + 0.74% | ||||||
Amount | [3],[9] | R$ 34 | ||||||
Brazilian Currency [Member] | Debentures [Member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Signature date | [10] | Apr. 22, 2017 | ||||||
Principal maturity | [10] | 2019 | ||||||
Annual financial cost, % | [10] | 128.50% of CDI | ||||||
Amount | [3],[10] | R$ 26 | ||||||
Brazilian Currency [Member] | Debentures - 5th Issue Single Series [Member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Signature date | Dec. 14, 2017 | |||||||
Principal maturity | 2022 | |||||||
Annual financial cost, % | 146.50% of CDI | |||||||
Amount | [3] | R$ 1575 | ||||||
Foreign Currency [Member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Transaction costs | (8) | |||||||
Interest paid in advance | [11] | 10 | ||||||
Total raised | R$ 1948 | |||||||
Foreign Currency [Member] | Eurobonds [Member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Signature date | Jul. 31, 2018 | [12] | Dec. 5, 2017 | |||||
Principal maturity | 2024 | [12] | 2024 | |||||
Annual financial cost, % | 9.25% | [12] | 9.25% | |||||
Amount | R$ 1946 | [12] | R$ 3252 | [3] | ||||
Transaction costs | [3] | (16) | ||||||
Interest paid in advance | [3] | R$ 48 | ||||||
[1] | In August 2018 Gasmig completed its 7th debenture issue, with maturity at 5 years, paying CDI 1.50%, with annual amortization from August 2019. | |||||||
[2] | In December 2018 the 6th Debenture Issue was placed, with maturity at 18 months, annual remuneration of CDI +1.75%, and monthly amortization in 12 payments from July 3, 2019. | |||||||
[3] | Includes taxes without cash effect, of R$ 10. | |||||||
[4] | On December 14, 2017 CemigTelecom made its 5th issue of non-convertible debentures, with maturity 4.5 years, annual remuneration of 146.50% of the CDI, to be amortized in 36 monthly installments due as from July 2019. Payment for subscription of the Debentures of the 5th issue was made with debentures of the 4th issue - thus there was no cash effect. | |||||||
[5] | Discount on the sale price of the 2nd series of the debentures issued by Cemig Distribuicao. | |||||||
[6] | Cemig Distribuicao. | |||||||
[7] | Gasmig. | |||||||
[8] | In May 2018 Cemig D made its 9th Promissory Note issue, with maturity at 18 months, annual remuneration of 151% of the CDI rate, and single bullet amortization on October 24, 2019. | |||||||
[9] | Subscription by BNDESPar of Gasmig's 4th debentures Issue, in June 2017, to support the plan for investment in expansion of the gas distribution network. | |||||||
[10] | Cemig Telecom (merged into Company in 2018] completed its second issue of non-convertible debentures in May 2017 with real guarantees and additional surety, in a single series, to roll over debt and strengthen cash position. | |||||||
[11] | Advance of funds to achieve the yield to maturity agreed in the Eurobonds contract. | |||||||
[12] | In July 2018, Cemig GT completed financial settlement of an additional tranche to its initial Eurobond issue completed on December 5, 2017. The new tranche, of US$ 500, which brought the total of the issuance to R$ 1.946 billion, has half-yearly coupon of 9.25% p.a., with maturity of the principal in 2024. |
24. LOANS, FINANCING AND DEBE_4
24. LOANS, FINANCING AND DEBENTURES (Detaills 2) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 14777 | R$ 14772 |
Promissory Notes and Sureties [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 9,247 | |
Guarantee and Receivables [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 3,652 | |
Receivables [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 310 | |
Shares [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 609 | |
Unsecured [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 959 |
24. LOANS, FINANCING AND DEBE_5
24. LOANS, FINANCING AND DEBENTURES (Detaills 3) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | R$ 14777 | R$ 14772 | |
Transaction costs | (48) | ||
Interest paid in advance | (30) | ||
Discount | (22) | ||
Overall total | 14,777 | ||
IPCA [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [1] | 4,725 | |
UFIR/RGR [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 20 | |
CDI [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [3] | 3,773 | |
URTJ/TJLP [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [4] | 244 | |
IGP-DI [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [5] | 5 | |
Total By Index [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 8,767 | ||
Total Currency Denominated [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 6,110 | ||
2020 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction costs | (11) | ||
Interest paid in advance | |||
Discount | |||
Overall total | 2,744 | ||
2020 [Member] | IPCA [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [1] | 1,027 | |
2020 [Member] | UFIR/RGR [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 11 | |
2020 [Member] | CDI [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [3] | 1,465 | |
2020 [Member] | URTJ/TJLP [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [4] | 202 | |
2020 [Member] | IGP-DI [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [5] | 2 | |
2020 [Member] | Total By Index [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 2,707 | ||
2020 [Member] | Total Currency Denominated [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 48 | ||
2024 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction costs | (19) | ||
Interest paid in advance | (30) | ||
Discount | |||
Overall total | 6,521 | ||
2024 [Member] | IPCA [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [1] | 237 | |
2024 [Member] | CDI [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [3] | 271 | |
2024 [Member] | Total By Index [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 508 | ||
2024 [Member] | Total Currency Denominated [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 6,062 | ||
2021 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction costs | (10) | ||
Interest paid in advance | |||
Discount | |||
Overall total | 1,803 | ||
2021 [Member] | IPCA [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [1] | 881 | |
2021 [Member] | UFIR/RGR [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 3 | |
2021 [Member] | CDI [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [3] | 907 | |
2021 [Member] | URTJ/TJLP [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [4] | 21 | |
2021 [Member] | IGP-DI [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [5] | 1 | |
2021 [Member] | Total By Index [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 1,813 | ||
2022 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction costs | (1) | ||
Interest paid in advance | |||
Discount | |||
Overall total | 1,182 | ||
2022 [Member] | IPCA [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [1] | 588 | |
2022 [Member] | UFIR/RGR [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 3 | |
2022 [Member] | CDI [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [3] | 570 | |
2022 [Member] | URTJ/TJLP [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [4] | 21 | |
2022 [Member] | IGP-DI [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [5] | 1 | |
2022 [Member] | Total By Index [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 1,183 | ||
2023 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction costs | (1) | ||
Interest paid in advance | |||
Discount | |||
Overall total | 800 | ||
2023 [Member] | IPCA [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [1] | 237 | |
2023 [Member] | UFIR/RGR [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 3 | |
2023 [Member] | CDI [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [3] | 560 | |
2023 [Member] | IGP-DI [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [5] | 1 | |
2023 [Member] | Total By Index [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 801 | ||
2025 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction costs | (3) | ||
Interest paid in advance | |||
Discount | (11) | ||
Overall total | 982 | ||
2025 [Member] | IPCA [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [1] | 996 | |
2025 [Member] | Total By Index [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 996 | ||
2026 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction costs | (3) | ||
Interest paid in advance | |||
Discount | (11) | ||
Overall total | 745 | ||
2026 [Member] | IPCA [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [1] | 759 | |
2026 [Member] | Total By Index [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 759 | ||
United States of America, Dollars | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 6,110 | ||
United States of America, Dollars | 2020 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 48 | ||
United States of America, Dollars | 2024 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | R$ 6062 | ||
[1] | Expanded National Customer Price (IPCA) Index. | ||
[2] | Fiscal Reference Unit (Ufir / RGR). | ||
[3] | CDI: Interbank Rate for Certificates of Deposit. | ||
[4] | Interest rate reference unit (URTJ) / Long-Term Interest Rate (TJLP) | ||
[5] | IGP-DI ('General - Domestic Availability') Price Index. |
24. LOANS, FINANCING AND DEBE_6
24. LOANS, FINANCING AND DEBENTURES (Detaills 4) - United States of America, Dollars | Dec. 31, 2019 | Dec. 31, 2018 |
IPCA [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Accumulated change | 4.02% | 17.13% |
Accumulated change | 4.31% | 3.75% |
CDI [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Accumulated change | 5.97% | 6.40% |
TJLP [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Accumulated change | (20.20%) | (0.29%) |
24. LOANS, FINANCING AND DEBE_7
24. LOANS, FINANCING AND DEBENTURES (Detaills 5) - BRL (R$) R$ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of detailed information about borrowings [line items] | |||||
Beginning Balance | R$ 14772 | ||||
(-) Transaction costs | (48) | ||||
(-) Discount in the issues of securities | (22) | ||||
(-) Interest paid in advance | (30) | ||||
Ending Balance | 14,777 | R$ 14772 | |||
Loans Financing and Debentures [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Beginning Balance | 14,772 | 14,398 | R$ 15179 | ||
Liabilities arising from business combination | 163 | ||||
Initial balance for consolidation purposes | 14,561 | ||||
Loans and financings obtained | 4,510 | 2,996 | 3,363 | ||
(-) Transaction costs | (10) | (16) | (16) | [1] | |
(-) Discount in the issues of securities | (23) | ||||
(-) Interest paid in advance | 10 | (48) | [1] | ||
Financings obtained, net | 4,477 | 2,990 | 3,299 | ||
Transaction costs | [2] | (11) | |||
Monetary variation | 142 | 134 | 109 | ||
Exchange rate variation | 226 | 582 | 59 | ||
Financial charges provisioned | 1,250 | 1,287 | 1,537 | ||
Amortization of transaction cost | 38 | 33 | 67 | ||
Financial charges paid | (1,265) | (1,290) | (1,749) | ||
Amortization of financings | (4,883) | (3,527) | (1,749) | ||
Subtotal | 14,757 | 14,770 | 14,359 | ||
FIC Pampulha: Marketable securities of subsidiary companies | 20 | 2 | 39 | ||
Ending Balance | R$ 14777 | R$ 14772 | R$ 14398 | ||
[1] | Includes taxes with no cash effect, of R$10 | ||||
[2] | Transaction costs arising from the 5th issue of debentures by Cemig D, which was subscribed by transfer of the debentures of the 4th issue - thus there was no cash effect in the Company. |
24. LOANS, FINANCING AND DEBE_8
24. LOANS, FINANCING AND DEBENTURES (Detaills 6) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure loans financings and debentures [abstract] | ||||
Costs of loans and financing | R$ 1250 | R$ 1287 | R$ 1604 | |
Financing costs on intangible assets and contract assets | [1],[2] | (23) | (30) | (71) |
Net effect in Profit or loss | R$ 1227 | R$ 1257 | R$ 1533 | |
[1] | The average capitalization rate p.a. in 2019 was 6.79% (9.64% in 2018 and 14.28% in 2017). | |||
[2] | This refers to the credits recognized by the wholly-owned subsidiaries Sa Carvalho, Cemig Geracao Distribuida, Cemig Geracao Poco Fundo S.A. (previously denominated UTE Barreiro S.A.) and Horizontes Energia S.A.. |
24. LOANS, FINANCING AND DEBE_9
24. LOANS, FINANCING AND DEBENTURES (Detaills 7) | 12 Months Ended | |
Dec. 31, 2019 | ||
Cemig GT [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Transaction | 7th Debentures Issue Cemig GT | [1] |
Covenant | Net debt / (Ebitda + Dividends received) | [1] |
Ratio required - parajuru and volta do rio | [1] | |
Compliance required | Semi-annual and annual | |
Cemig GT [Member] | Eurobonds [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Transaction | Eurobonds Cemig GT | [2] |
Covenant | Net debt / Ebitda adjusted for the Covenant | [2] |
Ratio required - parajuru and volta do rio | [2] | |
Compliance required | Semi-annual and annual | |
Cemig GT [Member] | 7th Debentures Issue [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Transaction | 7th Debentures Issue Cemig D | |
Covenant | Net debt / Ebitda adjusted | |
Ratio required - parajuru and volta do rio | ||
Compliance required | Semi-annual and annual | |
Cemig GT [Member] | 2019 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Ratio requirement - issuer | 4.50% | [1] |
Ratio requirement - cemig (guarantor) | 3.50% | [1] |
Cemig GT [Member] | 2020 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Ratio requirement - issuer | 3.00% | [1] |
Ratio requirement - cemig (guarantor) | 3.00% | [1] |
Cemig GT [Member] | 2021 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Ratio requirement - issuer | 2.50% | [1] |
Ratio requirement - cemig (guarantor) | 2.50% | [1] |
Cemig GT [Member] | December Thirty One Two Thousand Nineteen [Member] | Eurobonds [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Ratio requirement - issuer | 4.50% | [2] |
Ratio requirement - cemig (guarantor) | 3.50% | [2] |
Cemig GT [Member] | December Thirty One Two Thousand Nineteen [Member] | 7th Debentures Issue [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Ratio requirement - issuer | 3.80% | |
Ratio requirement - cemig (guarantor) | 3.50% | |
Cemig GT [Member] | June Thirty Twenty Twenty [Member] | Eurobonds [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Ratio requirement - issuer | 4.50% | [2] |
Ratio requirement - cemig (guarantor) | 3.50% | [2] |
Cemig GT [Member] | June Thirty Twenty Twenty [Member] | 7th Debentures Issue [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Ratio requirement - issuer | 3.50% | |
Ratio requirement - cemig (guarantor) | 3.50% | |
Cemig GT [Member] | December Thirty One Twenty Twenty [Member] | Eurobonds [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Ratio requirement - issuer | 3.00% | [2] |
Ratio requirement - cemig (guarantor) | 3.00% | [2] |
Cemig GT [Member] | December Thirty One Twenty Twenty [Member] | 7th Debentures Issue [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Ratio requirement - cemig (guarantor) | 3.00% | |
Cemig GT [Member] | After December Thirty One Twenty Twenty One [Member] | Eurobonds [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Ratio requirement - issuer | 2.50% | [2] |
Ratio requirement - cemig (guarantor) | 3.00% | [2] |
GASMIG [Member] | Debentures [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Transaction | Debentures GASMIG | [3] |
Covenant | Overall indebtedness (Total liabilities/Total assets) Ebitda / Debt servicing Ebitda / Net finance income (expenses) Net debt / Ebitda | [3] |
Ratio requirement - issuer | 0.60% | [3] |
Ratio required - parajuru and volta do rio | [3] | |
Compliance required | Annual | |
GASMIG [Member] | Debentures [Member] | December Thirty One Two Thousand Nineteen [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Ratio requirement - issuer | 4.00% | [3] |
GASMIG [Member] | Debentures [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Ratio requirement - issuer | 1.30% | [3] |
GASMIG [Member] | Debentures [Member] | December Thirty One Twenty Twenty [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Ratio requirement - issuer | 2.50% | [3] |
GASMIG [Member] | Debentures [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Ratio requirement - issuer | 2.50% | [3] |
Financings Caixa Economica Federal (CEF) [Member] | Debt Servicing Coverage Index [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Transaction | Financings Caixa Econômica Federal (CEF) | [4] |
Covenant | Debt servicing coverage index | [4] |
Ratio required - parajuru and volta do rio | 1.20% | [4] |
Compliance required | Annual (during amortization) | |
Financings Caixa Economica Federal (CEF) [Member] | Equity Total Liabilities [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Transaction | Financings Caixa Econômica Federal (CEF) | [4] |
Covenant | Equity / Total liabilities | [4] |
Compliance required | Always | |
Financings Caixa Economica Federal (CEF) [Member] | Equity Total Liabilities [Member] | Parajuru [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Ratio required - parajuru and volta do rio | 20.61% | [4] |
Financings Caixa Economica Federal (CEF) [Member] | Equity Total Liabilities [Member] | Volta Do Rio [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Ratio required - parajuru and volta do rio | 20.63% | [4] |
Financings Caixa Economica Federal (CEF) [Member] | Share Capital Subscribed In Investee Total Investments Made In The Project Financed [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Transaction | Financings Caixa Economica Federal Parajuru and Volta do Rio | [4] |
Covenant | Share capital subscribed in investee / Total investments made in the project financed | [4] |
Compliance required | Always | |
Financings Caixa Economica Federal (CEF) [Member] | Share Capital Subscribed In Investee Total Investments Made In The Project Financed [Member] | Parajuru [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Ratio required - parajuru and volta do rio | 20.61% | [4] |
Financings Caixa Economica Federal (CEF) [Member] | Share Capital Subscribed In Investee Total Investments Made In The Project Financed [Member] | Volta Do Rio [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Ratio required - parajuru and volta do rio | 20.63% | [4] |
[1] | 7th Issue of Debentures by Cemig GT, as of December 31, 2016, of R$ 2,240. | |
[2] | In the event of a possible breach of the financial covenants, interest will automatically be increased by 2% p.a. during the period in which they remain exceeded. There is also an obligation to comply with a 'maintenance' covenants - that the consolidated debt, shall have a guarantee for debt of 1.75x Ebitda (2.0 as of December 31, 2017); and a 'damage' covenant, requiring real guarantee for debt at Cemig GT of 1.5x Ebitda. | |
[3] | If Gasmig does not achieve the required covenants, it must, within 120 days from the date of notice in writing from BNDES or BNDESPar, constitute guarantees acceptable the debenture holders fbyor the total amount of the debt, subject to the rules of the National Monetary Council (CMN), unless the required ratios are restored within that period. Certain contractually specified situations can cause early maturity of other debts (cross-default). | |
[4] | The financing contracts with Caixa Economica Federal for the Praias de Parajuru and Volta do Rio wind power plants have financial covenants with compliance relating to early maturity of the debt remaining balance. Compliance with the debt servicing coverage index is considered to be demandable only annually and during the period of amortization, which begins in July 2020. |
24. LOANS, FINANCING AND DEB_10
24. LOANS, FINANCING AND DEBENTURES (Detaills Narrative) - BRL (R$) R$ in Millions | 1 Months Ended | 12 Months Ended | ||
Sep. 26, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | ||||
Average rate of capitalization rate | 6.79% | 9.64% | 14.28% | |
Reclassified to current liabilites | R$ 178 | |||
Promissory Notes First Issue Single Series [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Aggregate amount | R$ 850 | |||
Maturity term | 12 years | |||
Interest rate | 107.00% | |||
Cemig GT [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Aggregate amount | R$ 50 |
25. REGULATORY CHARGES (Details
25. REGULATORY CHARGES (Details) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Liabilities | ||
Energy Development Account (CDE) | R$ 58 | R$ 122 |
Regulator inspection fee - ANEEL | 3 | 2 |
Energy Efficiency Program | 255 | 258 |
Research and development (R&D) | 199 | 225 |
Energy System Expansion Research | 3 | 2 |
National Scientific and Technological Development Fund | 6 | 5 |
Proinfa - Alternative Energy Program | 8 | 7 |
Royalties for use of water resources | 10 | 6 |
Emergency capacity charge | 26 | 31 |
Others | 5 | 6 |
Liability | 604 | 693 |
Current liabilities | 457 | 514 |
Non-current liabilities | 147 | 179 |
Regulatory Assets [member] | ||
Liabilities | ||
Global Reversion Reserve (RGR) | R$ 31 | R$ 29 |
26. POST-EMPLOYMENT OBLIGATIO_3
26. POST-EMPLOYMENT OBLIGATIONS (Details) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of defined benefit plans [line items] | ||||
Net liabilities in the statement of financial position | R$ 6709 | R$ 4989 | R$ 4186 | R$ 4242 |
Pension Plans and Retirement Supplement Plans [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Fair value of plan assets | (10,366) | (9,063) | (8,546) | (8,128) |
Pension And Retirement Supplement Plans [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Net liabilities in the statement of financial position | 2,972 | 2,170 | 2,068 | 1,679 |
Dental Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Net liabilities in the statement of financial position | 61 | 48 | 38 | 38 |
Health Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Net liabilities in the statement of financial position | 3,102 | 2,344 | 1,809 | 1,711 |
Life Insurance Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Net liabilities in the statement of financial position | 574 | 427 | R$ 271 | R$ 814 |
Actuarial Assumption of Expected Rates of Pension Increases [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of obligations | 17,022 | 13,892 | ||
Fair value of plan assets | (10,366) | (9,062) | ||
Net liabilities in the statement of financial position | 6,709 | 4,989 | ||
Actuarial Assumption of Expected Rates of Pension Increases [Member] | Initial Net Liabilities [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Net liabilities in the statement of financial position | 6,656 | 4,830 | ||
Actuarial Assumption of Expected Rates of Pension Increases [Member] | Effect of Asset Ceiling [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Net liabilities in the statement of financial position | 53 | 159 | ||
Actuarial Assumption of Expected Rates of Pension Increases [Member] | Pension Plans and Retirement Supplement Plans [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of obligations | 13,285 | 11,073 | ||
Fair value of plan assets | (10,366) | (9,062) | ||
Net liabilities in the statement of financial position | 2,972 | 2,170 | ||
Actuarial Assumption of Expected Rates of Pension Increases [Member] | Pension Plans and Retirement Supplement Plans [Member] | Initial Net Liabilities [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Net liabilities in the statement of financial position | 2,919 | 2,011 | ||
Actuarial Assumption of Expected Rates of Pension Increases [Member] | Pension Plans and Retirement Supplement Plans [Member] | Effect of Asset Ceiling [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Net liabilities in the statement of financial position | 53 | 159 | ||
Actuarial Assumption of Expected Rates of Pension Increases [Member] | Dental Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of obligations | 61 | 48 | ||
Net liabilities in the statement of financial position | 61 | 48 | ||
Actuarial Assumption of Expected Rates of Pension Increases [Member] | Dental Plan [Member] | Initial Net Liabilities [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Net liabilities in the statement of financial position | 61 | 48 | ||
Actuarial Assumption of Expected Rates of Pension Increases [Member] | Life Insurance [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of obligations | 574 | 427 | ||
Net liabilities in the statement of financial position | 574 | 427 | ||
Actuarial Assumption of Expected Rates of Pension Increases [Member] | Life Insurance [Member] | Initial Net Liabilities [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Net liabilities in the statement of financial position | 574 | 427 | ||
Actuarial Assumption of Expected Rates of Pension Increases [Member] | Health Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of obligations | 3,102 | 2,344 | ||
Net liabilities in the statement of financial position | 3,102 | 2,344 | ||
Actuarial Assumption of Expected Rates of Pension Increases [Member] | Health Plan [Member] | Initial Net Liabilities [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Net liabilities in the statement of financial position | R$ 3102 | R$ 2344 |
26. POST-EMPLOYMENT OBLIGATIO_4
26. POST-EMPLOYMENT OBLIGATIONS (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning balance | R$ 13892 | R$ 12663 | R$ 12306 |
Cost of current service | 18 | 15 | 19 |
Interest on the actuarial obligation | 1,213 | 1,161 | 1,246 |
Actuarial losses (gains): | |||
Due to changes in demographic assumptions | 6 | 191 | |
Due to changes in financial assumptions | 2,775 | 903 | 537 |
Due to adjustments based on experience | 160 | 161 | (53) |
Due to changes and adjustments | 2,941 | 1,064 | 675 |
Plan amendment - Past service | (619) | ||
Benefits paid | (1,042) | (1,011) | (964) |
Ending balance | 17,022 | 13,892 | 12,663 |
Pension Plans and Retirement Supplement Plans [Member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning balance | 11,073 | 10,545 | 9,743 |
Cost of current service | 1 | 4 | 5 |
Interest on the actuarial obligation | 963 | 959 | 980 |
Actuarial losses (gains): | |||
Due to changes in demographic assumptions | 6 | 191 | |
Due to changes in financial assumptions | 2,058 | 467 | 414 |
Due to adjustments based on experience | 83 | (20) | 53 |
Due to changes and adjustments | 2,147 | 447 | 658 |
Plan amendment - Past service | |||
Benefits paid | (899) | (881) | (841) |
Ending balance | 13,285 | 11,073 | 10,545 |
Health Plan [Member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning balance | 2,344 | 1,809 | 1,711 |
Cost of current service | 14 | 10 | 11 |
Interest on the actuarial obligation | 208 | 172 | 178 |
Actuarial losses (gains): | |||
Due to changes in demographic assumptions | |||
Due to changes in financial assumptions | 576 | 402 | 66 |
Due to adjustments based on experience | 91 | 68 | (44) |
Due to changes and adjustments | 667 | 470 | 22 |
Plan amendment - Past service | |||
Benefits paid | (131) | (118) | (113) |
Ending balance | 3,102 | 2,344 | 1,809 |
Dental Plan [Member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning balance | 48 | 39 | 38 |
Cost of current service | 0 | ||
Interest on the actuarial obligation | 5 | 4 | 3 |
Actuarial losses (gains): | |||
Due to changes in demographic assumptions | |||
Due to changes in financial assumptions | 11 | 8 | 2 |
Due to adjustments based on experience | (2) | ||
Due to changes and adjustments | 11 | 8 | |
Plan amendment - Past service | |||
Benefits paid | (2) | (3) | (2) |
Ending balance | 61 | 48 | 39 |
Life Insurance Plan [Member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning balance | 427 | 270 | 814 |
Cost of current service | 3 | 2 | 3 |
Interest on the actuarial obligation | 38 | 25 | 85 |
Actuarial losses (gains): | |||
Due to changes in demographic assumptions | |||
Due to changes in financial assumptions | 130 | 26 | 55 |
Due to adjustments based on experience | (14) | 113 | (60) |
Due to changes and adjustments | 116 | 139 | (5) |
Plan amendment - Past service | (619) | ||
Benefits paid | (10) | (9) | (8) |
Ending balance | R$ 574 | R$ 427 | R$ 270 |
26. POST-EMPLOYMENT OBLIGATIO_5
26. POST-EMPLOYMENT OBLIGATIONS (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of fair value of plan assets [line items] | |||
Benefits paid | R$ 1042 | R$ 1011 | R$ 964 |
Pension Plans and Retirement Supplement Plans [Member] | |||
Disclosure of fair value of plan assets [line items] | |||
Beginning balance | 9,063 | 8,546 | 8,128 |
Return on investments | 2,003 | 1,220 | 1,100 |
Contributions from employer | 199 | 178 | 159 |
Benefits paid | (899) | (881) | (841) |
Ending balance | R$ 10366 | R$ 9063 | R$ 8546 |
26. POST-EMPLOYMENT OBLIGATIO_6
26. POST-EMPLOYMENT OBLIGATIONS (Details 3) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of fair value of plan assets [line items] | |||
Cost of current service | R$ 18 | R$ 15 | R$ 19 |
Interest on the actuarial obligation | 1,213 | 1,161 | 1,246 |
Expected return on the assets of the Plan | (767) | (771) | (810) |
Past service cost | (619) | ||
Expense according to actuarial calculation | 464 | 405 | (164) |
Pension Plans and Retirement Supplement Plans [Member] | |||
Disclosure of fair value of plan assets [line items] | |||
Cost of current service | 1 | 4 | 5 |
Interest on the actuarial obligation | 963 | 959 | 980 |
Expected return on the assets of the Plan | (767) | (771) | (810) |
Past service cost | |||
Expense according to actuarial calculation | 197 | 192 | 175 |
Health Plan [Member] | |||
Disclosure of fair value of plan assets [line items] | |||
Cost of current service | 14 | 10 | 11 |
Interest on the actuarial obligation | 208 | 172 | 178 |
Expected return on the assets of the Plan | |||
Past service cost | |||
Expense according to actuarial calculation | 222 | 182 | 189 |
Dental Plan [Member] | |||
Disclosure of fair value of plan assets [line items] | |||
Cost of current service | 0 | ||
Interest on the actuarial obligation | 5 | 4 | 3 |
Expected return on the assets of the Plan | |||
Past service cost | |||
Expense according to actuarial calculation | 5 | 4 | 3 |
Life Insurance [Member] | |||
Disclosure of fair value of plan assets [line items] | |||
Cost of current service | 2 | 1 | 3 |
Interest on the actuarial obligation | 38 | 26 | 85 |
Expected return on the assets of the Plan | |||
Past service cost | (619) | ||
Expense according to actuarial calculation | R$ 40 | R$ 27 | R$ 531 |
26. POST-EMPLOYMENT OBLIGATIO_7
26. POST-EMPLOYMENT OBLIGATIONS (Details 4) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | |||
Current liabilities | R$ 288 | R$ 253 | |
Non-currentliabilities | 6,421 | 4,736 | |
Net liabilities, Beginning balance | 4,989 | 4,186 | R$ 4242 |
Expense recognized in Statement of income | 464 | 405 | 455 |
Contributions paid | (343) | (307) | (282) |
Plan amendment - Past service | (619) | ||
Actuarial losses (gains) | 2,775 | 903 | 537 |
Net liabilities, Ending balance | 6,709 | 4,989 | 4,186 |
Pension And Retirement Supplement Plans [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Net liabilities, Beginning balance | 2,170 | 2,068 | 1,679 |
Expense recognized in Statement of income | 197 | 193 | 175 |
Contributions paid | (200) | (178) | (160) |
Plan amendment - Past service | |||
Actuarial losses (gains) | 805 | 87 | 374 |
Net liabilities, Ending balance | 2,972 | 2,170 | 2,068 |
Health Plan [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Net liabilities, Beginning balance | 2,344 | 1,809 | 1,711 |
Expense recognized in Statement of income | 222 | 183 | 189 |
Contributions paid | (131) | (118) | (113) |
Plan amendment - Past service | |||
Actuarial losses (gains) | 576 | 402 | 66 |
Net liabilities, Ending balance | 3,102 | 2,344 | 1,809 |
Dental Plan [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Net liabilities, Beginning balance | 48 | 38 | 38 |
Expense recognized in Statement of income | 5 | 4 | 3 |
Contributions paid | (2) | (2) | (2) |
Plan amendment - Past service | |||
Actuarial losses (gains) | 11 | 8 | 2 |
Net liabilities, Ending balance | 61 | 48 | 38 |
Life Insurance Plan [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Net liabilities, Beginning balance | 427 | 271 | 814 |
Expense recognized in Statement of income | 40 | 25 | 88 |
Contributions paid | (10) | (9) | (7) |
Plan amendment - Past service | (619) | ||
Actuarial losses (gains) | 130 | 26 | 55 |
Net liabilities, Ending balance | R$ 574 | R$ 427 | R$ 271 |
26. POST-EMPLOYMENT OBLIGATIO_8
26. POST-EMPLOYMENT OBLIGATIONS (Details 5) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | ||||
Current service cost | R$ 18 | R$ 15 | R$ 19 | |
Interest on the actuarial obligation | (1,213) | (1,161) | (1,246) | |
Estimated total expense in 2019 as per actuarial report | 2,775 | 903 | 537 | |
Present Value of Defined Benefit Obligation [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Current service cost | R$ 26 | |||
Interest on the actuarial obligation | 1,147 | |||
Expected return on the assets of the Plan | (682) | |||
Estimated total expense in 2019 as per actuarial report | 491 | |||
Pension Plans and Retirement Supplement Plans [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Current service cost | (1) | (4) | (5) | |
Interest on the actuarial obligation | (963) | (959) | (980) | |
Expected return on the assets of the Plan | 2,003 | 1,220 | 1,100 | |
Estimated total expense in 2019 as per actuarial report | 2,058 | 467 | 414 | |
Pension Plans and Retirement Supplement Plans [Member] | Present Value of Defined Benefit Obligation [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Current service cost | 1 | |||
Interest on the actuarial obligation | 887 | |||
Expected return on the assets of the Plan | (682) | |||
Estimated total expense in 2019 as per actuarial report | 206 | |||
Health Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Current service cost | (14) | (10) | (11) | |
Interest on the actuarial obligation | (208) | (172) | (178) | |
Estimated total expense in 2019 as per actuarial report | 576 | 402 | 66 | |
Health Plan [Member] | Present Value of Defined Benefit Obligation [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Current service cost | 21 | |||
Interest on the actuarial obligation | 215 | |||
Expected return on the assets of the Plan | ||||
Estimated total expense in 2019 as per actuarial report | 236 | |||
Dental Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Current service cost | 0 | |||
Interest on the actuarial obligation | (5) | (4) | (3) | |
Estimated total expense in 2019 as per actuarial report | 11 | 8 | 2 | |
Dental Plan [Member] | Present Value of Defined Benefit Obligation [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Current service cost | 1 | |||
Interest on the actuarial obligation | 4 | |||
Expected return on the assets of the Plan | ||||
Estimated total expense in 2019 as per actuarial report | 5 | |||
Life Insurance Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Current service cost | (3) | (2) | (3) | |
Interest on the actuarial obligation | (38) | (25) | (85) | |
Estimated total expense in 2019 as per actuarial report | R$ 130 | R$ 26 | R$ 55 | |
Life Insurance Plan [Member] | Present Value of Defined Benefit Obligation [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Current service cost | 3 | |||
Interest on the actuarial obligation | 41 | |||
Expected return on the assets of the Plan | ||||
Estimated total expense in 2019 as per actuarial report | R$ 44 |
26. POST-EMPLOYMENT OBLIGATIO_9
26. POST-EMPLOYMENT OBLIGATIONS (Details 6) R$ in Millions | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
Disclosure of defined benefit plans [line items] | |
Estimated payment of benefits | R$ 1059 |
Pension And Retirement Supplement Plans [Member] | |
Disclosure of defined benefit plans [line items] | |
Estimated payment of benefits | 898 |
Health Plan [Member] | |
Disclosure of defined benefit plans [line items] | |
Estimated payment of benefits | 141 |
Dental Plan [Member] | |
Disclosure of defined benefit plans [line items] | |
Estimated payment of benefits | 3 |
Life Insurance Plan [Member] | |
Disclosure of defined benefit plans [line items] | |
Estimated payment of benefits | R$ 17 |
26. POST-EMPLOYMENT OBLIGATI_10
26. POST-EMPLOYMENT OBLIGATIONS (Details 7) | 12 Months Ended |
Dec. 31, 2019 | |
Pension And Retirement Supplement Plans Plan A [Member] | |
Disclosure of defined benefit plans [line items] | |
Average periods of maturity of the obligations under the benefit plans | 9 years 6 months 14 days |
Pension And Retirement Supplement Plans Plan B [Member] | |
Disclosure of defined benefit plans [line items] | |
Average periods of maturity of the obligations under the benefit plans | 11 years 6 months 18 days |
Health Plan [Member] | |
Disclosure of defined benefit plans [line items] | |
Average periods of maturity of the obligations under the benefit plans | 12 years 9 months 25 days |
Dental Plan [Member] | |
Disclosure of defined benefit plans [line items] | |
Average periods of maturity of the obligations under the benefit plans | 13 years 2 months 1 day |
Life Insurance Plan [Member] | |
Disclosure of defined benefit plans [line items] | |
Average periods of maturity of the obligations under the benefit plans | 16 years 11 months 5 days |
26. POST-EMPLOYMENT OBLIGATI_11
26. POST-EMPLOYMENT OBLIGATIONS (Details 8) | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of fair value of plan assets [abstract] | ||
Shares | 9.51% | 7.11% |
Fixed income securities | 72.28% | 71.92% |
Real estate property | 3.79% | 4.69% |
Others | 14.42% | 16.28% |
Total | 100.00% | 100.00% |
26. POST-EMPLOYMENT OBLIGATI_12
26. POST-EMPLOYMENT OBLIGATIONS (Details 9) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of fair value of plan assets [line items] | ||
Assets of the pension plan | R$ 925 | R$ 1077 |
Non Convertible Debentures Issued By The Company [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Assets of the pension plan | 398 | 380 |
Shares Issued By The Company [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Assets of the pension plan | 24 | 35 |
Real Estate Properties Of The Foundation Occupied By The Company [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Assets of the pension plan | R$ 503 | R$ 662 |
26. POST-EMPLOYMENT OBLIGATI_13
26. POST-EMPLOYMENT OBLIGATIONS (Details 10) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of defined benefit plans [line items] | ||||
Real growth in contributions above inflation (1) | [1] | 1.00% | 1.00% | |
Pension And Retirement Supplement Plans [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Annual discount rate for present value of the actuarial obligation | 6.87% | 9.02% | 9.48% | |
Annual expected return on plan assets | 6.87% | 9.02% | 9.48% | |
Long-term annual inflation rate | 3.61% | 4.01% | 4.00% | |
Estimated future annual salary increases | 3.61% | 4.01% | 4.00% | |
General mortality table | AT-2000 M S10% D10% | AT-2000 M S10% D10% | AT-2000 M S10% D10% | |
Disability table | Not applicable | Not applicable | Not applicable | |
Disabled mortality table | AT-49 M | AT 49 M | AT 49 M | |
Health Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Annual discount rate for present value of the actuarial obligation | 7.09% | 9.60% | 9.60% | |
Annual expected return on plan assets | 9.60% | |||
Long-term annual inflation rate | 3.61% | 4.00% | 4.00% | |
General mortality table | AT-2000 M S10% D20% | AT-2000 M S10% D20% | AT-2000 M S10% D20% | |
Disability table | Álvaro Vindas D30% | Álvaro Vindas D30% | Álvaro Vindas D30% | |
Disabled mortality table | MI-85 F | Winklevoss D30% | Winklevoss D30% | |
Real growth in contributions above inflation (1) | [1] | 1.00% | ||
Life Insurance Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Annual discount rate for present value of the actuarial obligation | 7.19% | 9.57% | 9.57% | |
Annual expected return on plan assets | 3.61% | 9.16% | 9.57% | |
Long-term annual inflation rate | 4.00% | 4.00% | ||
Estimated future annual salary increases | 4.85% | 6.08% | 6.08% | |
General mortality table | AT-2000 M S10% D20% | AT-2000 M S10% D20% | AT-2000 M S10% D20% | |
Disability table | Álvaro Vindas D30% | Álvaro Vindas D30% | Álvaro Vindas D30% | |
Disabled mortality table | MI-85 F | Winklevoss D30% | Winklevoss D30% | |
[1] | Starting in 2018, Company adopted the assumption of real growth of the contributions above inflation at the rate of 1% p.a. |
26. POST-EMPLOYMENT OBLIGATI_14
26. POST-EMPLOYMENT OBLIGATIONS (Details 11) R$ in Millions | Dec. 31, 2019BRL (R$) |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Reduction of one year in the mortality table | R$ 405 |
Increase of one year in the mortality table | (382) |
Reduction of 1% in the discount rate | 2,211 |
Pension And Retirement Supplement Plans [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Reduction of one year in the mortality table | 335 |
Increase of one year in the mortality table | (336) |
Reduction of 1% in the discount rate | 1,583 |
Health Plan [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Reduction of one year in the mortality table | 84 |
Increase of one year in the mortality table | (61) |
Reduction of 1% in the discount rate | 496 |
Dental Plan [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Reduction of one year in the mortality table | 1 |
Increase of one year in the mortality table | (1) |
Reduction of 1% in the discount rate | 10 |
Life Insurance Plan [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Reduction of one year in the mortality table | (15) |
Increase of one year in the mortality table | 16 |
Reduction of 1% in the discount rate | R$ 122 |
26. POST-EMPLOYMENT OBLIGATI_15
26. POST-EMPLOYMENT OBLIGATIONS (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | ||||
Expense amount recognized in the Statement of income | R$ 56 | R$ 68 | R$ 65 | |
Estimate of contributions expected to be paid to plan for next annual reporting period | R$ 1059 | |||
Description of insurance policy | On 2017, the Company changed its life insurance policy, resulting in reduction of the retirees’ capital insured by 20% at each 5-year interval, from aged 60, down to a minimum of 20%. These changes resulted in a reduction of R$ 619 in the post-employment obligations reported on December 31, 2017, with counterpart in the Statement of income in 2017. | |||
Forluz Pension Fund [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Obligation for past actuarial deficits relating to pension fund | R$ 566 | 652 | ||
Inflation index rate | 6.00% | |||
Funded Benefit Plan ('Plan A') [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Benefit amount payable | R$ 550 | 378 | ||
Remuneratory interest applicable on outstanding balance | 6.00% | |||
Estimate of contributions expected to be paid to plan for next annual reporting period | 286 | |||
Postretirement Benefits Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Expense amount recognized in the Statement of income | R$ 408 | 337 | R$ 391 | |
Finance expenses | R$ 56 | R$ 68 | R$ 65 | |
Health Plan And Dental Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Actuarial assumption of expected rates of inflation | 1.00% | |||
Defined Contribution Plan [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Estimate of contributions expected to be paid to plan for next annual reporting period | R$ 79 |
27. PROVISIONS (Details)
27. PROVISIONS (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of other provisions [line items] | |||
Other provisions Beginning Balance | R$ 641 | R$ 678 | R$ 815 |
Additions | 1,468 | 115 | 278 |
Reversals | (68) | (64) | (286) |
Settled | (153) | (88) | (129) |
Other provisions ending balance | 1,888 | 641 | 678 |
Labour Provision [Member] | |||
Disclosure of other provisions [line items] | |||
Other provisions Beginning Balance | 457 | 474 | 350 |
Additions | 180 | 67 | 210 |
Reversals | (44) | (25) | (4) |
Settled | (96) | (59) | (82) |
Other provisions ending balance | 497 | 457 | 474 |
Customer Relations [Member] | |||
Disclosure of other provisions [line items] | |||
Other provisions Beginning Balance | 19 | 18 | 15 |
Additions | 21 | 17 | 21 |
Reversals | (1) | (2) | |
Settled | (20) | (16) | (16) |
Other provisions ending balance | 19 | 19 | 18 |
Other Civil Actions [Member] | |||
Disclosure of other provisions [line items] | |||
Other provisions Beginning Balance | 29 | 43 | 40 |
Additions | 16 | 10 | 10 |
Reversals | (12) | (14) | (2) |
Settled | (15) | (10) | (5) |
Other provisions ending balance | 18 | 29 | 43 |
Civil Cases [Member] | |||
Disclosure of other provisions [line items] | |||
Other provisions Beginning Balance | 48 | 61 | 55 |
Additions | 37 | 27 | 31 |
Reversals | (13) | (14) | (4) |
Settled | (35) | (26) | (21) |
Other provisions ending balance | 37 | 48 | 61 |
Tax [Member] | |||
Disclosure of other provisions [line items] | |||
Other provisions Beginning Balance | 52 | 57 | 68 |
Additions | 1,236 | 5 | 9 |
Reversals | (8) | (10) | (2) |
Settled | (20) | (18) | |
Other provisions ending balance | 1,260 | 52 | 57 |
Environmental [Member] | |||
Disclosure of other provisions [line items] | |||
Other provisions Beginning Balance | 1 | ||
Additions | 1 | ||
Reversals | (1) | ||
Settled | |||
Other provisions ending balance | 1 | ||
Regulatory [Member] | |||
Disclosure of other provisions [line items] | |||
Other provisions Beginning Balance | 37 | 40 | 44 |
Additions | 2 | 8 | 15 |
Reversals | (1) | (10) | (18) |
Settled | (2) | (1) | (1) |
Other provisions ending balance | 36 | 37 | 40 |
Other [Member] | |||
Disclosure of other provisions [line items] | |||
Other provisions Beginning Balance | 46 | 46 | 59 |
Additions | 13 | 7 | 13 |
Reversals | (1) | (5) | (19) |
Settled | (2) | (7) | |
Other provisions ending balance | R$ 58 | 46 | 46 |
Corporate [Member] | |||
Disclosure of other provisions [line items] | |||
Other provisions Beginning Balance | 239 | ||
Additions | |||
Reversals | (239) | ||
Settled | |||
Other provisions ending balance |
27. PROVISIONS (Details Narrati
27. PROVISIONS (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2006 | |
Disclosure of other provisions [line items] | |||
Equity Interest | 1100.00% | ||
Penalty payment | R$ 27 | ||
Labor Claims [Member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 1,679 | R$ 1725 | |
Estimated probably contingent amount | 487 | 457 | |
Alteration Of The Monetary Updating Index Of Employment-Law Cases [Member] | |||
Disclosure of other provisions [line items] | |||
Estimate contigent liability amount | 106 | 88 | |
Provisional contingent amount | 10 | ||
Customers Claims [Member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 68 | 66 | |
Estimated probably contingent amount | 19 | 19 | |
Other Civil Proceedings [Member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 300 | 277 | |
Estimated probably contingent amount | 18 | 29 | |
Tax Related To Urban Property Tax [Member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 204 | 160 | |
Estimated probably contingent amount | 43 | 46 | |
Tax Related To Urban Land Tax To Real Estate Properties [Member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 79 | 142 | |
Estimated probably contingent amount | 4 | 5 | |
Social Security Contributions On Profit Sharing Payments [Member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 1,451 | 1,264 | |
Estimated probably contingent amount | 1,213 | ||
Environmental [Member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 47 | 15 | |
Regulatory [Member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 280 | 260 | |
Estimated probably contingent amount | 36 | 37 | |
Other legal Actions [Member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 41 | 36 | |
Luz Para Todos' Program [Member] | |||
Disclosure of other provisions [line items] | |||
Estimated probably contingent amount | 4 | ||
Estimate contigent liability amount | 322 | 291 | |
Other Legal Proceedings [Member] | |||
Disclosure of other provisions [line items] | |||
Estimated probably contingent amount | 13 | 11 | |
Estimate contigent liability amount | 452 | 189 | |
Employees [Member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 289 | 304 | |
Indemnity to employees amount | R$ 178 | ||
Indemnity to employees escrow deposit | 282 | 275 | R$ 122 |
Social Security Contributions [Member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 112 | 155 | |
Non-Homologation Of Offsetting Of Tax Credit [Member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 160 | 146 | |
Income Tax Withheld On Capital Gain [Member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | R$ 230 | 221 | |
Income Tax Withheld On Capital Gain [Member] | Parati S.A [Member] | |||
Disclosure of other provisions [line items] | |||
Equity Interest | 100.00% | ||
Income Tax Withheld On Capital Gain [Member] | Luce Brasil Equity Investment Fund [Member] | |||
Disclosure of other provisions [line items] | |||
Equity Interest | 75.00% | ||
Income Tax Withheld On Capital Gain [Member] | Light SA [member] | |||
Disclosure of other provisions [line items] | |||
Equity Interest | 13.03% | ||
The Social Contribution Tax On Net Income (CSLL) [Member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | R$ 400 | 350 | |
ICMS (Local State Value Added Tax) [Member] | |||
Disclosure of other provisions [line items] | |||
ICMS (local state value added tax) amount | 55 | ||
ICMS (local state value added tax) principal amount | 17 | ||
ICMS (local state value added tax) penalty | 27 | ||
ICMS (local state value added tax) interest amount | 11 | ||
Contingency expiry by limitation of time | R$ 89 | ||
ICMS (Local State Value Added Tax) [Member] | Bottom Of Range [Member] | |||
Disclosure of other provisions [line items] | |||
Periodic term | 25 years | ||
Public Lighting Contribution (CIP) [Member] | |||
Disclosure of other provisions [line items] | |||
Estimate contigent liability amount | R$ 959 | 975 | |
Periodic term | 20 years | ||
Accounting Of Energy Sale Transactions In The Electricity Trading Chamber (CCEE) [Member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | R$ 343 | 317 | |
Tariff Increases [Member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 327 | 303 | |
Environmental Claims [Member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 165 | 148 | |
Estimate contigent liability amount | R$ 95 | 87 | |
Percentage of annual gross operating revenue | 0.50% | ||
Other Contingent Liabilities [Member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | R$ 426 | 412 | |
Estimate contigent liability amount | R$ 149 | R$ 90 |
28. EQUITY AND REMUNERATION T_3
28. EQUITY AND REMUNERATION TO SHAREHOLDERS (Details) - shares | 1 Months Ended | ||||
Apr. 28, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 23, 2018 | Dec. 31, 2017 | |
Number of shares issued | 1,258,841,654 | 1,458,752,601 | 199,910,947 | 1,258,841,654 | |
Percentage of changes in share capital | 10000.00% | 100.00% | 100.00% | ||
Description of capital increase | On April 23, 2018 a Shareholders’ Extraordinary General Meeting approved an increase in the Company’s capital, of R$ 999, from R$ 6,294 to R$ 7,294, through issuance of 199,910,947 new shares, each with nominal value of R$ 5.00, comprising 66,849,505 common shares and 133,061,442, preferred shares. | ||||
Common Shares [Member] | |||||
Number of shares issued | 487,614,213 | 487,614,213 | 420,764,708 | ||
Percentage of changes in share capital | 100.00% | 100.00% | 100.00% | ||
Preferred Shares [Member] | |||||
Number of shares issued | 971,138,388 | 971,138,388 | 199,910,947 | 838,076,946 | |
Percentage of changes in share capital | 100.00% | 100.00% | 100.00% | ||
State of minas gerais [member] | |||||
Number of shares issued | 248,528,276 | 248,480,146 | 214,414,739 | ||
Percentage of changes in share capital | 17.00% | 17.00% | 17.00% | ||
State of minas gerais [member] | Common Shares [Member] | |||||
Number of shares issued | 248,516,953 | 248,480,146 | 214,414,739 | ||
Percentage of changes in share capital | 51.00% | 51.00% | 51.00% | ||
State of minas gerais [member] | Preferred Shares [Member] | |||||
Number of shares issued | 11,323 | ||||
Other entities of minas gerais state [member] | |||||
Number of shares issued | 1,431,172 | 70,435 | 4,916,931 | ||
Percentage of changes in share capital | 1.00% | ||||
Other entities of minas gerais state [member] | Common Shares [Member] | |||||
Number of shares issued | 19,896 | 56,703 | 56,703 | ||
Other entities of minas gerais state [member] | Preferred Shares [Member] | |||||
Number of shares issued | 1,411,276 | 647,647 | 4,860,228 | ||
Percentage of changes in share capital | 1.00% | ||||
FIA Dinamica Energia S.A. [member] | |||||
Number of shares issued | 103,833,744 | 104,105,344 | 104,105,344 | ||
Percentage of changes in share capital | 7.00% | 7.00% | 8.00% | ||
FIA Dinamica Energia S.A. [member] | Common Shares [Member] | |||||
Number of shares issued | 48,700,000 | 48,200,000 | 41,635,754 | ||
Percentage of changes in share capital | 10.00% | 10.00% | 10.00% | ||
FIA Dinamica Energia S.A. [member] | Preferred Shares [Member] | |||||
Number of shares issued | 55,133,744 | 55,905,344 | 62,469,590 | ||
Percentage of changes in share capital | 6.00% | 6.00% | 7.00% | ||
BNDES Participacoes [Member] | |||||
Number of shares issued | 80,563,930 | 80,563,930 | 80,563,930 | ||
Percentage of changes in share capital | 6.00% | 5.00% | 6.00% | ||
BNDES Participacoes [Member] | Common Shares [Member] | |||||
Number of shares issued | 54,342,992 | 54,342,992 | 54,342,992 | ||
Percentage of changes in share capital | 11.00% | 11.00% | 13.00% | ||
BNDES Participacoes [Member] | Preferred Shares [Member] | |||||
Number of shares issued | 26,220,938 | 26,220,938 | 26,220,938 | ||
Percentage of changes in share capital | 3.00% | 3.00% | 3.00% | ||
Other Shareholders In Brazil [member] | |||||
Number of shares issued | 430,153,173 | 80,563,930 | 266,953,286 | ||
Percentage of changes in share capital | 29.00% | 33.00% | 21.00% | ||
Other Shareholders In Brazil [member] | Common Shares [Member] | |||||
Number of shares issued | 101,170,317 | 105,402,202 | 56,000,217 | ||
Percentage of changes in share capital | 21.00% | 22.00% | 13.00% | ||
Other Shareholders In Brazil [member] | Preferred Shares [Member] | |||||
Number of shares issued | 328,982,856 | 370,338,947 | 210,953,069 | ||
Percentage of changes in share capital | 34.00% | 38.00% | 25.00% | ||
Foreign Shareholders [member] | |||||
Number of shares issued | 594,242,306 | 549,157,682 | 587,887,424 | ||
Percentage of changes in share capital | 41.00% | 38.00% | 47.00% | ||
Foreign Shareholders [member] | Common Shares [Member] | |||||
Number of shares issued | 34,864,055 | 31,132,170 | 54,314,303 | ||
Percentage of changes in share capital | 7.00% | 6.00% | 13.00% | ||
Foreign Shareholders [member] | Preferred Shares [Member] | |||||
Number of shares issued | 559,378,251 | 518,025,512 | 533,573,121 | ||
Percentage of changes in share capital | 57.00% | 53.00% | 64.00% |
28. EQUITY AND REMUNERATION T_4
28. EQUITY AND REMUNERATION TO SHAREHOLDERS (Details 1) - shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Earnings per share [line items] | |||
Number of shares outstanding | 1,458,191,883 | 1,458,191,883 | 1,458,191,883 |
Common Shares [Member] | |||
Earnings per share [line items] | |||
Common shares already paid up | 487,614,213 | 487,614,213 | 420,764,708 |
Common shares to be paid up | 66,849,505 | ||
Shares in treasury | (69) | (69) | (69) |
Number of shares outstanding | 487,614,144 | 487,614,144 | 487,614,144 |
Preferred Shares [Member] | |||
Earnings per share [line items] | |||
Common shares already paid up | 971,138,388 | 971,138,388 | 838,076,946 |
Common shares to be paid up | 133,061,442 | ||
Shares in treasury | (560,649) | (560,649) | (560,649) |
Number of shares outstanding | 970,577,739 | 970,577,739 | 970,577,739 |
28. EQUITY AND REMUNERATION T_5
28. EQUITY AND REMUNERATION TO SHAREHOLDERS (Details 2) - BRL (R$) R$ / shares in Units, R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per share [line items] | |||
Net income for the year attributed to equity holders of the parent | R$ 2904 | R$ 1379 | R$ 1002 |
Total earnings | |||
Net income for the year from continuing operations attributed to equity holders of the parent | 2,904 | 1,379 | 1,002 |
Preferred Shares [Member] | |||
Earnings per share [line items] | |||
Minimum mandatory dividend from net income for the year | 509 | 577 | 486 |
Net income for the year not distributed | 1,573 | 554 | 333 |
Total earnings | R$ 2082 | R$ 1131 | R$ 819 |
Basic and diluted earnings per share | R$ 2.14 | R$ 1.17 | R$ 0.84 |
Minimum mandatory dividend from net income for the year from continuing operations | R$ 509 | R$ 527 | R$ 486 |
Net income for the year from continuing operations not distributed | 1,424 | 390 | 333 |
Total earnings from continuing operations | R$ 1933 | R$ 917 | R$ 819 |
Basic and diluted earnings from continuing operations per share | R$ 1.99 | R$ 0.95 | R$ 0.84 |
Common Shares [Member] | |||
Earnings per share [line items] | |||
Minimum mandatory dividend from net income for the year | R$ 255 | R$ 290 | R$ 15 |
Net income for the year not distributed | 790 | 279 | 167 |
Total earnings | R$ 1045 | R$ 569 | R$ 182 |
Basic and diluted earnings per share | R$ 2.14 | R$ 1.17 | R$ 0.37 |
Minimum mandatory dividend from net income for the year from continuing operations | R$ 255 | R$ 290 | R$ 15 |
Net income for the year from continuing operations not distributed | 715 | 171 | 167 |
Total earnings from continuing operations | R$ 970 | R$ 461 | R$ 182 |
Basic and diluted earnings from continuing operations per share | R$ 1.99 | R$ 0.95 | R$ 0.37 |
28. EQUITY AND REMUNERATION T_6
28. EQUITY AND REMUNERATION TO SHAREHOLDERS (Details 3) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reserves within equity [abstract] | |||
Investment-related donations and subsidies | R$ 1857 | R$ 1857 | R$ 1857 |
Goodwill on issuance of shares | 394 | 394 | 69 |
Shares in treasury | (1) | (1) | (1) |
Capital reserves and shares in Treasury | 2,250 | 2,250 | 1,925 |
Legal reserve | 853 | 853 | 853 |
Statutory reserve | 57 | 57 | 57 |
Retained earnings reserve | 5,500 | 3,965 | 3,341 |
Unrealized profit reserve | 835 | ||
Incentive tax reserve | 85 | 67 | 58 |
Reserve for mandatory dividends not distributed | 1,420 | 1,420 | |
Profit reserves | R$ 8750 | R$ 6362 | R$ 5729 |
28. EQUITY AND REMUNERATION T_7
28. EQUITY AND REMUNERATION TO SHAREHOLDERS (Details 4) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reserves and retained earnings within equity [line items] | |||
Net income for the year | R$ 3127 | R$ 1700 | R$ 1001 |
Expired dividends | 8 | ||
Incentives tax reserve | |||
Unrealized profit reserve | 835 | ||
Retained earnings [member] | |||
Disclosure of reserves and retained earnings within equity [line items] | |||
Net income for the year | 3,127 | 1,700 | 1,001 |
Expired dividends | 42 | ||
Incentives tax reserve | (18) | (9) | (1) |
Deemed cost realization | 25 | 42 | 28 |
Adjustment for initial adoption of IFRS 9 and IFRS 15. | (157) | ||
Dividends proposed | (764) | (867) | (500) |
Unrealized profit reserve | (835) | ||
Retained earnings reserve | R$ 1535 | R$ 751 | R$ 528 |
28. EQUITY AND REMUNERATION T_8
28. EQUITY AND REMUNERATION TO SHAREHOLDERS (Details 5) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of changes in equity [abstract] | |||
Minimum mandatory dividend required by Bylaws | R$ 1564 | ||
Minimum mandatory dividend required by the Bylaws for the preferred shares | (486) | ||
Minimum mandatory dividend proposed for the common shares | (243) | ||
Unrealized profit reserve | R$ 835 |
28. EQUITY AND REMUNERATION T_9
28. EQUITY AND REMUNERATION TO SHAREHOLDERS (Details 6) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of reserves within equity [line items] | |||
Dividends withheld, arising from the net income | R$ 1420 | R$ 1420 | |
Dividends Withheld, Arising From The Profit For 2015 [Member] | |||
Disclosure of reserves within equity [line items] | |||
Dividends withheld, arising from the net income | R$ 623 | ||
Dividends Withheld, Arising From The Profit For 2014 [Member] | |||
Disclosure of reserves within equity [line items] | |||
Dividends withheld, arising from the net income | R$ 797 |
28. EQUITY AND REMUNERATION _10
28. EQUITY AND REMUNERATION TO SHAREHOLDERS (Details 7) - BRL (R$) R$ / shares in Units, R$ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Dividends [line items] | ||||
Percentage applied to the nominal value of the preferred shares | 6.00% | 6.00% | ||
Equity | R$ 15891 | R$ 15939 | R$ 14330 | R$ 12934 |
Net income for the year | 3,127 | 1,700 | 1,001 | |
Unrealized profit reserve | 835 | 835 | ||
Withholding income tax on Interest on equity | 35 | 17 | ||
Minimum Dividend under the by-laws including income tax on interest on equity | 764 | 867 | 500 | |
Dividends recorded, as specified in the by-laws Interest on Equity | 400 | 210 | ||
Ordinary dividends | 364 | 657 | 500 | |
Dividends and interest on equity | 764 | R$ 867 | R$ 500 | |
Total dividends for the common shares | R$ 364 | |||
Mandatory dividends (including withholding income tax on Interest on Equity) | R$ 0.59 | R$ 0.52 | R$ 0.34 | |
Dividend Distribution [member] | ||||
Disclosure of Dividends [line items] | ||||
Equity | R$ 15887 | R$ 14579 | R$ 14326 | |
Net income for the year | R$ 3127 | R$ 1700 | 1,001 | |
Preferred Shares [Member] | ||||
Disclosure of Dividends [line items] | ||||
Percentage applied to the nominal value of the preferred shares | 10.00% | 10.00% | ||
Percentage applied to the portion of Equity represented by the preferred shares | 3.00% | 3.00% | ||
Amount of the dividends by the second payment criterion | R$ 317 | |||
Minimum Dividends required by the Bylaws for the preferred shares | 486 | |||
Mandatory dividends - 50% of Net income | 1,564 | |||
Preferred Shares [Member] | Dividend Distribution [member] | ||||
Disclosure of Dividends [line items] | ||||
Nominal value of the preferred shares | 4,856 | R$ 4856 | 4,191 | |
Nominal value of the preferred shares to be capitalized | 665 | |||
Preferred shares | R$ 4856 | R$ 4856 | R$ 4856 | |
Percentage applied to the nominal value of the preferred shares | 10.00% | 10.00% | 10.00% | |
Amount of the dividends by the first payment criterion | R$ 486 | R$ 486 | R$ 486 | |
Preferred shares as a percentage of Equity (net of shares held in Treasury) | 66.56% | 66.56% | 66.58% | |
Equity | R$ 10574 | R$ 9704 | R$ 9538 | |
Percentage applied to the portion of Equity represented by the preferred shares | 3.00% | 3.00% | 3.00% | |
Amount of the dividends by the second payment criterion | R$ 371 | R$ 291 | R$ 286 | |
Minimum Dividends required by the Bylaws for the preferred shares | 486 | 486 | 486 | |
Mandatory dividends - 50% of Net income | 1,564 | 850 | 500 | |
Preferred Shares [Member] | ||||
Disclosure of Dividends [line items] | ||||
Total dividends for the common shares | R$ 577 | R$ 509 | R$ 486 | |
Minimum dividends required by the by-laws for the preferred shares | R$ 0.50 | R$ 0.50 | R$ 0.50 | |
Dividends proposed: Common (ON) shares | 0.52 | 0.59 | 0.03 | |
Dividends proposed: Preferred (PN) shares | R$ 0.52 | R$ 0.59 | R$ 0.5 | |
Common Shares [Member] | ||||
Disclosure of Dividends [line items] | ||||
Total dividends for the common shares | R$ 255 | R$ 290 | R$ 14 | |
Dividends proposed: Common (ON) shares | R$ 0.52 | R$ 0.59 | R$ 0.03 | |
Dividends proposed: Preferred (PN) shares | R$ 0.52 | R$ 0.59 | R$ 0.5 |
28. EQUITY AND REMUNERATION _11
28. EQUITY AND REMUNERATION TO SHAREHOLDERS (Details 8) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of changes in equity [abstract] | |||
Beginning balance | R$ 864 | R$ 428 | |
Proposed dividends | 764 | 867 | R$ 500 |
Withholding income tax on interest on capital | (35) | (17) | |
Dividends retained - Minas Gerais state government (Note 13) | (148) | 127 | |
Dividends paid | (701) | ||
Proposed dividends of previous years | (42) | ||
Expired dividends | (8) | ||
Ending balance | R$ 744 | R$ 864 | R$ 428 |
28. EQUITY AND REMUNERATION _12
28. EQUITY AND REMUNERATION TO SHAREHOLDERS (Details 9) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity held by non-controlling , beginning | R$ 1360 | R$ 4 | |
Net profit attributed to non-controlling shareholders | 1 | 42 | R$ 1 |
Capital Increase to non-controlling shareholders | 10 | ||
Non-controlling interests arising from business combination | 1,315 | ||
Others | (1) | ||
Proposed dividends to non-controlling shareholders | (1) | ||
Derecognition of the non-controlling interests in Light (Note 34) | (1,366) | ||
Equity held by non-controlling, ending | 4 | 1,360 | 4 |
GASMIG [Member] | |||
Equity held by non-controlling , beginning | 4 | 4 | |
Net profit attributed to non-controlling shareholders | 1 | 1 | |
Others | (1) | ||
Proposed dividends to non-controlling shareholders | (1) | ||
Equity held by non-controlling, ending | 4 | 4 | R$ 4 |
Light SA [member] | |||
Equity held by non-controlling , beginning | 1,277 | ||
Net profit attributed to non-controlling shareholders | 41 | ||
Non-controlling interests arising from business combination | 1,236 | ||
Derecognition of the non-controlling interests in Light (Note 34) | (1,277) | ||
Equity held by non-controlling, ending | 1,277 | ||
Lightger [Member] | |||
Equity held by non-controlling , beginning | 22 | ||
Non-controlling interests arising from business combination | 22 | ||
Derecognition of the non-controlling interests in Light (Note 34) | (22) | ||
Equity held by non-controlling, ending | 22 | ||
Guanhaes [Member] | |||
Equity held by non-controlling , beginning | 50 | ||
Capital Increase to non-controlling shareholders | 10 | ||
Non-controlling interests arising from business combination | 50 | ||
Derecognition of the non-controlling interests in Light (Note 34) | (60) | ||
Equity held by non-controlling, ending | 50 | ||
Axxion [Member] | |||
Equity held by non-controlling , beginning | 4 | ||
Non-controlling interests arising from business combination | 4 | ||
Derecognition of the non-controlling interests in Light (Note 34) | (4) | ||
Equity held by non-controlling, ending | 4 | ||
UHE Itaocara [Member] | |||
Equity held by non-controlling , beginning | 3 | ||
Non-controlling interests arising from business combination | 3 | ||
Derecognition of the non-controlling interests in Light (Note 34) | R$ 3 | ||
Equity held by non-controlling, ending | R$ 3 |
28. EQUITY AND REMUNERATION _13
28. EQUITY AND REMUNERATION TO SHAREHOLDERS (Details 10) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Net profit allocated to non-controlling interests | R$ 1 | R$ 1 |
GASMIG [Member] | ||
Net profit allocated to non-controlling interests | R$ 1 | R$ 1 |
28. EQUITY AND REMUNERATION _14
28. EQUITY AND REMUNERATION TO SHAREHOLDERS (Details Narrative) - BRL (R$) R$ / shares in Units, R$ in Millions | Apr. 23, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Share capital | R$ 7294 | R$ 7294 | R$ 7294 | |
Number of shares issued | 199,910,947 | 1,258,841,654 | 1,458,752,601 | 1,258,841,654 |
Nominal Value | R$ 5.00 | R$ 5.00 | ||
Net profit share | R$ 2834 | |||
Dividend paid | R$ 1564 | |||
Percentage of dividend distributed | 50.00% | |||
Unrealized profit reserve | R$ 835 | R$ 835 | ||
Percentage of right to reduction in income tax | 75.00% | |||
Period of right to reduction in income tax | 10 years | |||
Right to reduction in income tax, starting period | 2014 | |||
Amount of incentive recognized in statement of income | R$ 18 | 9 | R$ 1 | |
Tax incentives reserve | R$ 85 | 67 | 58 | |
Minimum percentage right to appoint board member | 10.00% | |||
Mandatory dividends payout percentage | 50.00% | |||
Percentage of dividend on portion of equity | 3.00% | |||
Percentage of dividend on par value | 10.00% | |||
Net income (loss) for the year | R$ 3128 | 1,742 | 1,002 | |
Realization of the deemed cost of PP&E | 25 | |||
Minimum mandatory dividend payable | 764 | |||
Interest on equity | 400 | |||
Dividend payable | 364 | |||
Retained earnings reserve | 1,535 | |||
Incentives tax reserve | 18 | |||
Profit reserve exceed share capital | 537 | |||
Increase in share capital | R$ 1000 | R$ 7594 | ||
Description of shares held by private individuals | Shares held by private individuals and issued up to August 5, 2004 have the right to a minimum dividend of 6% per year on their par value in all years. | |||
Subscribed paid up capital | R$ 1325 | |||
Capital reserve | R$ 2250 | R$ 2250 | R$ 1925 | |
Bottom Of Range [Member] | ||||
Increase in share capital | 6,294 | |||
Top of Range [Member] | ||||
Percentage of increase in share capital | 10.00% | |||
Increase in share capital | R$ 7294 | |||
Common Shares [Member] | ||||
Number of shares issued | 199,910,947 | 487,614,213 | 487,614,213 | |
Nominal Value | R$ 5.00 | R$ 5.00 | ||
Minimum percentage for multiple vote procedure | 5.00% | |||
Minimum percentage right to appoint board member | 15.00% | |||
Preferred Shares [Member] | ||||
Number of shares issued | 199,910,947 | 971,138,388 | 971,138,388 | 838,076,946 |
Nominal Value | R$ 5.00 | R$ 5.00 | ||
Minimum percentage right to appoint board member | 10.00% | |||
Preferred Shares [Member] | Bottom Of Range [Member] | ||||
Dividend paid | R$ 486 |
29. REVENUE (Details)
29. REVENUE (Details) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenue [abstract] | ||||
Revenue from supply of energy | R$ 26928 | R$ 24872 | R$ 23701 | |
Revenue from use of the electricity distribution systems (TUSD) | 2,722 | 2,045 | 1,611 | |
CVA, and Other financial components | 58 | 1,973 | 988 | |
Transmission concession revenue | 504 | 411 | 371 | |
Transmission construction revenue | 220 | 96 | 25 | |
Transmission assets - indemnity revenue | 156 | 250 | 373 | |
Generation assets - indemnity revenue | 55 | 271 | ||
Distribution construction revenue | 980 | 802 | 1,094 | |
Adjustment to expectation of cash flow from indemnifiable financial assets of distribution concession | 18 | 9 | ||
Revenue on financial updating of the Concession Grant Fee | 318 | 321 | 317 | |
Energy transactions on the CCEE | 432 | 217 | 860 | |
Supply of gas | 2,298 | 1,995 | 1,759 | |
Fine for violation of service continuity indicator | [1] | (58) | (44) | |
Recovery of PIS/Pasep and Cofins (note 10) | 1,428 | |||
Other operating revenues | 1,722 | 1,585 | 1,484 | |
Deductions on revenue | (12,336) | (12,312) | (11,151) | |
Net operating revenue | R$ 25390 | R$ 22266 | R$ 21712 | |
[1] | As from January 1, 2018 these amounts began to be recognized as a reduction of revenue, rather than as operational expenses, as per the change contained in IFRS 15. |
29. REVENUE (Details 1)
29. REVENUE (Details 1) R$ in Millions | 12 Months Ended | ||||
Dec. 31, 2019BRL (R$)GW | Dec. 31, 2018BRL (R$)GW | Dec. 31, 2017BRL (R$)GW | |||
Disclosure of revenue [line items] | |||||
Supply of electricity in GWh | GW | 43,558 | 43,522 | [1] | 42,461 | |
Own consumption | GW | 38 | 41 | [1] | 37 | |
Unbilled revenue | GW | 0 | 0 | [1] | 0 | |
Supply of electricity including own consumption and not invoiced | GW | 43,596 | 43,563 | [1] | 42,498 | |
Wholesale supply to other concession holders | GW | [2] | 11,448 | 11,992 | [1] | 12,777 |
Wholesale supply unbilled, net | GW | 0 | 0 | [1] | 0 | |
Total | GW | 55,044 | 55,555 | [1] | 55,275 | |
Revenue from sale of electricity | R$ | R$ 23918 | R$ 21834 | R$ 20378 | ||
Own consumption | R$ | 0 | 0 | 0 | ||
Unbilled revenue | R$ | 134 | 48 | 61 | ||
Supply of electricity including own consumption and not invoiced | R$ | 24,052 | 21,882 | 20,439 | ||
Wholesale supply to other concession holders | R$ | [2] | 2,943 | 3,002 | 1,727 | |
Wholesale supply unbilled, net | R$ | (67) | (12) | 1,535 | ||
Revenue from sale of electricity | R$ | R$ 26928 | R$ 24872 | R$ 23701 | ||
Residential [Member] | Electricity distribution [Member] | |||||
Disclosure of revenue [line items] | |||||
Supply of electricity in GWh | GW | 10,538 | 10,267 | [1] | 10,008 | |
Revenue from sale of electricity | R$ | R$ 9668 | R$ 8658 | R$ 7842 | ||
Industrial [Member] | Electricity distribution [Member] | |||||
Disclosure of revenue [line items] | |||||
Supply of electricity in GWh | GW | 16,024 | 17,689 | [1] | 17,761 | |
Revenue from sale of electricity | R$ | R$ 4760 | R$ 4892 | R$ 4907 | ||
Commercial, Services and Other [Member] | Electricity distribution [Member] | |||||
Disclosure of revenue [line items] | |||||
Supply of electricity in GWh | GW | 9,567 | 8,380 | [1] | 7,507 | |
Revenue from sale of electricity | R$ | R$ 5439 | R$ 4683 | R$ 4342 | ||
Rural [Member] | Electricity distribution [Member] | |||||
Disclosure of revenue [line items] | |||||
Supply of electricity in GWh | GW | 3,795 | 3,615 | [1] | 3,651 | |
Revenue from sale of electricity | R$ | R$ 2058 | R$ 1794 | R$ 1629 | ||
Public Authorities [Member] | Electricity distribution [Member] | |||||
Disclosure of revenue [line items] | |||||
Supply of electricity in GWh | GW | 905 | 871 | [1] | 866 | |
Revenue from sale of electricity | R$ | R$ 654 | R$ 575 | R$ 532 | ||
Public Lighting [Member] | Electricity distribution [Member] | |||||
Disclosure of revenue [line items] | |||||
Supply of electricity in GWh | GW | 1,357 | 1,384 | [1] | 1,367 | |
Revenue from sale of electricity | R$ | R$ 614 | R$ 585 | R$ 537 | ||
Public Service [Member] | Electricity distribution [Member] | |||||
Disclosure of revenue [line items] | |||||
Supply of electricity in GWh | GW | 1,372 | 1,316 | [1] | 1,301 | |
Revenue from sale of electricity | R$ | R$ 725 | R$ 646 | R$ 589 | ||
[1] | Data not audited by external auditors. | ||||
[2] | 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. |
29. REVENUE (Details 2)
29. REVENUE (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of revenue [line items] | ||||
Other revenue | R$ 1722 | R$ 1585 | R$ 1484 | |
Tariff Subsidies [Member] | ||||
Disclosure of revenue [line items] | ||||
Other revenue | [1] | 1,266 | 1,136 | 1,034 |
Services rendered [Member] | ||||
Disclosure of revenue [line items] | ||||
Other revenue | 183 | 188 | 156 | |
Charged Service [Member] | ||||
Disclosure of revenue [line items] | ||||
Other revenue | 17 | 14 | 10 | |
Rental And Leasing [Member] | ||||
Disclosure of revenue [line items] | ||||
Other revenue | 189 | 90 | 121 | |
Telecommunication Services [Member] | ||||
Disclosure of revenue [line items] | ||||
Other revenue | 149 | |||
Other [member] | ||||
Disclosure of revenue [line items] | ||||
Other revenue | 2 | 12 | R$ 14 | |
Reimbursement For Decontracted Supply [Member] | ||||
Disclosure of revenue [line items] | ||||
Other revenue | R$ 65 | R$ 145 | ||
[1] | Revenue recognized for the tariff subsidies applied to users of distribution and transmission services, including low income tariff incentive refunded by Eletrobras. |
29. REVENUE (Details 3)
29. REVENUE (Details 3) - BRL (R$) R$ in Millions | Dec. 29, 2016 | Jan. 02, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of revenue [line items] | |||||
Taxes on revenues | R$ 9282 | R$ 8765 | R$ 8547 | ||
Charges to the consumer | 3,054 | 3,547 | 2,604 | ||
Deductions from revenue | 12,336 | 12,312 | 11,151 | ||
Tax rate for customers in the Commercial, services and other activities | 25.00% | 18.00% | |||
Research and development [Member] | |||||
Disclosure of revenue [line items] | |||||
Charges to the consumer | 41 | 38 | 38 | ||
National scientific and technological development fund [Member] | |||||
Disclosure of revenue [line items] | |||||
Charges to the consumer | 41 | 38 | 38 | ||
Proinfa alternative source [Member] | |||||
Disclosure of revenue [line items] | |||||
Charges to the consumer | 52 | 40 | 39 | ||
Other Taxes [Member] | |||||
Disclosure of revenue [line items] | |||||
Taxes on revenues | 8 | 8 | 8 | ||
Pis and pasep tax [Member] | |||||
Disclosure of revenue [line items] | |||||
Taxes on revenues | 521 | 553 | 455 | ||
ICMS - State VAT [Member] | |||||
Disclosure of revenue [line items] | |||||
Taxes on revenues | 6,358 | 5,657 | 5,847 | ||
Cofins tax [Member] | |||||
Disclosure of revenue [line items] | |||||
Taxes on revenues | 2,395 | 2,547 | 2,237 | ||
Energy services inspection fee [Member] | |||||
Disclosure of revenue [line items] | |||||
Charges to the consumer | 30 | 26 | 29 | ||
Customer charges - the 'Flag Tariff' system [Member] | |||||
Disclosure of revenue [line items] | |||||
Charges to the consumer | 294 | 655 | 454 | ||
Royalty on water resource [Member] | |||||
Disclosure of revenue [line items] | |||||
Charges to the consumer | 43 | 45 | 92 | ||
Energy system expansion research [Member] | |||||
Disclosure of revenue [line items] | |||||
Charges to the consumer | 20 | 19 | 19 | ||
Energy development account [Member] | |||||
Disclosure of revenue [line items] | |||||
Charges to the consumer | 2,448 | 2,603 | 1,822 | ||
Energy efficiency program [Member] | |||||
Disclosure of revenue [line items] | |||||
Charges to the consumer | 69 | 64 | 56 | ||
Global reversion reserve [Member] | |||||
Disclosure of revenue [line items] | |||||
Charges to the consumer | R$ 16 | R$ 19 | R$ 17 |
29. REVENUE (Details Narrative)
29. REVENUE (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue [abstract] | ||
Transmission concession revenue | R$ 15 | R$ 13 |
Variable portion of transmission revenue | R$ 9 | R$ 11 |
30. OPERATING COSTS AND EXPEN_3
30. OPERATING COSTS AND EXPENSES (Details) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure Of Operating Costs And Expenses [abstract] | ||||
Personnel | R$ 1272 | R$ 1410 | R$ 1627 | |
Employees' and managers' profit sharing | 263 | 77 | 5 | |
Post-employment benefits (reversals) - Note 26 | 408 | 337 | (229) | |
Materials | 91 | 104 | 61 | |
Raw materials and inputs for production of energy | 10 | |||
Outsourced services | 1,239 | 1,087 | 974 | |
Energy bought for resale | 11,286 | 11,084 | 10,919 | |
Depreciation and amortization | [1] | 958 | 835 | 850 |
Operating provisions and adjustments for operating losses | 2,401 | 466 | 854 | |
Charges for use of the national grid | 1,426 | 1,480 | 1,174 | |
Gas bought for resale | 1,436 | 1,238 | 1,071 | |
Construction costs | 1,200 | 897 | 1,119 | |
Other operating expenses, net | 499 | 405 | 383 | |
Operating costs and expenses | R$ 22479 | R$ 19420 | R$ 18818 | |
[1] | Net of PIS/Pasep and Cofins taxes applicable to amortization of the right-of-use assets in the amount of R$5. |
30. OPERATING COSTS AND EXPEN_4
30. OPERATING COSTS AND EXPENSES (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information of outsourced services [abstract] | |||
Meter reading and bill delivery | R$ 128 | R$ 129 | R$ 142 |
Communication | 69 | 80 | 66 |
Maintenance and conservation of electrical facilities and equipment | 404 | 323 | 266 |
Building conservation and cleaning | 110 | 110 | 108 |
Contracted labor | 17 | 21 | 15 |
Freight and airfares | 7 | 7 | 8 |
Accommodation and meals | 14 | 12 | 13 |
Security services | 18 | 20 | 23 |
Consultant | 24 | 16 | 16 |
Maintenance and conservation of furniture and utensils | 5 | 4 | 4 |
Information technology | 63 | 59 | 62 |
Maintenance and conservation of vehicles | 3 | 2 | 2 |
Disconnection and reconnection | 70 | 62 | 35 |
Environmental services | 14 | 14 | 11 |
Legal services | 26 | 25 | 22 |
Legal procedural costs | 2 | 2 | 3 |
Tree pruning | 46 | 28 | 21 |
Cleaning of power line pathways | 61 | 41 | 16 |
Copying and legal publications | 21 | 21 | 23 |
Inspection of customer units | 14 | 10 | 1 |
Printing of tax invoices and energy bills | 3 | ||
Other expenses | 123 | 101 | 114 |
Outsourced services | R$ 1239 | R$ 1087 | R$ 974 |
30. OPERATING COSTS AND EXPEN_5
30. OPERATING COSTS AND EXPENSES (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Operating Costs And Expenses [line items] | |||
Energy purchased for resale | R$ 11286 | R$ 11084 | R$ 10919 |
Free Market [Member] | |||
Disclosure Of Operating Costs And Expenses [line items] | |||
Energy purchased for resale | 4,098 | 3,871 | 4,283 |
Proinfa Program [Member] | |||
Disclosure Of Operating Costs And Expenses [line items] | |||
Energy purchased for resale | 376 | 324 | 303 |
Physical Guarantee Quota Contracts [Member] | |||
Disclosure Of Operating Costs And Expenses [line items] | |||
Energy purchased for resale | 715 | 679 | 461 |
Regulated Market Auctions [Member] | |||
Disclosure Of Operating Costs And Expenses [line items] | |||
Energy purchased for resale | 3,021 | 3,346 | 3,555 |
Bilateral Contracts [Member] | |||
Disclosure Of Operating Costs And Expenses [line items] | |||
Energy purchased for resale | 311 | 484 | 385 |
Angra I And II Nuclear Plants [Member] | |||
Disclosure Of Operating Costs And Expenses [line items] | |||
Energy purchased for resale | 269 | 267 | 244 |
Pasep and Cofins Credits [Member] | |||
Disclosure Of Operating Costs And Expenses [line items] | |||
Energy purchased for resale | (1,026) | (1,056) | (1,053) |
Itaipu Binacional [Member] | |||
Disclosure Of Operating Costs And Expenses [line items] | |||
Energy purchased for resale | 1,429 | 1,351 | 1,243 |
Spot Market [Member] | |||
Disclosure Of Operating Costs And Expenses [line items] | |||
Energy purchased for resale | 1,886 | R$ 1818 | R$ 1498 |
Distributed Generation [member] | |||
Disclosure Of Operating Costs And Expenses [line items] | |||
Energy purchased for resale | R$ 207 |
30. OPERATING COSTS AND EXPEN_6
30. OPERATING COSTS AND EXPENSES (Details 3) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure Of Operating Provisions Reversals [line items] | ||||
Estimated losses on doubtful accounts receivables | R$ 238 | R$ 264 | R$ 248 | |
Estimated losses on other accounts receivables | [1] | 11 | (4) | 27 |
Estimated losses on accounts receivables from related parties | [2] | 688 | ||
Contingency provisions (reversals) | ||||
Labor claims | [3] | 136 | 42 | 206 |
Civil | [3] | 24 | 13 | 27 |
Tax | [3] | 1,228 | (5) | 7 |
Environmental | [3] | (1) | 1 | |
Regulatory | [3] | 1 | (2) | (3) |
Other | [3] | 12 | 2 | (6) |
Other provisions | [3] | 1,400 | 51 | 231 |
Operating provision (Reversals) | [3] | 2,337 | 311 | 506 |
Adjustment for losses | ||||
Provision for losses | 64 | 155 | 348 | |
Operating provision (reversals) and adjustment for losses , Total | 2,401 | 466 | 854 | |
Written Put Options [Member] | RME and LEPSA [member] | ||||
Adjustment for losses | ||||
Provision for losses | 48 | 231 | ||
Written Put Options [Member] | S A A G lnvestimentos S A [member] | ||||
Adjustment for losses | ||||
Provision for losses | 64 | R$ 107 | 116 | |
Written Put Options [Member] | Sonda Procwork Outsourcing Informatica ltda [Member] | ||||
Adjustment for losses | ||||
Provision for losses | R$ 1 | |||
[1] | The estimated losses on other accounts receivable are presented in the consolidated Statement of income as operating expenses. | |||
[2] | Estimated losses on accounts receivable from Renova, as a result of the assessment of the jointly-controlled entity credit risk, which deteriorated in the current year. | |||
[3] | The provisions for contingencies of the holding company are presented in the consolidated statement of income for the year as operating expenses. |
30. OPERATING COSTS AND EXPEN_7
30. OPERATING COSTS AND EXPENSES (Details 4) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of construction cost [abstract] | |||
Personnel and managers | R$ 85 | R$ 70 | R$ 36 |
Materials | 595 | 379 | 550 |
Outsourced services | 421 | 364 | 406 |
Others | 99 | 84 | 127 |
Construction cost | R$ 1200 | R$ 897 | R$ 1119 |
30. OPERATING COSTS AND EXPEN_8
30. OPERATING COSTS AND EXPENSES (Details 5) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of other operating income expense [abstract] | ||||
Leasing and rentals | [1] | R$ 20 | R$ 93 | R$ 103 |
Advertising | 9 | 19 | 30 | |
Own consumption of energy | 21 | 27 | 24 | |
Subsidies and donations | 40 | 22 | 19 | |
Onerous concession | 3 | 3 | 3 | |
Insurance | 12 | 7 | 8 | |
CCEE annual charge | 6 | 6 | 8 | |
Net loss (gain) on deactivation and disposal of assets | 92 | 7 | 193 | |
Forluz - Administrative running cost | 30 | 28 | 26 | |
Collection agents | 88 | 78 | 71 | |
Gain on disposal, Taesa | (207) | |||
Fine for violation of service continuity standard | 42 | |||
Obligations deriving from investment contracts | [2] | 32 | ||
Taxes and charges | 10 | 9 | ||
Other expenses | [3] | 136 | 106 | 63 |
Other operating expenses (revenues), net | R$ 499 | R$ 405 | R$ 383 | |
[1] | As from January 1, 2019, the amounts related to leasing and rentals are recognized in accordance with IFRS 16, as shown in notes 2.4 and 21. The Company has operational leasing contracts relating, mainly, to vehicles and buildings used in its operational activities. Their amounts are not material in relation to the total costs of the Company. Actual leasing and rentals expenses are related to remaining leasing arrangements and rentals that do not qualify for recognition under IFRS 16. | |||
[2] | This refers to claims under the agreement made between Alianca Geracao, Vale S.A. and Cemig. The action is provisioned at the cost of R$98, of which Cemig is responsible for R$32. | |||
[3] | The losses recorded on assets in progress (canceled works) are net of the reversal of the provisions constituted in prior periods. Includes the adjustment of R$22 for impairment of intangible assets. |
30. OPERATING COSTS AND EXPEN_9
30. OPERATING COSTS AND EXPENSES (Details Narrative) R$ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019BRL (R$)Number | Mar. 31, 2018BRL (R$)Number | Mar. 31, 2019BRL (R$)Employee | Dec. 31, 2019BRL (R$)Employee | Dec. 31, 2018BRL (R$)Employee | |
Disclosure Of Operating Costs And Expenses [line items] | |||||
Period of eligibility for the severance program | 25 years | 25 years | |||
Penalty in percentage | 40.00% | ||||
Programmed voluntary retirement plan expense | R$ 21 | R$ 65 | R$ 214 | ||
Number of employees completing severance | 155 | 458 | 1,189 | ||
Right of use | R$ 32 | ||||
Action provisioned at the cost | 98 | ||||
Impairment of intangible assets | 22 | ||||
Cemig [Member] | |||||
Disclosure Of Operating Costs And Expenses [line items] | |||||
Right of use | 32 | ||||
Pasep and Cofins Credits [Member] | |||||
Disclosure Of Operating Costs And Expenses [line items] | |||||
Right of use | 5 | ||||
PDVP 2019 [member] | |||||
Disclosure Of Operating Costs And Expenses [line items] | |||||
Programmed voluntary retirement plan expense | R$ 87 | R$ 65 | R$ 26 | ||
Number of employees completing severance | Employee | 613 | 458 | 151 |
31. FINANCE INCOME AND EXPENS_3
31. FINANCE INCOME AND EXPENSES (Details) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
FINANCE INCOME | ||||
Income from financial investments | R$ 102 | R$ 116 | R$ 205 | |
Interest on sale of energy | 361 | 352 | 261 | |
Foreign exchange variations | 19 | |||
Monetary variations | 30 | 19 | 46 | |
Monetary variations - CVA (Note 16) | 105 | 62 | ||
Monetary updating of escrow deposits | 50 | 34 | 191 | |
PIS/Pasep and Cofins charged on finance income | [1] | (128) | (68) | (53) |
Gains on financial instruments - swap (Note 33) | 998 | 893 | ||
Finance income from advance payments | 5 | 29 | ||
Inflation adjustment in arbitration case | 77 | |||
Borrowing costs paid by related parties (Note 32) | 48 | 56 | ||
Monetary updating on PIS/Pasep and Cofins taxes credits over ICMS (Note 10) | 1,580 | |||
Others | 56 | 136 | 135 | |
Finance income | 3,207 | 1,706 | 804 | |
FINANCE EXPENSES | ||||
Charges on loans and financings (Note 24) | (1,227) | (1,257) | (1,466) | |
Cost of debt - amortization of transaction cost (Note 24) | (38) | (33) | (67) | |
Foreign exchange variations - loans and financing (Note 24) | (226) | (582) | (73) | |
Foreign exchange variations - Itaipu | (13) | (29) | ||
Monetary updating - loans and financings (Note 24) | (142) | (134) | (109) | |
Monetary updating - onerous concessions | (3) | (3) | ||
Charges and monetary updating on post-employment obligations (Note 26) | (56) | (68) | (65) | |
Losses on financial instruments (Note 33) | (32) | |||
Monetary variations - CVA (Note 16) | (41) | |||
Monetary updating - AFAC | 239 | |||
Monetary updating - Advance sales of energy supply (Note 8) | (1) | (11) | (45) | |
Adjustment to present value | (2) | |||
Monetary updating - Lease liabilities (Note 21) | (34) | |||
Finance income of P&D and PEE | (24) | (23) | ||
Others | (83) | (84) | (139) | |
Finance costs | (1,847) | (2,224) | (1,800) | |
NET FINANCE INCOME (EXPENSES) | R$ 1360 | R$ 518 | R$ 996 | |
[1] | The PIS/Pasep and Cofins expenses apply to Interest on Equity. |
32. RELATED PARTY TRANSACTION_2
32. RELATED PARTY TRANSACTIONS (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 20, 2019 | ||
Disclosure of transactions between related parties [line items] | |||||
Current assets | R$ 10138 | R$ 27796 | |||
Non-current assets | 39,788 | 32,059 | |||
Current liabilities | 7,913 | 23,394 | |||
Non-current liabilities | 26,122 | 20,522 | |||
Jointly-Controlled Entity [Member] | Lightger [Member] | Current [Member] | Transactions With Energy [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [1] | ||||
Revenue | [1] | ||||
Expenses | [1] | (21) | (21) | (19) | |
Current liabilities | [1] | 2 | |||
Jointly-Controlled Entity [Member] | Hidreletrica Pipoca [Member] | Current [Member] | Transactions With Energy [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [1] | ||||
Revenue | [1] | ||||
Expenses | [1] | (19) | (19) | (15) | |
Current liabilities | [1] | 1 | 1 | ||
Jointly-Controlled Entity [Member] | Cia. Transirape de Transmissao [Member] | Current [Member] | Transactions With Energy [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [1] | ||||
Revenue | [1] | ||||
Expenses | [1] | (10) | |||
Current liabilities | [1] | ||||
Jointly-Controlled Entity [Member] | Cia. Transirape de Transmissao [Member] | Current [Member] | Provision Of Services [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Revenue | [2] | 1 | |||
Expenses | [2] | ||||
Jointly-Controlled Entity [Member] | Renova [Member] | Current [Member] | Transactions With Energy [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [1] | ||||
Revenue | [1] | 4 | |||
Expenses | [1] | (81) | (179) | ||
Current liabilities | [1] | 1 | |||
Jointly-Controlled Entity [Member] | Renova [Member] | Non Current [Member] | Reimbursement For Cessation Of Power Purchase Agreement [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Revenue | 10 | ||||
Non-current assets | |||||
Expenses | |||||
Non-current liabilities | |||||
Jointly-Controlled Entity [Member] | Renova [Member] | Non Current [Member] | Reimbursement For Suspension Of Supply Of Power [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Revenue | 52 | ||||
Non-current assets | |||||
Expenses | |||||
Non-current liabilities | |||||
Jointly-Controlled Entity [Member] | Renova [Member] | Non Current [Member] | Advance For Future Power Supply [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Revenue | [3] | 7 | |||
Non-current assets | [3] | ||||
Expenses | [3] | ||||
Current liabilities | [3] | ||||
Jointly-Controlled Entity [Member] | Renova [Member] | Non Current [Member] | Accounts Receivable - AFAC [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Revenue | [4] | 94 | 106 | 37 | |
Non-current assets | [4] | 594 | |||
Expenses | [4] | (688) | |||
Non-current liabilities | [4] | ||||
Jointly-Controlled Entity [Member] | Renova [Member] | Non Current [Member] | Loans From Related Parties [Member | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [5] | 17 | |||
Revenue | [5] | ||||
Expenses | [5] | ||||
Current liabilities | [5] | 6 | |||
Jointly-Controlled Entity [Member] | Retiro Baixo [Member] | Current [Member] | Transactions With Energy [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [1] | ||||
Revenue | [1] | 5 | 4 | ||
Expenses | [1] | (5) | (5) | (6) | |
Current liabilities | [1] | ||||
Jointly-Controlled Entity [Member] | Transudeste [Member] | Current [Member] | Transactions With Energy [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Revenue | [1] | ||||
Expenses | [1] | (2) | |||
Jointly-Controlled Entity [Member] | Transudeste [Member] | Current [Member] | Provision Of Services [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Revenue | [2] | 1 | |||
Expenses | [2] | ||||
Jointly-Controlled Entity [Member] | Transleste [Member] | Current [Member] | Transactions With Energy [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Revenue | [1] | ||||
Expenses | [1] | (3) | |||
Jointly-Controlled Entity [Member] | Transleste [Member] | Current [Member] | Provision Of Services [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Revenue | [2] | 1 | |||
Expenses | [2] | ||||
Jointly-Controlled Entity [Member] | Baguari Energia [Member] | Current [Member] | Transactions With Energy [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [1] | ||||
Revenue | [1] | ||||
Expenses | [1] | (8) | (11) | (7) | |
Current liabilities | [1] | 1 | 1 | ||
Jointly-Controlled Entity [Member] | Baguari Energia [Member] | Current [Member] | Provision Of Services [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [2] | ||||
Revenue | [2] | 1 | 1 | 1 | |
Expenses | [2] | ||||
Current liabilities | [2] | ||||
Jointly-Controlled Entity [Member] | TAESA [Member] | Current [Member] | Transactions With Energy [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [1] | ||||
Revenue | [1] | ||||
Expenses | [1] | (96) | (109) | (127) | |
Current liabilities | [1] | 9 | 8 | ||
Jointly-Controlled Entity [Member] | TAESA [Member] | Current [Member] | Provision Of Services [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Revenue | [2] | 1 | |||
Expenses | [2] | ||||
Jointly-Controlled Entity [Member] | TAESA [Member] | Current [Member] | Provision Of Services [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Revenue | [2] | 1 | 1 | ||
Expenses | [2] | ||||
Jointly-Controlled Entity [Member] | Madeira Energia (Santo Antonio plant) [Member] | Current [Member] | Transactions With Energy [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [1] | 6 | 6 | ||
Revenue | [1] | 68 | 70 | 70 | |
Expenses | [1] | (730) | (778) | (686) | |
Current liabilities | [1] | 64 | 58 | ||
Jointly-Controlled Entity [Member] | Madeira Energia (Santo Antonio plant) [Member] | Current [Member] | Reimbursement For Decontracted Supply [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [6] | 4 | 42 | ||
Revenue | [6] | 4 | 2 | 2 | |
Expenses | [6] | ||||
Current liabilities | [6] | ||||
Jointly-Controlled Entity [Member] | Madeira Energia (Santo Antonio plant) [Member] | Current [Member] | Advance Against Future Electricity Supply [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [7] | 7 | |||
Revenue | [7] | 9 | 9 | ||
Non-current assets | [7] | ||||
Expenses | [7] | ||||
Current liabilities | [7] | ||||
Jointly-Controlled Entity [Member] | Madeira Energia (Santo Antonio plant) [Member] | Non Current [Member] | Reimbursement For Decontracted Supply [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Revenue | [6] | ||||
Non-current assets | [6] | 4 | |||
Expenses | [6] | ||||
Non-current liabilities | [6] | ||||
Jointly-Controlled Entity [Member] | Light [Member] | Current [Member] | Transactions With Energy [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [1] | ||||
Revenue | [1] | 98 | 60 | 54 | |
Expenses | [1] | (9) | (1) | (1) | |
Current liabilities | [1] | 1 | 1 | ||
Jointly-Controlled Entity [Member] | Light [Member] | Current [Member] | Interest On Equity and Dividends [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | 73 | 10 | |||
Revenue | |||||
Expenses | |||||
Current liabilities | |||||
Jointly-Controlled Entity [Member] | Alianca Geracao [Member] | Current [Member] | Transactions With Energy [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [1] | ||||
Revenue | [1] | 40 | 35 | 34 | |
Expenses | [1] | (166) | (165) | (147) | |
Current liabilities | [1] | 14 | 13 | ||
Jointly-Controlled Entity [Member] | Alianca Geracao [Member] | Current [Member] | Provision Of Services [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [2] | 1 | 2 | ||
Revenue | [2] | 7 | 12 | 12 | |
Non-current assets | [2] | ||||
Expenses | [2] | ||||
Current liabilities | [2] | ||||
Jointly-Controlled Entity [Member] | Alianca Geracao [Member] | Current [Member] | Interest On Equity and Dividends [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | 103 | 91 | |||
Revenue | |||||
Expenses | |||||
Current liabilities | |||||
Jointly-Controlled Entity [Member] | Alianca Geracao [Member] | Current [Member] | Contingency [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [8] | ||||
Revenue | [8] | ||||
Expenses | [8] | (32) | |||
Current liabilities | [8] | 32 | |||
Jointly-Controlled Entity [Member] | Norte Energia [member] | Current [Member] | Transactions With Energy [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [1] | ||||
Revenue | [1] | 22 | 16 | 16 | |
Expenses | [1] | (228) | (202) | (122) | |
Current liabilities | [1] | 24 | 23 | ||
Jointly-Controlled Entity [Member] | Empresa Amazonense de Transmissao de Energia EATE [Member] | Current [Member] | Transactions With Energy [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [1] | ||||
Revenue | [1] | ||||
Expenses | [1] | (26) | |||
Current liabilities | [1] | ||||
Jointly-Controlled Entity [Member] | Hidreletrica cachoeirao [member] | Current [Member] | Interest On Equity and Dividends [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | 3 | 2 | |||
Revenue | |||||
Expenses | |||||
Current liabilities | |||||
Jointly-Controlled Entity [Member] | Axxiom [Member] | Current [Member] | Provision Of Services [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [9] | ||||
Revenue | [9] | ||||
Expenses | [9] | ||||
Current liabilities | [9] | 3 | |||
Jointly-Controlled Entity [Member] | Hidreletrica Itaocara [Member] | Current [Member] | Adjustment For Losses [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [10] | ||||
Revenue | [10] | ||||
Expenses | [10] | ||||
Current liabilities | [10] | 22 | |||
Jointly-Controlled Entity [Member] | Centroeste [Member] | Current [Member] | Interest On Equity and Dividends [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | 1 | 1 | |||
Revenue | |||||
Expenses | |||||
Current liabilities | |||||
Other Related Parties [Member] | Forluz [Member] | Current [Member] | Post-Employment Obligations [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [11] | ||||
Revenue | [11] | ||||
Expenses | [11] | (197) | (192) | (174) | |
Current liabilities | [11] | 145 | 123 | ||
Other Related Parties [Member] | Forluz [Member] | Current [Member] | Supplementary Pension Contributions [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Revenue | [12] | ||||
Expenses | [12] | (78) | (78) | (84) | |
Other Related Parties [Member] | Forluz [Member] | Current [Member] | Operating Leases [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [13] | 179 | |||
Revenue | [13] | ||||
Expenses | [13] | (55) | (46) | (55) | |
Current liabilities | [13] | 35 | 2 | ||
Other Related Parties [Member] | Forluz [Member] | Current [Member] | Administrative Running Costs [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Revenue | [14] | ||||
Expenses | [14] | (30) | (28) | (26) | |
Other Related Parties [Member] | Forluz [Member] | Non Current [Member] | Post-Employment Obligations [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [11] | ||||
Non-current liabilities | [11] | 2,827 | 2,046 | ||
Other Related Parties [Member] | Cemig Saude [Member] | Current [Member] | Health and Dental Plans [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [15] | ||||
Revenue | [15] | (227) | |||
Expenses | [15] | (186) | (193) | ||
Current liabilities | [15] | 141 | 120 | ||
Other Related Parties [Member] | Cemig Saude [Member] | Non Current [Member] | Health and Dental Plans [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Non-current assets | [15] | ||||
Non-current liabilities | [15] | 3,022 | 2,271 | ||
Other Related Parties [Member] | FIC Pampulha [Member] | Current [Member] | Securities [member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Revenue | 1,106 | 9 | |||
Expenses | |||||
Other Related Parties [Member] | FIC Pampulha [Member] | Current [Member] | Marketable Securities [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | 743 | 727 | |||
Revenue | 8 | ||||
Expenses | |||||
Current liabilities | |||||
Other Related Parties [Member] | FIC Pampulha [Member] | Current [Member] | Cash and Cash Equivalents [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | 36 | 274 | |||
Current liabilities | |||||
Other Related Parties [Member] | FIC Pampulha [Member] | Current [Member] | (-) Marketable Securities Issued By Subsidiary Companies [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | (3) | (24) | |||
Current liabilities | |||||
Other Related Parties [Member] | FIC Pampulha [Member] | Non Current [Member] | Marketable Securities [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Non-current assets | 2 | 101 | |||
Non-current liabilities | |||||
Parent [Member] | MINAS GERAIS STATE GOVT [Member] | Current [Member] | Receivables from Customers and Traders [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [16] | 346 | 245 | ||
Revenue | [16] | 166 | 163 | 163 | |
Expenses | [16] | ||||
Current liabilities | [16] | ||||
Parent [Member] | MINAS GERAIS STATE GOVT [Member] | Current [Member] | ICMS Tax - Early Payment [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [17] | ||||
Revenue | [17] | 11 | 12 | ||
Expenses | [17] | ||||
Current liabilities | [17] | ||||
Parent [Member] | MINAS GERAIS STATE GOVT [Member] | Current [Member] | Accounts Receivable - AFAC [Member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | [18] | 115 | 246 | ||
Revenue | [18] | 17 | 18 | 18 | |
Expenses | [18] | ||||
Current liabilities | [18] | ||||
[1] | The transactions in sale and purchase of energy between generators and distributors take place through auctions in the Regulated Market, and are organized by the federal government. In the Free Market, transactions are made through auctions or through direct contracting, under the applicable legislation. Transactions for transport of energy, on the other hand, are carried out by transmission companies and arise from the centralized operation of the National Grid, executed by the National System Operator (ONS). | ||||
[2] | Refers to a contract to provide plant operation and maintenance services. | ||||
[3] | Refers to advance payments for energy supply made in 2019 to Norte Energia, established by auction and by contract registered with the CCEE (Power Trading Chamber). In full-year 2020 Norte Energia S.A. will deliver contracted supply in the amount of R$40. There is no financial updating of the contract. | ||||
[4] | As mentioned in Note 18, in June 2019, due to the uncertainties related to continuity of Renova, an estimated loss on realization of the receivables was recorded for the full value of the balance in the amount of R$688. | ||||
[5] | On November 25 and December 27, 2019, DIP loan contracts under court-supervised reorganization proceedings, referred to as 'DIP' and 'DIP 2', were entered into between the Company and Renova Energia S.A., in the amounts of R$10 and R$6.5, respectively. The contracts specify interest equal to 100% of the accumulated variation in the DI rate, plus an annual spread, applied pro rata die (on 252-business-days basis), of 1.083% for the DIP contract and 2.5% for the DIP2 contract, up to the date of respective full payment. The proceeds of this loan were allocated to the investee's minimum cash needs. The contracts specify a guarantee, given by the investee and its guarantor, through surety and a fiduciary assignment on the shares of the special-purpose company Mina de Ouro, which represents 120% of the principal value of the loan, according to an independent valuation. | ||||
[6] | Refers to reimbursement due to termination of contract related to change of the "power purchase agreements" (CCEARs) between Santo Antonio Energia S.A., a subsidiary of Madeira Energia, and Cemig Distribuicao - totaling R$ 84, to be settled in 24 monthly installments, with inflation adjustment by the Selic rate and maturities up to January 2020. The outstanding amount at December 31, 2019 was R$4. | ||||
[7] | In 2017, payments of R$70 were made to Santo Antonio Energia, subsidiary of Madeira Energia: R$52 was advanced by Cemig GT; R$ 12 by Sa Carvalho; and R$ 6 by Rosal. The last installment was paid in January 2019. | ||||
[8] | This refers to the aggregate amounts of legal actions realized and legal actions provisioned arising from the agreement made between Alianca Geracao, Vale S.A. and Cemig. The action is provisioned in the amount of R$98, of which Cemig's portion is R$32. | ||||
[9] | This refers to a contract for development of management software between Cemig D and Axxiom Solucoes Tecnologicas S.A., instituted in Aneel Dispatch 2657/2017; | ||||
[10] | A liability was recognized corresponding to the Company's interest in the share capital of Hidreletrica Itaocara, due to its negative equity (see Note 18). | ||||
[11] | The contracts of Forluz are updated by the Expanded Customer Price Index (Indice Nacional de Precos ao Consumidor Amplo, or IPCA) calculated by the Brazilian Geography and Statistics Institute (IBGE) plus interest of 6% p.a. and will be amortized up to the business year of 2031 (see Note 26). | ||||
[12] | The Company's contributions to the pension fund for the employees participating in the Mixed Plan, and calculated on the monthly remuneration, in accordance with the regulations of the Fund. | ||||
[13] | Rental of the Company's administrative head offices, in effect until November 2020 (able to be extended every five years, up to 2035) and August 2024 (able to be extended every five years, up to 2034), with annual inflation adjustment by the IPCA index and price reviewed every 60 months. Aiming at costs reduction, in November 2019, Cemig returned the Aureliano Chaves building to Forluz. | ||||
[14] | Funds for annual current administrative costs of the Pension Fund in accordance with the specific legislation of the sector. The amounts are estimated as a percentage of the Company's payroll. | ||||
[15] | Post-employment obligations relating to the employees' health and dental plan (see Note 26). | ||||
[16] | Refers to sale of energy supply to the Minas Gerais State government. The price of the supply is set by the regulator (Aneel) through a Resolution relating to the annual tariff adjustment of Cemig D. In 2017 the government of Minas Gerais State signed a debt recognition agreement with Cemig D for payment of debits relating to the supply of power due and unpaid, in the amount of R$ 113, up to November 2019. Twenty installments were unpaid at December 31, 2019. These receivables have guarantee in the form of Cemig's right to retain dividends and Interest on Equity otherwise payable to the State (in proportion to the State's equity interest in the Company), for as long as any payments are overdue or in default. The amount of the Public Lighting Contribution relating to the debt recognition agreement at December 31, 2019 is R$190. | ||||
[17] | Refers to financial income from ICMS tax anticipation, as per Minas Gerais State Decree 47,488. | ||||
[18] | This refers to the recalculation of the inflation adjustment of amounts relating to the Advance against Future Capital Increase (AFAC), which were returned to the State of Minas Gerais. These receivables have guarantee in the form of Cemig's right to retain dividends and Interest on Equity otherwise payable to the State (in proportion to the State's equity interest in the Company), for as long as any payments are overdue or in default. For further information, see Note 13. |
32. RELATED PARTY TRANSACTION_3
32. RELATED PARTY TRANSACTIONS (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of transactions between related parties [line items] | ||
Dividends receivable | R$ 186 | R$ 120 |
Light [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Dividends receivable | 73 | |
Alianca geracao [member] | ||
Disclosure of transactions between related parties [line items] | ||
Dividends receivable | 103 | 91 |
Others [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Dividends receivable | R$ 10 | R$ 29 |
32. RELATED PARTY TRANSACTION_4
32. RELATED PARTY TRANSACTIONS (Details 2) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019BRL (R$) | ||
Disclosure of transactions between related parties [line items] | ||
Related party transaction amount | R$ 4607 | |
Santo Antnio Energia S.A. One [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Related party | Santo Antônio Energia (SAESA) | [1] |
Relationship | Affiliated | [1] |
Type | Surety | [1] |
Objective | Guarantee | [1] |
Related party transaction amount | R$ 939 | [1] |
Maturity | 2034 | [1] |
Norte Energia S.A [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Related party | Norte Energia (NESA) | |
Relationship | Affiliated | |
Type | Surety | |
Objective | Financing | |
Related party transaction amount | R$ 2555 | |
Maturity | 2042 | |
Santo Antnio Energia S.A. [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Related party | Santo Ant?nio Energia (SAESA) (2) | [1] |
Relationship | Affiliated | [1] |
Type | Surety | [1] |
Objective | Debentures | [1] |
Related party transaction amount | R$ 424 | [1] |
Maturity | 2037 | [1] |
Centroeste [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Related party | Centroeste | |
Relationship | Jointly-controlled entity | |
Type | Surety | |
Objective | Financing | |
Related party transaction amount | R$ 5 | |
Maturity | 2023 | |
Light [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Related party | Light | [2] |
Relationship | Affiliated | [2] |
Type | Counter-guarantee | [2] |
Objective | Financing | [2] |
Related party transaction amount | R$ 684 | [2] |
Maturity | 2042 | [2] |
[1] | Corporate guarantee given by Cemig to Saesa. | |
[2] | Related to execution of guarantees of the Norte Energia financing. |
32. RELATED PARTY TRANSACTION_5
32. RELATED PARTY TRANSACTIONS (Details 3) - Related parties [Member] - Number | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [line items] | ||
Number Of Investments | 8 | |
Light [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Type | Promissory Note | |
Annual contractual conditions | CDI + 3.50% | |
Maturity | Jan. 22, 2019 | |
Number Of Investments | 3 | |
ETAU [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Type | Debentures | |
Annual contractual conditions | 108.00% of CDI | |
Maturity | Dec. 1, 2019 | |
Number Of Investments | 5 |
32. RELATED PARTY TRANSACTION_6
32. RELATED PARTY TRANSACTIONS (Details 4) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [abstract] | |||
Remuneration | R$ 25 | R$ 34 | R$ 32 |
Profit sharing (reversal) | 6 | 4 | 1 |
Assistance benefits | 1 | 3 | 2 |
Total | R$ 32 | R$ 41 | R$ 35 |
32. RELATED PARTY TRANSACTION_7
32. RELATED PARTY TRANSACTIONS (Details Narrative) - BRL (R$) R$ in Millions | Dec. 27, 2019 | Nov. 25, 2019 | Dec. 31, 2019 | Dec. 31, 2017 |
Disclosure of transactions between related parties [line items] | ||||
Deliver contracted supply amount | R$ 40 | |||
Loss on realization of the receivables | R$ 688 | |||
In-court reorganization loan amount | R$ 65 | R$ 10 | ||
Description of contract interest rate | The contracts specify interest equal to 100% of the accumulated variation in the DI rate, plus an annual spread, applied pro rata die (on 252-business-days basis), of 1.083% for the DIP contract and 2.5% for the DIP2 contract, up to the date of respective full payment. | |||
Percentage of principal amount | 120.00% | |||
Eletrobras [Member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Advance payments | R$ 70 | |||
Santo Antonio Energia [Member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Advance payments | 52 | |||
Sa Carvalho [Member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Advance payments | 12 | |||
Rosal [Member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Advance payments | 6 | |||
Related parties [Member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Aggregate amounts of legal actions | 98 | |||
Related parties [Member] | Cemig D [Member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Public lighting contribution amount | 190 | |||
Due and unpaid payment of debits relating to supply of power | R$ 113 | |||
Related parties [Member] | Cemig [Member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Aggregate amounts of legal actions | 32 | |||
Jointly-Controlled Entity [Member] | Madeira Energia (Santo Antonio plant) [Member] | Power Purchase Agreements [Member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Reimbursement for decontracted supply | 84 | |||
Outstanding amount | R$ 4 |
33. FINANCIAL INSTRUMENTS AND_3
33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets at fair value | R$ 16098 | R$ 16183 | |
Financial liabilities | 18,764 | (18,120) | |
Financial liabilities at fair value | (18,764) | [1] | (18,120) |
Financial liabilities at amortised cost, class [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | (18,281) | (17,701) | |
Financial liabilities at fair value | (18,281) | (17,701) | |
Financial liabilities at fair value through profit or loss, category [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | (483) | (419) | |
Financial liabilities at fair value | (483) | (419) | |
Suppliers [Member] | Level 2 of fair value hierarchy [Member] | Financial liabilities at amortised cost, class [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | (2,080) | (1,801) | |
Financial liabilities at fair value | (2,080) | (1,801) | |
Debt Agreed With Pension Fund [Member] | Level 2 of fair value hierarchy [Member] | Financial liabilities at amortised cost, class [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | (566) | (652) | |
Financial liabilities at fair value | (566) | (652) | |
Concessions Payable [Member] | Level 3 of fair value hierarchy [Member] | Financial liabilities at amortised cost, class [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | (20) | (19) | |
Financial liabilities at fair value | (20) | (19) | |
Advances from clients [Member] | Level 2 of fair value hierarchy [Member] | Financial liabilities at amortised cost, class [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | (79) | ||
Financial liabilities at fair value | (79) | ||
Solution for deficit of pension fund [Member] | Level 2 of fair value hierarchy [Member] | Financial liabilities at amortised cost, class [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | (550) | (378) | |
Financial liabilities at fair value | (550) | (378) | |
Loans, financings and debentures [Member] | Level 2 of fair value hierarchy [Member] | Financial liabilities at amortised cost, class [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | (14,777) | (14,772) | |
Financial liabilities at fair value | (14,777) | (14,772) | |
Derivative financial instrument liabilities, SAAG put options [Member] | Level 3 of fair value hierarchy [Member] | Financial liabilities at fair value through profit or loss, category [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | (483) | (419) | |
Financial liabilities at fair value | (483) | (419) | |
Leasing transactions [member] | Level 2 of fair value hierarchy [Member] | Financial liabilities at amortised cost, class [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities | (288) | ||
Financial liabilities at fair value | (288) | ||
Financial assets at amortised cost, class [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 12,128 | 12,675 | |
Financial assets at fair value | 12,128 | 12,675 | |
Financial assets at amortised cost, class [Member] | Securities cash investments one [Member] | Level 2 of fair value hierarchy [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 102 | 117 | |
Financial assets at fair value | 102 | 117 | |
Financial assets at amortised cost, class [Member] | Restricted cash [Member] | Level 2 of fair value hierarchy [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 12 | 91 | |
Financial assets at fair value | 12 | 91 | |
Financial assets at amortised cost, class [Member] | Accounts receivable from the State of Minas Gerais [Member] | Level 2 of fair value hierarchy [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 115 | 246 | |
Financial assets at fair value | 115 | 246 | |
Financial assets at amortised cost, class [Member] | Concession financial assets CVA Account and Other financial components in tariff adjustments [Member] | Level 3 of fair value hierarchy [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 882 | 1,081 | |
Financial assets at fair value | 882 | 1,081 | |
Financial assets at amortised cost, class [Member] | Reimbursement of tariff subsidy payments [Member] | Level 2 of fair value hierarchy [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 97 | 91 | |
Financial assets at fair value | 97 | 91 | |
Financial assets at amortised cost, class [Member] | Low income subsidy [Member] | Level 2 of fair value hierarchy [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 30 | 30 | |
Financial assets at fair value | 30 | 30 | |
Financial assets at amortised cost, class [Member] | Reimbursement for assignment of contract [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 10 | ||
Financial assets at fair value | 10 | ||
Financial assets at amortised cost, class [Member] | Accounts receivable - Renova [Member] | Level 2 of fair value hierarchy [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 532 | ||
Financial assets at fair value | 532 | ||
Financial assets at amortised cost, class [Member] | Indemnifiable receivable - Transmission [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 1,281 | 1,296 | |
Financial assets at fair value | 1,281 | 1,296 | |
Financial assets at amortised cost, class [Member] | Customers - Accounts receivable from the State of Minas Gerais [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 246 | ||
Financial assets at fair value | 246 | ||
Financial assets at amortised cost, class [Member] | Reimbursement for decontracted supply [Member] | Level 2 of fair value hierarchy [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 97 | ||
Financial assets at fair value | 97 | ||
Financial assets at amortised cost, class [Member] | Concession grant fee generation concessions [Member] | Level 3 of fair value hierarchy [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 2,468 | 2,409 | |
Financial assets at fair value | 2,468 | 2,409 | |
Financial assets at amortised cost, class [Member] | Escrow deposits [Member] | Level 2 of fair value hierarchy [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 2,540 | 2,502 | |
Financial assets at fair value | 2,540 | 2,502 | |
Financial assets at amortised cost, class [Member] | Accounts receivable from Customers and traders; Concession holders (transmission service) [Member] | Level 2 of fair value hierarchy [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 4,601 | 4,173 | |
Financial assets at fair value | 4,601 | 4,173 | |
Financial assets at amortised cost, class [Member] | Advances to suppliers [Member] | Level 2 of fair value hierarchy [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 94 | ||
Financial assets at fair value | 94 | ||
Derivative financial instruments [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 3,970 | 3,508 | |
Financial assets at fair value | 3,970 | 3,508 | |
Derivative financial instruments [Member] | Derivative financial instrument assets, Ativas and Sonda Put options [Member] | Level 3 of fair value hierarchy [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 3 | 4 | |
Financial assets at fair value | 3 | 4 | |
Derivative financial instruments [Member] | Derivative financial instrument assets, Swaps [Member] | Level 3 of fair value hierarchy [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 1,691 | 813 | |
Financial assets at fair value | 1,691 | 813 | |
Derivative financial instruments [Member] | Indemnifiable receivable from generation [Member] | Level 3 of fair value hierarchy [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 816 | 816 | |
Financial assets at fair value | 816 | 816 | |
Derivative financial instruments [Member] | Concession of distribution infrastructure [Member] | Level 3 of fair value hierarchy [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 483 | 396 | |
Financial assets at fair value | 483 | 396 | |
Financial assets at fair value through profit or loss, category [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 977 | 1,479 | |
Financial assets at fair value | 977 | 1,479 | |
Financial assets at fair value through profit or loss, category [Member] | Cash equivalents investments [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 326 | 783 | |
Financial assets at fair value | 326 | 783 | |
Financial assets at fair value through profit or loss, category [Member] | Debentures [Member] | Level 2 of fair value hierarchy [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 7 | ||
Financial assets at fair value | 7 | ||
Financial assets at fair value through profit or loss, category [Member] | Treasury Financial Notes [Member] | Level 1 of fair value hierarchy [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 94 | 254 | |
Financial assets at fair value | 94 | 254 | |
Financial assets at fair value through profit or loss, category [Member] | Bank financial notes [member] | Level 2 of fair value hierarchy [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets | 557 | 435 | |
Financial assets at fair value | R$ 557 | R$ 435 | |
[1] | On December 31, 2019 and 2018, the book values of financial instruments reflect their fair values. |
33. FINANCIAL INSTRUMENTS AND_4
33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | ||
Options in shares | R$ 480 | R$ 415 |
Sonda [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Options in shares | 3 | 4 |
SAAG [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Options in shares | R$ 483 | R$ 419 |
33. FINANCIAL INSTRUMENTS AND_5
33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of financial liabilities [line items] | |||
Variation in fair value | R$ 48 | R$ 187 | |
Put option - SAAG [member] | |||
Disclosure of financial liabilities [line items] | |||
Balance | R$ 419 | 312 | 196 |
Variation in fair value | 121 | ||
Adjustment to fair value | 64 | 107 | |
Reversals | (5) | ||
Balance | R$ 483 | R$ 419 | R$ 312 |
33. FINANCIAL INSTRUMENTS AND_6
33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 3) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [abstract] | ||
Balance | R$ 507 | R$ 1150 |
Variation in fair value | 48 | 187 |
Written down, due to exercise of Put | (555) | (830) |
Balance | R$ 507 |
33. FINANCIAL INSTRUMENTS AND_7
33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 4) - BRL (R$) R$ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 21, 2019 | |||
Derivative Financial Instruments [line items] | ||||||
Cemig's obligation | 125.52% of the CDI rate | 150.49% of the CDI | ||||
Unrealized gain/loss Carrying amount | R$ 922 | R$ 712 | ||||
Unrealized gain/loss fair value | R$ 1691 | R$ 813 | ||||
Forty Nine Percent of Certificados de Deposito Inter bancario [member] | ||||||
Derivative Financial Instruments [line items] | ||||||
Cemig's right | US$ exchange variation + Rate (9,25% p.y.) | US$ exchange variation + Rate (9,25% p.y.) | [1] | |||
Cemig's obligation | Local currency + R$ 150.49% of CDI | Local currency + R$ 150.49% of CDI | [1] | |||
Maturity period | Interest: Half-yearly Principal: Dec. 2024 | Interest: Half-yearly Principal: Dec. 2024 | ||||
Notional amount | [2] | R$ 1000 | ||||
Unrealized gain/loss Carrying amount | R$ 814 | R$ 1000 | ||||
Unrealized gain/loss fair value | R$ 1235 | R$ 627 | ||||
Fifty Two Percent of Certificados de Deposito Inter bancario [member] | ||||||
Derivative Financial Instruments [line items] | ||||||
Cemig's right | US$ exchange variation + Rate (9,25% a.a.) | US$ exchange variation + Rate (9,25% a.a.) | [1] | |||
Cemig's obligation | Local currency + R$125.52% of CDI | Local currency + R$125.52% of CDI | [1] | |||
Maturity period | Interest: Half-yearly Principal: Dec. 2024 | Interest: Half-yearly Principal: Dec. 2024 | ||||
Notional amount | [2] | R$ 500 | ||||
Unrealized gain/loss Carrying amount | 108 | R$ 33 | ||||
Unrealized gain/loss fair value | R$ 456 | R$ 186 | ||||
[1] | For the US$1 billion Eurobond issued on December 2017: (i) for the principal, a call spread was contracted, with floor at R$ 3.25/US$ and ceiling at R$ 5.00/US$; and (ii) a swap was contracted for the total interest, for a coupon of 9.25% p.a. at an average rate equivalent to 150.49% of the CDI. For the additional US$500 issuance of the same Eurobond issued on July 2018: (1) a call spread was contracted for the principal, with floor at R$ 3.85/US$ and ceiling at R$ 5.00/US$; and (2) a swap was contracted for the interest, resulting in a coupon of 9.25% p.a., with an average rate equivalent to 125.52% of the CDI rate. | |||||
[2] | In millions of US$. |
33. FINANCIAL INSTRUMENTS AND_8
33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 5) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Derivative hedge instrument, liability | R$ 18764 | R$ 18120 |
Derivative hedge instrument | 922 | R$ 712 |
Probable Scenario [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Derivative hedge instrument, Assets | 4,407 | |
Derivative hedge instrument, liability | (5,922) | |
Derivative hedge instrument | (1,515) | |
Possible Scenario [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Derivative hedge instrument, Assets | 4,422 | |
Derivative hedge instrument, liability | (5,942) | |
Derivative hedge instrument | (1,520) | |
Remote Scenario [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Derivative hedge instrument, Assets | 4,438 | |
Derivative hedge instrument, liability | (5,961) | |
Derivative hedge instrument | (1,523) | |
Ceming GT [Member] | Probable Scenario [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Derivative hedge instrument | 3,216 | |
Ceming GT [Member] | Possible Scenario [Member] | Depreciation of Twenty Five Percentage On Brazil Real [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Derivative hedge instrument | (245) | |
Ceming GT [Member] | Remote Scenario [member] | Depreciation of fifty percentage on brazil real [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Derivative hedge instrument | (1,460) | |
At Cost [Member] | Ceming GT [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Derivative hedge instrument | 1,691 | |
Swaps [Member] | Ceming GT [Member] | Probable Scenario [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Derivative hedge instrument, Assets | 7,193 | |
Derivative hedge instrument, liability | (5,682) | |
Swaps [Member] | Ceming GT [Member] | Possible Scenario [Member] | Depreciation of Twenty Five Percentage On Brazil Real [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Derivative hedge instrument, Assets | 6,087 | |
Derivative hedge instrument, liability | (5,794) | |
Swaps [Member] | Ceming GT [Member] | Remote Scenario [member] | Depreciation of fifty percentage on brazil real [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Derivative hedge instrument, Assets | 5,052 | |
Derivative hedge instrument, liability | (5,896) | |
Swaps [Member] | At Cost [Member] | Ceming GT [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Derivative hedge instrument, Assets | 6,427 | |
Derivative hedge instrument, liability | (5,774) | |
Option / Call Spread [Member] | Ceming GT [Member] | Probable Scenario [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Derivative hedge instrument, Assets | 1,705 | |
Option / Call Spread [Member] | Ceming GT [Member] | Possible Scenario [Member] | Depreciation of Twenty Five Percentage On Brazil Real [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Derivative hedge instrument, Assets | 1,183 | |
Option / Call Spread [Member] | Ceming GT [Member] | Remote Scenario [member] | Depreciation of fifty percentage on brazil real [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Derivative hedge instrument, Assets | 481 | |
Option / Call Spread [Member] | At Cost [Member] | Ceming GT [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Derivative hedge instrument, Assets | R$ 1038 |
33. FINANCIAL INSTRUMENTS AND_9
33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 6) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | R$ 6353 | R$ 6150 |
United States of America, Dollars | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | 6,353 | 6,150 |
United States of America, Dollars | Loans and financings [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | 6,110 | 5,882 |
United States of America, Dollars | Itaipu Binacional [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | 243 | 268 |
Foreign currency risk [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | 1,576 | 1,588 |
Foreign currency risk [Member] | Loans and financings [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | 1,516 | 1,518 |
Foreign currency risk [Member] | Itaipu Binacional [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | R$ 60 | R$ 70 |
33. FINANCIAL INSTRUMENTS AN_10
33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 7) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | R$ 6353 | R$ 6150 |
United States of America, Dollars | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | 6,353 | 6,150 |
Net effect of exchange rate fluctuation | ||
United States of America, Dollars | Probable Scenario [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | 8,196 | |
Net effect of exchange rate fluctuation | 1,843 | |
United States of America, Dollars | Probable Scenario [Member] | Appreciation of Twenty Five Percentage On Brazil Real [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | 10,245 | |
Net effect of exchange rate fluctuation | 3,892 | |
United States of America, Dollars | Probable Scenario [Member] | Appreciation of fifty percentage on brazil real [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | 12,294 | |
Net effect of exchange rate fluctuation | 5,941 | |
United States of America, Dollars | Itaipu Binacional [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | 243 | 268 |
United States of America, Dollars | Itaipu Binacional [Member] | Probable Scenario [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | 313 | |
United States of America, Dollars | Itaipu Binacional [Member] | Probable Scenario [Member] | Appreciation of Twenty Five Percentage On Brazil Real [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | 392 | |
United States of America, Dollars | Itaipu Binacional [Member] | Probable Scenario [Member] | Appreciation of fifty percentage on brazil real [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | 470 | |
Loans and financings [Member] | United States of America, Dollars | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | 6,110 | R$ 5882 |
Loans and financings [Member] | United States of America, Dollars | Probable Scenario [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | 7,883 | |
Loans and financings [Member] | United States of America, Dollars | Probable Scenario [Member] | Appreciation of Twenty Five Percentage On Brazil Real [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | 9,853 | |
Loans and financings [Member] | United States of America, Dollars | Probable Scenario [Member] | Appreciation of fifty percentage on brazil real [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | R$ 11824 |
33. FINANCIAL INSTRUMENTS AN_11
33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 8) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | |||
Cash equivalents - Cash investments (Note 6) - CDI | R$ 326 | R$ 783 | |
Marketable securities (Note 7) - CDI / SELIC | 753 | 813 | |
Restricted cash - CDI | 12 | 91 | |
Assets | 49,926 | 59,855 | |
LIABILITIES | |||
Loans, financing and debentures (Note 24) - CDI | (14,777) | (14,772) | |
Advance sales of energy supply - CDI | (7,913) | (23,394) | |
Total liabilities | (34,035) | (43,916) | |
Net liabilities exposed | 922 | 712 | |
Renova [Member] | |||
ASSETS | |||
Assets | 2,330 | 2,629 | R$ 2930 |
LIABILITIES | |||
Advance sales of energy supply - CDI | (2,928) | (2,195) | (1,751) |
Total liabilities | (2,330) | (2,629) | R$ 2930 |
Domestic Currency [member] | |||
ASSETS | |||
Cash equivalents - Cash investments (Note 6) - CDI | 326 | 783 | |
Marketable securities (Note 7) - CDI / SELIC | 753 | 813 | |
Reimbursement related to cancelled contracts - CDI | 10 | ||
LIABILITIES | |||
Total liabilities | (4,017) | (5,248) | |
Net liabilities exposed | (2,044) | (1,841) | |
Domestic Currency [member] | Selic rate [member] | |||
ASSETS | |||
CVA and in tariffs (Note 15) - SELIC | 882 | 1,081 | |
Reimbursement due to termination of contract (Note 32) - SELIC / CDI | 97 | ||
Domestic Currency [member] | CDI Rate[member] | |||
LIABILITIES | |||
Loans, financing and debentures (Note 24) - CDI | (3,773) | (4,920) | |
Advance sales of energy supply - CDI | (79) | ||
Domestic Currency [member] | TJLP [member] | |||
LIABILITIES | |||
Loans, financing and debentures (Note 24) - TJLP | (244) | (249) | |
Domestic Currency [member] | Restricted Cash [Member] | |||
ASSETS | |||
Restricted cash - CDI | 12 | 91 | |
Domestic Currency [member] | Renova [Member] | |||
ASSETS | |||
Accounts receivable - Renova (Note 31) - CDI | 532 | ||
Assets | R$ 1973 | R$ 3407 |
33. FINANCIAL INSTRUMENTS AN_12
33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 9) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Marketable securities (Note 7) | R$ 753 | R$ 813 |
Restricted cash | 12 | 91 |
Assets | 49,926 | 59,855 |
LIABILITIES | ||
Loans and financing (Note 22) - CDI | (14,777) | (14,772) |
Loans and financing (Note 24) - TJLP | (7,913) | (23,394) |
Liabilities | (34,035) | (43,916) |
Net assets (liabilities) exposed | 922 | 712 |
Interest rate risk [member] | ||
LIABILITIES | ||
Net assets (liabilities) exposed | 5,846 | R$ 4821 |
Remote Scenario [Member] | ||
ASSETS | ||
CVA and Other financial components - SELIC | 4,438 | |
LIABILITIES | ||
Net assets (liabilities) exposed | (1,523) | |
At Cost [Member] | Interest rate risk [member] | ||
ASSETS | ||
Cash equivalents (Note 6) | 326 | |
Marketable securities (Note 7) | 753 | |
Restricted cash | 12 | |
Assets | 1,973 | |
LIABILITIES | ||
Liabilities | (4,017) | |
Net assets (liabilities) exposed | (2,044) | |
At Cost [Member] | Selic rate [member] | Interest rate risk [member] | ||
ASSETS | ||
CVA and Other financial components - SELIC | 882 | |
At Cost [Member] | CDI Rate[member] | Interest rate risk [member] | ||
LIABILITIES | ||
Loans and financing (Note 22) - CDI | (3,773) | |
At Cost [Member] | TJLP [member] | Interest rate risk [member] | ||
LIABILITIES | ||
Loans and financing (Note 24) - TJLP | (244) | |
At Cost [Member] | Probable Scenario [Member] | Interest rate risk [member] | ||
ASSETS | ||
Cash equivalents (Note 6) | 331 | |
Marketable securities (Note 7) | 764 | |
Restricted cash | 12 | |
Assets | 2,002 | |
At Cost [Member] | Probable Scenario [Member] | Selic rate [member] | Interest rate risk [member] | ||
ASSETS | ||
CVA and Other financial components - SELIC | 895 | |
LIABILITIES | ||
Liabilities | (4,086) | |
Net assets (liabilities) exposed | (2,084) | |
Net effect of fluctuation in interest rates | (40) | |
At Cost [Member] | Probable Scenario [Member] | CDI Rate[member] | Interest rate risk [member] | ||
LIABILITIES | ||
Loans and financing (Note 22) - CDI | (3,830) | |
At Cost [Member] | Probable Scenario [Member] | TJLP [member] | Interest rate risk [member] | ||
LIABILITIES | ||
Loans and financing (Note 24) - TJLP | (256) | |
At Cost [Member] | Probable Scenario [Member] | Interest rate risk [member] | ||
ASSETS | ||
Cash equivalents (Note 6) | 332 | |
Marketable securities (Note 7) | 767 | |
Restricted cash | 12 | |
Assets | 2,010 | |
LIABILITIES | ||
Liabilities | (4,103) | |
Net assets (liabilities) exposed | (2,093) | |
Net effect of fluctuation in interest rates | (49) | |
At Cost [Member] | Probable Scenario [Member] | Selic rate [member] | Interest rate risk [member] | ||
ASSETS | ||
CVA and Other financial components - SELIC | 899 | |
At Cost [Member] | Probable Scenario [Member] | CDI Rate[member] | Interest rate risk [member] | ||
LIABILITIES | ||
Loans and financing (Note 22) - CDI | (3,844) | |
At Cost [Member] | Probable Scenario [Member] | TJLP [member] | Interest rate risk [member] | ||
LIABILITIES | ||
Loans and financing (Note 24) - TJLP | (259) | |
At Cost [Member] | Remote Scenario [Member] | Interest rate risk [member] | ||
ASSETS | ||
Cash equivalents (Note 6) | 333 | |
Marketable securities (Note 7) | 770 | |
Restricted cash | 12 | |
Assets | 2,017 | |
At Cost [Member] | Remote Scenario [Member] | Selic rate [member] | Interest rate risk [member] | ||
ASSETS | ||
CVA and Other financial components - SELIC | 902 | |
LIABILITIES | ||
Liabilities | (4,120) | |
Net assets (liabilities) exposed | (2,103) | |
Net effect of fluctuation in interest rates | (59) | |
At Cost [Member] | Remote Scenario [Member] | CDI Rate[member] | Interest rate risk [member] | ||
LIABILITIES | ||
Loans and financing (Note 22) - CDI | (3,858) | |
At Cost [Member] | Remote Scenario [Member] | TJLP [member] | Interest rate risk [member] | ||
LIABILITIES | ||
Loans and financing (Note 24) - TJLP | R$ 262 |
33. FINANCIAL INSTRUMENTS AN_13
33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 10) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | ||
Financial liabilities | R$ 18764 | R$ 18120 |
Net assets (liabilities) exposed | (922) | (712) |
Interest Rate Risk [Member] | ||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | ||
Financial liabilities | 4,347 | 4,594 |
Net assets (liabilities) exposed | (5,846) | (4,821) |
Net effect of variation in IPCA and IGP-M indices | (1,499) | (227) |
IGPM [Member] | Interest Rate Risk [Member] | ||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | ||
Financial assets | 115 | 246 |
I- G- P- M- Index [Member] | Interest Rate Risk [Member] | ||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | ||
Financial assets | 247 | |
Transmission Indemnity Receivable [Member] | Interest Rate Risk [Member] | ||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | ||
Financial assets | 2,468 | 1,296 |
Concession Grant Fee [Member] | Interest Rate Risk [Member] | ||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | ||
Financial assets | 1,281 | 2,409 |
Infrastructure -Distribution [Member] | Interest Rate Risk [Member] | ||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | ||
Financial assets | 483 | 396 |
Debt Agreed With Pension Fund [Member] | Interest Rate Risk [Member] | ||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | ||
Financial liabilities | (566) | (652) |
Forluz Deficit Of Pension Plan [Member] | Interest Rate Risk [Member] | ||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | ||
Financial liabilities | (550) | (378) |
Loans, Financings and Debentures [Member] | Interest Rate Risk [Member] | ||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | ||
Financial liabilities | R$ 4730 | R$ 3791 |
33. FINANCIAL INSTRUMENTS AN_14
33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 11) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial liabilities | R$ 18764 | R$ 18120 | |
Net assets (liabilities) exposed | 922 | R$ 712 | |
Probable Scenario [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial assets | 4,407 | ||
Financial liabilities | (5,922) | ||
Net assets (liabilities) exposed | (1,515) | ||
Net effect of fluctuation in IPCA and IGP-M indices | (16) | ||
Probable Scenario [Member] | Forluz Deficit Of Pension Plan [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial liabilities | (557) | ||
Probable Scenario [Member] | Debt Agreed With Pension Fund [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial liabilities | (573) | ||
Probable Scenario [Member] | Loans, Financings and Debentures [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial liabilities | (4,792) | ||
Possible Scenario [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial assets | 4,422 | ||
Financial liabilities | (5,942) | ||
Net assets (liabilities) exposed | (1,520) | ||
Net effect of fluctuation in IPCA and IGP-M indices | (21) | ||
Possible Scenario [Member] | Forluz Deficit Of Pension Plan [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial liabilities | (559) | ||
Possible Scenario [Member] | Debt Agreed With Pension Fund [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial liabilities | (575) | ||
Possible Scenario [Member] | Loans, Financings and Debentures [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial liabilities | (4,808) | ||
Remote Scenario [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial assets | 4,438 | ||
Financial liabilities | (5,961) | ||
Net assets (liabilities) exposed | (1,523) | ||
Net effect of fluctuation in IPCA and IGP-M indices | (24) | ||
Remote Scenario [Member] | Forluz Deficit Of Pension Plan [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial liabilities | (561) | ||
Remote Scenario [Member] | Debt Agreed With Pension Fund [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial liabilities | (577) | ||
Remote Scenario [Member] | Loans, Financings and Debentures [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial liabilities | (4,823) | ||
At Cost [Member] | Forluz Deficit Of Pension Plan [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial liabilities | (55) | ||
At Cost [Member] | Debt Agreed With Pension Fund [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial liabilities | (566) | ||
At Cost [Member] | Loans, Financings and Debentures [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial liabilities | (473) | ||
Concession Financial Assets Related to Distribution Infrastructure [Member] | Probable Scenario [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial assets | [1] | 489 | |
Concession Financial Assets Related to Distribution Infrastructure [Member] | Possible Scenario [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial assets | [1] | 491 | |
Concession Financial Assets Related to Distribution Infrastructure [Member] | Remote Scenario [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial assets | [1] | 493 | |
Concession Financial Assets Related to Distribution Infrastructure [Member] | At Cost [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial assets | [1] | 483 | |
Receivable For Residual Value - Transmission [Member] | Probable Scenario [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial assets | 2,500 | ||
Receivable For Residual Value - Transmission [Member] | Possible Scenario [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial assets | 2,508 | ||
Receivable For Residual Value - Transmission [Member] | Remote Scenario [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial assets | 2,517 | ||
Receivable For Residual Value - Transmission [Member] | At Cost [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial assets | 2,468 | ||
Concession Grant Fee [Member] | Probable Scenario [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial assets | 1,298 | ||
Concession Grant Fee [Member] | Possible Scenario [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial assets | 1,302 | ||
Concession Grant Fee [Member] | Remote Scenario [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial assets | 1,306 | ||
Concession Grant Fee [Member] | At Cost [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial assets | 1,281 | ||
Accounts Receivable From Minas Gerais State Government (AFAC) - IGPM Index [Member] | Probable Scenario [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial assets | 120 | ||
Accounts Receivable From Minas Gerais State Government (AFAC) - IGPM Index [Member] | Possible Scenario [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial assets | 121 | ||
Accounts Receivable From Minas Gerais State Government (AFAC) - IGPM Index [Member] | Remote Scenario [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial assets | 122 | ||
Accounts Receivable From Minas Gerais State Government (AFAC) - IGPM Index [Member] | At Cost [Member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Financial assets | R$ 115 | ||
[1] | Portion of the Concession financial assets relating to the Regulatory Remuneration Base of Assets ratified by the regulator (Aneel) after the 4rd tariff review cycle. |
33. FINANCIAL INSTRUMENTS AN_15
33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 12) R$ in Millions | Dec. 31, 2019BRL (R$) |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | R$ 22763 |
Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 20,683 |
Not Later Than One Month [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 1,839 |
Not Later Than One Month [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 53 |
Later Than One Month and Not Later Than Three Months [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 1,447 |
Later Than One Month and Not Later Than Three Months [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 1,154 |
Later Than Three Months And Not Later Than One Year [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 1,572 |
Later Than Three Months And Not Later Than One Year [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 1,571 |
Later Than One Year and Not Later Than Five Years [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 1,535 |
Later Than One Year and Not Later Than Five Years [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 15,350 |
Later Than Five Years [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 2,555 |
Later Than Five Years [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 2,555 |
Deficit Of The Pension Plan [member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 981 |
Deficit Of The Pension Plan [member] | Not Later Than One Month [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 5 |
Deficit Of The Pension Plan [member] | Later Than One Month and Not Later Than Three Months [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 11 |
Deficit Of The Pension Plan [member] | Later Than Three Months And Not Later Than One Year [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 123 |
Deficit Of The Pension Plan [member] | Later Than One Year and Not Later Than Five Years [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 212 |
Deficit Of The Pension Plan [member] | Later Than Five Years [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 630 |
Debt Agreed With Pension Plan [member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 704 |
Debt Agreed With Pension Plan [member] | Not Later Than One Month [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 12 |
Debt Agreed With Pension Plan [member] | Later Than One Month and Not Later Than Three Months [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 24 |
Debt Agreed With Pension Plan [member] | Later Than Three Months And Not Later Than One Year [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 111 |
Debt Agreed With Pension Plan [member] | Later Than One Year and Not Later Than Five Years [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 557 |
Debt Agreed With Pension Plan [member] | Later Than Five Years [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | |
Onerous Concessions [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 24 |
Onerous Concessions [Member] | Later Than Three Months And Not Later Than One Year [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 2 |
Onerous Concessions [Member] | Later Than One Year and Not Later Than Five Years [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 9 |
Onerous Concessions [Member] | Later Than Five Years [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 13 |
Suppliers [Member] | Fixed Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 2,080 |
Suppliers [Member] | Not Later Than One Month [Member] | Fixed Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 1,786 |
Suppliers [Member] | Later Than One Month and Not Later Than Three Months [Member] | Fixed Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 293 |
Suppliers [Member] | Later Than Three Months And Not Later Than One Year [Member] | Fixed Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 1 |
Loans, Financings and Debentures [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 18,974 |
Loans, Financings and Debentures [Member] | Not Later Than One Month [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 36 |
Loans, Financings and Debentures [Member] | Later Than One Month and Not Later Than Three Months [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 1,119 |
Loans, Financings and Debentures [Member] | Later Than Three Months And Not Later Than One Year [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 1,335 |
Loans, Financings and Debentures [Member] | Later Than One Year and Not Later Than Five Years [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 14,572 |
Loans, Financings and Debentures [Member] | Later Than Five Years [Member] | Floating Interest Rate [Member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | R$ 1912 |
33. FINANCIAL INSTRUMENTS AN_16
33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 13) - Credit Risk [Member] R$ in Millions | 12 Months Ended | |
Dec. 31, 2019BRL (R$) | ||
A1 Rating [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Bank equity | R$ 3500 | |
Concentration | Minimum of 50% | |
A1 Rating [Member] | Bottom Of Range [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Percentage of limit per bank entity | 6.00% | [1] |
A1 Rating [Member] | Top of Range [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Percentage of limit per bank entity | 9.00% | [1] |
A2 Rating [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Concentration | Maximum 30% | |
A2 Rating [Member] | Bottom Of Range [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Bank equity | R$ 100 | |
Percentage of limit per bank entity | 5.00% | [1] |
A2 Rating [Member] | Top of Range [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Bank equity | R$ 3500 | |
Percentage of limit per bank entity | 8.00% | [1] |
B Rating [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Concentration | Maximum 30% | |
B Rating [Member] | Bottom Of Range [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Bank equity | R$ 400 | |
Percentage of limit per bank entity | 5.00% | [1] |
B Rating [Member] | Top of Range [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Bank equity | R$ 100 | |
Percentage of limit per bank entity | 7.00% | [1] |
[1] | The percentage assigned to each bank depends on individual assessment of indicators, e.g. liquidity, and quality of the credit portfolio. |
33. FINANCIAL INSTRUMENTS AN_17
33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 14) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of financial liabilities [line items] | ||||
Total liabilities | R$ 34035 | R$ 43916 | ||
Cash and cash equivalents | (536) | (891) | ||
Net assets (liabilities) exposed | (922) | (712) | ||
Total equity | 15,891 | 15,939 | R$ 14330 | R$ 12934 |
Capital Management [Member] | ||||
Disclosure of financial liabilities [line items] | ||||
Total liabilities | 34,035 | 43,916 | ||
Cash and cash equivalents | (536) | (891) | ||
Restricted cash | (12) | (91) | ||
Net assets (liabilities) exposed | 33,487 | 42,934 | ||
Total equity | R$ 15891 | R$ 15939 | ||
Net liabilities / equity | 2.11% | 2.70% |
33. FINANCIAL INSTRUMENTS AN_18
33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details Narrative) R$ / shares in Units, R$ in Millions | May 07, 2019 | Jul. 31, 2018BRL (R$)R$ / shares | Dec. 31, 2019BRL (R$)NumberR$ / shares | Dec. 31, 2018BRL (R$) |
Disclosure of detailed information about financial instruments [line items] | ||||
Description of annual rates loans and debentures | IPCA + 4.70% to 8.07% and CDI + 0.38% to 2.24% | |||
Exercise price of financial remuneration percentage | 133.37% | |||
Liability | R$ 483 | R$ 419 | ||
Risk-free interest rate | 0.81% | 3.19% | ||
Volatility | 10.00% | 70.00% | ||
Put option, price | R$ 492 | R$ 525 | ||
Exercise price of put option as number of times adjusted net income | Number | 15 | |||
Exercise price of call option as number of times adjusted net income | Number | 17 | |||
Option vesting date | Jan. 1, 2021 | |||
Non cash positive (negative) adjustment from derivative transaction | R$ 998 | 893 | ||
Swap operation floor rate | R$ / shares | R$ 3.85 | R$ 3.25 | ||
Swap ceiling rate | R$ 5 | R$ 5 | ||
FX Variation Interest rate | 9.25% | 9.25% | ||
Value of principal contracted | R$ 5 | R$ 1 | ||
Cemig's obligation | 125.52% of the CDI rate | 150.49% of the CDI | ||
Financial assets, fair value | R$ 16098 | 16,183 | ||
Maturity | April 15, 2022 to April 15, 2025 | |||
Derivative hedge instrument, Liabilities | 18,764 | (18,120) | ||
Net assets (liabilities) exposed | R$ 922 | 712 | ||
Percentage of decrease in US dollars | 7600.00% | |||
Percentage of decrease in euro | 155.00% | |||
Cash flow projection period | 12 months | |||
Daily liquidity projection period | 180 days | |||
Carrying value bond | R$ 14777 | 14,772 | ||
Swap spread at the end | 1,705 | |||
Call spread at the endcall | 1,511 | |||
Swap comprising amount | R$ 3216 | |||
Sensitivity analysis | the Company estimates that in a probable scenario the variation of the exchange rates of foreign currencies in relation to the Real at the end of 2020 will be an appreciation of the dollar by 29.01% to R$5.20. The Company has prepared a sensitivity analysis of the effects on the Company’s net income arising from depreciation of the Real exchange rate by 25%, and by 50%, in relation to this ‘probable’ scenario. | |||
TJLP [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Sensitivity analysis | Company estimates that, in a probable scenario, at December 31, 2020 Selic and TJLP rates will be 1.50% and 4.95%, respectively. | |||
Cemig Geracao Tres Marias Sa [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Maturity | 2024 | |||
Fair value of financial instruments | R$ 1691 | 813 | ||
Carrying value bond | R$ 922 | R$ 712 | ||
Possible Scenario [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Risk-free interest rate | 25.00% | |||
Volatility | 50.00% | |||
Derivative hedge instrument, Assets | R$ 4422 | |||
Derivative hedge instrument, Liabilities | 5,942 | |||
Net assets (liabilities) exposed | R$ 1520 |
34. ASSETS AS HELD FOR SALE A_3
34. ASSETS AS HELD FOR SALE AND DISCONTINUED OPERATIONS (Details) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of assets and liabilities classified as held for sale [line items] | ||
Assets | R$ 19446 | |
Liabilities | (16,272) | |
Net Asset | 3,174 | |
Attributed equity holders of the parent | 1,818 | |
Attributed to non-controlling interests | 1,356 | |
Net income from discontinued operations | 363 | |
Attributed to equity holders of the parent | 322 | |
Attributed to non-controlling interests | 41 | |
Net income from continuing operations | ||
Attributed to equity holders of the parent | ||
Attributed to non-controlling interests | ||
Investment Funds [Member] | ||
Disclosure of assets and liabilities classified as held for sale [line items] | ||
Assets | R$ 1258 | 19,446 |
Liabilities | (16,272) | |
Net Asset | 1,258 | 3,174 |
Attributed to discontinuing operations | 224 | |
Attributed equity holders of the parent | 1,258 | 1,818 |
Attributed to non-controlling interests | 1,356 | |
Net income from discontinued operations | 224 | 73 |
Attributed to equity holders of the parent | 224 | 32 |
Attributed to non-controlling interests | 41 | |
Net income from continuing operations | 73 | |
Attributed to equity holders of the parent | 73 | |
Attributed to non-controlling interests | ||
Telecom Assets [Member] | ||
Disclosure of assets and liabilities classified as held for sale [line items] | ||
Net income from discontinued operations | 290 | |
Attributed to equity holders of the parent | 290 | |
Net income from continuing operations | ||
Attributed to equity holders of the parent | ||
Attributed to non-controlling interests |
34. ASSETS AS HELD FOR SALE A_4
34. ASSETS AS HELD FOR SALE AND DISCONTINUED OPERATIONS (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of assets and liabilities classified as held for sale [line items] | |||
Prior equity interest - Assets held for sale | R$ 1850 | ||
Proceeds from disposal of equity interest | 625 | ||
Remeasurement at fair value of remaining equity interest | 1,525 | ||
Others | 9 | ||
Effects on the income statement, before taxes | 309 | ||
Income tax and social contribution tax | (85) | ||
Net income after tax for the year from discontinued operations | 224 | R$ 363 | |
Light [Member] | |||
Disclosure of assets and liabilities classified as held for sale [line items] | |||
Prior equity interest - Assets held for sale | (1,060) | ||
Remeasurement at fair value of remaining equity interest | 1,258 | ||
Effects on the income statement, before taxes | 198 | ||
Income tax and social contribution tax | (47) | ||
Net income after tax for the year from discontinued operations | 151 | ||
Lightger [Member] | |||
Disclosure of assets and liabilities classified as held for sale [line items] | |||
Prior equity interest - Assets held for sale | (126) | ||
Remeasurement at fair value of remaining equity interest | 128 | ||
Effects on the income statement, before taxes | 2 | ||
Income tax and social contribution tax | |||
Net income after tax for the year from discontinued operations | 2 | ||
Guanhaes [Member] | |||
Disclosure of assets and liabilities classified as held for sale [line items] | |||
Prior equity interest - Assets held for sale | (141) | ||
Remeasurement at fair value of remaining equity interest | 131 | ||
Others | 4 | ||
Effects on the income statement, before taxes | (6) | ||
Income tax and social contribution tax | |||
Net income after tax for the year from discontinued operations | (6) | ||
Axxion [Member] | |||
Disclosure of assets and liabilities classified as held for sale [line items] | |||
Prior equity interest - Assets held for sale | (4) | ||
Remeasurement at fair value of remaining equity interest | 4 | ||
Others | 5 | ||
Effects on the income statement, before taxes | 5 | ||
Income tax and social contribution tax | |||
Net income after tax for the year from discontinued operations | 5 | ||
Itaocara [Member] | |||
Disclosure of assets and liabilities classified as held for sale [line items] | |||
Prior equity interest - Assets held for sale | (4) | ||
Remeasurement at fair value of remaining equity interest | 4 | ||
Effects on the income statement, before taxes | |||
Income tax and social contribution tax | |||
Net income after tax for the year from discontinued operations | |||
Profit Loss on Disposal Of Equity Interest [Member] | Light [Member] | |||
Disclosure of assets and liabilities classified as held for sale [line items] | |||
Prior equity interest - Assets held for sale | (515) | ||
Proceeds from disposal of equity interest | 625 | ||
Effects on the income statement, before taxes | 110 | ||
Income tax and social contribution tax | (38) | ||
Net income after tax for the year from discontinued operations | R$ 72 |
34. ASSETS AS HELD FOR SALE A_5
34. ASSETS AS HELD FOR SALE AND DISCONTINUED OPERATIONS (Details 2) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets classified as held for sale | ||||
Cash and cash equivalents | R$ 536 | R$ 891 | ||
Recoverable taxes | 99 | 124 | ||
Financial assets of sector | 1,080 | 1,071 | ||
Other current assets | 304 | 358 | ||
Total, current assets | 10,138 | 27,796 | ||
Recoverable taxes | 6,349 | 242 | ||
Concession financial assets | 4,851 | 4,927 | ||
Property, plant and equipment | 2,450 | 2,662 | R$ 2762 | R$ 3775 |
Intangible assets | 11,624 | 10,777 | 11,156 | 10,820 |
TOTAL NON-CURRENT | 39,788 | 32,059 | ||
TOTAL ASSETS | 49,926 | 59,855 | ||
Liabilities directly associated to assets held for sale | ||||
Suppliers | 2,080 | 1,801 | ||
Loans and financings | 2,747 | 2,198 | ||
Taxes | 359 | 410 | ||
Other current liabilities | 355 | 247 | ||
TOTAL CURRENT | 7,913 | 23,394 | ||
Loans, financing and debentures | 12,030 | 12,574 | ||
Taxes | 1 | 29 | ||
Other non-current liabilities | 95 | 92 | ||
TOTAL NON-CURRENT | 26,122 | 20,522 | ||
Share capital | 7,294 | 7,294 | 7,294 | |
Capital reserves | 2,250 | 2,250 | 1,925 | |
Equity valuation adjustments | 15,887 | 14,579 | ||
TOTAL EQUITY | 15,891 | 15,939 | R$ 14330 | R$ 12934 |
TOTAL LIABILITIES | 34,035 | R$ 43916 | ||
Light [Member] | ||||
Assets classified as held for sale | ||||
Cash and cash equivalents | 1,678 | |||
Receivables from customers and traders | 2,537 | |||
Recoverable taxes | 216 | |||
Financial assets of sector | 549 | |||
Other current assets | 374 | |||
Total, current assets | 5,354 | |||
Receivables from customers and traders | 1,113 | |||
Recoverable taxes | 6,257 | |||
Concession financial assets | 5,358 | |||
Property, plant and equipment | 1,587 | |||
Intangible assets | 2,837 | |||
Investments | 579 | |||
Other non-current assets | 758 | |||
TOTAL NON-CURRENT | 18,489 | |||
TOTAL ASSETS | 23,843 | |||
Liabilities directly associated to assets held for sale | ||||
Suppliers | 2,546 | |||
Loans and financings | 1,387 | |||
Taxes | 172 | |||
Other current liabilities | 1,071 | |||
TOTAL CURRENT | 5,176 | |||
Loans, financing and debentures | 7,379 | |||
Taxes | 348 | |||
Deferred taxes | 400 | |||
Other non-current liabilities | 4,308 | |||
TOTAL NON-CURRENT | 12,435 | |||
Share capital | 4,051 | |||
Capital reserves | 3 | |||
Profit reserves | 1,958 | |||
Equity valuation adjustments | 220 | |||
TOTAL EQUITY | 6,232 | |||
TOTAL LIABILITIES | R$ 23843 |
34. ASSETS AS HELD FOR SALE A_6
34. ASSETS AS HELD FOR SALE AND DISCONTINUED OPERATIONS (Details Narrative) - BRL (R$) R$ / shares in Units, R$ in Millions | Jul. 17, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 23, 2018 |
Disclosure of assets and liabilities classified as held for sale [line items] | |||||
Number of shares sold (in shares) | 1,258,841,654 | 1,458,752,601 | 1,258,841,654 | 199,910,947 | |
Share price | R$ 5.00 | R$ 5.00 | |||
Gain on disposal of assets | R$ 998 | R$ 893 | |||
Capital gain on assets | 72 | ||||
Estimated costs for the sale | 29 | ||||
Dividends declared | 364 | ||||
Disposal of control | 224 | ||||
Light [Member] | |||||
Disclosure of assets and liabilities classified as held for sale [line items] | |||||
Dividends declared | R$ 73 | ||||
Bottom Of Range [Member] | |||||
Disclosure of assets and liabilities classified as held for sale [line items] | |||||
Voting rights percentage | 22.58% | ||||
Top of Range [Member] | |||||
Disclosure of assets and liabilities classified as held for sale [line items] | |||||
Voting rights percentage | 49.99% | ||||
Initial Public Offering [Member] | |||||
Disclosure of assets and liabilities classified as held for sale [line items] | |||||
Number of shares sold (in shares) | 33,333,333 | ||||
Proceeds from issuance of shares | R$ 625 | ||||
Share price | R$ 18.75 |
35. INSURANCE (Details)
35. INSURANCE (Details) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019BRL (R$) | ||
Companhia Energetica De Minas Gerais [Member] | Facilities In Buildings [Member] | ||
Disclosure of types of insurance contracts [line items] | ||
Coverage | Fire | |
Coverage period | Jan. 8, 2020 to Jan. 8, 2021 | |
Amount insured | R$ 8661 | [1] |
Annual premium | R$ 2 | [1] |
Cemig Geracao E Transmissao [Member] | Air Transport Aircraft [Member] | ||
Disclosure of types of insurance contracts [line items] | ||
Coverage | Fuselage | |
Coverage period | April 29, 2019 to 29-Apr-20 | |
Amount insured | R$ 4385 | [1] |
Annual premium | R$ 49 | [1] |
Cemig Geracao E Transmissao [Member] | Air Transport Aircraft [Member] | ||
Disclosure of types of insurance contracts [line items] | ||
Coverage | Third party | |
Coverage period | April 29, 2019 to 29-Apr-20 | |
Amount insured | R$ 14000 | [1] |
Cemig Geracao E Transmissao [Member] | Warehouse Stores [Member] | ||
Disclosure of types of insurance contracts [line items] | ||
Coverage | Fire | |
Coverage period | Nov. 2, 2019 to Nov. 2, 2020 | |
Amount insured | R$ 20771 | [1] |
Annual premium | R$ 20 | [1] |
Cemig Geracao E Transmissao [Member] | Buildings [Member] | ||
Disclosure of types of insurance contracts [line items] | ||
Coverage | Fire | |
Coverage period | Jan. 8, 2020 to Jan. 8, 2021 | |
Amount insured | R$ 275773 | [1] |
Annual premium | R$ 75 | [1] |
Cemig Geracao E Transmissao [Member] | Telecoms Equipment [Member] | ||
Disclosure of types of insurance contracts [line items] | ||
Coverage | Fire | [2] |
Coverage period | Jan. 8, 2019 to Jan. 8, 2020 | [2] |
Amount insured | R$ 2650 | [1],[2] |
Annual premium | R$ 2 | [1],[2] |
Cemig Geracao E Transmissao [Member] | Operational Risk [Member] | ||
Disclosure of types of insurance contracts [line items] | ||
Coverage | Total | [3] |
Coverage period | Dec. 7, 2019 to Dec. 7, 2020 | [3] |
Amount insured | R$ 959243 | [1],[3] |
Annual premium | R$ 1262 | [1],[3] |
GASMIG [Member] | Gas Distribution Network Third Party [Member] | ||
Disclosure of types of insurance contracts [line items] | ||
Coverage | Third party | |
Coverage period | Dec. 15, 2019 to Dec. 15, 2020 | |
Amount insured | R$ 60000 | [1] |
Annual premium | R$ 398 | [1] |
GASMIG [Member] | Own Vehicle Fleet (Operation) [Member] | ||
Disclosure of types of insurance contracts [line items] | ||
Coverage | Damage to third parties only | |
Coverage period | Jul. 7, 2019 to Jul. 7, 2020 | |
Amount insured | R$ 500 | [1] |
Annual premium | R$ 3 | [1] |
GASMIG [Member] | Own Vehicle Fleet Directors [Member] | ||
Disclosure of types of insurance contracts [line items] | ||
Coverage | Full cover | |
Coverage period | Oct. 25, 2019 to Oct. 25, 2020 | |
Amount insured | R$ 100 | [1] |
Annual premium | R$ 2 | [1] |
GASMIG [Member] | Facilities Multirisk [Member] | ||
Disclosure of types of insurance contracts [line items] | ||
Coverage | Robbery, theft and fire | |
Coverage period | Jan. 1, 2020 to Jan. 1, 2021 | |
Amount insured | R$ 41374 | [1] |
Annual premium | R$ 448 | [1] |
Cemig Distribuicao [Member] | Warehouse Stores [Member] | ||
Disclosure of types of insurance contracts [line items] | ||
Coverage | Fire | |
Coverage period | Nov. 2, 2019 to Nov. 2, 2020 | |
Amount insured | R$ 120007 | [1] |
Annual premium | R$ 117 | [1] |
Cemig Distribuicao [Member] | Buildings [Member] | ||
Disclosure of types of insurance contracts [line items] | ||
Coverage | Fire | |
Coverage period | Jan. 8, 2019 to Jan. 8, 2020 | |
Amount insured | R$ 744134 | [1] |
Annual premium | R$ 201 | [1] |
Cemig Distribuicao [Member] | Telecoms Equipment [Member] | ||
Disclosure of types of insurance contracts [line items] | ||
Coverage | Fire | [2] |
Amount insured | R$ 31083 | [2] |
Annual premium | R$ 28 | [2] |
Cemig Distribuicao [Member] | Operational Risk [Member] | ||
Disclosure of types of insurance contracts [line items] | ||
Coverage | Total | [3] |
Coverage period | Dec. 7, 2019 to Dec. 7, 2020 | [3] |
Amount insured | R$ 528071 | [3] |
Annual premium | R$ 695 | [3] |
Cemig Distribuicao [Member] | Air Transport Aircraft Guimbal Equipment [Member] | ||
Disclosure of types of insurance contracts [line items] | ||
Coverage | Fuselage | |
Coverage period | April 29, 2019 to 29-Apr-20 | |
Amount insured | R$ 3370 | [1] |
Annual premium | R$ 34 | [1] |
Cemig Distribuicao [Member] | Air Transport Aircraft Guimbal Equipment [Member] | ||
Disclosure of types of insurance contracts [line items] | ||
Coverage | Third party | |
Coverage period | April 29, 2019 to 29-Apr-20 | |
Amount insured | R$ 14000 | [1] |
[1] | Amounts expressed in R$ '000 or US$'000. | |
[2] | Contracting of a new policy is in progress. | |
[3] | Maximum indemnity limit: R$ 231. |
35. Insurance (Details Narrativ
35. Insurance (Details Narrative) R$ in Millions | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Cemig Distribuicao [Member] | Operational Risk [Member] | |
Disclosure of types of insurance contracts [line items] | |
Expense arising from other energy distribution equipment | R$ 1000 |
Cemig Geracao E Transmissao [Member] | |
Disclosure of types of insurance contracts [line items] | |
Maximum indemnity limit | 231 |
Cemig Geracao E Transmissao [Member] | Operational Risk [Member] | |
Disclosure of types of insurance contracts [line items] | |
Expense arising from other energy distribution equipment | R$ 1000 |
36. COMMITMENTS (Details)
36. COMMITMENTS (Details) R$ in Millions | Dec. 31, 2019BRL (R$) |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | R$ 200803 |
Purchase of Energy From Itaipu [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 40,620 |
Purchase Of Energy Auctions [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 77,259 |
Purchase Of Energy Bilateral Contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 1,707 |
Quotas of Angra 1 And Angra 2 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 7,829 |
Transport of Energy From Itaipu [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 2,685 |
Other Energy Purchase Contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 53,448 |
Physical Quota Guarantees [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 17,255 |
2020 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 11,443 |
2020 [Member] | Purchase of Energy From Itaipu [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 1,701 |
2020 [Member] | Purchase Of Energy Auctions [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 4,408 |
2020 [Member] | Purchase Of Energy Bilateral Contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 334 |
2020 [Member] | Quotas of Angra 1 And Angra 2 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 296 |
2020 [Member] | Transport of Energy From Itaipu [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 240 |
2020 [Member] | Other Energy Purchase Contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 3,619 |
2020 [Member] | Physical Quota Guarantees [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 845 |
2021 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 10,597 |
2021 [Member] | Purchase of Energy From Itaipu [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 1,538 |
2021 [Member] | Purchase Of Energy Auctions [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 4,081 |
2021 [Member] | Purchase Of Energy Bilateral Contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 334 |
2021 [Member] | Quotas of Angra 1 And Angra 2 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 289 |
2021 [Member] | Transport of Energy From Itaipu [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 251 |
2021 [Member] | Other Energy Purchase Contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 3,347 |
2021 [Member] | Physical Quota Guarantees [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 757 |
2022 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 10,988 |
2022 [Member] | Purchase of Energy From Itaipu [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 1,538 |
2022 [Member] | Purchase Of Energy Auctions [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 4,035 |
2022 [Member] | Purchase Of Energy Bilateral Contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 334 |
2022 [Member] | Quotas of Angra 1 And Angra 2 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 291 |
2022 [Member] | Transport of Energy From Itaipu [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 264 |
2022 [Member] | Other Energy Purchase Contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 3,808 |
2022 [Member] | Physical Quota Guarantees [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 718 |
2023 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 11,093 |
2023 [Member] | Purchase of Energy From Itaipu [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 1,568 |
2023 [Member] | Purchase Of Energy Auctions [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 4,281 |
2023 [Member] | Purchase Of Energy Bilateral Contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 334 |
2023 [Member] | Quotas of Angra 1 And Angra 2 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 299 |
2023 [Member] | Transport of Energy From Itaipu [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 251 |
2023 [Member] | Other Energy Purchase Contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 3,679 |
2023 [Member] | Physical Quota Guarantees [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 681 |
2024 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 11,604 |
2024 [Member] | Purchase of Energy From Itaipu [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 1,551 |
2024 [Member] | Purchase Of Energy Auctions [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 4,724 |
2024 [Member] | Purchase Of Energy Bilateral Contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 223 |
2024 [Member] | Quotas of Angra 1 And Angra 2 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 302 |
2024 [Member] | Transport of Energy From Itaipu [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 238 |
2024 [Member] | Other Energy Purchase Contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 3,913 |
2024 [Member] | Physical Quota Guarantees [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 653 |
After 2025 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 145,078 |
After 2025 [Member] | Purchase of Energy From Itaipu [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 32,724 |
After 2025 [Member] | Purchase Of Energy Auctions [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 55,730 |
After 2025 [Member] | Purchase Of Energy Bilateral Contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 148 |
After 2025 [Member] | Quotas of Angra 1 And Angra 2 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 6,352 |
After 2025 [Member] | Transport of Energy From Itaipu [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 1,441 |
After 2025 [Member] | Other Energy Purchase Contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 35,082 |
After 2025 [Member] | Physical Quota Guarantees [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | R$ 13601 |
37. THE ANNUAL TARIFF ADJUSTM_2
37. THE ANNUAL TARIFF ADJUSTMENT (Details Narrative) - Cemig Distribution [Member] | May 28, 2019 |
Disclosure Of Financial Assets And Financial Liabilities With The Tariff Adjustments [line items] | |
Percentage of annual tariffs adjustment | 8.73% |
Percentage of annual tariff adjustment manageable cost | 1.60% |
Percentage of annual tariffs remaining after adjustment | 7.13% |
Non-Manageable Costs [Member] | |
Disclosure Of Financial Assets And Financial Liabilities With The Tariff Adjustments [line items] | |
Percentage of annual tariffs adjustment | 0.34% |
Other Financial Components [Member] | |
Disclosure Of Financial Assets And Financial Liabilities With The Tariff Adjustments [line items] | |
Percentage of annual tariffs adjustment | 9.24% |
Percentage of annual tariffs remaining effect | 10.79% |
Percentage of annual tariffs remaining withdrawn | 2.45% |
38. NON-CASH TRANSACTIONS (Deta
38. NON-CASH TRANSACTIONS (Details Narrative) - BRL (R$) R$ in Millions | Dec. 27, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Non Cash Activities [line items] | ||||
Capitalized financial costs | R$ 23 | R$ 30 | R$ 71 | |
Minas Gerais State Government [Member] | ||||
Disclosure Of Non Cash Activities [line items] | ||||
Settlement of receivables from retention of dividends | R$ 148 | |||
Rio Minas Energia Participacoes S.A. and Luce Empreendimentos e Participacoes S.A. [Member] | ||||
Disclosure Of Non Cash Activities [line items] | ||||
Payment of cash arising from acquisition of the subsidiaries | 22 | |||
Parajuru and Volta do Rio [Member] | ||||
Disclosure Of Non Cash Activities [line items] | ||||
Payment of cash arising from acquisition of the subsidiaries | 5 | |||
Cash arising from acquisition of the subsidiaries | 4 | |||
RME [Member] | ||||
Disclosure Of Non Cash Activities [line items] | ||||
Payment of cash arising from acquisition of the subsidiaries | 67 | |||
Cash arising from acquisition of the subsidiaries | R$ 104 |
39. SUBSEQUENT EVENTS (Details
39. SUBSEQUENT EVENTS (Details Narrative) - BRL (R$) R$ in Millions | Mar. 23, 2020 | Mar. 11, 2020 | Dec. 31, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Net income (loss) for the year | R$ 3128 | R$ 1742 | R$ 1002 | |||||||
Financial assets, at fair value | R$ 16098 | R$ 16183 | ||||||||
Subsequent Events [Member] | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Description of government measures aimed at Brazilian energy sector | Several measures were implemented by the Brazilian government, specifically aimed at energy sector, which include: • The provisional normative act. 950/2020 issued in April 8, 2020, which provides for 100% discount in the calculation of social energy tariff (‘Tarifa Social de Energia Elétrica’), from April 1, 2020 to June 20, 2020, applicable to customers included in low-income residential subclass, with energy consumption less than or equal to 220 kWh/month. The act also authorizes the Federal Government to allocate resources to Energy Development Account (CDE), limited to R$900, to cover the tariff discounts established. • Expansion on the limit of total amount of energy that can be declared by energy distributors in the process of the surplus sales mechanism (‘Mecanismo de Venda de Excedentes’ - MVE), during 2020, from 15% to 30%, for the purpose of facilitating contractual reductions. • Provision of financial resources available in the reserve fund, by CCEE, dedicated to reduce future regulatory fees. Cemig D was granted with R$122 million. • Under Resolution 878/2020, issued on March 24, 2020, the regulator has implemented some measures in an attempt to maintain the public service of energy supply, which include: prohibiting energy supply suspension due to default of certain categories of customers (residentials), for 90 days, prioritizing emergency assistance and energy supply to services and activities regarded as essential, drawing up specific contingency plans to assist health care units and hospital services, among others. | |||||||||
Donation amount | R$ 10 | |||||||||
Description of investments and expenses plan | Reviewing its program of investments and expenses for 2020, which planned capital investments amounting to approximately R$2,042 million, in order to postpone R$266 (13%) of those capital investments to 2021, being R$168 million, R$17 million and R$81 million originally budgeted to be applied on the distribution, generation and transmission segments, respectively; | |||||||||
Subsequent Events [Member] | 2020 Programmed Voluntary Retirement Plan ('PDVP') [Member] | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Description of voluntary retirement plan | Any employees who had worked with the Company for 25 years or more by December 31, 2020 – are able to join from May 4 to 22, 2020. The program will pay the standard legal payments for severance, 50% of the period of notice, an amount equal to 20% of the Base Value of the employee’s FGTS fund, an additional premium equal to 50% of the period of notice plus 20% of the Base Value of the employee’s FGTS fund, as well as the other payments under the legislation. | |||||||||
Subsequent Events [Member] | Impact of Covid-19 [Member] | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Energy demand (load) measured | (18.30%) | |||||||||
Net income (loss) for the year | R$ 438 | |||||||||
Financial assets, at fair value | R$ 609 | R$ 609 | ||||||||
Subsequent Events [Member] | Impact of Covid-19 [Member] | Cemig Distribuicao SA [Member] | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Energy demand (load) measured | 11.00% | |||||||||
Subsequent Events [Member] | Bottom Of Range [Member] | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Percentage of dividend on revenue | 25.00% |