Cover
Cover | 12 Months Ended |
Dec. 31, 2020shares | |
CoverLineItems [Line Items] | |
Entity Registrant Name | ENERGY CO OF MINAS GERAIS |
Entity Central Index Key | 0001157557 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2020 |
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 |
ICFR Auditor Attestation Flag | true |
Entity Filer Category | Large Accelerated Filer |
Document Accounting Standard | International Financial Reporting Standards |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2020 |
Common Shares [member] | |
CoverLineItems [Line Items] | |
Entity Common Stock, Shares Outstanding | 566,036,634 |
Preferred Shares [member] | |
CoverLineItems [Line Items] | |
Entity Common Stock, Shares Outstanding | 1,127,325,434 |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 02, 2019 | ||
CURRENT | |||||
Cash and cash equivalents | R$ 1680 | R$ 536 | |||
Marketable securities | 3,360 | 740 | [1] | ||
Receivables from customers, traders and power transport concession holders | 4,373 | 4,524 | [1] | ||
Concession financial assets | 258 | ||||
Concession contract assets | 737 | ||||
Recoverable taxes | 1,850 | 99 | [1] | ||
Income tax and social contribution tax credits | 598 | ||||
Dividends receivables | 188 | ||||
Public lighting contribution | 179 | ||||
Reimbursement of tariff subsidies payments | 88 | ||||
Derivative financial instruments | 523 | ||||
Others | 364 | ||||
Current assets before assets classified as held for sale | 14,198 | ||||
Assets classified as held for sale | 1,258 | ||||
TOTAL CURRENT | 15,456 | 10,354 | [1] | ||
NON-CURRENT | |||||
Marketable securities | 765 | 13 | [1] | ||
Receivables from customers, traders and power transport concession holders | 161 | 77 | [1] | ||
Recoverable taxes | 3,442 | 6,349 | [1] | ||
Income tax and social contribution tax recoverable | 347 | ||||
Deferred income tax and social contribution tax | 2,453 | ||||
Escrow deposits | 1,056 | ||||
Derivative financial instruments | 2,426 | ||||
Accounts receivable from the State of Minas Gerais | 12 | ||||
Concession financial assets | 3,799 | ||||
Concession contract assets | 4,243 | ||||
Investments - Equity method | 5,415 | ||||
Property, plant and equipment | 2,407 | 2,450 | [1] | ||
Intangible assets | 11,810 | 11,624 | [1] | ||
Leasing - right-of-use assets | 212 | 277 | [1] | ||
Others | 79 | ||||
TOTAL NON-CURRENT | 38,627 | 40,172 | [1] | ||
TOTAL ASSETS | 54,083 | 50,526 | [1] | ||
CURRENT | |||||
Suppliers | 2,358 | 2,080 | [1] | ||
Regulatory charges | 446 | 457 | [1] | ||
Profit sharing | 122 | ||||
Taxes payable | 506 | ||||
Income tax and social contribution tax | 140 | ||||
Interest on equity and dividends payable | 1,449 | ||||
Loans, financing and debentures | 2,059 | ||||
Payroll and related charges | 213 | ||||
Public lighting contribution | 305 | ||||
Post-employment obligations | 305 | 288 | [1] | ||
Sector financial liabilities | 231 | ||||
PIS/Pasep and Cofins taxes to be refunded to customers | 448 | ||||
Put options SAAG | 536 | ||||
Lease liabilities | 48 | ||||
Others | 524 | ||||
Current liabilities before liabilities held for sale | 9,690 | ||||
TOTAL CURRENT | 9,690 | 7,913 | [1] | ||
NON-CURRENT | |||||
Regulatory charges | 291 | 147 | [1] | ||
Loans, financing and debentures | 12,961 | ||||
Taxes payable | 263 | ||||
Deferred income tax and social contribution tax | 1,040 | ||||
Provisions | 1,892 | ||||
Post-employment obligations | 6,538 | 6,421 | [1] | ||
PIS/Pasep and Cofins taxes to be refunded to customers | 3,570 | ||||
Lease liabilities | 179 | ||||
Others | 181 | ||||
TOTAL NON-CURRENT | 26,915 | 26,458 | [1] | ||
TOTAL LIABILITIES | 36,605 | (34,423) | [1] | ||
EQUITY | |||||
Share capital | 7,594 | 7,294 | [1] | ||
Capital reserves | 2,250 | 2,250 | [1] | ||
Profit reserves | 10,061 | ||||
Equity valuation adjustments | (2,431) | ||||
Retained earnings | |||||
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT | 17,474 | ||||
NON-CONTROLLING INTERESTS | 4 | ||||
TOTAL EQUITY | 17,478 | 15,891 | [1],[2] | ||
TOTAL LIABILITIES AND EQUITY | R$ 54083 | 50,526 | [1] | ||
Restated [member] | |||||
CURRENT | |||||
Cash and cash equivalents | [2] | 536 | R$ 891 | ||
Marketable securities | [2] | 740 | 704 | ||
Receivables from customers, traders and power transport concession holders | [2] | 4,524 | 4,092 | ||
Concession financial assets | [2] | 891 | 890 | ||
Concession contract assets | [2] | 576 | 482 | ||
Recoverable taxes | [2] | 99 | 124 | ||
Income tax and social contribution tax credits | [2] | 621 | 387 | ||
Dividends receivables | [2] | 186 | 120 | ||
Public lighting contribution | [2] | 165 | 148 | ||
Reimbursement of tariff subsidies payments | [2] | 97 | 91 | ||
Derivative financial instruments | [2] | 235 | 70 | ||
Others | [2] | 426 | 521 | ||
Current assets before assets classified as held for sale | [2] | 9,096 | 8,520 | ||
Assets classified as held for sale | [2] | 1,258 | 19,446 | ||
TOTAL CURRENT | [2] | 10,354 | 27,966 | ||
NON-CURRENT | |||||
Marketable securities | [2] | 13 | 109 | ||
Receivables from customers, traders and power transport concession holders | [2] | 77 | 81 | ||
Recoverable taxes | [2] | 6,349 | 242 | ||
Income tax and social contribution tax recoverable | [2] | 228 | 6 | ||
Deferred income tax and social contribution tax | [2] | 2,430 | 2,147 | ||
Escrow deposits | [2] | 2,540 | 2,502 | ||
Derivative financial instruments | [2] | 1,456 | 744 | ||
Accounts receivable from the State of Minas Gerais | [2] | 115 | 246 | ||
Concession financial assets | [2] | 3,759 | 3,812 | ||
Concession contract assets | [2] | 3,307 | 3,026 | ||
Investments - Equity method | [2] | 5,400 | 5,235 | ||
Property, plant and equipment | [2] | 2,450 | 2,662 | ||
Intangible assets | [2] | 11,624 | 10,777 | ||
Leasing - right-of-use assets | [2] | 277 | |||
Others | [2] | 147 | 784 | ||
TOTAL NON-CURRENT | [2] | 40,172 | 32,373 | ||
TOTAL ASSETS | [2] | 50,526 | 60,339 | ||
CURRENT | |||||
Suppliers | [2] | 2,080 | 1,801 | ||
Regulatory charges | [2] | 457 | 514 | ||
Profit sharing | [2] | 212 | 79 | ||
Taxes payable | [2] | 411 | 453 | ||
Income tax and social contribution tax | [2] | 134 | 112 | ||
Interest on equity and dividends payable | [2] | 744 | 864 | ||
Loans, financing and debentures | [2] | 2,747 | 2,198 | ||
Payroll and related charges | [2] | 200 | 284 | ||
Public lighting contribution | [2] | 252 | 281 | ||
Post-employment obligations | [2] | 288 | 253 | ||
Lease liabilities | [2] | 85 | |||
Others | [2] | 355 | 326 | ||
Current liabilities before liabilities held for sale | [2] | 7,965 | 7,165 | ||
Liabilities classified as held for sale | [2] | 16,272 | |||
TOTAL CURRENT | [2] | 7,965 | 23,437 | ||
NON-CURRENT | |||||
Regulatory charges | [2] | 147 | 179 | ||
Loans, financing and debentures | [2] | 12,030 | 12,574 | ||
Taxes payable | [2] | 227 | 249 | ||
Deferred income tax and social contribution tax | [2] | 770 | 803 | ||
Provisions | [2] | 1,888 | 641 | ||
Post-employment obligations | [2] | 6,421 | 4,736 | ||
PIS/Pasep and Cofins taxes to be refunded to customers | [2] | 4,193 | 1,124 | ||
Put options SAAG | [2] | 483 | 419 | ||
Lease liabilities | [2] | 203 | |||
Others | [2] | 96 | 93 | ||
TOTAL NON-CURRENT | [2] | 26,458 | 20,818 | ||
TOTAL LIABILITIES | [2] | 34,423 | 44,255 | ||
EQUITY | |||||
Share capital | [2] | 7,294 | 7,294 | ||
Capital reserves | [2] | 2,250 | 2,250 | ||
Profit reserves | [2] | 8,750 | 6,362 | ||
Equity valuation adjustments | [2] | (2,407) | (1,327) | ||
Retained earnings | [2] | 212 | 145 | ||
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT | [2] | 16,099 | 14,724 | ||
NON-CONTROLLING INTERESTS | [2] | 4 | 1,360 | ||
TOTAL EQUITY | [2] | 16,103 | 16,084 | ||
TOTAL LIABILITIES AND EQUITY | [2] | R$ 50526 | R$ 60339 | ||
[1] | See note 2.8. | ||||
[2] | For further details of restatement of comparative balances, see Note 2.8 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME - BRL (R$) R$ in Millions | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
CONTINUING OPERATIONS | ||||||
NET REVENUE | R$ 25228 | R$ 25487 | [1] | R$ 22266 | ||
COST OF ENERGY AND GAS | ||||||
Energy purchased for resale | (12,111) | (11,286) | [1] | (11,084) | ||
Charges for use of the national grid | (1,748) | (1,426) | [1] | (1,480) | ||
Gas purchased for resale | (1,083) | |||||
Cost of purchased energy sold | (14,942) | |||||
Personnel | (1,012) | |||||
Materials | (62) | |||||
Outsourced services | (1,087) | |||||
Depreciation and amortization | (865) | |||||
Operating provisions, net | (168) | |||||
Infrastructure construction cost | (1,581) | |||||
Others | (128) | |||||
Other costs | (4,903) | |||||
TOTAL COST | (19,845) | |||||
GROSS PROFIT | 5,383 | |||||
Selling expenses | (147) | |||||
General and administrative expenses | (583) | |||||
Operating provisions | (108) | |||||
Other operating (expenses) income, net | (749) | |||||
Operating expense | (1,587) | |||||
Share of profit (loss), net, of affiliates and jointly-controlled entities | 357 | 125 | [1] | (104) | ||
Dividends declared by investee classified as held for sale | ||||||
Result of business combination | 51 | |||||
Periodic Tariff Review adjustments | 502 | |||||
Remeasurement of previously held equity interest in subsidiaries acquired | (119) | |||||
Impairment loss on investments | (127) | |||||
Income before finance income (expenses) and taxes | 4,706 | 3,210 | [1] | 2,529 | ||
Finance income | 2,445 | |||||
Finance expenses | (3,350) | (1,847) | [1] | (2,224) | ||
Income before income tax and social contribution tax | 3,801 | 4,469 | [1] | 2,011 | ||
Current income tax and social contribution tax | (684) | |||||
Deferred income tax and social contribution tax | (252) | |||||
Net income for the year from continuing operations | 2,865 | 2,969 | [1] | 1,401 | [1] | |
DISCONTINUED OPERATIONS | ||||||
Net income after tax for the year from discontinued operations | 224 | [1] | 363 | [1] | ||
NET INCOME FOR THE YEAR | 2,865 | 3,194 | [1] | 1,764 | [1] | |
Equity holders of the parent | ||||||
Net income from continuing operations | 2,864 | |||||
Net income for the year attributed to equity holders of the parent | 2,864 | |||||
Non-controlling interests | ||||||
Net income from continuing operations | 1 | |||||
Net income from Non-controlling interests | 1 | 1 | [1] | 42 | ||
NET INCOME FOR THE YEAR | R$ 2865 | 3,194 | [1] | 1,764 | [1] | |
Basic and diluted earnings per preferred share - R$ | R$ 1.69 | |||||
Basic and diluted earnings per common share - R$ | 1.69 | |||||
Basic and diluted earnings per preferred share from continuing operations - R$ | 1.69 | |||||
Basic and diluted earnings per common share from continuing operations - R$ | 1.69 | |||||
Basic and diluted earnings per preferred share from discontinued operations - R$ | ||||||
Basic and diluted earnings per common share from discontinued operations - R$ | ||||||
Preferred Shares [member] | ||||||
Non-controlling interests | ||||||
Basic and diluted earnings per preferred share - R$ | 1.69 | |||||
Basic and diluted earnings per preferred share from continuing operations - R$ | 1.69 | |||||
Common Shares [member] | ||||||
Non-controlling interests | ||||||
Basic and diluted earnings per common share - R$ | 1.69 | |||||
Basic and diluted earnings per common share from continuing operations - R$ | R$ 1.69 | |||||
Restated [member] | ||||||
CONTINUING OPERATIONS | ||||||
NET REVENUE | [2] | 25,486 | [3] | 22,299 | ||
COST OF ENERGY AND GAS | ||||||
Energy purchased for resale | [2] | (11,286) | (11,084) | |||
Charges for use of the national grid | [2] | (1,426) | (1,480) | |||
Gas purchased for resale | [2] | (1,436) | (1,238) | |||
Cost of purchased energy sold | [2] | (14,148) | (13,802) | |||
Personnel | [2] | (1,002) | (1,098) | |||
Materials | [2] | (74) | (81) | |||
Outsourced services | [2] | (1,043) | (913) | |||
Depreciation and amortization | [2] | (815) | (761) | |||
Operating provisions, net | [2] | (1,214) | (40) | |||
Infrastructure construction cost | [2] | (1,200) | (897) | |||
Others | [2] | (102) | (85) | |||
Other costs | [2] | (5,450) | (3,875) | |||
TOTAL COST | [2] | (19,598) | (17,677) | |||
GROSS PROFIT | [2] | 5,888 | 4,622 | |||
Selling expenses | [2] | (238) | (264) | |||
General and administrative expenses | [2] | (642) | (672) | |||
Operating provisions | [2] | (950) | (167) | |||
Other operating (expenses) income, net | [2] | (1,046) | (640) | |||
Operating expense | [2] | (2,876) | [4] | (1,743) | ||
Share of profit (loss), net, of affiliates and jointly-controlled entities | [2] | 125 | (104) | |||
Dividends declared by investee classified as held for sale | [2] | (73) | ||||
Remeasurement of previously held equity interest in subsidiaries acquired | [2] | (119) | ||||
Impairment loss on investments | [2] | (127) | ||||
Income before finance income (expenses) and taxes | [2] | 3,210 | 2,529 | |||
Finance income | [2] | 3,207 | 1,706 | |||
Finance expenses | [2] | (1,847) | (2,224) | |||
Income before income tax and social contribution tax | [2] | 4,570 | 2,011 | |||
Current income tax and social contribution tax | [2] | (1,454) | (583) | |||
Deferred income tax and social contribution tax | [2] | (145) | [5] | (27) | ||
Net income for the year from continuing operations | [2] | 2,971 | 1,401 | |||
DISCONTINUED OPERATIONS | ||||||
Net income after tax for the year from discontinued operations | [2] | 224 | 363 | |||
NET INCOME FOR THE YEAR | [2] | 3,195 | 1,764 | |||
Equity holders of the parent | ||||||
Net income from continuing operations | [2] | 2,970 | 1,400 | |||
Net income from discontinued operations | [2] | 224 | 322 | |||
Net income for the year attributed to equity holders of the parent | [2] | 3,194 | 1,722 | |||
Non-controlling interests | ||||||
Net income from continuing operations | [2] | 1 | 1 | |||
Net income from discontinued operations | [2] | 41 | ||||
Net income from Non-controlling interests | [2] | 1 | 42 | |||
NET INCOME FOR THE YEAR | [2] | R$ 3195 | R$ 1764 | |||
Basic and diluted earnings per preferred share - R$ | [2] | R$ 1.89 | R$ 1.02 | |||
Basic and diluted earnings per common share - R$ | [2] | 1.89 | 1.02 | |||
Basic and diluted earnings per preferred share from continuing operations - R$ | [2] | 1.75 | 0.83 | |||
Basic and diluted earnings per common share from continuing operations - R$ | [2] | 1.75 | 0.83 | |||
Basic and diluted earnings per preferred share from discontinued operations - R$ | [2] | 0.14 | [5] | 0.19 | ||
Basic and diluted earnings per common share from discontinued operations - R$ | [2] | 0.14 | 0.19 | |||
Restated [member] | Preferred Shares [member] | ||||||
Non-controlling interests | ||||||
Basic and diluted earnings per preferred share - R$ | [2] | 1.89 | 1.02 | |||
Basic and diluted earnings per preferred share from continuing operations - R$ | [2] | 1.89 | 0.83 | |||
Basic and diluted earnings per preferred share from discontinued operations - R$ | [2] | 0.14 | 0.19 | |||
Restated [member] | Common Shares [member] | ||||||
Non-controlling interests | ||||||
Basic and diluted earnings per common share - R$ | [2] | 1.75 | 1.02 | |||
Basic and diluted earnings per common share from continuing operations - R$ | [2] | 1.75 | 0.83 | |||
Basic and diluted earnings per common share from discontinued operations - R$ | [2] | R$ 0.14 | R$ 0.19 | |||
[1] | See note 2.8. | |||||
[2] | For further details of restatement of comparative balances, see Note 2.8 | |||||
[3] | Recognition of the profit margin associated to the performance obligation to construct and upgrade the transmission infrastructure, as well as the interest revenue resulting from the financing component; | |||||
[4] | Reversal of expected losses recorded in others expenses in prior periods. | |||||
[5] | The basic and diluted earnings per share for the years ended in December 31, 2019 and 2018 were also adjusted retrospectively in order to reflect the increase in the number of shares in 2021. For more information, see Note 26. |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - BRL (R$) R$ in Millions | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
NET INCOME FOR THE YEAR | R$ 2865 | R$ 3194 | [1] | R$ 1764 | [1] | |
Items not to be reclassified to profit or loss in subsequent periods | ||||||
Post retirement liabilities-remeasurement of obligations of the defined benefit plans | (10) | |||||
Income tax and social contribution tax on restatement of defined benefit plans | 4 | |||||
Other | (1) | |||||
Equity gain (loss) on other comprehensive income in subsidiary and jointly-controlled entity | (7) | |||||
COMPREHENSIVE INCOME FOR THE YEAR | 2,858 | |||||
Total of comprehensive income for the year attributed to: | ||||||
Equity holders of the parent | 2,857 | |||||
Non - controlling interests | 1 | |||||
COMPREHENSIVE INCOME FOR THE YEAR | R$ 2858 | |||||
Restated [member] | ||||||
NET INCOME FOR THE YEAR | [2] | 3,195 | 1,764 | |||
Items not to be reclassified to profit or loss in subsequent periods | ||||||
Post retirement liabilities-remeasurement of obligations of the defined benefit plans | [2] | (1,599) | (702) | |||
Income tax and social contribution tax on restatement of defined benefit plans | [2] | 544 | 239 | |||
Equity gain (loss) on other comprehensive income in subsidiary and jointly-controlled entity | [2] | (1,055) | (463) | |||
COMPREHENSIVE INCOME FOR THE YEAR | [2] | 2,140 | 1,301 | |||
Total of comprehensive income for the year attributed to: | ||||||
Equity holders of the parent | [2] | 2,139 | 1,259 | |||
Non - controlling interests | [2] | 1 | 42 | |||
COMPREHENSIVE INCOME FOR THE YEAR | [2] | R$ 2140 | R$ 1301 | |||
[1] | See note 2.8. | |||||
[2] | For further details of restatement of comparative balances, see Note 2.8 |
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] | Attributable to the equity holders of the parent [member] | Non-controlling interests [member] | Total | ||
Beginning balance (Restated [member]) at Dec. 31, 2017 | R$ 6294 | R$ 1215 | R$ 1925 | R$ 5729 | R$ 837 | R$ 34 | R$ 14292 | R$ 4 | R$ 14296 | ||
Non-controlling interests | Restated [member] | 1,314 | 1,314 | |||||||||
NET INCOME FOR THE YEAR | Restated [member] | 1,722 | 1,722 | 42 | 1,764 | [1] | ||||||
NET INCOME FOR THE YEAR | [2] | 1,764 | |||||||||
Subscription of capital | Restated [member] | 1,000 | (1,000) | |||||||||
Realization of PP&E deemed cost | Restated [member] | (27) | 42 | 15 | 15 | |||||||
Proposed dividends from prior years | Restated [member] | (127) | (127) | (127) | ||||||||
Expired dividends of previous years | Restated [member] | 42 | 42 | 42 | ||||||||
Subscription of shares, to be capitalized | Restated [member] | 110 | 110 | 110 | ||||||||
Goodwill on subscription of shares | Restated [member] | (325) | 325 | |||||||||
Remeasurement of obligations of the defined benefit plans, net of taxes | Restated [member] | (463) | (463) | (463) | ||||||||
Remeasurement of obligations of the defined benefit plans, net of taxes | (463) | ||||||||||
Appropriation of Net income for the year | |||||||||||
Tax incentives reserve | Restated [member] | 9 | (9) | |||||||||
Proposed dividends | Restated [member] | (867) | (867) | (867) | ||||||||
Retained earnings reserve | Restated [member] | 751 | (751) | |||||||||
Unrealized profit reserve | Restated [member] | 835 | ||||||||||
Ending balance (Restated [member]) at Dec. 31, 2018 | [3] | 7,294 | 2,250 | 6,362 | (1,327) | 145 | 14,724 | 1,360 | 16,084 | ||
Ending balance at Dec. 31, 2018 | [3] | 15,939 | |||||||||
NET INCOME FOR THE YEAR | Restated [member] | [2] | 1,764 | |||||||||
Ending balance (Restated [member]) at Jan. 02, 2019 | [1] | 16,084 | |||||||||
Beginning balance (Restated [member]) at Dec. 31, 2018 | [3] | 7,294 | 2,250 | 6,362 | (1,327) | 145 | 14,724 | 1,360 | 16,084 | ||
Beginning balance at Dec. 31, 2018 | [3] | 15,939 | |||||||||
Non-controlling interests | Restated [member] | (1,357) | (1,357) | |||||||||
NET INCOME FOR THE YEAR | Restated [member] | 3,194 | 3,193 | 1 | 3,195 | [1] | ||||||
NET INCOME FOR THE YEAR | [2] | 3,194 | |||||||||
Realization of PP&E deemed cost | Restated [member] | (25) | 25 | |||||||||
Remeasurement of obligations of the defined benefit plans, net of taxes | Restated [member] | (1,055) | (1,055) | (1,055) | ||||||||
Remeasurement of obligations of the defined benefit plans, net of taxes | (1,055) | ||||||||||
Appropriation of Net income for the year | |||||||||||
Tax incentives reserve | Restated [member] | 18 | (18) | |||||||||
Proposed dividends | Restated [member] | (764) | (764) | (764) | ||||||||
Proposed dividends | (764) | ||||||||||
Retained earnings reserve | Restated [member] | 1,535 | (1,535) | |||||||||
Unrealized profit reserve | Restated [member] | 835 | (835) | |||||||||
Ending balance (Restated [member]) at Dec. 31, 2019 | 7,294 | 2,250 | 8,750 | (2,407) | 212 | 16,099 | 4 | 16,103 | [1] | ||
Ending balance at Dec. 31, 2019 | [1],[2] | 15,891 | |||||||||
Non-controlling interests | (1) | (1) | |||||||||
NET INCOME FOR THE YEAR | 2,864 | 2,864 | 1 | 2,865 | |||||||
Subscription of capital | 300 | (300) | |||||||||
Other comprehensive income | (7) | (7) | (7) | ||||||||
Realization of PP&E deemed cost | (17) | 17 | |||||||||
Appropriation of Net income for the year | |||||||||||
Tax incentives reserve | 18 | (18) | |||||||||
Legal Reserve | 142 | (142) | |||||||||
Proposed dividends | (1,482) | (1,482) | (1,482) | ||||||||
Retained earnings reserve | 1,451 | (1,451) | |||||||||
Unrealized profit reserve | (835) | ||||||||||
Ending balance at Dec. 31, 2020 | R$ 7594 | R$ 2250 | R$ 10061 | R$ 2431 | R$ 17474 | R$ 4 | R$ 17478 | ||||
[1] | For further details of restatement of comparative balances, see Note 2.8 | ||||||||||
[2] | See note 2.8. | ||||||||||
[3] | 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. On August 27, 2020, Aneel published the Dispatch 2,508/2020-SRM-SGT, which set new amounts for distributors' over contracting for the years 2016 and 2017, based on a new valuation criterion established by Aneel Technical Note 97/2020-SRM-SGT - not contained in the regulatory rules which were currently in force. As a result, Cemig D filed an appeal with the Council of Aneel, for the amounts of distribution agents' over contracting to be reset in accordance with the calculation criteria based on maximum effort contained in Aneel Normative Resolution 453/2011. The Company's position on this case is reinforced by the fact that the Brazilian Energy Distributors' Association (Abradee) filed a similar appeal, supported by the opinion of contracted legal advisersadvisors. The Company has no expectation of loss in relation to realization of these amounts. The Company recognizes this receivable asset, in the amount of R$222 on December 31, 2020, as Other financial components' to be ratified. At the reporting date for this financial statements, this matter was still pending analysis by Aneel. |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - BRL (R$) R$ in Millions | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
CASH FLOW FROM OPERATIONS | ||||||
Net income for the year from continuing operations | R$ 2865 | R$ 2969 | [1] | R$ 1401 | [1] | |
Net income for the year from discontinuing operations | 224 | [1] | 363 | [1] | ||
Adjustments to reconcile net income to net cash flows: | ||||||
Deferred income tax and social contribution tax | 252 | |||||
Depreciation and amortization | 989 | |||||
Loss on write-off of net residual value of unrecoverable concession financial assets, concessional contract asset, PP&E and Intangible assets | 39 | |||||
Impairment of contract asset and intangible assets | (12) | |||||
Share of (gain) loss, net, of subsidiaries and joint ventures | (357) | |||||
Periodic Tariff Review adjustments | (552) | |||||
Result of business combination | (51) | |||||
Dividends declared by investee classified as held for sale | ||||||
Impairment loss on investments | ||||||
Generation indemnity revenue | ||||||
Reimbursement of PIS/Pasep and Cofins over ICMS credits to customers - realization | [2] | (266) | ||||
Remeasuring of concession financial and concession contract assets | (801) | |||||
Interest and monetary variation | 1,202 | |||||
Recognition of PIS/Pasep and Cofins taxes credits over ICMS | ||||||
Exchange variation on loans | 1,742 | |||||
Appropriation of transaction costs | 15 | |||||
Provisions for operating losses | 423 | 466 | [1] | |||
Provision for reimbursement for suspension of energy supply - Renova | ||||||
Net gain on derivative instruments at fair value through profit or loss | (1,753) | |||||
CVA (Parcel A items Compensation) Account and Other financial components in tariff adjustments | (455) | |||||
Post-employment obligations | 491 | |||||
Others | 57 | |||||
Working capital adjustments | 3,827 | |||||
Receivables from customers and traders and Concession holders - Transport of electricity | (78) | |||||
CVA and Other financial components in tariff adjustments | 1,467 | |||||
Recoverable taxes | (59) | |||||
Income tax and social contribution tax credits | (162) | |||||
Escrow deposits | 1,538 | |||||
Dividends received from investees | 387 | |||||
Concession contract and financial assets | 688 | |||||
Others | 187 | |||||
Total (increase) / decrease in assets | 3,968 | |||||
Increase (decrease) in liabilities | ||||||
Suppliers | 278 | |||||
Taxes payable | 824 | |||||
Income tax and social contribution tax payable | 690 | |||||
Payroll and related charges | 13 | |||||
Regulatory charges | 132 | |||||
Advances from customers | ||||||
Post-employment obligations | (367) | |||||
Derivative financial instruments - Put options | ||||||
Others | 106 | |||||
Total increase (decrease) in liabilities | 1,676 | |||||
Cash generated by operating activities | 9,471 | |||||
Interest paid on loans, financing and debentures | (1,081) | |||||
Interest paid on leasing contracts | (4) | (5) | ||||
Income tax and social contribution tax paid | (240) | |||||
Cash inflows from settlement of derivatives instruments | 461 | |||||
Net cash flows from continuing operating activities | 8,607 | |||||
Net cash flows used in discontinued operating activities | ||||||
NET CASH FLOWS FROM OPERATING ACTIVITIES | 8,607 | |||||
INVESTING ACTIVITIES | ||||||
Marketable securities | (3,368) | |||||
Restricted cash | (51) | |||||
Investments | ||||||
Acquisition of equity investees | ||||||
Capital contributions in investees | (120) | |||||
Cash arising from business combination | 27 | |||||
Loans to related parties | (27) | |||||
Property, plant and equipment | (132) | |||||
Intangible assets | (41) | |||||
Contract assets - distribution of gas and energy infrastructure | (1,364) | |||||
Net cash flows used in continuing investment activities | (5,076) | |||||
Net cash flows from discontinued investment activities | ||||||
NET CASH FLOWS USED IN INVESTING ACTIVITIES | (5,076) | |||||
FINANCING ACTIVITIES | ||||||
Proceeds from Loans, financings and debentures, net from transaction costs | 826 | |||||
Interest on capital and dividends paid | (598) | |||||
Capital increase | ||||||
Payment of loans, financing and debentures | (2,531) | |||||
Payment of principal portion of lease liabilities | (84) | |||||
NET CASH FLOWS USED IN FINANCING ACTIVITIES | (2,387) | |||||
Net (decrease) increase in cash and cash equivalents for the year | 1,144 | |||||
Cash and cash equivalents at the beginning of the year | [1] | 536 | ||||
Cash and cash equivalents at the end of the year | 1,680 | 536 | [1] | |||
Restated [member] | ||||||
CASH FLOW FROM OPERATIONS | ||||||
Net income for the year from continuing operations | [3] | 2,971 | 1,401 | |||
Net income for the year from discontinuing operations | [3] | 224 | 363 | |||
Adjustments to reconcile net income to net cash flows: | ||||||
Deferred income tax and social contribution tax | [3] | 145 | 27 | |||
Depreciation and amortization | [3] | 958 | 850 | |||
Loss on write-off of net residual value of unrecoverable concession financial assets, concessional contract asset, PP&E and Intangible assets | [3] | 125 | 61 | |||
Impairment of contract asset and intangible assets | [3] | 24 | 42 | |||
Share of (gain) loss, net, of subsidiaries and joint ventures | [3] | (125) | 104 | |||
Periodic Tariff Review adjustments | [3] | |||||
Result of business combination | [3] | 119 | ||||
Dividends declared by investee classified as held for sale | [3] | (73) | ||||
Impairment loss on investments | [3] | 127 | ||||
Generation indemnity revenue | [3] | (55) | ||||
Reimbursement of PIS/Pasep and Cofins over ICMS credits to customers - realization | [3] | |||||
Remeasuring of concession financial and concession contract assets | [3] | (756) | (677) | |||
Interest and monetary variation | [3] | 1,190 | 1,207 | |||
Recognition of PIS/Pasep and Cofins taxes credits over ICMS | [3] | (2,952) | ||||
Exchange variation on loans | [3] | 226 | 582 | |||
Appropriation of transaction costs | [3] | 38 | 33 | |||
Provisions for operating losses | [3] | 2,401 | 466 | |||
Provision for reimbursement for suspension of energy supply - Renova | [3] | (60) | ||||
Net gain on derivative instruments at fair value through profit or loss | [3] | (998) | (893) | |||
CVA (Parcel A items Compensation) Account and Other financial components in tariff adjustments | [3] | (58) | (1,973) | |||
Post-employment obligations | [3] | 465 | 405 | |||
Others | [3] | (9) | (28) | |||
Working capital adjustments | [3] | 3,796 | 2,101 | |||
Receivables from customers and traders and Concession holders - Transport of electricity | [3] | (666) | (391) | |||
CVA and Other financial components in tariff adjustments | [3] | 362 | 909 | |||
Recoverable taxes | [3] | (12) | 38 | |||
Income tax and social contribution tax credits | [3] | (71) | 615 | |||
Escrow deposits | [3] | 11 | (109) | |||
Dividends received from investees | [3] | 283 | 311 | |||
Concession contract and financial assets | [3] | 511 | 1,761 | |||
Others | [3] | 26 | 77 | |||
Total (increase) / decrease in assets | [3] | 444 | 3,211 | |||
Increase (decrease) in liabilities | ||||||
Suppliers | [3] | 279 | (553) | |||
Taxes payable | [3] | (162) | (291) | |||
Income tax and social contribution tax payable | [3] | 1,433 | (6) | |||
Payroll and related charges | [3] | (84) | 77 | |||
Regulatory charges | [3] | (89) | (70) | |||
Advances from customers | [3] | (81) | (153) | |||
Post-employment obligations | [3] | (343) | (307) | |||
Derivative financial instruments - Put options | [3] | (555) | ||||
Others | [3] | 4 | (165) | |||
Total increase (decrease) in liabilities | [3] | 957 | (2,023) | |||
Cash generated by operating activities | [3] | 5,197 | 3,289 | |||
Interest paid on loans, financing and debentures | [3] | (1,265) | (1,290) | |||
Interest paid on leasing contracts | [3] | (5) | ||||
Income tax and social contribution tax paid | [3] | (1,767) | (650) | |||
Cash inflows from settlement of derivatives instruments | [3] | 100 | 37 | |||
Net cash flows from continuing operating activities | [3] | 2,260 | 1,386 | |||
Net cash flows used in discontinued operating activities | [3] | (224) | (378) | |||
NET CASH FLOWS FROM OPERATING ACTIVITIES | [3] | 2,036 | 1,008 | |||
INVESTING ACTIVITIES | ||||||
Marketable securities | [3] | 79 | 276 | |||
Restricted cash | [3] | 79 | 15 | |||
Investments | ||||||
Acquisition of equity investees | [3] | (109) | ||||
Capital contributions in investees | [3] | (38) | (241) | |||
Cash arising from business combination | [3] | 71 | ||||
Loans to related parties | [3] | (6) | ||||
Property, plant and equipment | [3] | (70) | (77) | |||
Intangible assets | [3] | (932) | (801) | |||
Contract assets - distribution of gas and energy infrastructure | [3] | (925) | ||||
Net cash flows used in continuing investment activities | [3] | (1,813) | (866) | |||
Net cash flows from discontinued investment activities | [3] | 625 | 655 | |||
NET CASH FLOWS USED IN INVESTING ACTIVITIES | [3] | (1,188) | (211) | |||
FINANCING ACTIVITIES | ||||||
Proceeds from Loans, financings and debentures, net from transaction costs | [3] | 4,477 | 2,990 | |||
Interest on capital and dividends paid | [3] | (701) | (509) | |||
Capital increase | [3] | 110 | ||||
Payment of loans, financing and debentures | [3] | (4,883) | (3,527) | |||
Payment of principal portion of lease liabilities | [3] | (96) | ||||
NET CASH FLOWS USED IN FINANCING ACTIVITIES | [3] | (1,203) | (936) | |||
Net (decrease) increase in cash and cash equivalents for the year | [3] | (355) | (139) | |||
Cash and cash equivalents at the beginning of the year | [3] | R$ 536 | 891 | 1,030 | ||
Cash and cash equivalents at the end of the year | [3] | R$ 536 | R$ 891 | |||
[1] | See note 2.8. | |||||
[2] | For more information, see note 9 from this financial statements. | |||||
[3] | For further details of restatement of comparative balances, see Note 2.8 |
1. OPERATING CONTEXT
1. OPERATING CONTEXT | 12 Months Ended |
Dec. 31, 2020 | |
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 and gas distribution, 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 82 power plants (75 of which are hydroelectric, 6 are wind power and 1 is solar) and associated transmission lines, most of which are part of the Brazilian national generation and transmission grid system, with total installed generation capacity of 5,786 MW (5) 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 (5), and guaranteed offtake level of 239 MW (5) average. 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 (5), and guaranteed offtake level of 75 MW (5) 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 (5), and guaranteed offtake level of 28 MW (5) 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 (5), and guaranteed offtake level of 21 MW (5) 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 (5); guaranteed offtake level of 27.42 MW (5) 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 35.17 MW (5); guaranteed offtake level of 18.80 MW (5) 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 (5), and guaranteed offtake level of 11.21 MW (5) average. Rosal Energia S.A. (‘Rosal’) Subsidiary Corporation that holds the concession to generate and sell energy, operating the Rosal Sá Carvalho S.A. (‘Sá Carvalho’) Subsidiary Corporation that holds the concession to generate and sell energy, operating the Sá Carvalho Horizontes Energia S.A. (‘Horizontes’) Subsidiary Corporation that is classified as an independent power producer operating the Machado Mineiro Salto do Paraopeba Salto do Voltão Salto do Passo Velho Cemig PCH S.A. (‘PCH’) Subsidiary Corporation that is classified as an independent power producer operating the Pai Joaquim 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 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 Sim (‘Efficientia’) (1) 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. Companhia de Transmissão Centroeste de Minas (‘Centroeste’) (2) Subsidiary Corporation engaged in the construction, operation and maintenance of the Furnas-Pimenta 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 Jacaré Fortuna II LightGer S.A. (‘LightGer’) Jointly-controlled entity Corporation classified as independent power producer, formed to build and operate the Paracambi 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 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 Pocrane Hidrelétrica Pipoca S.A. (‘Pipoca’) Jointly-controlled entity Independent production of energy, through construction and commercial operation of the Pipoca Pequena Central Hidrelétrica Retiro Baixo Energética S.A. (‘RBE’) Jointly-controlled entity Corporation that holds the concession to operate the Retiro Baixo 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 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 Baguari Energia S.A. (‘Baguari Energia’) Jointly-controlled entity Corporation engaged in the construction, operation, maintenance and commercial operation of the Baguari Renova Energia S.A. (‘Renova Energia’) – court supervised reorganization 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. This jointly-controlled investee is currently under court supervised reorganization. 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, Candonga Transmissora Aliança de Energia Elétrica S.A. (‘TAESA’) Jointly-controlled entity Corporation engaged in the construction, operation and maintenance of energy transmission facilities all states of Brazil through direct and indirect equity interests in investees UFV Janaúba Geração de Energia Elétrica Distribuída SA UFV Corinto Geração de Energia Elétrica Distribuída SA UFV Manga Geração de Energia Elétrica Distribuída SA UFV Bonfinópolis II Geração de Energia Elétrica Distribuída SA UFV Lagoa Grande Geração de Energia Elétrica Distribuída SA, UFV Lontra Geração de Energia Elétrica Distribuída SA, UFV Mato Verde Geração de Energia Elétrica Distribuída SA, UFV Mirabela Geração de Energia Elétrica Distribuída SA, UFV Porteirinha Geração de Energia Elétrica Distribuída SA and UFV Porteirinha II Geração de Energia Elétrica Distribuída AS (3) Jointly-controlled entity Generation of electric power from photovoltaic solar sources to the Distributed Generation market (‘Geração Distribuída’), with total installed capacity of 46.26MWp. The wholly owned subsidiary Cemig Sim and Mori Energia holds 49% and 51% of the total equity, respectively. 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’) (4) 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 April 14, 2020, the Annual Shareholders General Meeting approved changes in this subsidiary’s By-laws, changing the name of this subsidiary, from Efficientia S.A. to Cemig Soluções Inteligentes em Energia S.A.-CEMIG SIM. (2) 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. (3) In 2020, Cemig concluded acquisition of interests in special-purpose companies operation in photovoltaic solar generation. For further information, see item (c) of this Note. (4) In Light’s public offering of commom shares, completed on January 22, 2021, the Company sold its entire holding of shares in Light. For further information, see Note 31. (5) Information not examined by the external auditors. 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. b) Centroeste control acquisition On January 13, 2020, the Company concluded the acquisition of the equity interest of 49% of the share capital held by Eletrobras in Centroeste, resulting in its now holding 100% of that investee. The acquisition, which resulted in the Company obtaining control, based on the provisions of accounting standard IFRS 10– Consolidated Financial Standard, is the result of exercise of the right of first refusal for acquisition of the shareholding offered in Eletrobras Auction 01/2018, Lot P, held on September 27, 2018, and confirmed on January 15, 2019. The effects of business combination in this Financial statement are present in Note 16 (d). c) Acquisition of interest in special-purpose companies (‘SPCs’) operating in photovoltaic solar generation On November 25, 2020, the Company’s wholly-owned subsidiary Cemig Soluções Inteligentes em Energia S.A. (‘Cemig Sim’) acquired 49% of interest in seven special-purpose companies operating in photovoltaic solar generation for the distributed generation market (‘geração distribuída’), with total installed capacity of 29.45MWp, for 55. On August 19, 2020 and on September 30, 2020, this wholly-owned subsidiary also acquired 49% of interest in two others SPCs operating in the same market segment for R$8 and R$10, respectively, with total installed capacity of 11.62 MWp. For more details, see Note 16. d) Covid-19 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 and reduce any possible effect, especially by their central banks and fiscal authorities. 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 30, 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 mechanism for the sale of surplus (‘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 in April 2020, by Power Trading Chamber – CCEE, in accordance with Aneel Dispatch 986/2020, dedicated to reduce future regulatory fees. Cemig D was granted with R$122. Under Resolution 878/2020, issued on March 24, 2020, the grantor 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 (residential), for 90 days, extended to July 31, 2020, 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. Under Resolution 891/2020, issued in July 21, 2020, the grantor changed the Resolution 878/2020, as of august, 2020, maintaining the prohibition of energy supply suspension only to low income residential subclass, revoking the provisions applied to the other residential subclasses and related to services and activities regarded as essential. Authorization to create the ‘Covid-Account’ under the Decree 10,350/2020 issued on May 18, 2020, as detailed in the following topic. “Covid-account” (‘Conta-Covid’) On May 18, 2020, in order to cope with the public calamity caused by the Covid-19 pandemic, the Decree n. 10,350/20 authorized the creation of “Covid account”, to support the energy distribution sector, which is the basis of the energy sector financial flow, aimed 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 until June 30, 2020 and (v) anticipation of “parcel B” revenues as determined by Aneel regulation. On June 23, 2020, the grantor issued the Normative Resolution n. 885/2020, which set out the criteria and procedures to manage the “Covid-account”, as well as regulated the use of the CDE regulatory charge. On January 26, 2021, Aneel issued the Dispatch nº 181/2021, which defined the monthly charge to be paid in order to amortize the loan, as well as the respective coverage to be included into the tariff to pay the charge. The annual quote of ‘CDE-Covid-Account’ will be paid by the distribution agents through the tariff charge included in the energy tariff and in the tariff of use of distribution system (‘TUSD’). The amount received by Cemig D will be converted, updated by Selic rate, as a tariff negative financial component in the tariff processes of 2021, ensuring the neutrality. Cemig D joined the financial compensation mechanism under the Covid-account (‘Conta-Covid’), in order to boost its cash flow enabling it to meet its financial obligations, in spite of the collection reduction resulting of the economic crises. The total amount from the “Covid-Account “received by Cemig D, in installments, was R$1,404. The first installment was received in July 2020, in the amount of 1,186, whist the remaining was received until December 2020, affecting positively the balance of cash and equivalent cash and market securities at December 31, 2020. There are some rules applied to distribution agents entitled to the Covid-account resources, such as (i) relinquishing any intention to reduce or end the purchase of energy from generators because of a reduction in the sales caused by the pandemic crises, until December 2020; (ii) in the event of default on payments, limiting their dividend payments to the legal minimum of 25% of net income and (iii) renounce the right to complain in court or arbitral tribunals on the conditions, procedures or obligations determined in legal and regulatory provisions on Covid-account. Notwithstanding, the right to request an extraordinary tariff review is fully preserved. Due to the statements of renunciations established in the Acceptance Document under the Normative Resolution 885/2020, on July 3, 2020 Cemig D’s Shareholders Extraordinary General Meeting approved alteration to its by-laws, to include §4 on Clause 33 limiting the distribution of mandatory dividend or interest on equity to the legal minimum, exceptionally for the cases and conditions that the grantor may demand, by rule or by contract, in order to mitigate a situation of financial imbalance caused by any fact or event attributable to a third party, or overriding government rulings, or expressly recognized force majeure. 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 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 August the Company began the plan for the gradual return-to-office, which is in compliance with measures for prevention, control and mitigation of risks of Covid-19 transmission in work environments. In-person service to the general public was suspended temporarily, and resumed, subject to appointment, from August 3, 2020, in the municipalities that subscribed to the plan created by the State of Minas Gerais, called ‘Plano Minas Consciente’, and which are in the ‘Green Wave’ phase of the program. The decision to serve the public in person by appointment obeys the rules of the plan, and is in accordance with responsible resumption of the economy in Minas Gerais state, following the Covid-19 pandemic. The Company maintain the communication with its customers on virtual channels and essential assistance in customers’ facilities, ensuring the appropriate energy and gas supply. The Company also adopted the follow measures in order to contribute with society: 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, applied until July 1, 2020;. Providing payment flexibility to public and philanthropic hospitals as well as to emergency rooms units, without interests or penalties, conditions applied until July 1, 2020; Offering the entities regarded as small business by Brazilian law the option for payment in up to six installments, without interests or penalties, conditions applied until July 1, 2020; A negotiation campaign was launched, in effect until October, 31, 2020, enabling customers to pay debt by installments in up to 12 months without interest. A negotiation campaign was launched, on April 20, 2021, in effect for 30 days, enabling commercial customers at low voltage to pay debt by installments in up to 12 months without interest, including an exemption from financing updating not yet billed. In Addition, the Company Executive Board approved the following measures, in order to support the fight against the Covid-19 during the critical period named “purple wave” (‘onda rocha’) instituted by the Extraordinary Covid-19 Committee of the State of Minas Gerais, through the Deliberation n. 138, of March 16, 2021 of, in the State of Minas Gerais: Suspending the interruption in supply of energy of customers classified as low income residential subclass; Providing payment in installments to customers classified as low income residential subclass, under the specific conditions of the program, available in the Company website; Providing payment in installments to customers from other classes, including commercial customers classified as small business by Brazilian law, operating in the sectors affected by the crises, under the specific conditions of the program, available in the Company website; prioritizing emergency assistance and energy supply to health care units and hospital services and others activities regarded as essential; communication initiatives aimed at raising awareness of the population about the importance of staying at home, rational use of energy, and electronic equipment use, preventing overload, short-circuit and fires. The measures above result in a postpone of cash of until R$151 to the next year, considering the installments due in 2021. The Company is working diligently to mitigate the crisis impacts on its liquidity, implementing the following measures, among others: restraint of the capital expenditure planned for 2020, in the approximate amount of R$349 and a budget review, which reduced the expenses related to labor, material, outsourced services and others, in the approximate amount of R$164; reduction in dividends payments to shareholders, and deferral dividends and interest on equity payments to the end of 2020 (see Note 26); negotiating with its customers on the free market their contracts; negotiating the terms and conditions established in contracts signed with gas suppliers, including Petrobrás; Deferral, during the year, of taxes and social charges payment, as authorized by legislation. Impact of Covid-19 on Financial Statements Since March, 2020, the Company has been monitoring the Covid-19 pandemic impact on its business and the market in which it operates. The Company has implemented a series of precautionary measures to protect the health of its employees and to prevent the spread of the novel coronavirus in its operational and administrative facilities. The measures are in accordance with the recommendations of World Health Organization (WHO) and Brazilian Ministry of Health and aim to contribute with the populations and Brazilian authorities efforts, in order to prevent the virus dissemination. The Coronavirus crises made an impact on the Company operations, especially related to energy distribution market, due to the contraction of the economic activities and the social distancing measures, affecting entities production process, interrupting their supply chains, causing workforce shortages and closing of stores and facilities. This effects might result in lower energy consumption and an increase in delinquency. In this scenario intervention in market policies, and the initiatives to reduce transmission of Covid-19, also led to lower consumption of natural gas in 2020 than in 2019: consumption by the industrial sector was 3% lower year-on-year, and consumption by the automotive sector was 28% lower. At the same time, consumption in 2020 by residential users was 20% higher year-on-year, and by commercial users was 14% higher – reflecting the natural motivation of increased use of natural gas as a safer option when supply is continuous. As of December 31, 2020, from the observation of the pandemic’s 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 subsidiary Cemig GT 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$4 in the period of January to December 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. However, the market price of the shares increased in the end of 2020, resulting in the reversal of the impairment loss recognized during the year because of the decline in its market price less cost to sell. The Company sold its entire holding of shares in Light in the public offering of common shares in Light, completed on January 22, 2021, as described in Note 32. The Company assessed the circumstances arising from Covid-19 pandemic and associated measures aimed at reducing the impact of the economic contraction on customer delinquency to measure expected credit losses. The Company has intensified measures to mitigate the risks of delinquency, such as a campaign of negotiation with clients in arrears whose energy supply the Company was temporarily prohibited from suspending as well as intensifying the usual collection measures. The return of economic activities after the peak of the coronavirus outbreak, as well as the authorization of the energy supply suspension, as of August, 2020, provided by Normative Resolution n. 891/2020, have contributed to the reestablishment of the collection behavior. In addition, the negotiations to enable the recovery of past due receivables and the grantor’s measures to reestablish economic balance mitigated the negative effects of the economic crisis on collection. The management’s 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, no additional impairment losses were recognized to its investments in subsidiaries, joint-controlled entities and associates due to the economic crisis. 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 Company also reviewed the financial assets and liabilities measured at fair value to reflect the conditions and current rates projected, which impacts are presented in Note 31. The total load on the Brazilian national grid fell in 2020, especially from March to May, and has been recovering gradually since. Year to date, the energy transported and sold to Cemig D customers increased 4.42% and reduced 5.31%, respectively. In the second semester of 2020, the energy transported increased 10.29% and the energy sold expanded 94.66%, compared with the same period of the last year, reflecting the easing of social distancing rules. The accumulated variation of the Cemig D’s captive customers market, measured from the pandemic outbreak until December 2020 reduced 8%. It is important to mention that the effects of the financing expenses arising from energy purchase were minimized by the ‘Covid-Account’ creation. The Company has maintained negotiations and deferrals with its customers |
2. BASIS OF PREPARATION
2. BASIS OF PREPARATION | 12 Months Ended |
Dec. 31, 2020 | |
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). The consolidated financial statements provide comparative information in respect of the previous period. In addition, the Company presents an additional statement of financial position at the beginning of the preceding period when there is a retrospective application of an accounting policy, a retrospective restatement, or a reclassification of items in financial statements. An additional statement of financial position as at January 1, 2019 is presented in these consolidated financial statements due to the retrospective application of a change in an accounting policy (see Note 2.8). 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 April 30, 2021, the Company’s Audit Committee authorized the issuance of the consolidated financial statements as of December 31, 2020, 2019 and January 01, 2019 and for the years ended December 31, 2020, 2019 and 2018. 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 31 and 32, respectively. 2.3 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. 2.4 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 ; Deferred income tax and social contribution tax – Note 10; Financial assets and liabilities of the concession – Note 14; Concession contract assets – Note 15; Investments – Note 16; Property, plant and equipment (“PP&E”) and useful life of assets – Note 17; Intangible assets and useful life of assets – Note 18; Leasing transaction – Note 19; Amounts to be refunded to customers – Note 21; Employee post-employment obligations –Note 24; Provisions – Note 25; Unbilled revenue – Note 27; Financial instruments measurement and fair value measurement – Note 31; Assets held for sale measurement – Note 32. 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 2.5 New accounting standards, interpretation or amendments of accounting standards, applied for the first time in 2020 The Company has applied, for the first time, new accounting standards that became effective for annual periods beginning January 1, 2020 or later, as described below: IFRS 03 – Business Combinations: The amendment clarifies that to be considered a business, an integrated set of activities and assets must include, at a minimum, an input and a substantive process that, together, significantly contribute to the ability to create output. Furthermore, it clarifies that a business can exist without including all of the inputs and processes needed to create outputs. These amendments must be applied to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 January 2020 and to asset acquisitions that occur on or after the beginning of that period. IAS 1 and IAS 8: Provide a new definition of “material” and clarifies some aspects of this definition. The amendments clarify that materiality will depend on the nature or magnitude of information, either individually or in combination with other information, in the context of the financial statements. A misstatement of information is material if it could reasonably be expected to influence decisions made by the primary users. IAS 39, IFRS 7 and IFRS 09 – “Interest rate benchmark reform“: provide a number of reliefs, which apply to all hedging relationships that are directly affected by interest rate benchmark reform. A hedging relationship is affected if the reform gives rise to uncertainty about the timing and/or amount of benchmark-based cash flows of the hedged item or the hedging instrument. IFRS 16: provide relief to lessees from applying IFRS 16 guidance on lease modification accounting for rent concession arising as a direct consequence of the Covid-19 pandemic. As a practical expedient, a lessee may elect not to assess whether a Covid-19 related rent concession from a lessor is a lease modification. A lessee that makes this election accounts for any chance in lease payment resulting from the Covid-19 related rent concession the same way it would account for the change under IFRS 16, if the change were not a lease modification. Conceptual Framework for Financial Reporting: The Conceptual Framework is not a standard, and none of the concepts contained therein override the concepts or requirements in any standard. The purpose of the Conceptual Framework is to assist the IASB in developing standards, to help preparers develop consistent accounting policies where there is no applicable standard in place and to assist all parties to understand and interpret the standards. This will affect those entities which developed their accounting policies based on the Conceptual Framework. The revised Conceptual Framework includes some new concepts, updated definitions and recognition criteria for assets and liabilities and clarifies some important concepts. These amendments had no material impact on the consolidated financial statements of the Company . 2.6 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. IFRS 17 – Insurance Contracts, issued by IASB in May 2017: The overall objective of IFRS 17 is to provide an accounting model for insurance contracts that is more useful and consistent for insurers. IFRS 17 is effective for reporting periods beginning on or after 1 January 2023, with comparative figures required. This standard is not applicable to the Company. IAS 1 – Classification of Liabilities as Current or Non-current: In January 2020, the IASB issued amendments the IASB issued amendments to paragraphs 69 to 76 of IAS 1 to specify the requirements for classifying liabilities as current or non-current. The amendments clarify: (I) what is meant by a right to defer settlement,; (ii) that a right to defer must exist at the end of the reporting period (iii) that classification is unaffected by the likelihood that an entity will exercise its deferral right (iv) that only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification. The amendments are effective for annual reporting periods beginning on or after 1 January 2023 and must be applied retrospectively. IAS 16 - Property, Plant and Equipment – Proceeds before intended use: In May 2020, the IASB issued amendments to IAS 16 which prohibits entities deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, these proceeds from the selling such items and the costs of producing those items must be recognized in profit or loss. The amendment is effective for annual reporting periods beginning on or after January 1, 2022 and must be applied retrospectively to items of property, plant and equipment made available for use on or after the beginning of the earliest period presented when the entity first applies the amendment. IFRS 9 - Financial Instruments – Fees in the ’10 per cent’ test for derecognition of financial liabilities – As part of its 2018-2020 annual improvements to IFRS standards process the IASB issued amendment to IFRS 9. The amendment clarifies the fees that an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability. These fees include only those paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other’s behalf. An entity applies the amendment to financial liabilities that are modified or exchanged on or after the beginning of the annual reporting period in which the entity first applies the amendment. The amendment is effective for annual reporting periods beginning on or after January 1, 2022 with earlier adoption permitted. Management does not expect significant impacts on the Company's financial statements resulting from these amendments 2.7 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 2020, 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). More details, see note 31. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. 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. The Annual Permitted Revenue (‘ Receita Annual Permitida’ 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 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 amortization rates reflect the expected pattern of their consumption and are measured based on the asset carrying amount using the straight-line method, using the rates based on the expected useful life of the assets that are used by the Regulator during the tariff process. 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. This portion is subsequently measured at the estimated fair value, which represents the New Replacement Value ( Valor Novo de reposição Transmission segment: The margin added to the performance obligation related to the construction and improvements is based on Company’s expectations regarding its projects profitability. When adjusting the amount of consideration for the concession contract asset financing component, the Company uses the discount rate which reflects the Company’s estimation of the financing of the transmission infrastructure investments. This reflects the rate that discounts the nominal amount of the consideration to the price that the customer would pay in cash for the goods or services when (or as) they transfer to the customer. The interest rates implicit in the contract are defined at the beginning of the investments and take into account the credit risk of the counterparties. When the tariff set is changed at the time of the periodic tariff reviews, the contract asset is remeasured, discounting the future revenue (RAPs) using the contract original discount rate, implicit in the contract. The amount remeasured is confronted to the carrying amount and the difference is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) at the date of the contract modification (the adjustment to revenue is made on a cumulative catch-up basis). 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. Financial portion of remuneration and depreciation unpaid since the extensions of concessions in accordance with Law 12,783/2013 The amounts to be received are subject to the applicable regulatory rules in the tariff process, including the mechanisms that monitor and measure efficiency. In this new context, the unconditional right to consideration depends on the satisfaction of the performance obligation to operate and maintain, and is, thus, characterized as a contract asset. For more information, see Note 2.8. 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. Amortization rates are shown in Note 16. 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 17. 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 amount. 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 The income tax and social contribution tax expenses represents the total amount of current and deferred taxes, which are presented separately in the financial statements. The Company is subject to the regular tax regime ‘ Lucro Real’ Deferred and current tax related to items recognized directly in equity or in other comprehensive income (OCI) are recognized directly in equity. Periodically, in accordance with IFRIC 23, the Company and its subsidiaries evaluate positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Current Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the tax authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date. 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 and for unused tax losses or unused tax credits . Deferred tax liabilities are recognized for all the inter-temporal tax differences. Deferred tax assets are recognized for all the temporary differences deductible and unused tax losses or unused tax credits, to the extent that it is probable that future taxable profit will be available for the temporary differences to be offset, except: When the deferred tax (asset or liability) 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. In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. These taxes 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. Deferred income tax and social contribution tax assets are reviewed at the reporting date, and are reduced to the extent that their realization is no longer probable. The Company offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity. 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 32. All the other notes to the financial statements include amounts for continuing operations, except when otherwise stated. m) Current versus non-current classifications The Company presents assets and liabilities in the statement of financial position based on current/non-current classification. Assets and liabilities are current when they are: Expected to be realized, intended to be sold, consume or settled in the normal operating cycle Held primarily for the purpose of trading Expected to be realized or settled within twelve months after the reporting period Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period The terms of the liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. n) Revenue recognition 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) receive |
3. PRINCIPLES OF CONSOLIDATION
3. PRINCIPLES OF CONSOLIDATION | 12 Months Ended |
Dec. 31, 2020 | |
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 valuation 2020 Form of valuation 2019 Direct interest, % Indirect interest, % Direct interest, % Indirect interest, % 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) (1) — — — Consolidation 100.00 — Cemig Sim (Efficientia) (2) Consolidation 100.00 — Consolidation 100.00 — Centroeste (3) Consolidation 100.00 — Equity method 51.00 — (1) On October 19, 2020, an Extraordinary General Meeting of Shareholders approved the merger of this wholly-owned subsidiary, at book value, and as a result the investee ceased to exist and the Company took over of all its rights and liabilities. (2) On April 14, 2020, the Annual Shareholders General Meeting decided to change this subsidiary’s By-laws, changing the name of this subsidiary to Cemig Soluções Inteligentes em Energia S.A.-Cemig Sim. (3) On January 13, 2020, the Company concluded acquisition of the equity interest of 49% of the share capital held by Eletrobras in Centroeste, resulting in its now holding 100% of that investee. More details see notes 1 and 16. 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, 2020 | |
Concessions And Authorizations | |
CONCESSIONS AND AUTHORIZATIONS | 4. CONCESSIONS AND AUTHORIZATIONS Cemig, through its subsidiaries, holds the following concessions or authorizations: Company holding concession or authorization Concession or authorization contract* Expiration date POWER GENERATION Hydroelectric plants Emborcação (1) (2) Cemig GT 07/1997 07/2025 Nova Ponte (1) (2) 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 Machado 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 (Consortium) (1) Cemig GT 06/1997 01/2033 Rio de Pedras (1) Cemig GT 02/2013 09/2024 Poço Fundo (1) (8) Cemig Geração Poço Fundo 01/2021 05/2045 São Bernardo (1) Cemig GT 02/2013 08/2025 Três Marias (3) Cemig Geração Três Marias 08/2016 01/2046 Salto Grande (3) Cemig Geração Salto Grande 09/2016 01/2046 Itutinga (3) Cemig Geração Itutinga 10/2016 01/2046 Camargos (3) Cemig Geração Camargos 11/2016 01/2046 Coronel Domiciano , Joasal , Marmelos , Paciência and Piau (3) Cemig Geração Sul 12/2016 and 13/2016 01/2046 Dona Rita, Ervália, Neblina, Peti, Sinceridade and Tronqueiras (3) Cemig Geração Leste 14/2016 and 15/2016 01/2046 Cajurú, Gafanhoto and Martins (3) Cemig Geração Oeste 16/2016 01/2046 Thermal plants Igarapé (6) Cemig GT 07/1997 08/2024 Wind power plants Central Geradora Eólica Praias de Parajuru (4) Parajuru Resolution 526/2002 09/2032 Central Geradora Eólica Volta do Rio (4) Volta do Rio Resolution 660/2001 01/2031 POWER TRANSMISSION National grid (5) Cemig GT 006/1997 01/2043 Substation – SE Itajubá (5) Cemig GT 79/2000 10/2030 Furnas – Pimenta - Transmission line (5) Centroeste 004/2005 03/2035 ENERGY DISTRIBUTION (7) Cemig D 002/1997 003/1997 004/1997 005/1997 12/2045 GAS DISTRIBUTION (7) Gasmig State Law 11,021/1993 01/2053 (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) On July 17, 2020, Cemig GT filed a statement of its interest in extending these plants concession, under the independent producer regime, outside the regime of quotas, to ensure its right of option under the legislative changes currently under discussion, relating to the group of measures to modernize the electricity sector. Any actual decision will only be made after publication by the Brazilian Mining and Energy Ministry and by the grantor, Aneel, of the conditions for extension, which will be submitted to decision by Cemig’s governance bodies at the due time. (3) 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) 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) 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. (6) On December 6, 2019, Aneel suspended Igarapé Plant commercial operation upon Cemig GT’s claim for early termination of its concession contract, and, as a result, the corresponding assets were written-off from Cemig GT’s financial statement position. In February 2021, the Thermal Plant Igarapé concession was extinct. by the Brazilian Mining and Energy Ministry, in consideration of the termination request submitted by Cemig GT. (7) 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. (8) Aneel approved, through Authorizing Resolution n. 9.735, on Februarty 23, 2021, the transfer of the concession contract from Cemig GT to Cemig Poço Fundo. This transfer was formally agreed on April 16, 2021, resulting in a new contract (01/2021), which also extended the concession to 05/2045. 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 grantor 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 2020 Present value in 2020 Period of the concession Updating indexer Irapé 38 18 03/2006 – 02/2035 IGPM Queimado (Consortium) 9 5 01/2004 – 12/2032 IGPM The contracts for three Small Hydro Plants (SHPs) – Luiz Dias, Salto Morais and Xicão – with installed capacity of 1,620kW, 2,394kW and 1,808kW, respectively, were extinguished by Aneel at Cemig GT’s request, by authorizing resolutions of October 13, 2020, without reversion of assets, for further register as small hydropower plant with intalled capacity lower than 5MW (so-called ‘ Central Geradora Hidrelétrica Cemig generate energy from nine hydroelectric plants that have the capacity of 5MW or less, including those mentioned in the previous paragraph – having a total installed capacity of 11.53MW, and thus under Law 9,074/95, these are dispensed from concession, permission or authorization, and do not have a final concession date. 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 2020, 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 in 2019 Amounts to be paid in the next 12 months Irapé 100.00 2 2 Queimado (Consortium) 82.50 1 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 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 grantor 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 grantor, 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, Cemig D 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, according 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, being assured the right to a full defense and the right to appeal, as: (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 grantor (Aneel), contained in distribution concession contract. 4. Gross debt, less financial assets. Cemig D was in compliance with the above criteria as of December 31, 2020 and 2019. Notwithstanding Cemig D’s compliance with the Customer Unit Average Outage Duration indicator – DEC for 2020, it was non-complaint for three times over the past five years, and, in such circumstances, Cemig D must limit the amount of dividends and interest on equity to 25% of net income, less the amounts allocated to the legal reserve. 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 grantor, 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 September 19, 2019 Gasmig 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. Under the third amendment to the concession contract, the total value paid for the compensatory grant fee will be added to Gasmig’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, 2020 | |
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 Company also operates in the gas market, through its subsidiary Gasmig, and in other businesses with less impact on the results of its operations. These segments are reflected in the Company’s management, organizational structure, and monitoring of results. The tables below show segment information for 2020, 2019 and 2018. INFORMATION BY SEGMENT AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2020 ENERGY DESCRIPTION Generation and sale Transmission Distribution Gas Other Eliminations TOTAL SEGMENT ASSETS 16,150 5,870 26,399 2,615 3,712 (663 ) 54,083 INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES 3,927 1,467 — — 21 — 5,415 INVESTMENTS IN AFFILIATES CLASSIFIED AS HELD FOR SALE — — 1,258 — — — 1,258 ADDITIONS TO THE SEGMENT 238 246 1,384 50 — — 1,918 CONTINUING OPERATIONS NET REVENUE 6,537 743 16,512 1,664 105 (333 ) 25,228 COST OF ENERGY AND GAS Energy bought for resale (4,026 ) — (8,161 ) — — 76 (12,111 ) Charges for use of the national grid (199 ) — (1,799 ) — — 250 (1,748 ) Gas bought for resale — — — (1,083 ) — — (1,083 ) Total (4,225 ) — (9,960 ) (1,083 ) — 326 (14,942 ) OPERATING COSTS AND EXPENSES Personnel (192 ) (114 ) (886 ) (60 ) (24 ) — (1,276 ) Employees’ and managers’ profit sharing (24 ) (12 ) (92 ) — (14 ) — (142 ) Post-employment obligations (53 ) (41 ) (297 ) — (47 ) — (438 ) Materials (13 ) (4 ) (61 ) (1 ) — — (79 ) Outsourced services (113 ) (46 ) (1,055 ) (25 ) (33 ) 7 (1,265 ) Depreciation and amortization (207 ) (5 ) (668 ) (106 ) (3 ) — (989 ) Operating provisions (reversals) (122 ) (10 ) (272 ) (1 ) (18 ) — (423 ) Construction costs — (147 ) (1,384 ) (50 ) — — (1,581 ) Other operating expenses, net (68 ) 11 (212 ) (12 ) (16 ) — (297 ) Tot al cost of operation (792 ) (368 ) (4,927 ) (255 ) (155 ) 7 (6,490 ) OPERATING COSTS AND EXPENSES (5,017 ) (368 ) (14,887 ) (1,338 ) (155 ) 333 (21,432 ) Equity in earnings of unconsolidated investees, net (129 ) 494 — — (8 ) — 357 Periodic Tariff Review adjustments — 502 — — — — 502 Gain on a bargain purchase and remeasurement of previously held equity interest in subsidiary acquired in business combinations transactions — 51 — — — — 51 OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) 1,391 1,422 1,625 326 (58 ) — 4,706 Finance income 1,711 175 514 44 — — 2,444 Finance expenses (2,509 ) (274 ) (505 ) (58 ) (4 ) — (3,350 ) INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX 593 1,323 1,634 312 (62 ) — 3,800 Income tax and social contribution tax (206 ) (209 ) (430 ) (85 ) (6 ) — (936 ) N ET INCOME FROM CONTINUING OPERATIONS 387 1,114 1,204 227 (68 ) — 2,864 Equity holders of the parent 387 1,114 1,204 226 (68 ) — 2,863 Non-controlling interests — — — 1 — — 1 387 1,114 1,204 227 (68 ) — 2,864 The following is a breakdown of the revenue of the Company by activity: 2020 ENERGY GAS OTHER ELIMINATIONS TOTAL GENERATION TRANSMISSION DISTRIBUTION Revenue from supply of energy 7,337 — 19,174 — — (79 ) 26,432 Revenue from Use of Distribution Systems (the TUSD charge) — — 3,046 — — (24 ) 3,022 CVA Other financial components — — 455 — — — 455 Reimbursement of PIS/Pasep and Cofins over ICMS credits to customers– realization — — 266 — — — 266 Transmission operation and maintenance revenue — 506 — — — (226 ) 280 Transmission construction revenue — 201 — — — — 201 Interest revenue arising from the financing component in transmission contract asset — 438 — — — — 438 Distribution construction revenue — — 1,385 51 — — 1,436 Adjustment to expectation of cash flow from Financial assets of distribution concession to be indemnified — — 16 — — — 16 Gain on inflation updating of Concession Grant Fee 347 — — — — — 347 Transactions in energy on the CCEE 154 — — — — — 154 Mechanism for the sale of surplus — — 234 — — — 234 Supply of gas — — — 2,011 — — 2,011 Fine for violation of continuity indicator — — (51 ) — — — (51 ) Other operating revenues 5 34 1,561 — 113 (4 ) 1,709 Sector / Regulatory charges reported as Deductions from revenue (1,306 ) (436 ) (9,574 ) (398 ) (8 ) — (11,722 ) Net revenue 6,537 743 16,512 1,664 105 (333 ) 25,228 INFORMATION BY SEGMENT AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2019 ENERGY DESCRIPTION Generation and sale Transmission Distribution Gas Other Eliminations TOTAL SEGMENT ASSETS 14,749 4,712 25,616 2,689 3,888 (1,127 ) 50,527 INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES 4,133 1,237 — — 29 — 5,399 INVESTMENTS IN AFFILIATES CLASSIFIED AS HELD FOR SALE — — 1,258 — — — 1,258 ADDITIONS TO THE SEGMENT 102 220 936 934 9 — 2,201 CONTINUING OPERATIONS NET REVENUE 6,882 811 15,919 1,858 323 (307 ) 25,486 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 (207 ) (115 ) (869 ) (46 ) (35 ) — (1,272 ) Employees’ and managers’ profit sharing (36 ) (27 ) (183 ) — (17 ) — (263 ) Post-employment obligations (50 ) (38 ) (277 ) — (43 ) — (408 ) Materials (17 ) (6 ) (63 ) (2 ) (3 ) — (91 ) Outsourced services (125 ) (45 ) (1,016 ) (20 ) (40 ) 7 (1,239 ) Depreciation and amortization (210 ) (6 ) (652 ) (86 ) (4 ) — (958 ) Operating provisions (reversals) (975 ) (135 ) (1,101 ) (2 ) (188 ) — (2,401 ) Construction costs — (220 ) (937 ) (43 ) — — (1,200 ) Other operating expenses, net (175 ) (16 ) (298 ) (10 ) 5 (494 ) Total cost of operation (1,795 ) (608 ) (5,396 ) (209 ) (330 ) 12 (8,326 ) O PERATING COSTS AND EXPENSES (5,826 ) (608 ) (14,372 ) (1,645 ) (330 ) 307 (22,474 ) Equity in earnings of unconsolidated investees, net (88 ) 215 — — (2 ) — 125 Dividends declared by investee classified as held for sale — — 73 — — — 73 O PERATING INCOME BEFORE FINANCE INCOME (EXPENSES) 968 418 1,620 213 (9 ) — 3,210 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 1,215 401 2,523 188 243 — 4,570 Income tax and social contribution tax (551 ) (70 ) (806 ) (48 ) (124 ) — (1,599 ) N ET INCOME FROM CONTINUING OPERATIONS 664 331 1,717 140 119 — 2,971 DISCONTINUED OPERATIONS NET INCOME AFTER TAX FROM DISCONTINUED OPERATIONS — — 224 — — — 224 NET INCOME (LOSS) FOR THE YEAR 664 331 1,941 140 119 — 3,195 Equity holders of the parent 664 331 1,941 139 119 — 3,194 Non-controlling interests — — — 1 — — 1 664 331 1,941 140 119 — 3,195 The following is a breakdown of the revenue of the Company by activity: ENERGY 2019 (Restated) GENERATION TRANSMISSION DISTRIBUTION GAS OTHER ELIMINATIONS TOTAL Revenue from supply of energy 7,037 — 19,967 — — (76 ) 26,928 Revenue from Use of Distribution Systems (the TUSD charge) — — 2,747 — — (25 ) 2,722 CVA Other financial components — — 58 — — — 58 Transmission operation and maintenance — 550 — — — (198 ) 352 Transmission construction revenue — 312 — — — — 312 Interest revenue arising from the financing component in transmission contract asset — 328 — — — — 328 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 82 28 1,468 — 151 (8 ) 1,721 Sector / Regulatory charges reported as Deductions from revenue (1,408 ) (407 ) (10,041 ) (483 ) (12 ) — (12,351 ) Net revenue 6,882 811 15,919 1,858 323 (307 ) 25,486 INFORMATION BY SEGMENT AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2018 (Restated) DESCRIPTION ENERGY Gas Telecom* Other Eliminations TOTAL Generation and sale Transmission Distribution SEGMENT ASSETS 14,671 4,346 37,840 1,822 10 2,607 (957 ) 60,339 INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES 4,055 1,163 — — — 17 — 5,235 ADDITIONS TO THE SEGMENT 559 138 856 70 9 — — 1,632 CONTINUING OPERATIONS NET REVENUE 6,374 708 13,757 1,619 — 134 (293 ) 22,299 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 ) — — — 199 (1,480 ) Gas bought for resale (1,238 ) (1,238 ) Total (4,133 ) — (8,701 ) (1,238 ) — — 270 (13,802 ) OPERATING COSTS AND EXPENSES Personnel (230 ) (108 ) (965 ) (60 ) (18 ) (29 ) — (1,410 ) Employees’ and managers’ profit sharing (10 ) (7 ) (51 ) — — (9 ) — (77 ) Post-employment obligations (46 ) (27 ) (224 ) — — (40 ) — (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 ) (44 ) — — — (897 ) Other operating expenses, net (65 ) (17 ) (203 ) (13 ) (3 ) (112 ) 8 (405 ) Total cost of operation (784 ) (311 ) (4,065 ) (211 ) (31 ) (239 ) 23 (5,618 ) OPERATING COSTS AND EXPENSES (4,917 ) (311 ) (12,766 ) (1,449 ) (31 ) (239 ) 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) 1,057 628 972 170 (32 ) (266 ) — 2,529 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 634 684 785 216 (36 ) (272 ) — 2,011 Income tax and social contribution tax (276 ) (133 ) (217 ) (53 ) 12 57 — (610 ) NET INCOME (LOSS) FROM CONTINUING OPERATIONS 358 551 568 163 (24 ) (215 ) — 1,401 DISCONTINUED OPERATIONS NET INCOME AFTER TAX FROM DISCONTINUED OPERATIONS 11 — 62 — 290 — — 363 Equity holders of the parent 361 551 599 162 266 (217 ) — 1,722 Non-controlling interests 8 — 31 1 — 2 — 42 369 551 630 163 266 (215 ) — 1,764 (*) 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: 2018 (Restated) ENERGY GAS OTHER ELIMINATIONS TOTAL 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 operation and maintenance — 520 — — — (177 ) 343 Transmission construction revenue — 138 — — — — 138 Interest revenue arising from the financing component in transmission contract asset — 311 — — — — 311 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 — 145 (16 ) 1,585 Sector / Regulatory charges reported as Deductions from revenue (1,366 ) (290 ) (10,226 ) (421 ) (11 ) — (12,314 ) Net revenue 6,374 708 13,757 1,619 134 (293 ) 22,299 For further details of operating revenue, see Note 27. As stated in Note 2.8, the effects of the retrospective application adjustments in balances for December 31, 2019 and 2018 only affected the transmission segment. |
6. CASH AND CASH EQUIVALENTS
6. CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2020 | |
Cash and cash equivalents [abstract] | |
CASH AND CASH EQUIVALENTS | 6. CASH AND CASH EQUIVALENTS 2020 2019 Bank accounts 93 210 Cash equivalents Bank deposit certificates (CDBs) (1) 1,416 290 Overnight (2) 171 36 1,587 326 1,680 536 (1) Bank Deposit Certificates (2) Overnight Note 31 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, 2020 | |
Disclosure of investment securities [abstract] | |
MARKETABLE SECURITIES | 7. MARKETABLE SECURITIES 2020 2019 Investments Current Bank deposit certificates (CDBs) (1) 545 — Financial Notes (LFs) – Banks (2) 2,074 645 Treasury Financial Notes (LFTs) (3) 731 94 Others 10 1 3,360 740 Non-current Financial Notes (LFs) – Banks (2) 730 11 Debentures (4) 25 2 Others 10 — 765 13 4,125 753 (1) Bank Deposit Certificates (2) Bank Financial Notes ( Letras Financeiras (3) Treasury Financial Notes (LFTs) (4) Debentures Note 31 provides a classification of these marketable securities. Investments in marketable securities of related parties are shown in Note 30. |
8. RECEIVABLES FROM CUSTOMERS,
8. RECEIVABLES FROM CUSTOMERS, TRADERS AND POWER TRANSPORT CONCESSION HOLDERS | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 Billed supply 1,518 637 387 583 3,125 3,130 Unbilled supply 1,145 — — — 1,145 1,204 Other concession holders – wholesale supply 18 26 1 5 50 47 Other concession holders – wholesale supply, unbilled 260 — — — 260 204 CCEE (Power Trading Chamber) 21 189 — — 210 386 Concession Holders – power transport 45 14 17 85 161 187 Concession Holders – power transport, unbilled 295 — — — 295 253 (–) Provision for doubtful receivables (278 ) (12 ) (15 ) (407 ) (712 ) (810 ) 3,024 854 390 266 4,534 4,601 Current assets 4,373 4,524 Non-current assets 161 77 The Company’s exposure to credit risk related to customers and traders is provided in Note 31. 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: 2020 2019 Residential 110 131 Industrial 188 197 Commercial, services and others 190 161 Rural 30 32 Public authorities 83 201 Public lighting 2 2 Public services 35 31 Charges for use of the network (TUSD) 74 55 712 810 On July 31, 2020 Cemig D filed an application to the tax authority of State of Minas Gerais to offset debts for energy consumption and service owed by the direct and indirect administrations of Minas Gerais State, using amounts of ICMS tax payable, under Article 3 of Minas Gerais State Decree 47,908/2020, which regulated State Law 47,891/2020. The debts from the State of Minas Gerais that qualify for offset are those past due at June 30, 2019, estimated at R$240, which are still being analized by the tax authority of State of Minas Gerais. The offset will initiate after the tax authority ratification and conclusion of the debt recognition agreement. As a consequence, Cemig D reversed the impairment previously recognized for the debts owed by Minas Gerais state, in the amount of R$210. Changes in the allowance for doubtful accounts in 2020, 2019 and 2018 are as follows: 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 Additions, net (Note 30 d) 146 Disposals (244 ) Balance at December 31, 2020 712 |
9. RECOVERABLE TAXES
9. RECOVERABLE TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of recoverable taxes [abstract] | |
RECOVERABLE TAXES | 9. RECOVERABLE TAXES 2020 2019 Current ICMS (VAT) 97 65 PIS/Pasep (a) (b) 311 3 Cofins (a) (b) 1,426 7 Others 16 24 1,850 99 Non-current ICMS (VAT) (b) 257 277 PIS/Pasep (a) 588 1,102 Cofins (a) 2,594 4,968 Others 3 2 3,442 6,349 5,292 6,448 a) Pis/Pasep and Cofins taxes credits over ICMS On May 8, 2019, the Company and its subsidiaries Cemig D and Cemig GT obtained a final unappealable ruiling recognizing their right to exclude the ICMS amounts from the calculation basis of PIS/Pasep and Cofins taxes, as from five years prior to the action initial filing– that is, from July 2003. Thus, the Company recorded the PIS/Pasep and Cofins credits corresponding to the amount of these taxes over ICMS paid from the period of July 2003 to May 2019. A final unappealable ruling was also handed to Cemig’s wholly-owned subsidiaries Sá Carvalho, Cemig Geração Distribuída (former UTE Ipatinga S.A.), Cemig Geração Poço Fundo S.A. (previously denominated UTE Barreiro S.A.) and Horizontes Energia S.A.. The Company has two expedients to recover the tax credits: (i) offsetting amounts 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) receiving securities issued in connection with Federal Government debts (“precatórios”). Cemig D and Cemig GT prioritized the credits offsetting, to accelerate recovery. For the Company itself, priority will be given to receipt of the credits through precatórios On May 12, 2020, the Brazilian tax authority ( Receita Federal The Company recorded in current asset and non-current asset the amounts of R$1,725 and R$ 3,180, respectively, corresponding to the tax credits of PIS/Pasep and Cofins. Based on the opinion of its legal advisers, the Company believes that a portion of the tax 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 total amount of the tax credits comprising the period of the last 10 years, from June 2009 to May 2019, net of PIS/Pasep and Cofins taxes over monetary updating, presented in Note 21. Cemig D awaits from the grantor a conclusion about the mechanisms and criteria for the reimbursement to its customers. On February 9, 2021, Aneel held a public consultation aimed at discussing how to return tax credits to customers, as described in Note 21. Aneel's proposal, which is being discussed, provides for the return of the amounts through a rebate in the next tariff review, within a period of up to five years. Aneel did not comment on the period for returning these credits to the customers. The accounting effects relating to the recognition of the PIS/Pasep and Cofins taxes credits, including their monetary updating by the Selic rate, were recognized in the statement of income in 2019, at net amount, updated to December 31, 2019, of R$1,965. Out of this amount, R$1,428 and R$1,550 were recognized as operational revenue and financial revenue (net of PIS/Pasep and Cofins taxes), respectively. In addition, the amount of R$1,012 was recorded as IRPJ and CSLL. These credits and the reimbursement to customers are updated by the Selic rate until offsetting of the amount receivable against amounts payable or until reimbursement to customers. On December 31, 2020, the net effect in the finance income is R$42, more details see note 29. Until December 31, 2020, credits of PIS/Pasep and Cofins taxes offset against payable federal taxes amouted R$1,275. b) Other recoverable taxes The ICMS (VAT) credits, 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 in 12 months after these financial statements reporting date. Credits of PIS/Pasep and Cofins generated by the acquisition of machinery and equipment can be offset immediately. |
10. INCOME AND SOCIAL CONTRIBUT
10. INCOME AND SOCIAL CONTRIBUTION TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of income and social contribution taxes [abstract] | |
INCOME AND SOCIAL CONTRIBUTION TAXES | 10. 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. Current tax assets and current tax liabilities related to income tax and social contribution tax are offset in the statement of financial position subject to criteria established in IAS 12. 2020 2019 Income tax 698 608 Social contribution tax 247 241 945 849 Current 598 621 Non-current 347 228 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. 2020 2019 Current Income tax 108 99 Social contribution tax 32 35 140 134 c) Deferred income tax and social contribution tax The Company has deferred taxed assets and liabilities 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: 2020 2019 (Restated) 01/01/2019 (Restated) Deferred tax assets Tax loss carryforwards 401 116 373 Provisions for contingencies 538 544 218 Impairment on investments 640 660 882 Fair value of derivative financial instruments (PUT SAAG) 182 164 143 Post-employment obligations 2,168 2,090 1,477 Estimated provision for doubtful receivables 256 283 279 Others 138 171 99 Total 4,323 4,028 3,471 Deferred tax liabilities Funding cost (11 ) (16 ) (25 ) Deemed cost (225 ) (232 ) (239 ) Acquisition costs of equity interests (486 ) (503 ) (501 ) Borrowing costs capitalized (169 ) (166 ) (168 ) Adjustment to expectation of cash flow – Concession assets (242 ) (247 ) (252 ) Revenues arising from transmission contract asset (768 ) (624 ) (627 ) Adjustment to fair value: Swap/Gains (1,002 ) (575 ) (277 ) Others (7 ) (5 ) (38 ) Total (2,910 ) (2,368 ) (2,127 ) Total, net 1,413 1,660 1,344 T otal assets 2,453 2,430 2,147 Total liabilities (1,040 ) (770 ) (803 ) The changes in deferred income tax and social contribution tax were as follows: 2020 2019 (Restated) 01/01/2019 (Restated) Balance at January 01 1,660 1,344 1,072 Effects allocated to net profit from continuing operations (252 ) (145 ) (27 ) Effect allocated to other comprehensive income 4 544 239 Effects allocated to net profit from discontinuing operations (note 32) — (85 ) — 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 ) Others 1 2 — Balance at December 1 1,413 1,660 1,344 The estimated taxable profits forecast, on which the realization of deferred tax asset are based, are determined by the annual budget and the long-term budget, both reviewed periodically, and by the historical profit. However, the taxable profit may be either higher or lower than the evaluation used by the management when the amount of the deferred tax recognized was determined. Based on the Company and its subsidiaries’ estimates, it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilized. The Company estimated that the balance of deferred tax asset as of December 31, 2020 will be recovered, as follows: Consolidated 2021 681 2022 708 2023 624 2024 563 2025 563 2026 to 2028 743 2029 to 2030 441 4,323 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: 2020 2019 (Restated) 2018 ((Restated) Profit before income tax and social contribution tax 3,800 4,570 2,011 Income tax and social contribution tax – nominal expense (34%) (1,292 ) (1,554 ) (683 ) Tax effects applicable to: Gain (loss) in subsidiaries by equity method 93 8 (61 ) Interest on Equity 188 136 71 Non-deductible contributions and donations (10 ) (13 ) (6 ) Tax incentives 39 66 29 Effects from subsidiaries taxed based on gross revenues 97 89 89 Non-deductible penalties (25 ) (135 ) (12 ) Impairment of accounts receivable from related parties (13 ) (234 ) — Others (13 ) 38 (37 ) I ncome tax and social contribution tax – effective expense (936 ) (1,599 ) (610 ) Current tax (684 ) (1,454 ) (583 ) Deferred tax (252 ) (145 ) (27 ) (936 ) (1,599 ) (610 ) Effective rate 24.63 % 35.00 % 30.33 % |
11. ACCOUNTS RECEIVABLE FROM TH
11. ACCOUNTS RECEIVABLE FROM THE STATE OF MINAS GERAIS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of accounts receivables [abstract] | |
ACCOUNTS RECEIVABLE FROM THE STATE OF MINAS GERAIS | 11. 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, the Company withheld an amount of R$130 in 2020 (R$148 in 2019), corresponding to the dividends that would have been payable to Minas Gerais State. The balance receivable on December 31, 2020, is R$12 (R$115 on December 31, 2019), was classified as Non-current asset, as a result of the delays in installments past due since January 2018. Considering the guarantees mentioned above, which the Company intends to execute in the event of default of the amount agreed in the debt recognition agreement, there are no expectation of losses on these receivables. |
12. ESCROW DEPOSITS
12. ESCROW DEPOSITS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of escrow deposits [abstract] | |
ESCROW DEPOSITS | 12. ESCROW DEPOSITS 2020 2019 Labor claims 278 355 Tax contingencies Income tax on Interest on Equity 29 29 PIS/Pasep and Cofins taxes (1) 66 1,448 Donations and legacy tax (ITCD) 54 53 Urban property tax (IPTU) 84 79 Finsocial tax 40 40 Income tax and social contr. tax on indemnity for employees’ ‘Anuênio’ benefit (2) 286 282 Income tax withheld at source on inflationary profit 9 9 Contribution tax effective rate (3) 18 18 ICMS (VAT) credits on PP&E — 39 Others (4) 98 92 684 2,089 Others Regulatory 52 43 Third party 9 11 Customer relations 8 7 Court embargo 13 12 Others 12 23 94 96 1,056 2,540 (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. (2) See more details in Note 25 – 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 Release of escrow deposits On February 13, 2020, the escrow deposits in the action challenging the constitutionality of inclusion of ICMS value added tax within the calculation basis of PIS/Pasep and Cofins taxes, as disclosed in Note 9a) were released amounting R$1,382, out of which R$1,186 and R$196 relates to Cemig D and Cemig GT, respectively. The escrow deposit of R$6 made by the subsidiary Sá Carvalho was released in the third quarter of 2020. The escrow deposits from the others wholly-owned subsidiaries is expected to be released once their claims reach a final unappealable ruling. |
13. REIMBURSEMENT OF TARIFF SUB
13. REIMBURSEMENT OF TARIFF SUBSIDIES | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of reimbursement rights [abstract] | |
REIMBURSEMENT OF TARIFF SUBSIDIES | 13. 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 2020, the amount recognized as subsidies revenues was R$1,057 (R$1,097 in 2019 and R$953 in 2018). Of such amounts, the Company has a receivable of R$88 in current assets, being R$83 (R$94 on December 31, 2019) held by Cemig D and R$6 (R$3 on December 31, 2019) held by Cemig GT. |
14. CONCESSION FINANCIAL AND SE
14. CONCESSION FINANCIAL AND SECTOR ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Financial Assets And Liabilities Of The Concession [abstract] | |
CONCESSION FINANCIAL AND SECTOR ASSETS AND LIABILITIES | 14. CONCESSION FINANCIAL AND SECTOR ASSETS AND LIABILITIES Concession financial assets 2020 2019 (Restated) 01/01/2019 (Restated) Concession financial assets related to the infrastructure Energy distribution concession (14.1) 530 460 396 Gas distribution concession (14.1) 29 24 — Indemnifiable receivable – Generation (14.2) 816 816 816 Concession grant fee – Generation concessions (14.3) 2,549 2,468 2,409 3,924 3,768 3,621 Sector financial assets Amounts receivable from Parcel A (CVA) and Other Financial Components (14.4) 133 882 1,081 Total 4,058 4,650 4,702 Current assets 258 891 890 Non-current assets 3,799 3,759 3,812 Concession sector liabilities 2020 2019 Amounts receivable from Parcel A (CVA) and Other Financial Components (14.4) 231 — Total 231 — Current liabilities 231 — Non-current liabilities — — The changes in concession financial assets related to infrastructure are as follows: Transmission Generation Distribution Gas Total Balances at January 1st 2018 (Restated) — 4,238 371 — 4,609 Amounts received — (1,389 ) — — (1,389 ) Transfers from PP&E — — 27 — 27 Others transfers — (1 ) (1 ) — (2 ) Monetary updating — 377 — — 377 Disposals — — (1 ) — (1 ) Balances at January 1, 2019 (Restated) — 3,225 396 — 3,621 Amounts received — (259 ) — — (259 ) Transfers from contract assets — — 48 — 48 Transfers from (to) intangible assets — — (1 ) 24 23 Monetary updating — 318 18 — 336 Disposals — — (1 ) — (1 ) Balances at December 31, 2019 (Restated) — 3,284 460 24 3,768 Amounts received — (266 ) — — (266 ) Transfers from contract assets — 60 60 Transfers from (to) intangible assets — (5 ) (5 ) Monetary updating — 347 15 5 367 Balances at December 31, 2020 — 3,365 530 29 3,924 14.1 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. 14.2 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, 2020 and 2019. Generation plant Concession expiration date Installed capacity (MW) Net balance of assets based on historical cost Net balance of assets based on fair value (replacement cost) Lot D UHE Tress 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 Dec. 2016 408 27 23 UHE Jaguara Aug. 2013 424 40 174 UHE São Simão Jan. 2015 1,710 2 3 3,601.70 204 816 As specified by the grantor (Aneel) in Normative Resolution 615/2014, the valuation reports that support the amounts in relation to the residual value of the plants, previously operated by Cemig GT, that were included in Lot D and for the Volta Grande On December 31, 2020, 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 received by the Company is in discussion with Aneel (the grantor). The Company does not expect losses in realization of these amounts. 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. 14.3 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 2019 Monetary updating Amounts received 2020 Cemig Geração Três Marias S.A. Três Marias 1,402 188 (143 ) 1,447 Cemig Geração Salto Grande S.A. Salto Grande 440 59 (45 ) 454 Cemig Geração Itutinga S.A. Itutinga 165 25 (19 ) 171 Cemig Geração Camargos S.A. Camargos 124 18 (14 ) 128 Cemig Geração Sul S.A. Coronel Domiciano, Joasal, Marmelos, Paciência and Piau 161 26 (20 ) 167 Cemig Geração Leste S.A. Dona Rita, Ervália, Neblina, Peti, Sinceridade and Tronqueiras 110 19 (15 ) 114 Cemig Geração Oeste S.A. Cajurú, Gafanhoto and Martins 66 12 (9 ) 69 Total 2,468 347 (265 ) 2,550 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 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 14.4 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: Financial position 2020 2019 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 84 1,562 1,646 1,286 2,144 3,430 Current assets 84 834 918 1,286 1,269 2,555 Non-current assets — 728 728 — 875 875 Liabilities (246 ) (1,498 ) (1,744 ) (882 ) (1,666 ) (2,548 ) Current liabilities (246 ) (903 ) (1,149 ) (882 ) (1,033 ) (1,915 ) Non-current liabilities — (595 ) (595 ) — (633 ) (633 ) Total current, net (162 ) (69 ) (231 ) 404 236 640 Total non-current, net — 133 133 — 242 242 Total, net (162 ) 64 (98 ) 404 478 882 Financial components 2020 2019 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 1 — 1 119 29 148 Tariff for use of transmission facilities of grid participants 1 218 219 (18 ) 114 96 Tariff for transport of Itaipu supply — 18 18 9 16 25 Alternative power source program (Proinfa) — 6 6 11 (6 ) 5 ESS/EER System Service/Energy Charges (1 ) 39 38 (161 ) (136 ) (297 ) Energy bought for resale 4 449 453 661 632 1,293 Other financial components Over contracting of supply (1) (56 ) 165 109 (84 ) 216 132 Neutrality of Parcel A (3 ) 110 107 (30 ) (12 ) (42 ) Other financial items (86 ) (899 ) (985 ) (71 ) (206 ) (277 ) Tariff Flag balances — — — — (103 ) (103 ) Excess demand and reactive power (22 ) (42 ) (64 ) (32 ) (66 ) (98 ) TOTAL (162 ) 64 (98 ) 404 478 882 (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. On August 27, 2020, Aneel published the Dispatch 2,508/2020-SRM-SGT, which set new amounts for distributors’ over contracting for the years 2016 and 2017, based on a new valuation criterion established by Aneel Technical Note 97/2020-SRM-SGT – not contained in the regulatory rules which were currently in force. As a result, Cemig D filed an appeal with the Council of Aneel, for the amounts of distribution agents’ over contracting to be reset in accordance with the calculation criteria based on maximum effort contained in Aneel Normative Resolution 453/2011. The Company’s position on this case is reinforced by the fact that the Brazilian Energy Distributors’ Association (Abradee) filed a similar appeal, supported by the opinion of contracted legal advisors. The Company has no expectation of loss in relation to realization of these amounts. The Company recognizes this receivable asset, in the amount of R$222 on December 31, 2020, as ‘Other financial components’ to be ratified. At the reporting date for this financial statements, this matter was still pending analysis by Aneel. Changes in balances of these sector assets and liabilities: 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 Additions 611 Amortization (156 ) Payments from the Flag Tariff Centralizing Account (63 ) Receipt funds of “Covid-account” (1) (1,404 ) Updating – Selic rate (Note 29) 32 Balance at December 31, 2020 (98 ) (1) The amount received via ‘Covid-account’ will be reversed in a negative financial component in the 2021 or 2022 tariff processes, as detailed in note 1. 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 2020 totaled R$63 (R$361 in 2019 and R$794 in 2018) and were recognized as a partial realization in advance of the following tariff adjustment. Cemig D tariff adjustment On June 25, 2020, the grantor (Aneel) approved the Annual Adjustment for Cemig D, which would be in effect from May 28, 2020 to May 27, 2021, with an average increase for customers of 4.27%. This result reflected Cemig D’s manageable costs (Portion B), of 0.84% and the direct pass-through, within the tariff, of 3.43%, the latter having zero economic effect, not affecting profitability, relating to the following itens: (i) increase of 5.30% in non-manageable (‘Parcel A’) costs – mainly purchase of energy supply, regulatory charges and transmission charges; (ii) increase of 6.71% in the financial components of the current process, led by the CVA currently being processed, which had an effect of 5.47%; and (iii) 8.58% was withdrawn from the financial components of the prior process. Although the adjustment is effective from May 28, 2020 to May 27, 2021, its application was suspended until June 30, 2020, maintaining the previous tariffs during the suspension period. Cemig D also recognized the right to receive a total of R$51, based on the energy market, for non-receipt of the additional tariff component in the period. Considering that the amount of R$63 was received from Covid Account funds on July 31, 2020, completing the total amount established for Cemig D to receive in Covid Account funds, under Normative Resolution 885/2020, the Company recognized a net obligation of R$12, updated by the Selic rate until September 30, 2020. For more information on the Covid-account, see Note 1(e) to this financial statements. Administrative appeals were filed with Aneel, contesting the ratification of the annual tariff increase of 4.27% to Cemig D, and requesting its annulment, with the restitution to Cemig D’s customers of the amounts of the escrow deposits released as a result of the Supreme Court judgment, as decribed in Note 12, in the form that creates overall precedent, which determined the exclusion of ICMS tax amounts from the basis for calculation of PIS/ Pasep and Cofins taxes payable. The current administrative appeals request a creation of a negative financial component in the calculation of Cemig D’s annual tariff adjustment. Aneel has given Cemig D the right of reply, and, based on internal assessments and those of its legal advisers, as well as the exceptional economic scenario caused by the Covid-19 pandemic, Cemig D, on August 5, 2020, has submitted to Aneel a proposal for a the restitution to its customers of a total amount of R$714 – corresponding to part of the escrow deposits released by the court due to Cemig’s success in the Claim. On August 18, 2020, Aneel decided to grant the appeal, in part, and through its Ratifying Resolution 2,757/2020 reduced the average effect of Cemig D’s 2020 tariff adjustment to zero, due to the inclusion of the negative financial component of R$714. Cemig’s decision represents an anticipation of the effects, and treatment in terms of regulations of the Supreme Court’s decision that determined the exclusion of ICMS tax amounts from the basis for calculation of PIS/ Pasep and Cofins taxes. These regulations will be applied equally to all energy distribution concessions through an Aneel normative ruling, which will be issued after conclusion of Public Consultation 005/2020 – during which there will be discussion on the merits, and in which Cemig will be able to take part in a wide-ranging discussion on the subject. The portion of the credits that Cemig D proposes to reimburse to its customers is recognized as a liability, as explained in Note 21. Of this amount, R$266, had been passed through to customers tariff by December 31, 2020. |
15. CONCESSION CONTRACT ASSETS
15. CONCESSION CONTRACT ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [abstract] | |
CONCESSION CONTRACT ASSETS | 15. CONCESSION CONTRACT ASSETS Under IFRS 15 – Revenue from contracts with customers 2020 2019 (Restated) 01/01/2019 (Restated) Distribution – Infrastructure assets under construction 1,142 740 518 Gas – Infrastructure assets under construction 94 68 81 Transmission – Assets reincorporated into the assets remuneration base 1,896 1,928 2,272 Transmission – Assets remunerated by tariff 1,848 1,147 637 4,980 3,883 3,509 Current 737 576 482 Non-current 4,243 3,307 3,026 Changes in concession contract assets are as follows: Transmission Distribution Gas Total Balances at January 1, 2018 - - - - Effects of adoption of IFRS 15 (Restated) 2,927 532 90 3,549 Additions 138 727 70 935 Inflation adjustment 311 — — 311 Amounts received (467 ) — — (467 ) Transfers to financial assets — (27 ) — (27 ) Transfers to intangible assets — (672 ) (78 ) (750 ) Impairment — (42 ) — (42 ) Balances at January 1, 2019 (Restated) 2,909 518 82 3,509 Additions 312 903 43 1,258 Inflation adjustment 328 — — 328 Amounts received (473 ) — — (473 ) Disposals — — (2 ) (2 ) Transfers to financial assets — (48 ) — (48 ) Transfers to intangible assets — (630 ) (55 ) (685 ) Impairment — (3 ) — (3 ) Balances at December 31, 2019 (Restated) 3,076 740 68 3,884 Additions 201 1,346 50 1,597 Inflation adjustment 438 — — 438 Results of the Periodic Tariff Review 552 — — 552 Amounts received (623 ) — — (623 ) Disposals (7 ) — (2 ) (9 ) Transfers to financial assets — (60 ) — (60 ) Transfers to intangible assets — (883 ) (23 ) (906 ) Contract assets arising from business combination (Note 16d) 108 — — 108 Impairment — (1 ) — (1 ) Balances at December 31, 2020 3.745 1,142 93 4,980 The amount of additions in the period ended December 31, 2020 includes R$34 of borrowing costs, as presented in Note 29. Energy and gas distribution activities The concession infrastructure assets still under construction are recognized initially as contract assets, measured at amortized cost, including capitalized borrowing costs. When the asset starts operations, the construction performance obligation is concluded, and the assets are split into financial assets and intangible assets. The transmission activity For transmission concessions, the consideration to be paid to the Company arises from the concession contracts n. 006/97 and n. 079/00, as follows: 2020 2019 01/01/2019 (Restated) Current Concession contract - 004/05 19 — — Concession contract - 079/00 29 21 19 Concession contract - 006/97 Basic Network of the Existing System (BNES) 533 434 347 Basic Network of New Facilities (BNNF) 156 121 116 737 576 482 Non-current Concession contract - 004/05 91 — — Concession contract - 079/00 133 95 93 Concession contract - 006/97 Basic Network of the Existing System (BNES) 1,363 1,494 1,714 Basic Network of New Facilities (BNNF) 1,421 911 620 3,008 2,500 2,427 3,745 3,076 2,909 a) Concession contract n. 006/97 The contract regulates the public service of commercial operation of transmission facilities that are classified as parts of the National Grid, pursuant to Law 9,074/1995 and to the regulation applicable, in effect until December 31, 2042. The contract was renewed on December 4, 2012, for 30 years, from January 1, 2013, under Provisional Act 579 of September 11, 2012 (converted into Law 12,783/2013), which specified reimbursement for the assets that had not been depreciated on December 31, 2012. The criteria for calculation of New Replacement Value (Valor Novo de Reposição – VNR) of the transmission facilities, for the purposes of reimbursement, were set by Aneel Normative Resolution 589 of December 10, 2013. The process and period of payment of the reimbursement were set by Brazilian Ministry of Mining and Energy (MME), by Ministerial Order 120, of April 20, 2016, which specified that the amounts ratified by Aneel, through a Dispatch, for the National Grid facilities which had not yet been amortized, nor depreciated, nor indemnified by the concession-granting power (‘the Grantor’), associated to the concession contracts that were renewed under Law 12,783/2013, should become part of the Regulatory Remuneration Base as from the tariff process of 2017. Aneel Normative Resolution 762/2017 set the procedures and criteria to be used in the calculation of the cost of capital to be added to the Permitted Annual Revenue, under Law 12,783/2013, in accordance with MME Ministerial Order 120/2016. At the first adoption of IFRS 15, on January 01, 2018, considering the characteristics of its concession contracts, the Company classified as contract assets: (i) the consideration to be received for the construction of power transmission infrastructure corresponding to the remaining balance of National Grid assets, re-incorporated into the remuneration base (the economic portion), and (ii) the assets remunerated by tariff, since the performance obligation of construction and upgrade depends on satisfaction of the performance obligation of operation and maintenance. On December 31, 2020, as described in Note 2.8, the Company reclassified to contract asset the amounts recorded as financial asset at the first adoption of IFRS 15, related to the National Grid (‘BNES’) financial portion, which represents the amount to be paid since the extension of the concessions until its incorporation into the tariff, to be received in 8 years, starting in June 2017, and exclusively by installments not paid from January 1, 2013 to June 30, 2017, updated by the regulatory cost of capital of the transmission sector. The amounts reclassified in the statement of financial position at December 31, 2019 for January 01, 2019 are R$1,281 and R$1,296, respectively. The classification of these assets as a contract asset is based on its inclusion in the Remuneration Assets Base – ‘BRR’ of the transmission concession agents. Although this new regulation determined that the amounts to be paid were subject to the regulatory rules applicable to the tariff process, including the mechanisms for measuring efficiency, the tariff review specific rules were not clear about the treatment that would be applied to the financial portion, especially related to the asset write-off in the period. The Periodic Tariff Review, which occurred in 2020, confirmed the impact of the write-off on this component in the period. In this new context, the consideration to be received is associated to the performance obligation to operate and maintain. Thus, the asset has the distinctive characteristics which is pertinent to its classification as a contract asset. The next Periodic Tariff Review (RTP) will take place in June 2023, with effect from July 1, 2023. The indexer used to update the contract is the Expanded Consumer Price Index (Índice de Preços ao Consumidor Amplo – IPCA). National Grid Assets - ‘BNES’ – the regulatory cost of capital updating 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 remuneration at cost of equity included since the date of extension of the concessions. In June 2020, due to revocation of the majority of the injunctions, and in compliance with the Execution Opinions issued by the Federal Public Attorneys’ Office to Aneel, the effects caused by the reversal of these injunctions were calculated, for inclusion of the cost of equity in the transmission revenue starting with the 2020-21 cycle, considering all retrospective effects, including those arising from the assumptions adopted in the 2018 RAP periodic reset. At this moment Aneel provisionally ratified only the inclusion of the cost of equity updated by IPCA index of the period between the 2017-18 and 2019-20 tariff cycles, considering the need for deeper examination of the legal conditions for analysis of the Company’s appeal, which require the inclusion of the WACC remuneration for the periods in which it was suspended. On January 06, 2021, the Brazilian General Attorney's Office issued a legal opinion about the effects of the reversal of the court decision that had suspended the cost of equity remuneration of the transmission agents determined by Ministerial Order 120, of April 20, 2016. The legal opinion concluded that the interest not received in the period of January 2013 to June 2017 – cost of capital remuneration – must be updated by the cost of equity rate, as established in the MME Ministerial Order 120/2016 and in the Aneel Resolution 762/2017, until July 01, 2020, which is the date that the payment took place, and must be included to RAP as of July 1, 2020 (2020-2021 cycle) for eight years. The Company believes that the treatment given to this component, which includes updating by the IPCA inflation index, plus the regulatory weighted average cost of capital, of the period from June 2017 to June 2020, appropriately reflects the regulations issued by the grantor authority. Company has no expectation of loss in relation to realization of these amounts. b) Concession contract 079/00 The contract regulates commercial operation of public transmission service, comprising construction, maintenance and operation of transmission of the following facilities: The Itajubá 3 Substation; the Itajubá 3 – Poços de Caldas Transmission Line; and the Itajubá 3–Cachoeira Paulista Transmission Line, in effect until October 4, 2034. The contract does not provide the review of the established revenue. Only of the revenues provisionally established, arising from enhancements and upgrades authorizations are reset. Thus, on December 15, 2020, the Resolution 2,825/2020 ratified the RAP Periodic Tariff Review of bid contracts of energy transmission, whose tariff review was scheduled for July 2019. More information on this matter is provided further in this Note. The Periodic Tariff Reviews determined the tariff reset, with effects backdated to the date of the start of commercial operation, resulting in a repositioning factor of 57.5%. In addition, an adjustment portion relating to the backdating of the repositioning of RAP since the date of start of commercial operation in the amount of R$24. The amounts will comprise the new RAP as from the adjustment for the 2021/2022 cycle and the adjustment portion relating to the backdating will be paid in 3 installments during the next adjustment processes. The next Periodic Tariff Review (RTP) of the enhancements that have been approved will take place in June 2024, and be in effect from July 1, 2024. The indexer used for adjustment of the contract is the General Market Prices Index (Índice Geral de Preços do Mercado – IGP-M). Assumptions considered in the estimation of the expected consideration for the construction services related to enhancements and upgrades of infrastructure. a) The margin is allocated to the performance obligation to construct the transmission infrastructure, using the cost incurred, plus margin; b) Future RAPs are calculated based on management’s best estimates, considering the cost of capital, plus the remuneration specified by the regulations; c) The discount rate used for calculation of present value of future RAPs is the implicit rate related to the financing component of the contract, corresponding to the best estimate of the amount that reflects the price that a customer would have paid for the promised goods or services if the customer had paid cash for the infrastructure construction services when (or as) they transfer to the customer (i.e. the cash selling price). d) PIS/Pasep and Cofins taxes are included in the calculation of the revenues from the contracts, and these taxes deferral is recognized; e) The estimated construction margin for the projects in service and in progress are obtained on the basis of the rate of profitability expected by management for the transmission activity in the period of commencement of the investments – this is considered individually, by an act of regulation (a concession contract or an Authorizing Resolution). Periodic Tariff Revision of Permitted Annual Revenue – RAP On June 30, 2020, Aneel ratified the results of the Periodic Tariff Review – RTP through Ratifying Resolution 2,712/2020, setting the revaluation of the Permitted Annual Revenue (RAP) to be applied from July 1, 2018. The result of the RAP Periodic Revision of the period 2018-2019 was a net increase of 9.13% compared to the provisional RAP of this same period. Although it was concluded only in 2020, the Revision had retrospective effects since July 2018. The RTP comprised the reset of the BNES and BNNF (New National Grid Facilities) revenues, as follows: § Basic Network of the Existing System ('BNES') Increase of 13.15% in revenues of this type, due to: (i) upward variation in the WACC, after tax, from 6.64% to 7.71%; (ii) incorporation of the amounts referring to the remuneration of the Annual Cost of Assets (Custo Anual do Ativos – CAA) of the National Grid not incorporated into revenue for the period from January 2013 through June 2017 (Ke); (iii) changes in the asset base, taking into account write-offs and assets that have been fully depreciated. Due to these effects, the economic and financial components of Tariff Review Process (TRP) n. 120/2016 for the National Grid were increased, by 7% and 38%, respectively. The financial components include the remuneration of Ke (cost of equity). The RAP of the National Grid also contains amounts for O&M, which were 3% lower. § Basic Network of the New Facilities (BNNF) Reduction of 10% in relation to the RAP of the original authorization, due to: (i) changing in the remuneration base due to the difference between the reference prices (‘banco de preços’) of the authorization and the prices used in the review; (ii) effect of the diminishing profile of the RAP on the recalculation of the revenue for the new cycle. Since the repositioning has effect backdated to July 2018, an Adjustment Amount (‘Parcela de Ajuste – PA’) was established, referring to the difference between the amount of the repositioning and the provisional amount of the RAPs in effect in the period 2018–2020. This Adjustment Amount will undergo monetary updating by the IPCA index at each tariff adjustment and will be in effect in the cycles of 2020–2023. In spite of the reduction of the RAP in relation to the authorization, the review generated an increase in the present value of the contract asset, due mainly to the positive difference between the price of the transaction calculated on the basis of New Replacement Value (Valor Novo de Reposição – VNR) used in the review and the transaction price estimated based on the costs incurred. On December 15, 2020 Aneel ratified, by Authorizing Resolution 2825/2020, the result of the Periodic Tariff Reviews of Permitted Annual Revenue (RAP) of Transmission Contracts resulting from public bidding. The revenues from enhancements and upgrades with date of start of commercial operation up to January 31, 2019 were submitted to the Periodic Review, with effects backdated to the date of the start of commercial operation. The enhancements and upgrades that were subject to review received a repositioning factor of 57.5%, plus an adjustment portion relating to the backdating of the repositioning of RAP since the date of start of commercial operation. The amounts will comprise the RAP of Itajubá as from the adjustment for the 2021/2022 cycle. As a result of the RTP of the contract 006/1997, the Company recognized a revenue of R$528 in the statement of income. Of this amount, R$321 refers to the BNNF assets whilst R$207 refers to BNES assets, the latter corresponding to the concessions extension, based on the Law 12,783/13, which were incorporated in the regulatory remuneration base. The RTP of the contract 079/2020 resulted in the recognition of a revenue of R$23, in the statement of income for the year ended in December 31, 2020. The revenue arising from the revisions represents, mainly, the variation in the remuneration regulatory rate set for the transmission sector and the remeasurement of the New Replacement Value ( Valor Novo de Reposição |
16. INVESTMENTS
16. INVESTMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about investment property [abstract] | |
INVESTMENTS | 16. INVESTMENTS Control 2020 2019 Hidrelétrica Cachoeirão Jointly-controlled 53 54 Guanhães Energia Jointly-controlled 131 131 Hidrelétrica Pipoca Jointly-controlled 36 31 Retiro Baixo Jointly-controlled 195 180 Aliança Norte (Belo Monte plant) Jointly-controlled 631 671 Amazônia Energia (Belo Monte plant) Jointly-controlled 965 1,028 Madeira Energia (Santo Antônio plant) Affiliated 209 167 FIP Melbourne (Santo Antônio plant) Affiliated 158 385 Lightger Jointly-controlled 131 128 Baguari Energia Jointly-controlled 159 157 Aliança Geração Jointly-controlled 1,167 1,192 Taesa Jointly-controlled 1,467 1,213 Ativas Data Center Affiliated 17 16 UFV Janaúba Geração de Energia Elétrica Distribuída Jointly-controlled 10 10 UFV Manga Geração de Energia Elétrica Distribuída Jointly-controlled 11 — UFV Corinto Geração de Energia Elétrica S.A. Jointly-controlled 10 — UFV Bonfinópolis Geração de Energia Elétrica Distribuída Jointly-controlled 6 — UFV Lagoa Grande Geração de Energia Elétrica Distribuída Jointly-controlled 15 — UFV Lontra Geração de Energia Elétrica Distribuída Jointly-controlled 17 — UFV Mato Verde Geração de Energia Elétrica Distribuída Jointly-controlled 6 — UFV Mirabela Geração de Energia Elétrica Distribuída Jointly-controlled 4 — UFV Porteirinha I Geração de Energia Elétrica Distribuída Jointly-controlled 6 — UFV Porteirinha II Geração de Energia Elétrica Distribuída Jointly-controlled 7 — Companhia de Transmissão Centroeste de Minas Subsidiary — 24 Axxiom Soluções Tecnológicas Jointly-controlled 4 13 Total of investments 5,415 5,400 Itaocara – equity deficit (1) Jointly-controlled (30 ) (22 ) Total 5,385 5,378 (1) On December 31, 2020 and 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$30 (R$22 on December 31, 2019), 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 Light, classified as asset held for sale, Madeira Energia ‘Santo Antônio’ power plant and Ativas Data Center. On December 31, 2019, the investee ‘Usina Hidrelétrica Itaocara’ had negative shareholders’ equity. Thus, after reducing the accounting value of its interest to zero, the Company recognized the loss to the extent that it assumed contractual obligations with the subsidiary and the other shareholders, which on December 31, 2020 is R$30 (R$22 on December 31, 2019). On December 31, 2020, management considered that there was some indication, due to the economic shock of the Covid-19 pandemic (Note 1e), of potential decline in value of assets, as referred to in IAS 36– Impairments of Assets Additionally, in relation to the above, the Company’s management has assessed the risk threatening all its investments ability to continue as a going concern, taking substantially into consideration: the economic-financial clauses of Cemig D and Gasmig; the guarantee of revenues of the transmission companies; the protection against force majeure 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. The rights of authorization to generate wind energy granted to Parajuru and Volta do Rio, valued at R$54 (R$60 on December 31, 2019) and R$74 (R$67 on December 31, 2019), respectively, are classified in the financial statements of the Company under Intangibles. These concession assets are amortized by the straight-line method, during the period of the concession. For further information see note 18. Changes in these assets are as follows: Investees 2017 Additions Amortization Written off 2018 Amortization 2019 Amortization 2020 Retiro Baixo 28 6 (2 ) — 32 (1 ) 31 (1 ) 30 Central Eólica Praias de Parajuru (1) 17 — (2 ) (15 ) — — — — — Central Eólica Volta do Rio (1) 11 — (1 ) (10 ) — — — — — Central Eólica Praias de Morgado (1) 24 — (2 ) (22 ) — — — — — Madeira Energia (Santo Antônio plant) 151 — (6 ) (127 ) 18 (1 ) 17 (1 ) 16 Lightger — 84 — — 84 (3 ) 81 (3 ) 78 Aliança Geração 403 — (25 ) — 378 (25 ) 353 (25 ) 328 Aliança Norte (Belo Monte plant) 55 — (2 ) — 53 (2 ) 51 (2 ) 49 Taesa 189 — (9 ) — 180 (9 ) 171 (8 ) 163 Light 186 — (20 ) (166 ) — — — — — RME 44 20 (5 ) (59 ) — — — — — Total 1,108 110 (74 ) (399 ) 745 (41 ) 704 (40 ) 664 (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 2019 Gain (loss) by equity method Remeasurement of previously held equity interest in subsidiaries acquired (step-acquisition) Dividends Additions / acquisitions Others Disposals 2020 Companhia de Transmissão Centroeste de Minas 24 — 37 — 45 14 (120 ) — Hidrelétrica Cachoeirão 54 9 — (10 ) — — — 53 Guanhães Energia (1) 131 — — — — — — 131 Hidrelétrica Pipoca 31 11 — (6 ) — — — 36 Madeira Energia (Santo Antônio plant) 167 42 — — — — — 209 FIP Melbourne (Santo Antônio plant) 385 (227 ) — — — — — 158 Lightger (1) 128 10 — (7 ) — — — 131 Baguari Energia 157 23 — (21 ) — — — 159 Amazônia Energia (Belo Monte plant) 1,028 (63 ) — — — — — 965 Aliança Norte (Belo Monte plant) 671 (40 ) — — — — — 631 Ativas Data Center 16 1 — — — — — 17 Taesa 1,213 494 — (240 ) — — — 1,467 Aliança Geração 1,192 89 — (114 ) — — — 1,167 Retiro Baixo 180 15 — — — — — 195 UFV Janaúba Geração de Energia Elétrica Distribuída 10 1 — (1 ) — — — 10 UFV Corinto Geração de Energia Elétrica Distribuída — 1 — — 9 — — 10 UFV Manga Geração de Energia Elétrica Distribuída — 1 — — 10 — — 11 UFV Bonfinópolis II Geração de Energia Elétrica Distribuída — — — — 6 — — 6 UFV Lagoa Grande Geração de Energia Elétrica Distribuída — 3 — — 12 — — 15 UFV Lontra Geração de Energia Elétrica Distribuída — 3 — — 14 — — 17 UFV Mato Verde Geração de Energia Elétrica Distribuída — 1 — — 5 — — 6 UFV Mirabela Geração de Energia Elétrica Distribuída — — — — 5 (1 ) — 4 UFV Porteirinha I Geração de Energia Elétrica Distribuída — — — — 6 — — 6 UFV Porteirinha II Geração de Energia Elétrica Distribuída — 1 — — 6 — — 7 Axxiom Soluções Tecnológicas (1) 13 (9 ) — — — — — 4 Total of investments 5,400 366 37 (399 ) 118 13 (120 ) 5,415 Itaocara – equity déficit (2) (22 ) (9 ) — — 1 — — (30 ) Total 5,378 357 37 (399 ) 119 13 (120 ) 5,385 (1) With the loss 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. More details see notes 1 and 33. (2) On December 31, 2019, the investee had negative shareholders’ equity. Thus, after reducing the accounting value of its interest to zero, the Company recognized the provision for losses on investments, in the amount of R$22, resulting from contractual obligations assumed with the subsidiary and the other shareholders. (3) Includes bargain purchase related to the acquisition of the joint-controlled entities UFV Corinto, UFV Manga, UFV Lagoa Grande, UFV Lontra, UFV Mato Verde and UFV Porteirinha II, in the amount of R$7. Investee 2018 Gain (loss) by equity method 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 (1) With the loss 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. More details see notes 1 and 32. (2) On December 31, 2019, the investee had negative shareholders’ equity. Thus, after reducing the accounting value of its interest to zero, the Company recognized the provision for losses on investments, in the amount of R$22, resulting from contractual obligations assumed with the subsidiary and the other shareholders. Investee 2017 Gain (loss) by equity method 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. (!) 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 Changes in dividends receivable are as follows: 2020 2019 Opening balances 186 119 Dividends proposed by investees 399 285 Elimination of dividends due to business combination (1 ) — Dividends proposed by investee classified as held for sale — 73 Adjustment of dividends proposed by investee classified as held for sale (1 ) — Withholding income tax on Interest on equity (8 ) (8 ) Amounts received (387 ) (283 ) Ending balances 188 186 c) Main information on the subsidiaries, jointly-controlled entities and affiliates, not adjusted for the percentage represented by the Company’s ownership interest: Investee Number 2020 2019 01/01/2019 Cemig interest % Share Equity Cemig interest % Share Equity Cemig interest % Share Equity Cemig Geração e Transmissão 2,896,785,358 100.00 4,000 5,842 100.00 2,600 5,348 100.00 2,600 5,125 Madeira Energia 12,034,025,147 15.51 10,620 2,259 15.51 10,620 3,705 15.51 10,620 4,657 Hidrelétrica Cachoeirão 35,000,000 49.00 35 110 49.00 35 110 49.00 35 100 Guanhães Energia 548,626,000 49.00 549 268 49.00 549 268 49.00 396 228 Hidrelétrica Pipoca 41,360,000 49.00 41 73 49.00 41 63 49.00 41 63 Baguari Energia (1) 26,157,300,278 69.39 187 229 69.39 187 227 69.39 187 234 Central Eólica Praias de Parajuru 70,560,000 100.00 71 107 100.00 72 89 100.00 72 80 Central Eólica Volta do Rio 117,230,000 100.00 117 171 100.00 139 58 100.00 139 84 Lightger 79,078,937 49.00 79 106 49.00 79 95 49.00 79 86 Aliança Norte 41,923.360.811 49.00 1,209 1,189 49.00 1,208 1,266 49.00 1,206 1,247 Amazônia Energia 1,322,597,723 74.50 1,323 1,296 74.50 1,323 1,380 74.50 1,322 1,359 Aliança Geração 1,291,500 45.00 1,291 1,858 45.00 1,291 1,858 45.00 1,291 1,858 Retiro Baixo 225,350,000 49.90 225 325 49.90 225 300 49.90 223 278 Renova (1) (2) 41,719,724 36.23 2,961 (1,108) 36.23 2,961 (1,130 ) 36.23 2,919 (76 ) Usina Hidrelétrica Itaocara S.A. 71,708,500 49.00 72 (60 ) 49.00 69 (45 ) 49.00 22 10 Cemig Ger.Três Marias S.A. 1,291,423,369 100.00 1,291 1,452 100.00 1,291 1,408 100.00 1,291 1,396 Cemig Ger.Salto Grande S.A 405,267,607 100.00 405 455 100.00 405 446 100.00 405 440 Cemig Ger. Itutinga S.A. 151,309,332 100.00 151 180 100.00 151 184 100.00 151 179 Cemig Geração Camargos S.A. 113,499,102 100.00 113 144 100.00 113 136 100.00 113 132 Cemig Geração Sul S.A. 148,146,505 100.00 148 174 100.00 148 179 100.00 148 176 Cemig Geração Leste S.A. 100,568,929 100.00 101 127 100.00 101 127 100.00 101 121 Cemig Geração Oeste S.A. 60,595,484 100.00 61 84 100.00 61 73 100.00 61 70 Rosal Energia S.A. 46,944,467 100.00 47 127 100.00 47 128 100.00 47 125 Sá Carvalho S.A. 361,200,000 100.00 37 115 100.00 37 124 100.00 37 94 Horizontes Energia S.A. 39,257,563 100.00 39 55 100.00 39 57 100.00 39 55 Cemig PCH S.A. 45,952,000 100.00 46 90 100.00 46 98 100.00 46 93 Cemig Geração Poço Fundo S.A. 1,402,000 100.00 1 4 100.00 1 4 100.00 17 18 Empresa de Serviços de Comercialização de Energia Elétrica S.A. 486,000 100.00 — 57 100.00 — 28 100.00 — 27 Cemig Comercializadora de Energia Incentivada S.A. (3) — — — — 100.00 1 3 100.00 1 3 Cemig Trading S.A. 1,000,000 100.00 1 30 100.00 1 31 100.00 1 28 Cemig Distribuição 2,359,113,452 100.00 5,372 6,022 100.00 5,372 4,708 100.00 2,772 4,708 TAESA 1,033,496,721 21.68 3,042 6,026 21.68 3,042 4,927 21.68 3,042 4,572 Ativas Data Center 456,540,718 19.60 182 86 19.60 182 82 19.60 182 84 Gasmig 409,255,483 99.57 665 1,079 99.57 665 988 99.57 665 1,001 Cemig Geração Distribuída (4) — — — — 100.00 — 11 100.00 — 3 LEPSA — — — — — — — 100.00 406 447 RME — — — — — — — 100.00 403 423 Cemig Sim (Efficientia) (5) 24,431,845 100.00 24 94 100.00 15 17 100.00 15 18 Companhia de Transmissão Centroeste de Minas (6) 28,000,000 51.00 28 118 51.00 28 47 51.00 28 39 Axxiom Soluções Tecnológicas 65,165,000 49.00 65 9 49.00 58 27 49.00 47 17 UFV Janaúba Geração de Energia Elétrica Distribuída 18,509,900 49.00 19 22 — — — — — — UFV Corinto Geração de Energia Elétrica Distribuída 18,000,000 49.00 18 20 — — — — — — UFV Manga Geração de Energia Elétrica Distribuída 21,235,933 49.00 21 24 — — — — — — UFV Bonfinópolis Geração de Energia Elétrica Distribuída 13,197,187 49.00 13 13 — — — — — — UFV Lagoa Grande Geração de Energia Elétrica Distribuída 25,471,844 49.00 25 26 — — — — — — UFV Lontra Geração de Energia Elétrica Distribuída 29,010,219 49.00 29 29 — — — — — — UFV Mato Verde Geração de Energia Elétrica Distribuída 11,030,391 49.00 11 12 — — — — — — UFV Mirabela Geração de Energia Elétrica Distribuída 9,320,875 49.00 9 9 — — — — — — UFV Porteirinha I Geração de Energia Elétrica Distribuída 12,348,392 49.00 12 13 — — — — — — UFV Porteirinha II Geração de Energia Elétrica Distribuída 11,702,733 49.00 12 12 — — — — — — (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. Renova adjusted its equity interest in the joint-venture Brasil PCH and recognized adjustments in its financial statements related to shares in profits and losses arising from this investee from the year of 2018, which resulted in restatement of its financial statements of December 31, 2019. (3) On October 1, 2020, Cemig GT completed the merger of its subsidiary Cemig Comercializadora de Energia Incentivada S.A., at book value, with consequent extinction of this investee, and the Cemig GT becoming its successor in all its assets, rights and obligations. (4) On October 19, 2020, the Cemig Geração Distribuída was merged with the Company, at book value, with consequent extinction of this investee, and the Company becoming its successor in all its assets, rights and obligations. (5) On April 14, 2020, the minute of the Annual General Meeting that decided about changes in this subsidiary’s By-laws was registered in the commercial registry authority, changing the name of this subsidiary to Cemig Soluções Inteligentes em Energia S.A.-CEMIG SIM. (6) On January 13, 2020, the Company concluded acquisition of the equity interest of 49% of the share capital held by Eletrobras in Centroeste. On December 31, 2020, the Company had indirect equity interests in the following investees: 2020 and 2019 (1) Direct interest % Indirect interest % Amazônia 74.50 % 5.76 % LightGer 49.00 % 11.52 % Guanhães 49.00 % 11.52 % Axxiom 49.00 % 11.52 % UHE Itaocara 49.00 % 11.52 % (1) After selling the shares held in Light, on January 22, 2021, the Company no longer holds the indirect interest above. The main balances for the affiliated and jointly-controlled entities, at December 31, 2020, 2019 and 2018, are as follows: 2020 Hidrelétrica Itaocara S.A. Ativas Data Center Taesa Axxiom Soluções Tecnológicas Lightger Hidrelétrica Cachoeirão Assets Current 3 39 2,360 20 103 30 Cash and cash equivalents 2 12 896 3 80 26 Non-current 10 104 11,745 21 129 80 Total assets 13 143 14,105 41 232 110 Liabilities Current 73 39 841 25 72 2 Loans and financings – Current — 27 121 7 9 — Non-current — 18 7,238 7 54 — Loans and financings – Non-Current — 16 923 1 54 — Equity (60 ) 86 6,026 9 106 108 Total liabilities and equity 13 143 14,105 41 232 110 Statement of income Net sales revenue — 94 3,561 41 52 34 Cost of sales (13 ) (78 ) (1,048 ) (38 ) (9 ) (15 ) Depreciation and amortization — (15 ) (7 ) (2 ) (11 ) (3 ) Gross profit (loss) (13 ) 16 2,513 3 43 19 General and administrative expenses — (8 ) (153 ) (5 ) (1 ) — Finance income — — 39 — 2 1 Finance expenses (5 ) (3 ) (514 ) (1 ) (16 ) — Operational profit (loss) (18 ) 5 1,885 (3 ) 28 20 Share of (loss) profit, net, of subsidiaries and joint ventures — — 834 — — — Income tax and social contribution tax — (2 ) (456 ) — (2 ) (1 ) Net income (loss) for the year (18 ) 3 2,263 (3 ) 26 19 Comprehensive income (loss) for the year (18 ) 3 2,263 (3 ) 26 19 2020 Hidrelétrica Pipoca Retiro Baixo Aliança Norte Guanhães Energia Amazônia Energia Renova Madeira Energia Assets Current 21 87 13 998 945 Cash and cash equivalents 8 74 6 29 263 Non-current 89 331 1,189 405 1,296 1,299 21,370 Total assets 110 418 1,189 418 1,296 2,297 22,315 Liabilities Current 17 30 27 725 1,150 Loans and financings Current 7 14 12 380 108 Non-current 20 63 123 2,680 18,906 Loans and financings Non-Current 20 55 106 1,083 4,902 Equity 73 325 1,189 268 1,296 (1,108 ) 2,259 Total liabilities and equity 110 418 1,189 418 1,296 2,297 22,315 Statement of income Net sales revenue 33 73 49 70 3,200 Cost of sales (6 ) (29 ) (36 ) (46 ) (2,720) Depreciation and amortization (3 ) (11 ) (17 ) (7 ) (869) Gross profit (loss) 27 44 13 24 480 General and administrative expenses (1 ) (4 ) (1 ) (122 ) (82) Finance income 2 258 Finance expenses (2 ) (6 ) (10 ) 26 (2,112) Operational profit (loss) 24 36 (1 ) 3 (72 ) (1,456) Share of (loss) profit, net, of subsidiaries and joint ventures (77 ) (84 ) 95 Income tax and social contribution tax (2 ) (3 ) (2 ) (1 ) 10 Net income (loss) for the year 22 33 (78 ) 1 (84 ) 22 (1,446) Comprehensive income (loss) for the year 22 33 (78 ) 1 (84 ) 22 (1,446) 2020 Baguari Energia Aliança Geração UFV Janaúba UFV Corinto UFV Manga UFV Bonfinópolis II Assets Current 63 805 3 2 1 Cash and cash equivalents 10 385 2 1 Non-current 209 2,461 19 18 23 13 Total assets 272 3,266 22 20 24 13 Liabilities Current 22 503 Loans and financings Current 19 Non-current 21 905 1 2 Loans and financings Non-Current 261 Equity 229 1,858 22 19 22 13 Total liabilities and equity 272 3,266 22 20 24 13 Statement of income Net sales revenue 73 1,042 3 3 Cost of sales (30 ) (580 ) 3 Depreciation and amortization (11 ) (154 ) (1 ) (1 ) (1 ) Gross profit (loss) 43 462 3 3 3 General and administrative expenses 5 (47 ) (1 ) (2 ) Finance income 2 28 Finance expenses (1 ) (63 ) Operational profit (loss) 49 380 3 2 1 Share of (loss) profit, net, of subsidiaries and joint ventures Income tax and social contribution tax (17 ) (126 ) Net income (loss) for the year 32 254 3 2 1 Comprehensive income (loss) for the year 32 254 3 2 1 2020 UFV Lagoa Grande UFV Lontra UFV Mato Verde UFV Mirabela UFV Porteirinha I UFV Porteirinha II Assets Current 2 — 1 — 1 — Cash and cash equivalents 1 — — — — — Non-current 24 29 11 9 12 12 Total assets 26 29 12 9 13 12 Liabilities Current — 1 — — — — Non-current — 1 — — — — Equity 26 27 12 9 13 12 Total liabilities and equity 26 29 12 9 13 12 Statement of income Net sales revenue 2 — — 1 — — Cost of sales — (1 ) — — — — Gross profit (loss) 2 (1 ) — 1 — — General and administrative expenses (1 ) (1 ) — — — (1 ) Operational profit (loss) 1 (2 ) — 1 — (1 ) Income tax and social contribution tax — — — — — 1 Net income (loss) for the year 1 (2 ) — 1 — — Comprehensive income (loss) for the year 1 (2 ) — 1 — — 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 and equity 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 2,269 124 419 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 (1,130 ) 95 267 1,858 Total liabilities and equity 1,380 22,430 247 2,291 211 430 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 Pipoca 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 and equity 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 (restated) Aliança Geração Assets Current — 618 44 1,738 791 Cash and cash equivalents — 69 8 15 381 Non-current 1,360 22,453 201 867 2,440 Total assets 1,360 23,071 245 2,605 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 (100 ) 1,858 Total liabilities and equity 1,360 23,071 245 2,605 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 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, 2020 MESA reported a loss of R$1,445 (R$951 on 2019) and negative net working capital of R$205 (R$427 on 2019). 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, which 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’), based on absence of quantification of the amounts supposedly owed, and absence of prior approval by the Board of Directors, as required by the bylaws and Shareholders’ Agreement of MESA; and also on the existence of credits owed to MESA by CCSA, for an amount greater than the claims; and (b) against the adjustment for impairment carried out by the Executive Board of MESA, in the amount of R$678, relating to certain credits owed to Mesa by CCSA, on the grounds that those credits are owed in their totality by express provision of contract. 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 also confidential under the Arbitration Regulations of the Market Arbitration Chamber. Renova Energia S.A. - court-supervised reorganization (‘Renova’) The investee Renova, currently in court-supervised reorganization, has been reporting recurring losses and presenting negative net working capital, net equity (uncovered liabilities) throughout the past years. On December 31, 2020, the jointly-controlled investee Renova, reported a consolidated profit of R$22 (loss of R$1,014 in 2019 and R$856 in 2018), accumulated losses of R$ 3,994 (R$ 4,017 in 2019 and R$3,058 in 2018), an equity deficit of R$1,108 (R$1,130 in 2019 and R$100 in 2018). Renova reported a positive net working capital in 2020 of R$273, in contrast to the negative net working capital reported in the past years of R$2,907 in 2019 and R$457 in 2018. This scenario reflects the court-supervised reorganization plan, which provide the agreements to balance the group liabilities, the renegociation of interest rates and the extension of debts maturity. 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, the Company recorded, since June 30, 2019, an impairment of the receivables with the jointly-controlled entity in the amount of R$688. Renova for court-supervised reorganization On October 16, 2019, was granted court-supervised reorganization petition applied by Renova, and by the other companies of the group (‘the Renova Group’). On October 25, 2019, Cemig GT made an Advance for Future Capital Increase to Renova, of R$5 and subsenquently was agreeded between the Company and Renova a Debtor in Possession (DIP) loan agreements in the total amount of R$37. |
17. PROPERTY, PLANT AND EQUIPME
17. PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | 17. PROPERTY, PLANT AND EQUIPMENT 2020 2019 Historical cost Accumulated depreciation Net value Historical cost Accumulated depreciation Net value In service Land 247 (23 ) 224 248 (19 ) 229 Reservoirs, dams and watercourses 3,300 (2,280 ) 1,020 3,280 (2,200 ) 1,080 Buildings, works and improvements 1,100 (836 ) 264 1,092 (818 ) 274 Machinery and equipment 2,647 (1,930 ) 717 2,598 (1,869 ) 729 Vehicles 21 (19 ) 2 20 (18 ) 2 Furniture and utensils 14 (11 ) 3 14 (11 ) 3 7,329 (5,099 ) 2,230 7,252 (4,935 ) 2,317 In progress 177 — 177 133 — 133 Net property, plant and equipment 7,506 (5,099 ) 2,407 7,385 (4,935 ) 2,450 Changes in PP&E are as follows: 2019 Additions Disposals (3) Depreciation Transfers / capitalizations (2) 2020 In service Land (1) 229 — (1 ) (4 ) — 224 Reservoirs, dams and watercourses 1,080 — — (80 ) 20 1,020 Buildings, works and improvements 274 — — (18 ) 8 264 Machinery and equipment 729 20 (2 ) (79 ) 49 717 Vehicles 2 — — — — 2 Furniture and utensils 3 — — — — 3 2,317 20 (3 ) (181 ) 77 2,230 In progress 133 112 11 — (79 ) 177 Net property, plant and equipment 2,450 132 8 (181 ) (2 ) 2,407 (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$2 were transferred to Intangible assets from PP&E. (3) Includes the impairment loss recognized for assets in progress. 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. 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 Floodgate 3.33 The average annual depreciation rate for the year 2020 is 3.14% (3.13% in 2019 and 3.72% in 2018). The segregation by activity is as follows: Hydroelectric Generation Wind Power Generation Administration 2.96 % 4.94 % 6,19 % 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. Consortium The Company is a partner in an energy generation consortium for the Queimado Stake in power output (%) Average annual depreciation rate (%) 2020 2019 In service Usina de Queimado 82.50 3.93 218 217 Accumulated depreciation (117 ) (109 ) Total 101 108 In progress Usina de Queimado 82.50 — 2 1 Total 2 1 |
18. INTANGIBLE ASSETS
18. INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [abstract] | |
INTANGIBLE ASSETS | 18. INTANGIBLE ASSETS The composition of the balance at December 31, 2020 and 2019 is as follow: 2020 2019 Historical cost Accumulated amortization Residual value Historical cost Accumulated amortization Residual value In service Useful life defined Temporary easements 13 (4 ) 9 12 (4 ) 8 Onerous concession 19 (13 ) 6 20 (13 ) 7 Assets of concession (1) 20,781 (9.107 ) 11,674 20,039 (8,522 ) 11,517 Others 78 (70 ) 8 77 (67 ) 10 20,891 (9,194 ) 11,697 20,148 (8,606 ) 11,542 In progress 113 — 113 82 — 82 Net intangible assets 21,004 (9,194 ) 11,810 20,230 (8,606 ) 11,624 (1) The rights of authorization to generate wind power granted to the subsidiary Parajuru Volta do Rio Changes in Intangible assets are as follow: 2019 Additions Disposals (1) Amortization Transfers (2) 2020 In service Useful life defined Temporary easements 8 — — — 1 9 Onerous concession 7 — — (1 ) — 6 Assets of concession 11,517 — (24 ) (738 ) 919 11,674 Others 10 — — (5 ) 3 8 11,542 — (24 ) (744 ) 923 11,697 In progress 82 41 — — (10 ) 113 Net intangible assets 11,624 41 (24 ) (744 ) 913 11,810 (1) This includes the impairment reversal, in the amount of R$14, recognized in the Income Statement under “Other expenses”, as a result of the test of impairment of intangible assets, relating to the authorization for wind power generation granted to Volta do Rio, on December 31, 2020. More information is available on this note. (2) The transfers were made between Intangible assets, concession contract assets, financial assets and property, plant and equipment are as follows: (1) R$906 from concession contract assets to intangible assets; (2) R$2 from property, plant and equipment to intangible assets; and (3) R$5 from concession financial asset to intangible assets. 2018 Additions Disposals (1) Amortization Transfers (2) 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) 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. 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 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. Assets linked to the infrastructure of the concession that are still under construction are posted initially as contract assets, as detailed in Note 15. The Company has not identified any evidence of impairment of the intangible asset with useful life defined. 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 amount of additions in 2020 includes R$1(R$2 in 2019 and R$4 in 2018) of borrowing costs, as presented in Note 23. 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 4.05%. The segregation by activity is as follows: Hydroelectric Generation Wind Power Generation Gas Distribution Administration 9.06 % 8.88 % 3.48 % 3.90 % 15.74 % 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 Grantor. The rights of authorization to generate wind power granted to the subsidiary Parajuru and Volta do Rio, in the total amount of R$128 (R$127 on December 31, 2019) and of the gas distribution concession, granted to Gasmig, valued at R$412 (R$427 on December 31, 2019), 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. In 2019, the Company recognized an impairment loss for the intangible asset related to the right of authorization for wind power generation granted to the subsidiary Volta do Rio, in the amount of R$22, recorded in “Other expenses” arising from non-achievement of the operational performance expected in 2019 for the wind generation assets of the subsidiary. On December 31, 2020, upon conclusion of the refurbishment of the 19 aero generators of the subsidiary Volta do Rio and full resumption of its generation capacity, the Company tested its operation assets for impairment, and it was found that economic and financial equilibrium, and the liquidity, of the subsidiary will be re-established. As a result, the Company reversed part of the loss that had been recognized, resulting in a net reversal of R$ 14 on December, 31, 2020, which is posted in the statement of income as other expenses. 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. The Company has not identified any evidence of impairment in any other intangible asset, whose useful life is finite. Renegotiation of hydrological risk – the Generation Scaling Factor (GSF) On September 9, 2020, the Law 14,052 was issued, changing the Law 13,203/2015 and establishing new conditions for renegotiation of hydrological risk in relation to the portion of costs incurred due to the GSF, borne by the holders of hydroelectric plants participating in the Energy Reallocation Mechanism (MRE) between 2012 and 2017, when there was a serious crisis in water sources. The aim of this new law is to compensate the holders of hydroelectric plants participating in the MRE for non-hydrological risks caused by: (i) generation ventures classified as structural, related to bringing forward of physical guarantee of the plants; (ii) the restrictions on start of operation of the transmission facilities necessary for outflow of the generation output of structural projects; and (iii) generation outside the merit order system, and importation. This compensation will take the form of extension of the grant of concession or authorization to operate, limited to 7 years, calculated on the basis of the parameters applied by Aneel. On December 1, 2020, Aneel issued its Normative Resolution 895, which established the methodology for calculation of the compensation, and the procedures for renegotiation of hydrological risk. To be eligible for the compensations under Law 14,052, the holders of hydroelectric plants participating in the MRE are required to: (i) cease any legal actions which claimed exemption from or mitigation of hydrological risks related to the MRE; (ii) relinquishing any claims and/or further legal actions in relation to exemptions from or mitigation of hydrological risks related to the MRE; and (iii) not to have renegotiated hydrological risk under Law 13,203/2015. On March 2, 2021 the CCEE sent to Aneel the calculations for the concessions extensions in the Free Market (ACL) that have opted to accept the conditions proposed by Aneel Normative Resolution 895/2020 and Law 14,052/2020. The Company’s management is awaiting ratification and publication by Aneel of its extensions of the concessions grants, for subsequent submission to the Company’s governance bodies for approval. Thus, no impact arising from this subject has been recorded in the financial statements at December 31, 2020. Based on the data supplied by CCEE to Aneel, the Company’s plants will have the right to the following periods of extension: Power plant Physical Guarantee (average MW) Concession extension (months) Emboração 500 23 Nova Ponte 270 25 Sá Carvalho 56 22 Rosal 29 46 Others (1) 399 — (1) Includes 11 power plants, of which 7 are owned by Cemig GT, 1 is owned by Cemig PCH and 3 are owned by Horizontes. The average concession extension in months varies between 1 and 84 months. The accounting effect arising from renegotiation of hydrological risk comprises: recognition of an intangible asset, related to the right of grant arising from the compensation for costs incurred in prior years, based on fair value, with counterpart in energy cost compensation in statement of income. These effects will be recognized after approval by the Company’s governance bodies of the proposal for renegotiation of hydrological risk. This is expected to take place at the end of the first half of 2021. With the approval of Law 14,120/2021, the right to reimbursement for the generation plants of Lot D was recognized, enabling the CCEE to make a new calculation, including these plants, indicating the right to their concession extension by the allowed maximum (seven years). Official confirmation of these amounts is pending regulations to be issued by Aneel. |
19. LEASING TRANSACTIONS
19. LEASING TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Leasing Transactions | |
LEASING TRANSACTIONS | 19. LEASING TRANSACTIONS The Company recognized a right to use and a lease liability for the following contracts which contain a lease in accordance with IFRS 16: 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 2020 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 and reflect the Company’s credit risk and the market conditions at the lease agreement date, as follows: Marginal rate Annual rate (%) Monthly rate (%) Initial application Up to two years 7.96 0.64 Three to five years 10.64 0.85 Six to twenty years 13.17 1.04 Contracts entered – 2019 and 2020 Up to three years 6.87 0.56 Three to four years 7.33 0.59 Four to twenty years 8.08 0.65 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, adjusted by its remeasurements, and amortized on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets Changes in the right-of-use assets are as follows: Real estate property Vehicles Total Balances at December 31, 2018 - - - Adoption on January 1, 2019 238 104 342 Disposals (contracts terminated) 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 Disposals (contracts terminated) (9 ) — (9 ) Amortization (1) (25 ) (40 ) (65 ) Addition 6 — 6 Remeasurement (2) 7 (4 ) 3 Balances at December 31, 2020 185 27 212 (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 of R$2. (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 is measured at the present value of lease payments to be made over the lease term incremental borrowing rate The changes in the lease liabilities are as follows: 2019 Balances at December 31, 2018 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 Addition 6 Disposals (contracts terminated) (10 ) Accrued interest (2) 29 Payment of principal portion of lease liability (84 ) Payment of interest (3 ) Remeasurement (3) 2 Balances at December 31, 2020 227 Current liabilities 48 Non-current liabilities 179 (1) 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 (R$2 on December 31, 2019). (2) 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 644 227 Potential PIS/Pasep and Cofins (9.25%) 55 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: 2021 56 2022 27 2023 26 2024 26 2025 26 2026 at 2045 483 Undiscounted values 644 Embedded interest (417 ) Lease liabilities 227 |
20. SUPPLIERS
20. SUPPLIERS | 12 Months Ended |
Dec. 31, 2020 | |
Current raw materials and current production supplies [abstract] | |
SUPPLIERS | 20. SUPPLIERS 2020 2019 Energy on spot market – CCEE 490 401 Charges for use of energy network 192 145 Energy purchased for resale 808 764 Itaipu Binacional 325 243 Gas purchased for resale 127 143 Materials and services 416 384 2,358 2,080 |
21. TAXES PAYABLE AND AMOUNTS T
21. TAXES PAYABLE AND AMOUNTS TO BE REFUNDED TO CUSTOMERS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of taxes, income tax and social contribution tax [abstract] | |
TAXES PAYABLE AND AMOUNTS TO BE REFUNDED TO CUSTOMERS | 21. TAXES PAYABLE AND AMOUNTS TO BE REFUNDED TO CUSTOMERS 2020 2019 (Restated) 01/01/2019 (Restated) Current ICMS 112 112 168 COFINS (2) 184 177 182 PIS/PASEP (2) 41 39 39 INSS 29 25 23 Others (1) 140 58 41 506 411 453 Non-current COFINS (3) 216 186 206 PIS/PASEP (3) 47 41 43 263 227 249 769 638 702 Amounts to be refunded to customers Current PIS/PASEP and COFINS 448 — — Non-current PIS/PASEP and COFINS 3,570 4,193 1,124 4,018 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. (2) Includes Cofins and PIS/Pasep recognized in current liability includes the deferred taxes related to the interest revenue arising from the financing component in contract asset and to the revenue of construction and upgrade associated with the transmission concession contract, whose consideration will be received in at least twelve months after the reporting period. For more information, see note 2.8 and 15. (3) The deferral of PIS/Pasep and Cofins taxes related to the interest revenue arising from the financing component in contract asset and to the revenue of construction and upgrade associated with the transmission concession contract, whose consideration will be received in at least twelve months after the reporting period. For more information, see note 2.8 and 15. 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 inclusion of the ICMS value added tax within the taxable amount for calculation of those taxes. According note 9 (a), the Company recognized, in 2019, 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, due to the final judgment – against which there is no appeal – on the Ordinary Action, in favor of the Company. The Company has 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. The definitive criteria for the refunding of PIS/Pasep and Cofins taxes to customers are pending, awaiting conclusion of discussions with Aneel and the mechanisms and criteria for reimbursement, when actual offsetting of the tax credits takes place. On August 18, 2020, Aneel ratified the inclusion into the tariff readjustment for 2020 of a negative financial component of R$714, in effect from August 19, 2020 to May 27, 2021 – this corresponds to the release of the escrow funds deposited in court following final judgment in the Company’s favor against which there is no further appeal. For more information see Note 14.5. |
22. LOANS, FINANCING AND DEBEN
22. LOANS, FINANCING AND DEBENTURES | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure loans financings and debentures [abstract] | |
LOANS, FINANCING AND DEBENTURES | 22. LOANS, FINANCING AND DEBENTURES Financing source Principal maturity Annual financial cost % Currency 2020 2019 Current Non-current Total Total FOREIGN CURRENCY Banco do Brasil: Various Bonds (1) (4) 2024 Diverse US$ 2 10 12 18 Eurobonds (2) 2024 9.25% US$ 59 7,795 7,854 6,092 (-)Transaction costs — (16 ) (16 ) (19 ) (±) Interest paid in advance (3) — (25 ) (25 ) (30 ) Debt in foreign currency 61 7,764 7,825 6,061 BRAZILIAN CURRENCY Caixa Econômica Federal (5) 2021 TJLP + 2.50% R$ 17 — 17 61 Caixa Econômica Federal (6) 2022 TJLP + 2.50% R$ 14 — 14 118 Eletrobrás (4) 2023 UFIR + 6.00% at 8.00% R$ 3 5 8 20 Large customers (4) 2024 IGP-DI + 6.00% R$ — — — 5 Sonda (7) 2021 110.00% of CDI R$ 50 — 50 49 Promissory Notes – 1st Issue - Single series (8) 2020 107.00% of CDI R$ — — — 875 (-) FIC Pampulha - Marketable securities of subsidiary companies (9) — — — (3 ) Debt in Brazilian currency 84 5 89 1,125 Total of loans and financings 145 7,769 7,914 7,186 Debentures - 3th Issue – 3rd Series (2) 2022 IPCA + 6.20% R$ 395 367 762 1,088 Debentures - 6th Issue – 2nd Series (2) 2020 IPCA + 8.07% R$ — — — 17 Debentures - 7th Issue – Single series (2) (11) 2021 140.00% of CDI R$ 289 — 289 578 Debentures - 3th Issue – 2nd Series (4) 2021 IPCA + 4.70% R$ 588 — 588 1,109 Debentures - 3th Issue – 3rd Series (4) 2025 IPCA + 5.10% R$ 43 992 1,035 991 Debentures - 7th Issue – 1st Series (4) 2024 CDI + 0.45% R$ 542 1,350 1,892 2,165 Debentures - 7th Issue – 2nd Series (4) 2026 IPCA + 4.10% R$ 3 1,585 1,588 1,520 Debentures – 4th Issue – 1st Series (8) 2022 TJLP+1.82% R$ 10 10 20 31 Debentures – 4th Issue – 2nd Series (8) 2022 Selic + 1,82% R$ 5 4 9 14 Debentures – 4th Issue – 3th Series (8) 2022 TJLP + 1,82% R$ 12 10 22 34 Debentures – 4th Issue – 4th Series (8) 2022 Selic + 1,82% R$ 5 5 10 15 Debentures – 7th Issue – Single series (8) 2023 CDI + 1.50% R$ 20 40 60 80 Debentures – 8th Issue – Single series (8) 2031 IPCA + 5.27% R$ 14 876 890 — (-) Discount on the issuance of debentures (10) — (18 ) (18 ) (22 ) (-) Transaction costs (12 ) (29 ) (41 ) (29 ) Total, debentures 1,914 5,192 7,106 7,591 Total 2,059 12,961 15,020 14,777 (1) Net balance of the Restructured Debt comprising bonds at par and discounted, with balance of R$234, less the amounts given as Deposits in guarantee, with balance of R$222. 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. The proceeds from the 8th debenture issue, concluded by Gasmig on September 10, 2020, in the amount of R$850, were used to redeem the Promissory Notes issued on September 26, 2019, with maturity at 12 months, whose proceeds were used in their entirety for payment of the concession grant fee for the gas distribution concession contract. (9) FIC Pampulha has financial investments in marketable securities issued by subsidiaries of the Company. For more information on this fund, see Note 31. (10) Discount on the sale price of the 2nd series of the Seventh issue of Cemig Distribuição. (11) On February 02, 2021, the Company made the mandatory early redemption of this debentures, in the amount of R$264, with 20% discount of the funds obtained by the sale of the Company’s interest in Light. For more information about the sale of the Company’s interest in Light, see Note 32. 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 (“cross default”). Funding raised On September 10, 2020 Gasmig concluded its eighth non-convertible debenture issue, for R$850, in a single series, with 11-year maturity, monetary updating by the IPCA inflation index, and remuneratory interest of 5.27% per year on the 252 business days basis. The total of the net proceeds was used for the obligatory early redemption of Gasmig’s first Commercial Promissory Note issue, in a single series, totaling R$850 on the issue date. Financing source 2020 Signature date Principal maturity Annual financial cost % Amount BRAZILIAN CURRENCY Debentures – 8th Issue – Single series September, 2020 2031 IPCA + 5.27% 850 (-)Transactions costs (24 ) Total raised 826 Financing source 2019 Signature date Principal maturity Annual financial cost % Amount BRAZILIAN CURRENCY Debentures – 7th Issue – 1st Series (1) July, 2019 2024 CDI + 0.454% 2,160 Debentures – 7th Issue – 2nd Series (1) July, 2019 2026 4.10% of IPCA 1,500 Promissory Notes – 1st Issue (2) September, 2019 2020 107.00% of CDI 850 (-)Transactions costs (10 ) (-)Discount on the issuance of debentures (3) (23 ) Total raised 4,477 (1) Cemig Distribuição (2) Gasmig (3) Discount on the sale price of the 2nd series of the debentures issued by Cemig Distribuição. Financing source 2018 Signature date Principal maturity Annual financial cost % Amount FOREIGN CURRENCY Eurobonds (1) July, 2018 2024 9.25 % 1,946 (-) Transactions costs (8 ) (±)Interest paid in advance (2) 10 1,948 BRAZILIAN CURRENCY Promissory Notes – 9th Issue - Single Series (3) May, 2018 2019 151% of CDI 400 (-)Transactions costs (4 ) Debentures — Debentures (4) August, 2018 2023 CDI + 1.50% 100 Debentures – 6th Issue – Single Series (5) December, 2018 2020 CDI + 1.75% 550 (-)Transactions costs (4 ) 1,042 Total raised 2,990 (1) In July 2018, Cemig GT completed financial settlement of an additional tranche to its initial Eurobond issue completed on December 5, 2017. The new tranche, of US$ 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 Guarantees The guarantees of the debt balance on loans and financing, on December 31, 2020, were as follows: 2020 Promissory notes and Sureties 10,197 Guarantee and Receivables 3,454 Receivables 112 Shares 330 Unsecured 927 TOTAL 15,020 The composition of loans, financing and debentures, by currency and index, with the respective amortization, is as follows: 2021 2022 2023 2024 2025 2026 Total Currency US dollar 61 — — 7,805 — — 7,866 Total, currency denominated 61 — — 7,805 — — 7,866 Index IPCA (1) 1,043 615 248 341 1,138 1,478 4,863 UFIR/RGR (2) 3 3 2 — — — 8 CDI (3) 912 570 560 268 — — 2,310 URTJ/TJLP (4) 53 20 — — — — 73 Total by index 2,011 1,208 810 609 1,138 1,478 7,254 (-)Transaction costs (12 ) (1 ) (1 ) (18 ) (5 ) (20 ) (57 ) (±)Interest paid in advance — — — (25 ) — — (25 ) (-) Discount — — — — (9 ) (9 ) (18 ) Overall total 2,060 1,207 809 8,371 1,124 1,449 15,020 (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) The principal currencies and index used for monetary updating of loans and financings had the following variations: Currency Accumulated change in 2020, % Accumulated change in 2019, % Indexer Accumulated change in 2020, % Accumulated change in 2019, % US dollar 28.93 4.02 IPCA 4.52 4.31 CDI 2.77 5.97 TJLP (18.31 ) (20.20 ) The changes in loans, financing and debentures are as follows: 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 Liabilities arising from business combination (1) 10 Initial balance for consolidation purposes 14,787 Loans and financing obtained 850 (–) Transaction costs (24 ) Monetary variation 187 Exchange rate variation 1,742 Financial charges provisioned 1,211 Amortization of transaction cost 15 Financial charges paid (2) (1,212 ) Amortization of financing (2,531 ) Reclassification to “Other obligations” (3) (8 ) Subtotal 15,017 FIC Pampulha: Marketable securities of subsidiary companies 3 Balance at December 31, 2020 15,020 (1) Loans arising from business combinations due to the acquisition of the remaining equity interest in Companhia Centroeste de Minas, settled in full in August 2020. (2) Withholding income tax on remittance of interest on Eurobonds, in the amount of R$130, was offset against PIS/Pasep and Cofins credits. (3) Reclassification to Cemig D’s customers (CMM and Serra da Fortaleza). 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: 2020 2019 2018 Costs of loans and financing 1,211 1,250 1,287 Financing costs on intangible assets and contract assets (1) (Notes 15 and 18) (33 ) (23 ) (30 ) Net effect in Profit or loss 1,178 1,227 1,257 (1) The average capitalization rate p.a. in 2020 was 5.39% (6.79% in 2019 and 9.64% in 2018). 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) Compliance required 7th Debentures Issue Cemig GT (1) Net debt / (Ebitda + Dividends received) The following or less: 3.0 in 2020 2.5 in 2021 The following or less: 3.0 in 2020 2.5 in 2021 Semi-annual and annual Eurobonds Cemig GT (2) Net debt / Ebitda adjusted for the Covenant (6) The following or less: 3.0 on Dec. 31, 2020 3.0 on June 30, 2021 2.5 on/after Dec. 31, 2021 The following or less: 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 than 3.5 The following or Less than 3.0 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: 2.5 on/after Dec, 31.2020 - Annual 8th Debentures Issue Gasmig Single series (4) EBITDA/Debt servicing Net debt/EBITDA 1.3 or more as of Dec, 31.2020 3.0 or less as of Dec, 31.2020 - - Annual Annual Financings Caixa Econômica Federal (CEF) Parajuru and Volta do Rio (5) Debt servicing coverage index Equity / Total liabilities Share capital subscribed in investee / Total investments made in the project financed 1.20 or more 20.61% or more (Parajuru) 20.63% or more (Volta do Rio) 20.61% or more (Parajuru) 20.63% or more (Volta do Rio) - - - Annual (during amortization) Always 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 by the debenture holders for 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) Non-compliance with the financial covenants results in automatic early maturity. If early maturity is declared by the debenture holders, Gasmig must make the payment after receipt of notification. (5) 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. (6) Ebitda is defined as: (i) Profit before interest, income tax and Social Contribution tax on profit; depreciation; and amortization, calculated in accordance with CVM Instruction 527, of October 4, 2012; – less: (ii) non-operational profit; any non-recurring non-monetary credits or gains that increase net profit; any payments in cash made on consolidated basis during the period relating to non-monetary charges that were newly added in the calculation of Ebitda in any prior period; and any non-recurring non-monetary expenses or charges. The covenants remain in compliance as of December 31, 2020, with the exception non-compliance with the non-financial covenant of the loan contracts with the CEF of the subsidiaries Central Eólica Praias de Parajuru and Central Eólica Volta do Rio. Thus, exclusively to comply with the requirement of item 69 IAS 1, the Company reclassified R$2 to current liabilities, referring to the loans of those subsidiaries, which were originally classified in non-current liabilities. 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 31. |
23. REGULATORY CHARGES
23. REGULATORY CHARGES | 12 Months Ended |
Dec. 31, 2020 | |
Net movement in regulatory deferral account balances related to profit or loss [abstract] | |
REGULATORY CHARGES | 23. REGULATORY CHARGES 2020 2019 Liabilities Global Reversion Reserve (RGR) 28 31 Energy Development Account (CDE) 64 58 Grantor inspection fee – ANEEL 3 3 Energy Efficiency Program 265 255 Research and development (R&D) 225 199 Energy System Expansion Research 4 3 National Scientific and Technological Development Fund 8 6 Proinfa – Alternative Energy Program 7 8 Royalties for use of water resources 13 10 Emergency capacity charge 26 26 Customer charges – Tariff flags 90 — Others 4 5 737 604 Current liabilities 446 457 Non-current liabilities 291 147 |
24. POST-EMPLOYMENT OBLIGATIONS
24. POST-EMPLOYMENT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of defined benefit plans [abstract] | |
POST-EMPLOYMENT OBLIGATIONS | 24. 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$473 on December 31, 2020 (R$566 on December 31, 2019). 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, 2020 the total amount payable by Cemig and its subsidiaries as a result of the Plan A deficits is R$540 (R$550 on December 31, 2019, referring to the Plan A deficits of 2015 and 2016). The monthly amortizations, calculated by the constant installments system (Price Table), will be paid until 2031 for the 2015 and 2016 deficits, in the amount of R$363, and up to 2033 for the 2017 deficit, in the amount of R$177. 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. In December, 2020, in accordance with the applicable legislation, Forluz proposed to Cemig a new Debt Assumption Instrument to be signed, if approved, by Forluz, Cemig, Cemig GT and Cemig D, in accordance with the plan to cover the deficit of Plan A, that occurred in 2019. The total amount to be paid by the Company to cover the deficit is R$160, through 166 monthly installments. The remuneration interest rate over the outstanding balance is 6% per year, plus the effect of the IPCA. If the plan reaches actuarial balance before the full period of amortization of the debt, the Company will not be required to pay the remaining installments and the contract will be extinguished. Actuarial information 2020 Pension plans and retirement supplement plans Health plan Dental plan Life insurance Total Present value of obligations 13,308 3,319 64 551 17,242 Fair value of plan assets (10,420 ) — — — (10,420 ) Initial net liabilities 2,888 3,319 64 551 6,822 Adjustment to asset ceiling 21 — — — 21 Net liabilities in the statement of financial position 2,909 3,319 64 551 6,843 2019 Pension plans and retirement supplement 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 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 and retirement supplement plans Health plan Dental plan Life insurance Total 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 Cost of current service 1 21 1 3 26 Interest on actuarial obligation 887 215 4 41 1,147 Actuarial losses (gains): Due to changes in demographic assumptions 135 395 4 — 534 Due to changes in financial assumptions (375 ) (152 ) (4 ) (34 ) (565 ) Due to adjustments based on experience 289 (119 ) 1 (23 ) 148 49 124 1 (57 ) 117 Benefits paid (914 ) (143 ) (3 ) (10 ) (1,070 ) Defined-benefit obligation at December 31, 2020 13,308 3,319 64 551 17,242 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, 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 Return on investments 757 Contributions from employer 211 Benefits paid (914 ) Fair value of the plan assets at December 31, 2020 10,420 The amounts recognized in 2020, 2019 and 2018 statement of income are as follows: 2020 Pension plans and retirement supplement 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 ) Expense (recovery of expense) in 2020 according to actuarial calculation 206 236 5 44 491 2019 Pension plans and retirement supplement 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 and retirement supplement 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 Changes in net liabilities were as follows: Pension plans and retirement supplement plans Health plan Dental plan Life insurance Total 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 gains (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 gains (losses) 805 667 10 117 1,599 Net liabilities at December 31, 2019 2,972 3,102 61 574 6,709 Expense recognized in Statement of income 206 236 5 44 491 Contributions paid (211 ) (143 ) (3 ) (10 ) (367 ) Actuarial gains (losses) (58 ) 124 1 (57 ) 10 Net liabilities at December 31, 2020 2,909 3,319 64 551 6,843 2020 2019 Current liabilities 305 288 Non-current liabilities 6,538 6,421 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$438 in 2020 (R$408 in 2019 and R$337 in 2018), plus the finance expenses and monetary updating on the debt with Forluz, in the amounts of R$53 in 2020 (R$56 in 2019 and R$68 in 2018). The independent actuary’s estimation for the expense to be recognized for 2021 is as follows: Pension plans and retirement supplement plans Health plan Dental plan Life insurance Total Current service cost 2 21 1 3 27 Interest on the actuarial obligation 884 231 5 39 1,159 Expected return on the assets of the Plan (685 ) — — — (685 ) Estimated total expense in 2020 as per actuarial report 201 252 6 42 501 The expectation for payment of benefits for 2021 is as follows: Pension plans and retirement supplement plans – Forluz Health plan Dental plan Life insurance Total Estimated payment of benefits 928 172 3 18 1,121 The Company have expectation of making contributions to the pension plan in 2021 of R$221 for amortization of the deficit of Plan A, and R$81 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 Health plan Dental plan Life insurance Plan A Plan B 11.58 12.81 13.8 15.01 18.66 The main categories plan’s assets, as a percentage of total plan’s assets are as follows: 2020 2019 Shares 9.25 % 9.51 % Fixed income securities 72.17 % 72.28 % Real estate property 3.71 % 3.79 % Others 14.87 % 14.42 % Total 100.00 % 100.00 % The following assets of the pension plan, measured at fair value, are related to the Company: 2020 2019 Non-convertible debentures issued by the Company 338 398 Shares issued by the Company 4 24 Real estate properties of the Foundation, occupied by the Company 285 503 627 925 This table provides the main actuarial assumptions: 2020 Pension plans and retirement supplement plans Health plan and Dental plan Life insurance Annual discount rate for present value of the actuarial obligation 6.83% 7.14% 7.25% Annual expected return on plan assets 6.83% Not applicable Not applicable Long-term annual inflation rate 3.32% 3.32% 3.32% Estimated future annual salary increases 3.32% Not applicable 4.56% 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) — 1% — (1) Starting in 2018, Company adopted the assumption of real growth of the contributions above inflation at the rate of 1% p.a. 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) — 1% — (1) Starting in 2018, Company adopted the assumption of real growth of the contributions above inflation at the rate of 1% p.a. 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. The sensitivity analysis of the effects of changes in the main actuarial assumptions used to determine the defined-benefit obligation at December 31, 2020 is shown below: Effects on the defined-benefit obligation Pension plans and retirement supplement plans Health plan Dental plan Life insurance Total Reduction of one year in the mortality table 336 79 1 (15 ) 401 Increase of one year in the mortality table (338 ) (80 ) (1 ) 16 (403 ) Reduction of 1% in the discount rate 1,513 483 10 111 2,117 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, 2020 and 2019. |
25. PROVISIONS
25. PROVISIONS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of other provisions [abstract] | |
PROVISIONS | 25. 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 probability of loss are assessed as ‘probable’ (i.e. an outflow of funds to settle the obligation will be necessary), as follows: 2019 Additions Reversals Settled / Reversal (1) Provisions arising from business combination (2) 2020 Labor 497 106 (60 ) (116 ) — 427 Civil Customer relations 19 22 — (18 ) — 23 Other civil actions 18 21 — (7 ) — 32 37 43 — (25 ) — 55 Tax 1,260 113 (38 ) (41 ) — 1,294 Regulatory 36 16 — — — 52 Others 58 13 (7 ) (3 ) 3 64 Total 1,888 291 (105 ) (185 ) 3 1,892 (1) This includes the amount of R$39, corresponding to the reversal of the contingency provisions relating to ICMS credits, recognized as recoverable taxes, due to a final judgment, against which there is no further appeal, in favor of the subsidiary Gasmig, on June 9, 2020. (2) On January 13, 2020, the Company obtained the Centroeste control, which is consolidated as of 2020 first quarter. More details see note 16. 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 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 probability of loss have been assessed as ‘probable’ and contingent liabilities, for actions in which the probability 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$1,386 (R$1,679 at December 31, 2019), of which R$427 (R$497 at December 31, 2019) has been recorded – the amount estimated as probably necessary for settlement of these disputes. Alteration of the monetary updating index of employment-law cases In December 2020 the Federal Supreme Court gave partial judgment in favor of two actions for declaration of constitutionality, and ruled that monetary adjustment applied to employment-law liabilities should be by the IPCA-E index until the stage of service of notice in a legal action, and thereafter by application of the Selic rate, and the Reference Rate (TR) is not applicable to any employment-law obligations as well. The effects of this decision were modulated as follows: § payments already made in due time and in the appropriate manner, using application of the TR, the IPCA-E or any other indexer, will remain valid and may not be the subject of any further contestation; § actions in progress that are at the discovery phase, should be subject to backdated application of the Selic rate, on penalty of future allegation of non-demandability of judicial title based on an interpretation contrary to the position of the Supreme Court; and; § the decision is automatically applicable to actions in which final judgment has been given against which there is no appeal, provided that there is no express submission in relation to the monetary adjustment indices and interest rates; and this also applies to cases of express omission, or simple consideration of following the legal criteria. 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$142 (R$68 at December 31, 2019), of which R$23 (R$19 at December 31, 2019) 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$359 (R$300 at December 31, 2019), of which R$32 (R$18 at December 31, 2019) 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$85 (R$79 at December 31, 2019). Of this total, R$4 has been recognized (R$4 at December 31, 2019) – 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$1,520 (R$1,451 on December 31, 2019), of which R$1,276 (R$1,213 on December 31, 2019) has been provisioned, this being the estimate of the probable amount of funds to settle these disputes. 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$203 (R$160 at December 31, 2019), and the probability of loss was classified as ‘possible’, since the relevant requirements of the National Tax Code (CTN) have been complied with. 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$345 (R$280 at December 31, 2019), of which R$52 (R$36 at December 31, 2019) 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$46 (R$41 at December 31, 2019), 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 ; overtime payments; hazardous occupation payments; matters related to Sest/Senat (transport workers’ support programs); and fines for non-compliance with accessory obligations. The Company have presented defenses and await judgment. The amount of the contingency is approximately R$110 (R$112 at December 31, 2019). Management has classified the chance of loss as ‘possible’, also taking into account assessment of the chance of loss in the judicial sphere, (the claims mentioned are in the administrative sphere), based on the evaluation of the claims and the related case law. 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$425 (R$400 at December 31, 2019). The Company has classified the probaility 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 the Company, 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, 2020 the amount of the contingency for the period relating to the rules on expiry by limitation of time is R$107. 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$1,072 (R$959 at December 31, 2019). The Company has assessed the probability 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$376 (R$343 at December 31, 2019). On November 9, 2008 Cemig GT obtained an interim decision in the Regional Federal Appeal Court ( Tribunal Regional Federal Tariff increases Exclusion of customers classified as low-income The Federal Public Attorneys’ Office filed a class action against the Company and the grantor (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$167 (R$149 at December 31, 2019). Company has classified the chance of loss as ‘possible’, after analysis of the case law on this subject. Renova: Application to override corporate identity A Receivables Investment Fund (Fundo de Investimento em Direitos Creditórios – FIDC) filed an application for Override of Legal Identity (Incidente de Desconsideração da Personalidade Jurídica – IDPJ) in relation to certain companies of the Renova group, aiming to include some shareholders of Renova, including the Company and its subsidiary Cemig GT, as defendants jointly and severally liable. The amount involved in this dispute is estimated at R$ 76 at December 31, 2020. The probability of loss have been assessed as ‘possible’. |
26. EQUITY AND REMUNERATION TO
26. EQUITY AND REMUNERATION TO SHAREHOLDERS | 12 Months Ended |
Dec. 31, 2020 | |
Statement of changes in equity [abstract] | |
EQUITY AND REMUNERATION TO SHAREHOLDERS | 26. EQUITY AND REMUNERATION TO SHAREHOLDERS a) Share capital As of December 31, 2020, the Company’s issued and share capital is R$7,594 (R$7,294 at December 31, 2019 and 2018), represented by 507,670,289 common shares (487,614,213 at December 31, 2019) and 1,011,082,312 preferred shares (971,138,388 at December 31, 2019), both of them with nominal value of R$5.00 (five Reais), as follows: Shareholders Number of shares on December 31, 2020 Common % Preferred % Total % State of Minas Gerais 258,738,711 51 11,788 — 258,750,499 17 Other entities of Minas Gerais State 20,713 — 7,442,037 1 7,462,750 — FIA Dinâmica Energia S.A. 114,172,677 22 43,975,272 4 158,147,949 10 BNDES Participações 56,578,175 11 27,299,432 3 83,877,607 6 BlackRock — — 153,689,970 15 153,689,970 10 Others In Brazil 55,717,246 11 212,704,725 21 268,421,971 18 Foreign shareholders 22,442,767 5 565,959,088 56 588,401,855 39 Total 507,670,289 100 1,011,082,312 100 1,518,752,601 100 Shareholders Number of shares on December 31, 2019 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 Shareholders Number of shares on December 31, 2018 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 — 704,350 — 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 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 The Annual General Meeting held on July 31, 2020 approved Management's proposal for allocation of the profits for 2019, disclosed in the 2019 financial statements, and a capital increase from R$ 7,294 to R$ 7,594, as per Article 199 of the Brazilian Corporate Law (Law 6,404/76), since the profit reserves at December 31, 2019 (excluding tax incentive reserve and unrealized profit reserve) exceeded the share capital, by R$537. This capital increase was made through the issuance of 60,000,000 new shares, of which 20,056,076 were common shares and 39,943,924 preferred shares, by capitalization of R$300 from profit reserves, and as a result, a share bonus of 4.11% in new shares was issued to shareholders, of the same type as those held, and with nominal unit value of R$5.00. In addition, the Annual General Meeting held on April 30, 2021 approved the Management’s proposal for increase of the registered share capital from R$7,594 to R$8,467, also pursuant to Article 199 of the Brazilian Corporate Law, since the profit reserve at December 31, 2020, (excluding tax incentive reserve and the unrealized profit reserve), exceed the registered share capital by R$1,529. This capital increase was made through the issuance of 174,609,467 new shares, of which 58,366,345 were common shares and 116,243,122 preferred shares, with nominal unit value of R$5.00, by the capitalization of R$873 from retained earnings reserve. b) Earnings per share The number of shares included in the calculation of basic and diluted earnings, considering the new shares issued in 2020 and in 2021, is described in the table below. The comparative information for 2019 and 2018 was adjusted retrospectively in order to reflect the capital increases. Number of shares 2020 2019 2018 Common shares already paid up 566,036,634 566,036,634 566,036,634 Shares in treasury (79 ) (79 ) (79 ) 566,036,555 566,036,555 566,036,555 Preferred shares already paid up 1,127,325,434 1,127,325,434 1,127,325,434 Shares in treasury (650,817 ) (650,817 ) (650,817 ) 1,126,674,617 1,126,674,617 1,126,674,617 Total 1,692,711,172 1,692,711,172 1,692,711,172 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 purchase and sale options of investments described in Note 32 could potentially dilute basic earning per share in the future; however, they have not caused dilution of enaring per share in 2020, 2019 and 2018. The calculation of basic and diluted earnings per share is as follows: 2020 2019 (Restated) 2018 (Restated) Net income for the year attributed to equity holders of the parent 2,864 3,194 1,722 Minimum mandatory dividend from net income for the year - preferred shares 986 509 577 Net income for the year not distributed - preferred shares 920 1,617 569 Total earnings - preferred shares (A) 1,906 2,126 1,146 Minimum mandatory dividend from net income for the year - common shares 496 256 290 Net income for the year not distributed - common shares 462 812 286 Total earnings - common shares (B) 958 1,068 576 Basic and diluted earnings per preferred share (A / number of preferred shares) 1.69 1.89 1,02 Basic and diluted earnings per common share (B / number of common shares) 1.69 1.89 1,02 2020 2019 (Restated) 2018 (Restated) Net income for the year from continuing operations attributed to equity holders of the parent 2,864 2,970 1,400 Minimum mandatory dividend from net income for the year from continuing operations – preferred shares 986 509 577 Net income for the year from continuing operations not distributed – preferred shares 920 1,468 355 Total earnings from continuing operations - preferred shares (A.1) 1,906 1,977 932 Minimum mandatory dividend from net income for the year from continuing operations - common shares 496 256 290 Net income for the year from continuing operations not distributed – common shares 462 737 178 Total earnings from continuing operations - common shares (B.1) 958 993 468 Basic and diluted earnings from continuing operations per preferred share (A.1 / number of preferred shares) 1.69 1.75 0.83 Basic and diluted earnings from continuing operations per common share (B.1 / number of common shares) 1.69 1.75 0.83 Considering that each class of share participates equally in the profit reported, the earning per share in the fiscal years ended in December 31, 2020, 2019 and 2018 were, respectively, R$1.69, R$1.89 and R$1.02. These figures are calculated based on the Company’s number of shares on December 31, 2020, adjusting the earning per share of the comparative prior years, 2019 and 2018. c) Equity valuation adjustments 2020 2019 2018 Adjustments to actuarial liabilities – Employee benefits (340 ) (343 ) (257 ) Subsidiary and jointly-controlled entity Adjustments to actuarial liabilities – Employee benefits (2,660 ) (2,650 ) (1,681 ) Deemed cost of PP&E 569 586 611 (2,091 ) (2,064 ) (1,070 ) Equity valuation adjustments (2,431 ) (2,407 ) (1,327 ) The adjustments to post-employment benefit obligations comprise gains or losses resulting from re-measurements of the net defined-benefit obligation, in accordance with the actuarial report. The amounts recorded as deemed cost of the generation assets represents its fair value determined using the replacement cost at initial adoption of IFRS on January 1, 2009. The valuation of the generation assets resulted in an increase in their book value, recorded in a specific line in Equity, net of the tax effects. These values are being realized based on the depreciation of the assets. d) Reserves Capital reserves 2020 2019 2018 Investment-related donations and subsidies 1,857 1,857 1,857 Goodwill on issuance of shares 394 394 394 Shares in treasury (1 ) (1 ) (1 ) 2,250 2,250 2,250 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 2020 2019 (Restated) 2018 (Restated) Legal reserve 995 853 853 Statutory reserve 57 57 57 Retained earnings reserve 6,650 5,500 3,965 Unrealized profit reserve 835 835 — Incentive tax reserve 103 85 67 Reserve for mandatory dividends not distributed 1,420 1,420 1,420 10,060 8,750 6,362 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. This reserve constitution corresponds to 5% of the net income for the year, less the amount allocated to incentive tax reserve. Statutory reserve The reserve under the By-laws is for future payment of extraordinary dividends, in accordance with Article 28 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. 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 2020, Company presented a positive net share of profit of subsidiaries, jointly-controlled entities and affiliates of R$2,704, which can be regarded as unrealized portion of net income for the year, in accordance with the Brazilian corporate law. 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$506, 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. The outstanding balance of the unrealized profit reserve will remain R$835, considering the reversal of the reserve recorded in 2019 and the creation of a new one in 2020, in the same amount. 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 2020 (R$18 in 2019 and R$9 in 2018), and it was subsequently transferred to the Incentives Tax reserve. The amount of the Tax incentives reserve on December 31, 2020 was R$103 (R$85 at December 31, 2019). This reserve cannot be used for payment of dividends. Reserve for mandatory dividends not distributed 2020 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 and the estimated cash requirement for the nex year, concluded that the financial situation does not yet allow the payment of these retained dividends. e) Rights and preferences of the common and preferred shares 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. The dividend rights of the preferred and common shares are described below. f) Dividends 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. 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. Calculation of the minimum dividends proposed The calculation of the minimum dividends proposed for distribution to Shareholders, considering the 2020 unrealized profit assumption mentioned in the previous paragraphs, is as follows: 2020 2019 2018 Calculation of Minimum Dividends required by the By-laws for the preferred shares Nominal value of the preferred shares 5,055 4,856 4,856 5,055 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 506 486 486 Equity 17,473 15,887 14,579 Preferred shares as a percentage of Equity (net of shares held in Treasury) 66.56 % 66.56 % 66.56 % Portion of Equity represented by the preferred shares 11,630 10,574 9,704 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 349 317 291 Minimum Dividends required by the Bylaws for the preferred shares 506 486 486 Calculation of the Minimum Dividend under the by-laws based on the net income for the year Mandatory dividend Net income for the year 2,864 3,127 1,700 Mandatory dividends – 50% of Net income 1,432 1,564 850 Unrealized profit reserve (835 ) (835 ) Reversal of the unrealized profit reserve established in 2019 835 — — Withholding income tax on Interest on equity 50 35 17 1,482 764 867 Dividends recorded, as specified in the by-laws Interest on Equity 553 400 210 Ordinary dividends 929 364 657 1,482 764 867 Total dividends for the preferred shares 986 509 577 Total dividends for the common shares 496 255 290 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) 0.99 0.52 0.59 Dividends proposed: Common (ON) shares 0.99 0.52 0.59 Dividends proposed: Preferred (PN) shares 0.99 0.52 0.59 This table provides the changes on dividends and interest on capital payable: Balances at December 31, 2018 864 Proposed dividends 764 Withholding income tax on interest on capital (35 ) Dividends retained – Minas Gerais state government (Note 11) (148 ) Dividends paid (701 ) Balances at December 31, 2019 744 Proposed dividends 1,482 Proposed dividends - Non-controlling interests 1 Withholding income tax on interest on capital (50 ) Dividends retained – Minas Gerais state government (Note 11) (130 ) Dividends paid (598 ) Balances at December 31, 2020 1,449 Allocation of net income for 2020 – Management’s proposal The Annual General Meeting (AGM) held on April 30, 2021 approved the following allocation of the net income for 2020, totaling R$2,864, less R$17 from realization of the deemed cost of PP&E, added to R$835 from the realization of the unrealized profit reserve and R$212 from prior periods adjustments: R$142 to be held in the Legal Reserve, as established in Brazilian corporate law. R$1,482 for payment of the mandatory minimum dividends to Company’s holders, as follows: - R$553 in the form of Interest on Equity, to be paid in two equal installments, by June 30, 2021 and by December 31, 2021, to shareholders whose names were on the Company’s Nominal Share Registry on September 22, 2020 and December 23, 2020; - R$929 as dividends of 2020, to be paid by December 31, 2021, to holders whose names are in the Company’s Nominal Share Registry on the date of the AGM. R$1,451 to be held in the Retained earnings reserve, to ensure the Company’s consolidated investments planned for 2021, 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. The amount of R$835 remains as unrealized profit reserve, considering the reversal of the reserve constituted in 2019 and the new constitution in 2020, of the same amount. |
27. REVENUE
27. REVENUE | 12 Months Ended |
Dec. 31, 2020 | |
Revenue [abstract] | |
REVENUE | 27. 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. 2020 2019 (Restated) 2018 (Restated) Revenue from supply of energy (a) 26,432 26,928 24,872 Revenue from use of the electricity distribution systems (TUSD) (b) 3,022 2,722 2,045 CVA, and Other financial components (c) 455 58 1,973 Reimbursement of PIS/Pasep and Cofins over ICMS credits to customers– realization (1) 266 — — Transmission revenue Transmission operation and maintenance revenue (d) 280 352 343 Transmission construction revenue (d) (note 14) 201 312 138 Interest revenue arising from the financing component in the transmission contract asset (d) (note 14) 438 328 311 Generation assets - indemnity revenue — — 55 Distribution construction revenue (e) 1,436 980 802 Adjustment to expectation of cash flow from indemnifiable financial assets of distribution concession (g) 16 18 — Revenue on financial updating of the Concession Grant Fee (h) 347 318 321 Energy transactions on the CCEE (i) 154 432 217 Mechanism for the sale of surplus (h) 234 — — Supply of gas 2,011 2,298 1,995 Fine for violation of service continuity indicator (51 ) (58 ) (44 ) Recovery of PIS/Pasep and Cofins (note 9) — 1,428 — Other operating revenues (j) 1,709 1,721 1,585 Deductions on revenue (k) (11,722 ) (12,351 ) (12,314 ) Net revenue 25,228 25,486 22,299 (1) For more information, see note 9 from this financial statements. a) Revenue from energy supply These items are recognized upon delivery of supply, based on the tariff specified in the contractual terms and approved by the grantor for each class of customer or in effect in the market. Unbilled supply of energy, from the period between the last billing and the end of each month, is estimated based on the supply contracted. For the distribution concession contract, the unbilled supply is estimated based on the volume of energy delivered but not yet billed. This table shows energy supply by type of customer: GWh (1) R$ 2020 2019 2018 2020 2019 2018 Residential 10,981 10,538 10,267 9,875 9,668 8,658 Industrial 12,731 14,873 17,689 4,171 4,760 4,893 Commercial, services and others 8,571 9,335 8,380 4,979 5,439 4,683 Rural 3,766 3,795 3,615 2,190 2,058 1,794 Public authorities 714 905 871 522 654 575 Public lighting 1,243 1,357 1,384 550 614 585 Public services 1,362 1,373 1,316 722 725 646 Subtotal 39,368 42,176 43,522 23,009 23,918 21,834 Own consumption 34 38 41 — — — Unbilled revenue — — — 9 134 48 39,402 42,214 43,563 23,018 24,052 21,882 Wholesale supply to other concession holders (2) 13,907 11,920 11,992 3,363 2,943 3,002 Wholesale supply unbilled, net — — — 51 (67 ) (12 ) Total 53,309 54,134 55,555 26,432 26,928 24,872 (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 grantor. The total amount of energy transported, in MWh, is as follows: GWh (1) 2020 2019 Industrial 18,612 17,723 Commercial 1,300 1,320 Rural 32 17 Concessionaires 315 341 Total 20,259 19,401 (1) Data not reviewed by external auditors c) The CVA account, and Other financial components The results from variations in the CVA account (Parcel A Costs Variation Compensation Account), and in Other financial components in calculation of tariffs, refer to the positive and negative differences between the estimated non-manageable costs of the subsidiary Cemig D and the cost actually incurred. The amounts recognized arise from balances recorded in the current year, homologated or to be homologated in tariff adjustment processes. For more information please see Note 14. d) Transmission concession revenue Construction revenue corresponds to the performance obligation to build the transmission infrastructure, recognized based on the satisfaction of performance obligation over time. They are measured based on the cost incurred, including PIS/Pasep and Cofins taxes over the total revenues and the profit margin of the project. For more information, see note 15. Operation and maintenance revenue correspondes to the performance obligation of operation and maintenance specified in the transmission concession contract, after termination of the construction phase. They are recognized when the services are rendered and he invoices for the RAPs are issued. Interest revenue in the contract asset recognized, recorded as transmission concession gross revenue in statement income. Revenue corresponds to the significant financing component in the contract asset, and is recognized by the linear effective interest rate method based on the rate determined at the start of the investments, which is not subsequently changed. The average of the implicit rates is 6.86%. The rates are determined for each authorization and are applied on the amount to be received (future cash flow) over the contract duration. This includes financial updating by the inflation index specified for each transmission contract. The margin defined for each performance obligation from the transmission concession contract is as follows: 2020 2019 2018 Construction and upgrades revenue 201 312 138 Construction and upgrades costs (147 ) (220 ) (96 ) Margin 54 92 42 Mark-up (%) 36.73 % 41.82 % 43.75 % Operation and maintenance revenue 279 352 343 Operation and maintenance cost (223 ) (388 ) (215 ) Margin 56 (36 ) 128 Mark-up (%) 25,11 % (9.28 %) 59.53 % (1) The negative margin observed in 2019 related to the performance obligation to operate and maintain is due the recognition of the non-recurring tax provision, in the amount of R$135. e) Distribution construction revenue Construction revenue corresponds to the performance obligation to build the 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) Adjustment to expected cash flow from financial assets on residual value of infrastructure asses of distribution concessions Income from fair value change of the Regulatory Remuneration Asset Base. g) 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 14. h) Energy transactions on the CCEE (Power Trading Chamber) The revenue from transactions made through the Power Trading Chamber ( Câmara de Comercialização de Energia Elétrica i) Mechanism for the sale of energy surplus The revenue from the surplus sale mechanism (‘ Mecanismo de Venda de Excedentes j) Other operating revenues 2020 2019 2018 Charged service 11 17 14 Services rendered 139 183 188 Subsidies (1) 1,395 1,266 1,136 Rental and leasing 164 189 90 Reimbursement for decontracted supply (2) — 65 145 Other — 1 12 1,709 1,721 1,585 (1) Includes the revenue recognized for the tariff subsidies applied to users of the distribution system, in accordance with the Decree n.7,891/2013, in the amount of R$1,035 in 2020 (R$1,079 in 2019). Includes the subsidies for sources that are subject to incentive, rural, irrigators, public services and the generation sources that are subject to the incentive; and also includes the tariff flag revenue in the amount of R$47 in 2020, recognized because of the creditor position assumed by the Company in CCRBT. (2) Reimbursement for suspension of energy supply –Renova. k) Deductions on revenue 2020 2019 (Restated) 2018 (Restated) Taxes on revenue ICMS 6,098 6,358 5,657 Cofins 2,214 2,408 2,549 PIS/Pasep 481 524 553 Others 5 7 8 8,798 9,297 8,767 Charges to the customer Global Reversion Reserve (RGR) 16 16 19 Energy Efficiency Program (PEE) 73 69 64 Energy Development Account (CDE) 2,443 2,448 2,603 Research and Development (R&D) 43 41 38 National Scientific and Technological Development Fund (FNDCT) 43 41 38 Energy System Expansion Research (EPE of MME) 21 20 19 Customer charges – Proinfa alternative sources program 39 52 40 Energy services inspection fee 35 30 26 Royalties for use of water resources 62 43 45 Customer charges – the ‘Flag Tariff’ system 149 294 655 2,924 3,054 3,547 11,722 12,351 12,314 |
28. OPERATING COSTS AND EXPENSE
28. OPERATING COSTS AND EXPENSES | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Operating Costs And Expenses [abstract] | |
OPERATING COSTS AND EXPENSES | 28. OPERATING COSTS AND EXPENSES The operating costs are as follows: 2020 2019 (Restated) 2018 Personnel (a) 1,276 1,272 1,410 Employees’ and managers’ profit sharing 142 263 77 Post-employment benefits (reversals) – Note 24 438 408 337 Materials 79 91 104 Outsourced services (b) 1,265 1,239 1,087 Energy bought for resale (c) 12,111 11,286 11,084 Depreciation and amortization (1) 989 958 835 Operating provisions and adjustments for operating losses (d) 423 2,401 466 Charges for use of the national grid 1,748 1,426 1,480 Gas bought for resale 1,083 1,436 1,238 Construction costs (e) 1,581 1,200 897 Other operating expenses, net (f) 297 494 405 21,432 22,474 19,420 (1) Net of PIS/Pasep and Cofins taxes applicable to amortization of the right-of-use assets in the amount of R$2. For details about the discontinued operating costs and expenses, see Note 32. a) Personnel 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 provided 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. The total amount of R$59 has been recorded as expense related to this program, corresponding to acceptance by 396 employees. In March 2019, has been appropriated as expense, including severance payments, a total of R$21 (155 employees). b) Outsourced services 2020 2019 2018 Meter reading and bill delivery 127 128 129 Communication 71 69 80 Maintenance and conservation of electrical facilities and equipment 443 404 323 Building conservation and cleaning 108 110 110 Contracted labor 9 17 21 Freight and airfares 2 7 7 Accommodation and meals 9 14 12 Security services 19 18 20 Consultant 41 24 16 Maintenance and conservation of furniture and utensils 6 5 4 Information technology 80 63 59 Maintenance and conservation of vehicles 2 3 2 Disconnection and reconnection 39 70 62 Environmental services 10 14 14 Legal services 21 28 27 Tree pruning 48 46 28 Cleaning of power line pathways 75 61 41 Copying and legal publications 17 21 21 Inspection of customer units 35 14 10 Other expenses 103 123 101 1,265 1,239 1,087 c) Energy purchased for resale 2020 2019 2018 Supply from Itaipu Binacional 1,990 1,429 1,351 Physical guarantee quota contracts 780 715 679 Quotas for Angra I and II nuclear plants 303 269 267 Spot market 1,497 1,886 1,818 Proinfa Program 318 376 324 ‘Bilateral’ contracts 333 311 484 Energy acquired in Regulated Market auctions 3,334 3,021 3,346 Energy acquired in the Free Market 3,977 4,098 3,871 Distributed generation (‘Geração distribuída’) 678 207 — PIS/Pasep and Cofins credits (1,099 ) (1,026 ) (1,056 ) 12,111 11,286 11,084 d) Operating provision (reversals) and adjustments for operating losses 2020 2019 2018 Estimated losses on doubtful accounts receivables (Note 8) (1) 147 238 264 Estimated losses on other accounts receivables (2) — 11 (4 ) Estimated losses on accounts receivables from related parties (3) (note 30) 37 688 — Contingency provisions (reversals) (Note 25) (4) Labor claims 46 136 42 Civil 43 24 13 Tax (5) 75 1,228 (5 ) Other 22 12 1 186 1,400 51 370 2,337 311 Adjustment for losses Put option – RME and LEPSA — — 48 Put option – SAAG (Note 31) 53 64 107 53 64 155 423 2,401 466 (1) The expected losses on receivables are presented as selling expenses in the Statement of Income. (2) The estimated losses on other accounts receivable are presented in the consolidated Statement of income as operating expenses. (3) Estimated losses on accounts receivable from Renova, as a result of the assessment of the jointly-controlled entity credit risk. (4) The provisions for contingencies of the holding company are presented in the consolidated statement of income for the year as operating expenses. (5) The provision recognized in 2019 is due to the Company’s reassessment, based on the opinion of its legal advisers, of the probability of loss in legal actions disputing social security contributions on the payments of profit-sharing to its employees from 1999 to 2016. For more information, see note 25. e) Construction costs 2020 2019 2018 Personnel and managers 83 85 70 Materials 775 595 379 Outsourced services 598 421 364 Others 125 99 84 1,581 1,200 897 f) Other operating expenses (revenues), net 2020 2019 (Restated) 2018 Leasing and rentals 11 20 93 Advertising 7 9 19 Own consumption of energy 24 21 27 Subsidies and donations 22 40 22 Onerous concession 3 3 3 Insurance 25 12 7 CCEE annual charge 6 6 6 Net loss (gain) on deactivation and disposal of assets 81 88 7 Forluz – Administrative running cost 30 30 28 Collection agents 86 88 78 Obligations deriving from investment contracts (1) 9 32 — Taxes and charges 7 10 9 Other expenses (2) (14 ) 135 106 297 494 405 (1) 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$119 (R$98 on December 31, 2019), of which Cemig is responsible for R$41 (R$32 on December 31, 2019). (2) Includes the impairment loss recognized for intangible asset relating to the authorization for wind power generation granted to Volta do Rio in the amount of R$22. |
29. FINANCE INCOME AND EXPENSES
29. FINANCE INCOME AND EXPENSES | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of finance income expense [abstract] | |
FINANCE INCOME AND EXPENSES | 29. FINANCE INCOME AND EXPENSES 2020 2019 2018 FINANCE INCOME Income from financial investments 95 102 116 Interest on sale of energy 399 361 352 Monetary variations 42 30 19 Monetary variations – CVA (Note 14) 32 105 62 Monetary updating of escrow deposits 53 50 34 PIS/Pasep and Cofins charged on finance income (1) (96 ) (128 ) (68 ) Gains on financial instruments –swap (Note 31) 1,753 998 893 Inflation adjustment in arbitration case — — 77 Borrowing costs paid by related parties 30 48 56 Monetary updating on PIS/Pasep and Cofins taxes credits over ICMS (Note 9) 42 1,580 — Others 95 61 165 2,445 3,207 1,706 FINANCE EXPENSES Charges on loans and financings (Note 22) (1,178 ) (1,227 ) (1,257 ) Cost of debt – amortization of transaction cost (Note 22) (15 ) (38 ) (33 ) Foreign exchange variations - loans and financing (Note 22) (1,742 ) (226 ) (582 ) Foreign exchange variations – Itaipu (47 ) (13 ) (29 ) Monetary updating – loans and financings (Note 22) (187 ) (142 ) (134 ) Monetary updating – onerous concessions (9 ) (3 ) (3 ) Charges and monetary updating on post-employment obligations (Note 24) (53 ) (56 ) (68 ) Monetary updating – Lease liabilities (Note 19) (27 ) (34 ) — Finance income of P&D and PEE (21 ) (24 ) (23 ) Others (71 ) (84 ) (95 ) (3,350 ) (1,847 ) (2,224 ) NET FINANCE INCOME (EXPENSES) (906 ) 1,360 (518 ) (1) The PIS/Pasep and Cofins expenses apply to Interest on Equity. |
30. RELATED PARTY TRANSACTIONS
30. RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of transactions between related parties [abstract] | |
RELATED PARTY TRANSACTIONS | 30. RELATED PARTY TRANSACTIONS Cemig’s main balances and transactions with related parties and its jointly-controlled entities are as follows: COMPANY ASSETS LIABILITIES REVENUE EXPENSES 2020 2019 2020 2019 2020 2019 2018 2020 2019 2018 Shareholder Minas Gerais State Government Current Receivables from customers and traders (1) 335 346 — 127 166 163 — — ICMS tax – early payment — — 11 — — Non-current Accounts Receivable – AFAC (2) 12 115 — 27 17 18 — — Affiliated (3) Madeira Energia 2 6 92 58 35 68 70 (1,200 ) (730 ) (778 ) Current Transactions with energy (4) 35 Jointly-controlled entity Aliança Geração Current Transactions with energy (4) — — 14 14 42 40 35 (174 ) (166 ) (165 ) Provision of services (5) — 1 — — 5 7 12 — — — Interest on Equity, and dividends 114 103 — — — — — — — — Contingency (6) — — 41 32 — — — (9 ) (32 ) — Baguari Energia Current Transactions with energy (4) — — 1 1 — — — (8 ) (8 ) (11 ) Provision of services (5) — — — — — 1 1 — — — Norte Energia Current Transactions with energy (4) — — 25 24 28 22 16 (265 ) (228 ) (202 ) Advance for future power supply (7) — 40 — — — — — — — — Lightger Current Transactions with energy (4) — — 2 2 — — — (23 ) (21 ) (21 ) Hidrelétrica Pipoca Current Transactions with energy (4) — — 3 1 — — — (26 ) (19 ) (19 ) Interest on Equity, and dividends 3 — — — — — — — — — Retiro Baixo Current Transactions with energy (4) — — — 1 5 5 4 (5 ) (5 ) (5 ) Interest on Equity, and dividends — 6 — — — — — — — — Hidrelétrica Cachoeirão Current — Transactions with energy (4) — — — — 2 — — — — — Interest on Equity, and dividends — 3 — — — — — — — — Renova Current Transactions with energy — — — — — 4 — (7 ) — (81 ) Non-current Accounts Receivable (8) — — — — — 94 106 — (688 ) — Loans from related parties (9) — 17 — 6 — — — (37 ) — — Light Current Transactions with energy (4) 6 6 — 1 67 98 60 (2 ) (9 ) (1 ) Interest on Equity, and dividends 71 73 — — — — — — — — Taesa Current Transactions with energy (4) — — 8 9 — — — (100 ) (96 ) (109 ) Provision of services (5) — — — — — 1 1 — — — Hidrelétrica Itaocara Current Adjustment for losses (10) — — 30 22 — — — — — — Axxiom Current Provision of services (11) — — 4 3 — — — — — — Other related parties FIC Pampulha Current Cash and cash equivalents 171 36 — — — — — — — — Marketable securities 3,356 743 — — 33 8 1,106 — — — (-) Marketable securities issued by subsidiary companies (Note 22) — (3 ) — — — — — — — — Non-current Marketable securities 755 2 — — — — — — — — Forluz Current Post-employment obligations (12) — — 159 145 — — — (206 ) (197 ) (192 ) Supplementary pension contributions – Defined contribution plan (13) — — — — — — — (77 ) (78 ) (78 ) Administrative running costs (14) — — — — — — — (30 ) (30 ) (28 ) Operating leasing (15) 167 179 22 35 — — — (2 ) (55 ) (46 ) Non-current Post-employment obligations (12) — — 2,750 2,827 — — — — — — Operating leasing (15) — — 156 149 — — — — — — Cemig Saúde Current Health Plan and Dental Plan (16) — — 154 141 — — — (241 ) (227 ) (186 ) Non-current Health Plan and Dental Plan (16) — — 3,229 3,022 — — — — — — 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 granttor (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, 2020. 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. Cemig D filed an application with the tax authority of Minas Gerais state to accept the terms of State Law 23,510/2020, to enable part of the ICMS tax payable to be offset against the debt owed by the government of Minas Gerais state to the Company. At present, the state tax authority is validating the invoices presented, to authorize the compensation of credits. As a result, the Company has reversed the amount of R$210 previously recognized as expected losses for doubtful receivables. (2) 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 11. (3) The relationship between Cemig and its investees are described in Note 16 – Investments. (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$119 (R$98 on December 31, 2019), of which Cemig’s portion is R$41 (R$32 on December 31, 2019). (7) 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). Norte Energia delivered contracted supply until December 31, 2020, starting on January 01, 2020. There is no financial updating of the contract. (8) As mentioned in Note 16 (b), 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. (9) On November 25 and December 27, 2019, DIP loan contracts under court-supervised reorganization proceedings, referred to as ‘DIP’ and ‘DIP 2’, “DIP 3’ were entered into between the Company and Renova Energia S.A., in the amounts of R$10, R$6.5 and R$20, 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, 2.5% for the DIP2 contract and 1.5% for the DIP3, until the date of respective full payment. The Company recognized an impairment loss for the receivables from Renova, of its total carrying amount of R$3, in the second semester of 2020. For further information, see note 16 (c). (10) A liability was recognized corresponding to the Company’s interest in the share capital of Hidrelétrica Itaocara, due to its negative equity (see Note 16). (11) 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; (12) The contracts of Forluz are updated by the Expanded Customer Price Index ( Índice Nacional de Preços ao Consumidor Amplo (13) 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. (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) Rental of the Company’s administrative head offices, in effect until November 2020 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 and on November, 2020. By the end of the contract term, the Company decided not to renew the lease contract and, therefore, the Company vacated the Aureliano Chaves building facilities. (16) Post-employment obligations relating to the employees’ health and dental plan (see Note 24). Dividends receivable from equity investees Dividends receivable from Company’s equity investees are as follows: Dividends receivable 2020 2019 Light 71 73 Aliança Geração 114 103 Others 3 10 188 186 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 2020 Maturity Norte Energia (NESA) (1) Affiliated Surety Financing 2,601 2042 Light Affiliated Counter-guarantee Financing 684 2042 Santo Antônio Energia (SAESA) (2) Jointly-controlled Surety Debentures 445 2037 Santo Antônio Energia (SAESA) Jointly-controlled Guarantee Financing 1,023 2034 Norte Energia (NESA) Affiliated Surety Debentures 67 2030 4,820 (1) Related to execution of guarantees of the Norte Energia financing. (2) Corporate guarantee given by Cemig to Saesa. At December 31, 2020, 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, 2020 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. 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 2020, 2019 and 2018, are within the limits approved at a General Shareholders’ Meeting, and the effects on the income statements of the years ended, are as follows: 2020 2019 2018 Remuneration 27 25 34 Profit sharing (reversal) 9 6 4 Pension plans 1 1 3 Total 37 32 41 |
31. FINANCIAL INSTRUMENTS AND R
31. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [abstract] | |
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 31. 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 2020 2019 (Restated) Balance Fair value Balance Fair value Financial assets Amortized cost (1) Marketable securities – Cash investments 2 1,214 1,214 102 102 Accounts receivable from Customers and traders; Concession holders (transmission service) 2 4,534 4,534 4,601 4,601 Restricted cash 2 64 64 12 12 Accounts receivable from the State of Minas Gerais (AFAC) 2 12 12 115 115 Concession financial assets – CVA Other financial components 3 133 133 882 882 Reimbursement of tariff subsidies 2 88 88 97 97 Low-income subsidy 2 43 43 30 30 Escrow deposits 2 1,056 1,056 2,540 2,540 Concession grant fee – Generation concessions 3 2,549 2,549 2,468 2,468 9,693 9,693 10,847 10,847 Fair value through profit or loss Cash equivalents – Cash investments 1,587 1,587 326 326 Marketable securities Bank certificates of deposit (CDBs) 545 545 — — Treasury Financial Notes (LFTs) 1 731 731 94 94 Financial Notes – Banks 2 1,635 1,635 557 557 4,498 4,498 977 977 Derivative financial instruments (Swaps) 3 2,949 2,949 1,691 1,691 Derivative financial instruments (Ativas and Sonda Put options) 3 3 3 3 3 Concession financial assets – Distribution infrastructure 3 559 559 484 484 Indemnifiable receivable – Generation 3 816 816 816 816 8,825 8,825 3,971 3,971 18,518 18,518 14,818 14,818 Financial liabilities Amortized cost (1) Loans, financing and debentures 2 (15,020 ) (15,020 ) (14,777 ) (14,777 ) Debt with pension fund (Forluz) 2 (473 ) (473 ) (566 ) (566 ) Deficit of pension fund (Forluz) 2 (540 ) (540 ) (550 ) (550 ) Concessions payable 3 (23 ) (23 ) (20 ) (20 ) Suppliers 2 (2,358 ) (2,358 ) (2,080 ) (2,080 ) Leasing transactions 2 (227 ) (227 ) (288 ) (288 ) Sector financial liabilities 2 (231 ) (231 ) — — (18,872 ) (18,872 ) (18,281 ) (18,281 ) Fair value through profit or loss Derivative financial instruments (SAAG put options) 3 (536 ) (536 ) (483 ) (483 ) (536 ) (536 ) (483 ) (483 ) (19,408 ) (19,408 ) (18,764 ) (18,764 ) (1) On December 31, 2020 and 2019, the book values of financial instruments reflect their fair values. 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 Valor novo de reposição Indemnifiable receivable – generation Marketable securities Put options Swaps Other financial liabilities b) Derivative financial instruments Put options On December 31, 2020 and 2019, the options values were as follows: 2020 2019 Put option – SAAG 536 483 Put / call options – Ativas and Sonda (3 ) (3 ) 533 480 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 84th (eighty-fourth) month from June 2014. The provision of exercise price of the Put Options will correspond to the amount invested by each private pension plan in the Investment Structure, updated pro rata temporis Based on the analysis performed, a liability of R$536 was recorded in the Company’s financial statements (R$482,841 on December 31, 2019), for the difference between the exercise price and the estimated fair value of the assets. Since the option is due to be settled within twelve months after December 31, 2020, this amount was classified as current liabilities. The changes in the value of the options are as follows: 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 Adjustment to fair value 53 Balance at December 31, 2020 536 This option can potentially dilute basic earning per share in the future; however, they have not caused dilution of earning per share in the years presented. Early liquidation of Funds, and early maturity of put option On September 9, 2020, the administrator of the FIP funds, Banco Modal S.A., notified its unit holders of the beginning of the early liquidation process of the funds Melbourne, Parma Participações S.A. and FIP Malbec, due to expiration of the period of 180 days from its resignation, and the resignation of the manager of the Fund, from their respective positions, without there having been any indication of new service providers, as specified in the Fund’s Regulations. As established by contract, funds liquidation is one of the events that would result in expiration date of the option, which the private pension plan entities stated interest in exercising in the period from September 9 to October 2, 2020, to be settled within 15 days from the statement of interest. However, the Company’s management believes that the premises and conditions that were the grounds for the investment in Santo Antônio Energia and the legal structure of the various contracts signed for this purpose underwent substantial changes which resulted in the options imbalance. Thus, using the contractual prerogative contained in the option instruments, the Company invoked the contractual mechanism of Amicable Resolution for the contractual terms negotiation with the private pension plan entities. Since the amicable negotiation did not succeed, the Company invoked the arbitration clause for resolution of conflict between the parties, which awaits the decision of the Brazil Canada Chamber of Commerce of the State of São Paulo. The Company recorded the accounting effects of this contract in accordance with the contracts original terms. Ativas and Sonda options The Company, as successor of CemigTelecom, and Sonda Procwork Outsourcing Informática signed a Purchase Option Agreement (issued by Cemig Telecom) and a Sale Option Agreement (issued by Sonda), which resulted in the Company simultaneously having a right (put option) and an obligation (call option) related to the shares held by the investee Ativas Datacenter S.A. (“Ativas”). The exercise price of the put option and the call option is equivalent to fifteen times and seventeen times, respectively, the adjusted net income of Ativas in the 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 2020. 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 2020; 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 valuation base date is December 31, 2020, 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. Maturity was calculated assuming exercise date between January 1, 2021 and March 31, 2021.This is the first opportunity for the exercise of the option, which will be available at the same period of the following years, since the option grants the Company the right of selling to Sonda its interests held in Ativas, as of 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 and currency options) 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, 2020 was a positive adjustment of R$1,753 (positive adjustment of R$998 on December 31, 2019), which was posted in finance income (expenses). The counterparties of the derivative transactions are the banks Bradesco, Itaú, Goldman Sachs and BTG Pactual and Cemig is guarantor of the derivative financial instruments contracted by Company. This table presents the derivative instruments contracted by Company as of December 31, 2020 and 2019: Unrealized gain / loss Unrealized gain / loss Assets (1) Liability (1) Maturity period Trade market Notional amount (2) Carrying amount 2020 Fair value 2020 Carrying amount 2019 Fair value 2019 US$ exchange variation + Local currency + R$ 150.49% of CDI Interest: Over the counter US$1,000 1,772 2,110 814 1,235 US$ exchange variation + Local currency + R$125.52% of CDI Interest: Over the counter US$500 588 839 108 456 2,360 2,949 922 1,691 Current asset 523 235 Non-current asset 2,426 1,456 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$; and (2) a swap was contracted for the interest, resulting in a coupon of 9.25% p.a., with an average rate equivalent to 125.52% of the CDI rate The upper limit for the exchange rate in the hedge instrument contracted by the Company for the principal of the Eurobonds is R$ 5.00/US$. The instrument matures in December 2024. If the USD/BRL exchange rate is still over R$ 5.00 in December 2024, the company will disburse, on that date, the difference between the upper limit of the protection range and the spot dollar on that date. The Company is monitoring the possible risks and impacts associated with the dollar being valued above R$ 5.00, and assessing various strategies for mitigating the foreign exchange risk up to the maturity date of the transaction. The hedge instrument fully protects the payment of six-monthly interest, independently of the USD/BRL exchange 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, 2020 was R$2,949 (R$1,691 in December 31, 2019), 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$2,360 at December 31, 2020 (R$922 in December 31, 2019). 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 at December 31, 2020, would be affected by the swap and call spread at the end of the period in the amount of R$1,708 for the option (call spread), and R$1,098 for the swap – comprising a total of R$2,805. 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, 2020 ‘Probable’ scenario: ‘Possible’ scenario ‘Remote’ scenario: exchange rate depreciation and interest rate increase 50% Swap (asset) 6,996 6,616 5,866 5,147 Swap (liability) (5,607 ) (5,519 ) (5,595 ) (5,668 ) Option / Call spread 1,560 1,708 1,019 338 Derivative hedge instrument 2,949 2,805 1,290 (183 ) 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 The Company is exposed to the risk of appreciation in exchange rates, with effect on loans and financing, suppliers (energy purchased from Itaipu) and cash flow. For the debt denominated in foreign currency, the Company contracted a derivative financial instrument that protects the risks associated with the interest and principal, in the form of a swap and a call spread, respectively, in accordance with the hedge policy of the Company. The Company exposure to market risk associated to this instrument is described in the topic “Swap transaction” of this note. The risk exposure of Cemig D is mitigated by the account for compensation of variation of parcel A items (CVA). The net exposure to exchange rates is as follows: Exposure to exchange rates 2020 2019 Foreign currency R$ Foreign currency R$ US dollar Loans and financing (note 22) (1,514 ) (7,866 ) (1,516 ) (6,110 ) Suppliers (Itaipu Binacional) (note 20) (63 ) (325 ) (60 ) (243 ) (1,577 ) (8,191 ) (1,576 ) (6,353 ) Net liabilities exposed (8,191 ) (6,353 ) 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 2021 will be an appreciation of the dollar by 7.63% to R$4.80. The Company has prepared a sensitivity analysis of the effects on the Company’s net income arising from variation in the Real exchange rate considering the increase of 25%, and 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 (note 22) (7,866 ) (7,871 ) (9,838 ) (11,806 ) Suppliers (Itaipu Binacional) (note 20) (325 ) (325 ) (407 ) (488 ) (8,191 ) (8,196 ) (10,245 ) (12,294 ) Net liabilities exposed (8,191 ) (8,196 ) (10,245 ) (12,294 ) Net effect of exchange rate fluctuation (5 ) (2,054 ) (4,103 ) 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 decrease in Brazilian domestic interest rates on December 31, 2020. This risk arises from the effect of variations in Brazilian interest rates on financial revenues from cash investments made by the Company, and also to the financial assets related to the CVA and other financial components, net of the effects on financial expenses associated to loans, financings and debentures in Brazilian currency, and also sectorial financial liabilities. Part of the loans and financings in Brazilian currency comprises financings obtained from various financial agents that specify interest rates taking into account basic interest rates, the risk premium compatible with the companies financed, their guarantees, and the sector in which they operate. These loans and financings are measured at the amortized cost, based on their contractual rates. The Company does not contract derivative financial instruments for protection from this risk. Variations in interest rates are continually monitored with the aim of assessing the need for contracting of financial instruments that mitigate this risk. This exposure occurs as a result of net assets (liabilities) indexed to variation in interest rates, as follows: Risk: Exposure to domestic interest rate changes 2020 2019 Assets Cash equivalents – Cash investments (Note 6) – CDI 1,587 326 Marketable securities (Note 7) – CDI / SELIC 4,125 753 Restricted cash – CDI 64 12 CVA and in tariffs (Note 14) – SELIC 133 882 5,909 1,973 Liabilities Loans, financing and debentures (Note 22) – CDI (2,310 ) (3,773 ) Loans, financing and debentures (Note 22) – TJLP (73 ) (244 ) Sector financial liabilities (note 14) (231 ) — (2,614 ) (4,017 ) Net assets (liabilities) exposed 3,295 (2,044 ) Sensitivity analysis In relation to the most significant interest rate risk, Company estimates that, in a probable scenario, at December 31, 2021 Selic and TJLP rates will be 5.50% and 4.87%, 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. Risk: Increase in Brazilian interest rates 2020 2021 Book value ‘Probable’ scenario Selic 5.50% TJLP 4.87% ‘Possible’ scenario Selic 4.13% TJLP 3.65% ‘Remote’ scenario Selic 2.75% TJLP 2.44% Assets Cash equivalents (Note 6) 1,587 1,674 1,653 1,631 Marketable securities (Note 7) 4,125 4,352 4,295 4,238 Restricted cash 64 68 67 66 CVA and Other financial components – SELIC (note 14) 133 140 138 137 5,909 6,234 6,153 6,072 Liabilities Loans and financing (Note 22) – CDI (2,310 ) (2,437 ) (2,405 ) (2,374 ) Loans and financing (Note 22) – TJLP (73 ) (77 ) (76 ) (75 ) Sector financial liabilities (note 14) (231 ) (244 ) (241 ) (237 ) (2,614 ) (2,758 ) (2,722 ) (2,686 ) Net assets (liabilities) exposed 3,295 3,476 3,431 3,386 Net effect of fluctuation in interest rates 181 136 91 Increase in inflation risk The Company is exposed to the risk of increase in inflation index on December 31, 2020. A portion of the loans, financings and debentures as well as the pension fund liabilities are adjusted using the IPCA (Expanded National Customer Price). The revenue is also adjusted using the IPCA and IGP-M index, mitigating part of the Company risk exposure. This table presents the Company’s net exposure to inflation index: Exposure to increase in inflation 2020 2019 Assets Concession financial assets related to Distribution infrastructure - IPCA (1) 559 484 Receivable from Minas Gerais state government (AFAC) – IGPM (Note 11 and 30) 12 115 Concession Grant Fee – IPCA (Note 14) 2,549 2,468 3,120 3,067 Liabilities Loans, financing and debentures – IPCA and IGP-DI (Note 22) (4,863 ) (4,730 ) Debt with pension fund (Forluz) – IPCA (473 ) (566 ) Deficit of pension plan (Forluz) – IPCA (540 ) (550 ) (5,876 ) (5,846 ) Net assets (liabilities) exposed (2,756 ) (2,779 ) (1) Portion of the concession financial assets relating to the Regulatory Remuneration Base of Assets ratified by the grantor (Aneel) after the 4 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, 2021 the IPCA inflation index will be 4.53% and the IGPM inflation index will be 11.65%. 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. Risk: increase in inflation 2019 2020 Amount Book value ‘Probable’ scenario IPCA 4.53% IGPM 11.65% ‘Possible’ scenario (25%) IPCA 5.66% IGPM 14.56% ‘Remote’ scenario (50%) IPCA 6.80% IGPM 17.48% Assets Concession financial assets related to Distribution infrastructure – IPCA (1) 559 584 591 597 Accounts receivable from Minas Gerais state government (AFAC) – IGPM index (Note 30) 12 13 14 14 Concession Grant Fee – IPCA (Note 14) 2,549 2,664 2,693 2,722 3,120 3,261 3,298 3,333 Liabilities Loans, financing and debentures – IPCA and IGP-DI (4,863 ) (5,083 ) (5,138 ) (5,194 ) Debt agreed with pension fund (Forluz) – IPCA (473 ) (494 ) (500 ) (505 ) Deficit of pension plan (Forluz) (540 ) (564 ) (571 ) (577 ) (5,876 ) (6,141 ) (6,209 ) (6,276 ) Net liability exposed (2,756 ) (2,880 ) (2,911 ) (2,943 ) Net effect of fluctuation in IPCA and IGP–M indices (124 ) (155 ) (187 ) (1) Portion of the Concession financial assets relating to the Regulatory Remuneration Base of Assets ratified by the grantor (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 79 1,291 1,638 12,845 1,842 17,695 Onerous concessions — 1 2 11 14 28 Debt with pension plan (Forluz) (Note 24) 13 25 115 406 — 559 Deficit of the pension plan (FORLUZ) (Note 24) 6 11 51 295 522 885 98 1,328 1,806 13,557 2,378 19,167 - Fixed rate Suppliers 2,138 218 2 — — 2,358 2,236 1,546 1,808 13,557 2,378 21,525 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, 2020, considered to be adequate in relation to the credits in arrears receivable by the Company, was R$712 (R$810 on December 31, 2019). Company manage the counterparty risk of financial institutions based on an internal policy, applied since 2004. This Policy assesses and scales the credit risks of the institutions, the liquidity risk, systemic risk related to macroeconomic and regulatory conditions, 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$400. 3. Basel ratio one percentage point above the minimum set by the Brazilian Central Bank. Banks that exceed these thresholds are classified in three groups, in accordance with their equity value, plus a specific segment comprising those whose credit risk is associated only with federal government, and within this classification, limits of concentration by group and by institution are set: Group Equity Limit per bank (% of equity)* Federal Risk (FR) - 10% A1 Over R$ 3.5 billion Between 6% and 9% A2 R$ 1.0 billion to R$ 3.5 billion Between 5% and 8% A3 R$ 400 to R$ 1.0 billion Between 0% 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. “Federal Risk” and “A1” banks may have more than 50% of the portfolio of any individual company. COVID-19 Pandemic – Risks and uncertainties related to Cemig’s business The Company’s assessment concerning the risks and potential impacts of Covid-19 are disclosed in Note 1e. 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. On April 07, 2020, Aneel expanded the limit of total amount of energy that can be declared by energy distributors in the process of the mechanism for the sale of surplus (‘Mecanismo de Venda de Excedentes’ - MVE), during 2020, from 15% to 30%, for the purpose of facilitating contractual reductions, considering the scenario caused by Covid-19 pandemic. On May 18, 2020, the Decree 10,350/2020 authorized the creation and management of the Covid Account 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. Due to the inspection carried out by Aneel, the indicators of efficiency criteria regarding service continuity were recalculated for the period from January 2016 to May 2019, resulting in a non-compliance of the annual global limit for the indicator DEC (Customer Unit Average Outage Duration) for the periods of 2016 and 2017. Once the DEC calculated for the year of 2019 also exceeded the regulatory global limit, the prohibition on declaration of dividends and interest on equity, provided in Article 2º of Aneel Normative Resolution 747/2016, was applied, limiting the amount of Cemig D dividend and interest on equity, isolated or jointly, to 25% of net income, less the amounts allocated to the legal reserve and the Contingency Reserve. It is important to note that the internal indicators (DECi and FECi) for maintaining the distribut |
32. ASSETS AS HELD FOR SALE AND
32. ASSETS AS HELD FOR SALE AND DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2020 | |
Gas Distribution Network Third Party [member] | |
ASSETS AS HELD FOR SALE AND DISCONTINUED OPERATIONS | 32. ASSETS AS HELD FOR SALE AND DISCONTINUED OPERATIONS Assets and liabilities classified as held for sale, and the results of discontinued and continuing operations, were as follows: Consolidated and Parent company – Statements of financial position 2020 2019 Assets held for sale – investment in an affiliate 1,258 1,258 Consolidated and Parent company – Statements of income 2019 Loss for write-down of non-current assets held for sale arising from continuing operations, before taxes 73 Net income after taxes – continuing operations 73 Profit for write-down of non-current assets held for sale arising from continuing operations, before taxes 309 Deferred taxes arising from non-current assets held for sale, recognized in continuing operations (85 ) Net income after taxes - discontinued operations 224 Disposal of interest in and control of Light Partial disposal in 2019 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. The Company has concluded that its investment in Light meets the criteria of IFRS 5 – Non-current assets held for sale and discontinued operations On July 17, 2019, together with the public offering of shares, the Company sold 33,333,333 shares that it held in Light, at the price per share of R$ 18.75, in the total amount of R$625. With completion of the public offering of shares, the Company’s equity interest in the total capital of this investee was reduced from 49.99% to 22.58%, corresponding 68,621,263 shares of the total 303,934,060. 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 its control over this 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 maintained its firm commitment to dispose of the remaining equity interest in Light in the near future, the investment in Light continued 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 Since this the interest held in light is an investment in associate, it was classified as a non-current asset held for sale, but not as a discontinued operation. Sale of retained investiment in Light On January 7, 2021, the Company Board of Directors approved the sale of its 68,621,264 common shares in Light, comprising the Company’s entire holding, in a public offering for distribution of a total of 137,242,528 common shares in Light. This offering comprises: (a) primary distribution of 68,621,264 new common shares in Light (“the Primary Offering”); and (b) a secondary distribution, of the Company shares, with restricted placement efforts. The Board of Directors also approved the non-exercise of the Company’s right of first refusal in the Primary Offering, and, consequently waiver, by the Company, of that right of priority in subscription of shares in the Primary Offering. On January 22, 2021, the public offering of common shares in Light was completed, and, thus, the Company sold its entire holding of shares in Light at R$20.00 per share for a total of R$1,372. As a result, the Company recognized, in January, 2021, the gain before taxes of R$109, considering the carrying amount of the non-current asset held for sale at the transaction date. The fiscal cost of the investment was adjusted for the tax calculation, pursuant to tax law, considering the equity value of the investment, plus the goodwill and the excess of net fair value of the investee’s identifiable assets and liabilities over the cost paid in the step-acquisitions. Cemig’s shares 68,621,263 Sale price of the shares – January 21, 2021 20 Total value 1,372 Estimated cost to sell (0.42%) (1) (5 ) Fair value, less cost to sell on 01/22/2021 1,367 Non-current asset held for sale carrying amount in 12/31/2019 (1,258 ) Gains 109 IRPJ and CSLL (2) (37 ) Gain after taxes 72 (1) The estimated cost to sell includes financing, accounting and legal advices services. (2) The adjustment in the tax calculation resulted in a positive effect of R$113. |
33. INSURANCE
33. INSURANCE | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of types of insurance contracts [abstract] | |
INSURANCE | 33. 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 insured (1) Annual premium (1) Companhia Energética de Minas Gerais Facilities in buildings Fire Jan. 8, 2021 to Jan. 8, 2022 R$8,661 R$2 Cemig Geração e Transmissão Air transport / Aircraft Fuselage April 29, 2020 to April 29, 2021 April 29, 2020 to April 29, 2021 US$1,140 US$24 Warehouse stores Fire Nov. 2, 2020 to Nov. 2, 2021 R$18,981 R$17 Buildings Fire Jan. 8, 2021 to Jan. 8, 2022 R$240,527 R$70 Telecoms equipment (3) Fire Jan. 8, 2020 to Jan. 8, 2021 R$2,650 R$2 Operational risk - Transformers above 15MVA and other power distribution equipment with value above R$1,000 (2) Dec. 7, 2020 to Dec. 7, 2021 R$75,118 R$941 Cemig Distribuição Air transport / Aircraft / Guimbal equipment Fuselage April 29, 2020 to April 29, 2021 US$3,370 US$51 Warehouse stores Fire Nov. 2, 2020 to Nov. 2, 2021 R$74,575 R$68 Buildings Fire Jan. 8, 2021 to Jan. 8, 2022 R$616,157 R$179 Telecoms equipment (3) Fire Jul. 8, 2020 to Jul. 8, 2021 R$31,082 R$28 Operational risk – Transformers above 15MVA and other energy distribution equipment with value above R$ 1,000 (2) Total Dec. 7, 2020 to Dec. 7, 2021 R$545,062 R$717 Gasmig Gas distribution network / Third party Third party Dec. 15, 2020 to Dec. 15, 2021 R$60,000 R$378 Own vehicle fleet (Operation) Damage to third parties only Jul. 7, 2020 to Jul. 7, 2021 R$500 R$3 Own vehicle fleet (Directors) Full cover Oct. 25, 2020 to Oct. 25, 2021 R$100 R$2 Facilities – multirisk Robbery, theft and fire Dec. 31, 2020 to Dec. 31, 2021 R$32,667 R$39 (1) Amounts expressed in R$ ‘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. |
34. COMMITMENTS
34. COMMITMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Facilities Multirisk [member] | |
COMMITMENTS | 34. COMMITMENTS Cemig and its subsidiaries have contractual obligations and commitments as follows: 2021 2022 2023 2024 2025 After 2026 Total Purchase of energy from Itaipu 1,515 1,548 1,595 1,595 1,595 33,499 41,347 Purchase of energy – auctions 3,416 3,387 3,378 3,536 3,328 47,855 64,900 Purchase of energy – ‘bilateral contracts’ 332 332 332 222 67 80 1,365 Quotas of Angra 1 and Angra 2 288 291 299 301 300 6,340 7,819 Transport of energy from Itaipu 189 215 218 222 159 521 1,524 Other energy purchase contracts 4,450 4,723 4,622 3,478 3,310 28,777 49,360 Physical quota guarantees 812 812 812 812 812 17,043 21,103 Total 11,002 11,308 11,256 10,166 9,571 134,115 187,418 |
35. NON-CASH TRANSACTIONS
35. NON-CASH TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Non Cash Transactions [abstract] | |
NON-CASH TRANSACTIONS | 35. NON-CASH TRANSACTIONS On 2020, 2019 and 2018, the Company had the following transactions not involving cash, which are not reflected in the Cash flow statement: Capitalized financial costs of R$33 on 2020 (R$23 on 2019, R$30 on 2018); Except for the cash arising from the business combination, in the amount of R$27, and the payment of R$45, the acquisition of the Centroeste’s remaining equity interest 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; Lease addition in the amount of R$6 (R$31, on December 31, 2019); Capital increase from retained profit reserve, with the issuance of shares, in the amount of R$300, on July 30, 2020. |
36. SUBSEQUENT EVENTS
36. SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events | |
SUBSEQUENT EVENTS | 36. SUBSEQUENT EVENTS The ‘Covid Account’ On January 26, 2021, Aneel published its Dispatch 181, setting the periods for payment, and the amounts of the monthly quotas, of the Energy Development Account (Conta de Desenvolvimento Energético – CDE) payable by distribution agents under the ‘Covid Account’, for amortization of the lending transaction contracted by the CCEE to support the cash position of distribution agentes, as specified in Normative Resolution 885 of 2020, and explained in Note 1 to the financial statements. The monthly charge payable by Cemig D is approximately R$ 41 per month, to be paid to the CCE as from the ordinary tariff adjustment process of 2021, with payment until the 10th day of the subsequent month. Under Aneel Technical Note 05/2021-SGT, this amount will be included in tariffs for 48 months (2021 to 2025), and Aneel will revisit, annually, the parameters for the definition of the charge; any residual balance will be returned to customers at the end of the period. To guarantee an equilibrium between tariff coverage, payment and collection, the Covid Account CDE Charge will be subject to calculation of CVA and Neutrality. Process of evaluation of disinvestment strategies A process of evaluation of structures for disinvestment of the Company’s equity interest in the share capital of TAESA is in progress, within the overall concept of optimization of the Company’s allocation of capital. The process is at the phase of identification and assessment by the Company’s Executive Board, with the help of specialized advisors, of the alternatives available for making the disinvestment and does not does not constitute an offer for sale of the Company’s equity interest in Taesa. As soon as the analyses on a model and structure for a potential disinvestment of the Company’s interest in Taesa are finalized, the matter will be submitted to the Company’s Board of Directors for consideration. |
2. BASIS OF PREPARATION (Polici
2. BASIS OF PREPARATION (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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). More details, see note 31. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. |
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. The Annual Permitted Revenue (‘ Receita Annual Permitida’ 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 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 amortization rates reflect the expected pattern of their consumption and are measured based on the asset carrying amount using the straight-line method, using the rates based on the expected useful life of the assets that are used by the Regulator during the tariff process. 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. This portion is subsequently measured at the estimated fair value, which represents the New Replacement Value ( Valor Novo de reposição Transmission segment: The margin added to the performance obligation related to the construction and improvements is based on Company’s expectations regarding its projects profitability. When adjusting the amount of consideration for the concession contract asset financing component, the Company uses the discount rate which reflects the Company’s estimation of the financing of the transmission infrastructure investments. This reflects the rate that discounts the nominal amount of the consideration to the price that the customer would pay in cash for the goods or services when (or as) they transfer to the customer. The interest rates implicit in the contract are defined at the beginning of the investments and take into account the credit risk of the counterparties. When the tariff set is changed at the time of the periodic tariff reviews, the contract asset is remeasured, discounting the future revenue (RAPs) using the contract original discount rate, implicit in the contract. The amount remeasured is confronted to the carrying amount and the difference is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) at the date of the contract modification (the adjustment to revenue is made on a cumulative catch-up basis). 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. Financial portion of remuneration and depreciation unpaid since the extensions of concessions in accordance with Law 12,783/2013 The amounts to be received are subject to the applicable regulatory rules in the tariff process, including the mechanisms that monitor and measure efficiency. In this new context, the unconditional right to consideration depends on the satisfaction of the performance obligation to operate and maintain, and is, thus, characterized as a contract asset. For more information, see Note 2.8. 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. Amortization rates are shown in Note 16. 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 17. 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 amount. |
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 The income tax and social contribution tax expenses represents the total amount of current and deferred taxes, which are presented separately in the financial statements. The Company is subject to the regular tax regime ‘ Lucro Real’ Deferred and current tax related to items recognized directly in equity or in other comprehensive income (OCI) are recognized directly in equity. Periodically, in accordance with IFRIC 23, the Company and its subsidiaries evaluate positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Current Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the tax authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date. 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 and for unused tax losses or unused tax credits . Deferred tax liabilities are recognized for all the inter-temporal tax differences. Deferred tax assets are recognized for all the temporary differences deductible and unused tax losses or unused tax credits, to the extent that it is probable that future taxable profit will be available for the temporary differences to be offset, except: When the deferred tax (asset or liability) 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. In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. These taxes 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. Deferred income tax and social contribution tax assets are reviewed at the reporting date, and are reduced to the extent that their realization is no longer probable. The Company offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity. |
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 32. All the other notes to the financial statements include amounts for continuing operations, except when otherwise stated. |
Current versus non-current classifications | m) Current versus non-current classifications The Company presents assets and liabilities in the statement of financial position based on current/non-current classification. Assets and liabilities are current when they are: Expected to be realized, intended to be sold, consume or settled in the normal operating cycle Held primarily for the purpose of trading Expected to be realized or settled within twelve months after the reporting period Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period The terms of the liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. |
Revenue recognition | n) Revenue recognition 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. The ‘Parcel A’ revenue and other financial components 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. Revenues from the sale of gas are measured based on the volume of gas sold and the tariffs specified in the terms of the contract. Revenues from supply of gas are recorded when the delivery has taken place, based on the volume measured and billed. The billing is carried out monthly. In addition, unbilled supply of gas, 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 gas delivered but not yet billed. Historically, the differences between the estimated amounts and the actual revenues recognized are not significant and are recorded in the following month. Revenues from transmission concession services are recognized in the Statement of income monthly and include: Construction revenue corresponds to the performance obligation to build the transmission infrastructure, recognized based on the satisfaction of performance obligation over time. They are measured based on the cost incurred, including PIS/Pasep and Cofins taxes over the total revenues and the profit margin of the project. Operation and maintenance revenue corresponds to the performance obligation of operation and maintenance specified in the transmission concession contract, after termination of the construction phase. They are recognized when the services are rendered and the invoices for the RAPs are issued. Interest revenue in the contract asset recognized, recorded as transmission concession gross revenue in statement income. Revenue corresponds to the significant financing component in the contract asset, and is recognized by the linear effective interest rate method based on the rate determined at the begining of the investments, which is not subsequently changed. Company’s average implicit rates is 6.68%. The rates are determined for each authorization and are applied on the amount to be received (future cash flow) over the life of contract. This includes financial updating by the inflation index specified for each transmission contract. The services provided include charges for connection and other related services; the revenues are recognized when the services are rendered. The profit margin on operation and maintenance of transmission infrastructure is determined based on the individual sale price of the service, based on available information on the value of the consideration that the entity expects to have the right to, in exchange for the services promised to the client, in cases where the Company’s transmission subsidiaries have the right, separately, to the remuneration for the activity of operation and maintenance, as per IFRS 15 – Revenue from contracts with clients, and the costs incurred for the provision of services of operation and maintenance. The Resolution Aneel 729/2016 regulates the variable portion (‘Parcela Variável’ or ‘PV’), which is the pecuniary penalty applied by the grantor as a result of any unavailability’s or operational restrictions on facilities that are part of the National Grid and the surcharge corresponding to the pecuniary bonuses provided to concessionaries as an incentive to improve the transmissions facilities availability. The Company assessed the PV effects, based on historical data, and concluded that recognizing the occasional variable consideration arising from the PV estimated would not result in relevant account information. Therefore, for the both situations described, it is recognized as an adjustment to revenue, either as an increase or a reduction of operation and maintenance revenue, when it occurs and the amount is deemed to be significant. |
Sales tax | o) Sales tax Expenses and non-current assets acquired are recognized net of the amount of sales taxes when they are recoverable from the taxation authority. |
Finance income and expenses | p) 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 | q) 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 | r) 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 | s) Leases As from the IFRS 16 first adoption, on January 01, 2019, the 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. The contracts that contain a lease component are described in Note 19. When recording a lease operation, the lessee recognizes a liability to make the payments (a lease liability) and an asset, representing the right to use the subject asset during the period of the leasing (an asset of right to use). 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 19. 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 in substance 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. The Company recognize separately the expenses of interest on the lease liability and the expense of depreciation of the asset of the right to use. 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. |
Retrospective application of accounting policy and reclassification of items in financial statements | 2.8 Retrospective application of accounting policy and reclassification of items in financial statements On January 1, 2018, at the first adoption of IFRS 15, considering the characteristics of its concession contracts, the Company classified as contract assets: (i) the consideration to be received for the construction of power transmission infrastructure corresponding to the remaining balance of National Grid assets (‘BNES’ - Basic Network of the Existing System), re-incorporated into the remuneration base (the economic portion), and (ii) the assets remunerated by tariff, since the performance obligation of construction and upgrade is conditional upon satisfaction of the performance obligation of operation and maintenance. On the other hand, at first adoption of IFRS 15, the financial portion of the National Grid assets, which represents the amount owed since the extension of the concessions until its incorporation into the tariff (i.e. from January 1, 2013 to June 30, 2017), was classified as a financial asset, since it no longer involves the construction of infrastructure assets and exclusively represented installments not paid by the grantor, updated by the regulatory cost of capital of the transmission sector. The classification of this portion as a financial asset was based on the belief that the non-existence of infrastructure assets linked to the financial component of the national grid assets in relation to which a performance obligation could be required would substantiate its classification as financial asset. On June 30, 2020, as result of Company’s Periodic Tariff Review, Aneel reset the amount of the Permitted Annual Revenue (RAP) to be applied retrospectively as from July 1, 2018. In this tariff review, considering the results and criteria applied by the grantor in the formulation of the regulations to be applied for the National Grid assets – which among other factors include subjection of the amounts of the National Grid assets to operational efficiency measurement mechanisms, no longer having indemnity nature, it clarified clarifying certain elements for determination of Company’s accounting policy. Accordingly, the Company’s change on its method of accounting policy for contractual transmission assets resulted substantially from the change in: Presentation of the assets of Basic Network of the Existing System (‘BNES’, standing for the network existent before year 2000) as contract assets, due to the inclusion of the consideration associated with these assets in the regulatory remuneration base, subjecting them to efficiency mechanisms for the performance obligations to operate and maintain the transmission infrastructure; Review of margin allocation for the concession contracts long term consideration and consequently to the margem allocation, based on the ‘expected cost plus margin’ approach and the criteria for definition of the implicit rate used in the calculation of the financing component of the contract; Inclusion of current and deferred PIS/Pasep and Cofins taxes in the calculation of the revenues under the contracts. |
1. OPERATING CONTEXT (Tables)
1. OPERATING CONTEXT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Operating Context Tables Abstract | |
Schedule of distribution and sale of energy and gas | 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 82 power plants (75 of which are hydroelectric, 6 are wind power and 1 is solar) and associated transmission lines, most of which are part of the Brazilian national generation and transmission grid system, with total installed generation capacity of 5,786 MW (5) 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 (5), and guaranteed offtake level of 239 MW (5) average. 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 (5), and guaranteed offtake level of 75 MW (5) 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 (5), and guaranteed offtake level of 28 MW (5) 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 (5), and guaranteed offtake level of 21 MW (5) 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 (5); guaranteed offtake level of 27.42 MW (5) 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 35.17 MW (5); guaranteed offtake level of 18.80 MW (5) 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 (5), and guaranteed offtake level of 11.21 MW (5) average. Rosal Energia S.A. (‘Rosal’) Subsidiary Corporation that holds the concession to generate and sell energy, operating the Rosal Sá Carvalho S.A. (‘Sá Carvalho’) Subsidiary Corporation that holds the concession to generate and sell energy, operating the Sá Carvalho Horizontes Energia S.A. (‘Horizontes’) Subsidiary Corporation that is classified as an independent power producer operating the Machado Mineiro Salto do Paraopeba Salto do Voltão Salto do Passo Velho Cemig PCH S.A. (‘PCH’) Subsidiary Corporation that is classified as an independent power producer operating the Pai Joaquim 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 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 Sim (‘Efficientia’) (1) 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. Companhia de Transmissão Centroeste de Minas (‘Centroeste’) (2) Subsidiary Corporation engaged in the construction, operation and maintenance of the Furnas-Pimenta 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 Jacaré Fortuna II LightGer S.A. (‘LightGer’) Jointly-controlled entity Corporation classified as independent power producer, formed to build and operate the Paracambi 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 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 Pocrane Hidrelétrica Pipoca S.A. (‘Pipoca’) Jointly-controlled entity Independent production of energy, through construction and commercial operation of the Pipoca Pequena Central Hidrelétrica Retiro Baixo Energética S.A. (‘RBE’) Jointly-controlled entity Corporation that holds the concession to operate the Retiro Baixo 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 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 Baguari Energia S.A. (‘Baguari Energia’) Jointly-controlled entity Corporation engaged in the construction, operation, maintenance and commercial operation of the Baguari Renova Energia S.A. (‘Renova Energia’) – court supervised reorganization 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. This jointly-controlled investee is currently under court supervised reorganization. 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, Candonga Transmissora Aliança de Energia Elétrica S.A. (‘TAESA’) Jointly-controlled entity Corporation engaged in the construction, operation and maintenance of energy transmission facilities all states of Brazil through direct and indirect equity interests in investees UFV Janaúba Geração de Energia Elétrica Distribuída SA UFV Corinto Geração de Energia Elétrica Distribuída SA UFV Manga Geração de Energia Elétrica Distribuída SA UFV Bonfinópolis II Geração de Energia Elétrica Distribuída SA UFV Lagoa Grande Geração de Energia Elétrica Distribuída SA, UFV Lontra Geração de Energia Elétrica Distribuída SA, UFV Mato Verde Geração de Energia Elétrica Distribuída SA, UFV Mirabela Geração de Energia Elétrica Distribuída SA, UFV Porteirinha Geração de Energia Elétrica Distribuída SA and UFV Porteirinha II Geração de Energia Elétrica Distribuída AS (3) Jointly-controlled entity Generation of electric power from photovoltaic solar sources to the Distributed Generation market (‘Geração Distribuída’), with total installed capacity of 46.26MWp. The wholly owned subsidiary Cemig Sim and Mori Energia holds 49% and 51% of the total equity, respectively. 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’) (4) 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 April 14, 2020, the Annual Shareholders General Meeting approved changes in this subsidiary’s By-laws, changing the name of this subsidiary, from Efficientia S.A. to Cemig Soluções Inteligentes em Energia S.A.-CEMIG SIM. (2) 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. (3) In 2020, Cemig concluded acquisition of interests in special-purpose companies operation in photovoltaic solar generation. For further information, see item (c) of this Note. (4) In Light’s public offering of commom shares, completed on January 22, 2021, the Company sold its entire holding of shares in Light. For further information, see Note 31. (5) Information not examined by the external auditors. |
2. BASIS OF PREPARATION (Tables
2. BASIS OF PREPARATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of expected impact of initial application of new standards or interpretations [abstract] | |
Statement of financial position | The main effects of these changes on the accounting policy in accordance with IAS 08 – Accounting Policies, Changes in Accounting Estimates and Errors Statement of financial position December 31, 2019 January 01,2019 As presented Reclassification Adjustment Restated As presented Reclassification Adjustment Restated CURRENT ASSET Concession financial assets (1) 1,080 (189 ) — 891 1,071 (181 ) — 890 Concession contract assets 172 189 215 576 131 181 170 482 Others 8,887 — — 8,887 26,594 — — 26,594 Total current assets 10,139 — 215 10,354 27,796 — 170 27,966 NON-CURRENT ASSETS Concession financial assets (1) 4,851 (1,092 ) — 3,759 4,927 (1,115 ) — 3,812 Concession contract assets - transmission 1,024 1,092 383 2,499 999 1,115 313 2,427 Others 33,914 — — 33,914 26,134 — — 26,134 Total non-current assets 39,789 — 383 40,172 32,060 — 313 32,373 TOTAL ASSETS 49,928 — 598 50,526 59,856 — 483 60,339 December 31, 2019 January 01,2019 Statement of financial position As presented Adjustment Restated As presented Adjustment Restated CURRENT LIABILITIES Taxes payable (3) 359 52 411 409 44 453 Others 7,554 — 7,554 22,984 — 22,984 Total current liabilities 7,913 52 7,965 23,393 44 23,437 NON-CURRENT LIABILITIES Taxes payable (3) 1 226 227 30 219 249 Deferred income tax and social contribution tax (4) 661 109 770 728 75 803 Others 25,461 — 25,461 19,766 — 19,766 Total non-current liabilities 26,123 335 26,458 20,524 294 20,818 TOTAL LIABILITIES 34,036 387 34,423 43,917 338 44,255 EQUITY Retained earnings — 212 212 — 145 145 Others 15,887 — 15,887 14,579 — 14,579 EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT (5) 15,887 212 16,099 14,579 145 14,724 NON-CONTROLLING INTERESTS 4 — 4 1,360 — 1,360 TOTAL EQUITY 15,891 212 16,103 15,939 145 16,084 (1) Reclassification of the financial portion of the Basic Network of the Existing System (‘BNES’) asset to contract asset, since it was included into the remuneration base, and, thus, it is subject to the efficiency mechanisms applied to the operation and maintenance performance obligation. (2) Recognition of the profit margin associated to the performance obligation to construct and upgrade the transmission infrastructure, as well as the interest revenue resulting from the financing component in the contract asset and the result of the periodic tariff revision; (3) Effects of PIS/Pasep and Cofins over contract revenues. (4) Deferral of income tax and social contribution tax over the adjustments; (5) Effects of retrospective application of accounting policy, recorded as retained earnings, in accordance with IAS 08. |
Statement of income | STATEMENT OF INCOME Dec 31, 2019 Dec 31, 2018 As presented Adjustment Restated As presented Adjustment Restated CONTINUING OPERATIONS NET REVENUE (1) 25,390 96 25,486 22,266 33 22,299 TOTAL COST (19,598 ) — (19,598 ) (17,677 ) — (17,677 ) GROSS PROFIT 5,792 96 5,888 4,589 33 4,622 OPERATING EXPENSES (2) (2,881 ) 5 (2,876 ) (1,743 ) — (1,743 ) Share of profit (loss), net, of affiliates and jointly-controlled entities 125 — 125 (104 ) — (104 ) Dividends declared by investee classified as held for sale 73 — 73 Remeasurement of previously held equity interest in subsidiaries acquired — — — (119 ) — (119 ) Impairment loss on investments — — — (127 ) — (127 ) Net finance income 1,360 — 1,360 (518 ) — (518 ) Income before income tax and social contribution tax 4,469 101 4,570 1,978 33 2,011 Current income tax and social contribution tax (1,454 ) — (1,454 ) (583 ) — (583 ) Deferred income tax and social contribution tax (3) (111 ) (34 ) (145 ) (16 ) (11 ) (27 ) Net income for the year from continuing operations 2,904 67 2,971 1,379 22 1,401 DISCONTINUED OPERATIONS Net income after tax for the year from discontinued operations 224 — 224 363 — 363 NET INCOME FOR THE YEAR 3,128 67 3,195 1,742 22 1,764 Total of net income for the year attributed to: Equity holders of the parent Net income from continuing operations 2,903 67 2,970 1,378 22 1,400 Net income from discontinued operations 224 — 224 322 — 322 Net income for the year attributed to equity holders of the parent 3,127 67 3,194 1,700 22 1,722 Non-controlling interests Net income from continuing operations 1 — 1 1 — 1 Net income from discontinued operations — — — 41 — 41 NET INCOME FOR THE YEAR 3,128 67 3,195 1,742 22 1,764 Basic and diluted earnings per preferred share – R$ (4) 2.06 0.17 1.89 1.17 (0.15 ) 1.02 Basic and diluted earnings per common share – R$ (4) 2.06 0.17 1.89 1.17 (0.15 ) 1.02 Basic and diluted earnings per preferred share from continuing operations – R$ (4) 1.91 0.14 1.75 0.95 (0.12 ) 0.83 Basic and diluted earnings per common share from continuing operations – R$ (4) 1.91 0.14 1.75 0.95 (0.12 ) 0.83 Basic and diluted earnings per preferred share from discontinued operations – R$ (4) 0.15 0.01 0.14 0.22 (0.03 ) 0. Basic and diluted earnings per common share from discontinued operations – R$ (4) 0.15 0.01 0.14 0.22 (0.03 ) 0.19 (1) Recognition of the profit margin associated to the performance obligation to construct and upgrade the transmission infrastructure, as well as the interest revenue resulting from the financing component; (2) Reversal of expected losses recorded in others expenses in prior periods.; (3) Deferral of income tax and social contribution tax over the adjustments; (4) The basic and diluted earnings per share for the years ended in December 31, 2019 and 2018 were also adjusted retrospectively in order to reflect the increase in the number of shares in 2021. For more information, see Note 26. |
Statement of cash flows | STATEMENT OF CASH FLOWS Dec 31, 2019 As presented Adjustment Dec 31, 2018 Restated CASH FLOW FROM OPERATIONS Net income for the year from continuing operations 2,904 67 2,971 Net income for the year from discontinuing operations 224 — 224 Adjustments to reconcile net income to net cash flows: Deferred income tax and social contribution tax (2) 111 34 145 Loss on write-off of net residual value of unrecoverable concession financial assets, concessional contract asset, PP&E and Intangible assets (3) 130 (5 ) 125 Adjustment to expectation of contract asset and financial concession asset (4) (507 ) (249 ) (756 ) Deffered PIS/Pasep and Cofins over contract revenues (6) — 15 15 Others 1,072 — 1,072 TOTAL 3,934 (138 ) 3,796 (Increase) decrease in assets Concession contract and financial assets (5) 373 138 511 Others (67 ) — (67 ) TOTAL 306 138 444 Increase (decrease) in liabilities 957 — 957 Cash generated by operating activities 5,197 — 5,197 (1) Effects of retrospective application of accounting policy, recorded as retained earnings, in accordance with IAS 08. (2) Deferral of income tax and social contribution tax over the adjustments; (3) Others immaterial adjustments referring to impairment losses and others expected losses. (4) Recognition of the profit margin associated to the performance obligation to construct and upgrade the transmission infrastructure, as well as the interest revenue resulting from the financing component and the result of the periodic tariff revision; (5) Adjustments in the amounts of the contract assets that were received, due to the reallocation of the consideration to performance obligation to construct and upgrade. (6) Effects of PIS/Pasep and Cofins over contract revenues, including the deferred taxes; STATEMENT OF CASH FLOWS Dec 31, 2019 As presented Adjustment Dec 31, 2018 Restated CASH FLOW FROM OPERATIONS Net income for the year from continuing operations 1.379 22 1.401 Net income for the year from discontinuing operations 363 — 363 Adjustments to reconcile net income to net cash flows: Deferred income tax and social contribution tax (2) 16 11 27 Adjustment to expectation of contract asset and financial concession asset (3) (585 ) (92 ) (677 ) Others (4) 985 2 987 TOTAL 2,158 (57 ) 2,101 (Increase) / decrease in assets Concession contract and financial assets (5) 1,704 57 1,761 Others 1,450 — 1,450 TOTAL 3,154 57 3,211 Increase (decrease) in liabilities (2,023 ) — (2,023 ) TOTAL 3,289 — 3,289 (1) Effects of retrospective application of accounting policy, recorded as retained earnings, in accordance with IAS 08. (2) Deferral of income tax and social contribution tax over the adjustments; (3) Recognition of the profit margin associated to the performance obligation to construct and upgrade the transmission infrastructure, as well as the interest revenue resulting from the financing component) and the result of the periodic tariff revision; (4) Adjustments in the amounts of the contract assets that were received, due to the reallocation of the consideration to performance obligation to construct and upgrade; (5) Effects of PIS/Pasep and Cofins over contract revenues, including the deferred taxes. |
Statement of comprehensive income | Statement of comprehensive income Dec 31, 2019 As presented Adjustment Dec 31, 2019 Restated Dec 31, 2018 As presented Adjustment Dec 31, 2018 Restated NET INCOME FOR THE YEAR 3,128 67 3,195 1,742 22 1,764 OTHER COMPREHENSIVE INCOME Items not to be reclassified to profit or loss in subsequent periods (1,055 ) — (1,055 ) (463 ) — (463 ) COMPREHENSIVE INCOME FOR THE YEAR 2,073 67 2,140 1,279 22 1,301 Total of comprehensive income for the year attributed to: Equity holders of the parent 2,072 67 2,139 1,237 22 1,259 Non-controlling interests 1 — 1 42 — 42 2,073 67 2,140 1,279 22 1,301 |
3. PRINCIPLES OF CONSOLIDATION
3. PRINCIPLES OF CONSOLIDATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of subsidiaries [abstract] | |
Schedule of companies direct equity investments | The following subsidiaries are included in the consolidated financial statements: Subsidiary Form of valuation 2020 Form of valuation 2019 Direct interest, % Indirect interest, % Direct interest, % Indirect interest, % 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) (1) — — — Consolidation 100.00 — Cemig Sim (Efficientia) (2) Consolidation 100.00 — Consolidation 100.00 — Centroeste (3) Consolidation 100.00 — Equity method 51.00 — (1) On October 19, 2020, an Extraordinary General Meeting of Shareholders approved the merger of this wholly-owned subsidiary, at book value, and as a result the investee ceased to exist and the Company took over of all its rights and liabilities. (2) On April 14, 2020, the Annual Shareholders General Meeting decided to change this subsidiary’s By-laws, changing the name of this subsidiary to Cemig Soluções Inteligentes em Energia S.A.-Cemig Sim. (3) On January 13, 2020, the Company concluded acquisition of the equity interest of 49% of the share capital held by Eletrobras in Centroeste, resulting in its now holding 100% of that investee. More details see notes 1 and 16. |
4. CONCESSIONS AND AUTHORIZAT_2
4. CONCESSIONS AND AUTHORIZATIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Concessions And Authorizations | |
Schedule of concessions and authorizations held | Cemig, through its subsidiaries, holds the following concessions or authorizations: Company holding concession or authorization Concession or authorization contract* Expiration date POWER GENERATION Hydroelectric plants Emborcação (1) (2) Cemig GT 07/1997 07/2025 Nova Ponte (1) (2) 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 Machado 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 (Consortium) (1) Cemig GT 06/1997 01/2033 Rio de Pedras (1) Cemig GT 02/2013 09/2024 Poço Fundo (1) (8) Cemig Geração Poço Fundo 01/2021 05/2045 São Bernardo (1) Cemig GT 02/2013 08/2025 Três Marias (3) Cemig Geração Três Marias 08/2016 01/2046 Salto Grande (3) Cemig Geração Salto Grande 09/2016 01/2046 Itutinga (3) Cemig Geração Itutinga 10/2016 01/2046 Camargos (3) Cemig Geração Camargos 11/2016 01/2046 Coronel Domiciano , Joasal , Marmelos , Paciência and Piau (3) Cemig Geração Sul 12/2016 and 13/2016 01/2046 Dona Rita, Ervália, Neblina, Peti, Sinceridade and Tronqueiras (3) Cemig Geração Leste 14/2016 and 15/2016 01/2046 Cajurú, Gafanhoto and Martins (3) Cemig Geração Oeste 16/2016 01/2046 Thermal plants Igarapé (6) Cemig GT 07/1997 08/2024 Wind power plants Central Geradora Eólica Praias de Parajuru (4) Parajuru Resolution 526/2002 09/2032 Central Geradora Eólica Volta do Rio (4) Volta do Rio Resolution 660/2001 01/2031 POWER TRANSMISSION National grid (5) Cemig GT 006/1997 01/2043 Substation – SE Itajubá (5) Cemig GT 79/2000 10/2030 Furnas – Pimenta - Transmission line (5) Centroeste 004/2005 03/2035 ENERGY DISTRIBUTION (7) Cemig D 002/1997 003/1997 004/1997 005/1997 12/2045 GAS DISTRIBUTION (7) Gasmig State Law 11,021/1993 01/2053 (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) On July 17, 2020, Cemig GT filed a statement of its interest in extending these plants concession, under the independent producer regime, outside the regime of quotas, to ensure its right of option under the legislative changes currently under discussion, relating to the group of measures to modernize the electricity sector. Any actual decision will only be made after publication by the Brazilian Mining and Energy Ministry and by the grantor, Aneel, of the conditions for extension, which will be submitted to decision by Cemig’s governance bodies at the due time. (3) 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) 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) 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. (6) On December 6, 2019, Aneel suspended Igarapé Plant commercial operation upon Cemig GT’s claim for early termination of its concession contract, and, as a result, the corresponding assets were written-off from Cemig GT’s financial statement position. In February 2021, the Thermal Plant Igarapé concession was extinct. by the Brazilian Mining and Energy Ministry, in consideration of the termination request submitted by Cemig GT. 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. |
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 2020 Present value in 2020 Period of the concession Updating indexer Irapé 38 18 03/2006 – 02/2035 IGPM Queimado (Consortium) 9 5 01/2004 – 12/2032 IGPM |
Schedule of nominal value and present value portion to be paid | The amounts paid to the grantor in 2020, 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 in 2019 Amounts to be paid in the next 12 months Irapé 100.00 2 2 Queimado (Consortium) 82.50 1 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. |
5. OPERATING SEGMENTS (Tables)
5. OPERATING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of operating segments [abstract] | |
Schedule of operating revenues, costs and expenses | The tables below show segment information for 2020, 2019 and 2018. INFORMATION BY SEGMENT AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2020 ENERGY DESCRIPTION Generation and sale Transmission Distribution Gas Other Eliminations TOTA SEGMENT ASSETS 16,150 5,870 26,399 2,615 3,712 (663 ) 54,083 INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES 3,927 1,467 — — 21 — 5,415 INVESTMENTS IN AFFILIATES CLASSIFIED AS HELD FOR SALE — — 1,258 — — — 1,258 ADDITIONS TO THE SEGMENT 238 246 1,384 50 — — 1,918 CONTINUING OPERATIONS NET REVENUE 6,537 743 16,512 1,664 105 (333 ) 25,228 COST OF ENERGY AND GAS Energy bought for resale (4,026 ) — (8,161 ) — — 76 (12,111 ) Charges for use of the national grid (199 ) — (1,799 ) — — 250 (1,748 ) Gas bought for resale — — — (1,083 ) — — (1,083 ) Total (4,225 ) — (9,960 ) (1,083 ) — 326 (14,942 ) OPERATING COSTS AND EXPENSES Personnel (192 ) (114 ) (886 ) (60 ) (24 ) — (1,276 ) Employees’ and managers’ profit sharing (24 ) (12 ) (92 ) — (14 ) — (142 ) Post-employment obligations (53 ) (41 ) (297 ) — (47 ) — (438 ) Materials (13 ) (4 ) (61 ) (1 ) — — (79 ) Outsourced services (113 ) (46 ) (1,055 ) (25 ) (33 ) 7 (1,265 ) Depreciation and amortization (207 ) (5 ) (668 ) (106 ) (3 ) — (989 ) Operating provisions (reversals) (122 ) (10 ) (272 ) (1 ) (18 ) — (423 ) Construction costs — (147 ) (1,384 ) (50 ) — — (1,581 ) Other operating expenses, net (68 ) 11 (212 ) (12 ) (16 ) — (297 ) Total cost of operation (792 ) (368 ) (4,927 ) (255 ) (155 ) 7 (6,490 ) O PERATING COSTS AND EXPENSES (5,017 ) (368 ) (14,887 ) (1,338 ) (155 ) 333 (21,432 ) Equity in earnings of unconsolidated investees, net (129 ) 494 — — (8 ) — 357 Periodic Tariff Review adjustments — 502 — — — — 502 Gain on a bargain purchase and remeasurement of previously held equity interest in subsidiary acquired in business combinations transactions — 51 — — — — 51 OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) 1,391 1,422 1,625 326 (58 ) — 4,706 Finance income 1,711 175 514 44 — — 2,444 Finance expenses (2,509 ) (274 ) (505 ) (58 ) (4 ) — (3,350 ) INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX 593 1,323 1,634 312 (62 ) — 3,800 Income tax and social contribution tax (206 ) (209 ) (430 ) (85 ) (6 ) — (936 ) NET INCOME FROM CONTINUING OPERATIONS 387 1,114 1,204 227 (68 ) — 2,864 Equity holders of the parent 387 1,114 1,204 226 (68 ) — 2,863 Non-controlling interests — — — 1 — — 1 387 1,114 1,204 227 (68 ) — 2,864 INFORMATION BY SEGMENT AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2019 ENERGY DESCRIPTION Generation and sale Transmission Distribution Gas Other Eliminations TOTAL SEGMENT ASSETS 14,749 4,712 25,616 2,689 3,888 (1,127 ) 50,527 INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES 4,133 1,237 — — 29 — 5,399 INVESTMENTS IN AFFILIATES CLASSIFIED AS HELD FOR SALE — — 1,258 — — — 1,258 ADDITIONS TO THE SEGMENT 102 220 936 934 9 — 2,201 CONTINUING OPERATIONS NET REVENUE 6,882 811 15,919 1,858 323 (307 ) 25,486 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 (207 ) (115 ) (869 ) (46 ) (35 ) — (1,272 ) Employees’ and managers’ profit sharing (36 ) (27 ) (183 ) — (17 ) — (263 ) Post-employment obligations (50 ) (38 ) (277 ) — (43 ) — (408 ) Materials (17 ) (6 ) (63 ) (2 ) (3 ) — (91 ) Outsourced services (125 ) (45 ) (1,016 ) (20 ) (40 ) 7 (1,239 ) Depreciation and amortization (210 ) (6 ) (652 ) (86 ) (4 ) — (958 ) Operating provisions (reversals) (975 ) (135 ) (1,101 ) (2 ) (188 ) — (2,401 ) Construction costs — (220 ) (937 ) (43 ) — — (1,200 ) Other operating expenses, net (175 ) (16 ) (298 ) (10 ) 5 (494 ) Total cost of operation (1,795 ) (608 ) (5,396 ) (209 ) (330 ) 12 (8,326 ) OPERATING COSTS AND EXPENSES (5,826 ) (608 ) (14,372 ) (1,645 ) (330 ) 307 (22,474 ) Equity in earnings of unconsolidated investees, net (88 ) 215 — — (2 ) — 125 Dividends declared by investee classified as held for sale — — 73 — — — 73 OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) 968 418 1,620 213 (9 ) — 3,210 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 1,215 401 2,523 188 243 — 4,570 Income tax and social contribution tax (551 ) (70 ) (806 ) (48 ) (124 ) — (1,599 ) NET INCOME FROM CONTINUING OPERATIONS 664 331 1,717 140 119 — 2,971 DISCONTINUED OPERATIONS NET INCOME AFTER TAX FROM DISCONTINUED OPERATIONS — — 224 — — — 224 NET INCOME (LOSS) FOR THE YEAR 664 331 1,941 140 119 — 3,195 Equity holders of the parent 664 331 1,941 139 119 — 3,194 Non-controlling interests — — — 1 — — 1 664 331 1,941 140 119 — 3,195 INFORMATION BY SEGMENT AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2018 (Restated) DESCRIPTION ENERGY Gas Telecom* Other Eliminations TOTAL Generation and sale Transmission Distribution SEGMENT ASSETS 14,671 4,346 37,840 1,822 10 2,607 (957 ) 60,339 INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES 4,055 1,163 — — — 17 — 5,235 ADDITIONS TO THE SEGMENT 559 138 856 70 9 — — 1,632 CONTINUING OPERATIONS NET REVENUE 6,374 708 13,757 1,619 — 134 (293 ) 22,299 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 ) — — — 199 (1,480 ) Gas bought for resale (1,238 ) (1,238 ) Total (4,133 ) — (8,701 ) (1,238 ) — — 270 (13,802 ) OPERATING COSTS AND EXPENSES Personnel (230 ) (108 ) (965 ) (60 ) (18 ) (29 ) — (1,410 ) Employees’ and managers’ profit sharing (10 ) (7 ) (51 ) — — (9 ) — (77 ) Post-employment obligations (46 ) (27 ) (224 ) — — (40 ) — (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 ) (44 ) — — — (897 ) Other operating expenses, net (65 ) (17 ) (203 ) (13 ) (3 ) (112 ) 8 (405 ) Total cost of operation (784 ) (311 ) (4,065 ) (211 ) (31 ) (239 ) 23 (5,618 ) OPERATING COSTS AND EXPENSES (4,917 ) (311 ) (12,766 ) (1,449 ) (31 ) (239 ) 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) 1,057 628 972 170 (32 ) (266 ) — 2,529 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 634 684 785 216 (36 ) (272 ) — 2,011 Income tax and social contribution tax (276 ) (133 ) (217 ) (53 ) 12 57 — (610 ) NET INCOME (LOSS) FROM CONTINUING OPERATIONS 358 551 568 163 (24 ) (215 ) — 1,401 DISCONTINUED OPERATIONS NET INCOME AFTER TAX FROM DISCONTINUED OPERATIONS 11 — 62 — 290 — — 363 NET INCOME (LOSS) FOR THE YEAR 369 551 630 163 266 (215 ) — 1,764 Equity holders of the parent 361 551 599 162 266 (217 ) — 1,722 Non-controlling interests 8 — 31 1 — 2 — 42 369 551 630 163 266 (215 ) — 1,764 (*) On March 31, 2018 Cemig Telecom assets and liabilities were merged into the Company. |
Schedule of breakdown of revenue by activity | The following is a breakdown of the revenue of the Company by activity: 2020 ENERGY GAS OTHER ELIMINATIONS TOTAL GENERATION TRANSMISSION DISTRIBUTION Revenue from supply of energy 7,337 — 19,174 — — (79 ) 26,432 Revenue from Use of Distribution Systems (the TUSD charge) — — 3,046 — — (24 ) 3,022 CVA Other financial components — — 455 — — — 455 Reimbursement of PIS/Pasep and Cofins over ICMS credits to customers– realization — — 266 — — — 266 Transmission operation and maintenance revenue — 506 — — — (226 ) 280 Transmission construction revenue — 201 — — — — 201 Interest revenue arising from the financing component in transmission contract asset — 438 — — — — 438 Distribution construction revenue — — 1,385 51 — — 1,436 Adjustment to expectation of cash flow from Financial assets of distribution concession to be indemnified — — 16 — — — 16 Gain on inflation updating of Concession Grant Fee 347 — — — — — 347 Transactions in energy on the CCEE 154 — — — — — 154 Mechanism for the sale of surplus — — 234 — — — 234 Supply of gas — — — 2,011 — — 2,011 Fine for violation of continuity indicator — — (51 ) — — — (51 ) Other operating revenues 5 34 1,561 — 113 (4 ) 1,709 Sector / Regulatory charges reported as Deductions from revenue (1,306 ) (436 ) (9,574 ) (398 ) (8 ) — (11,722 ) Net revenue 6,537 743 16,512 1,664 105 (333 ) 25,228 The following is a breakdown of the revenue of the Company by activity: ENERGY 2019 (Restated) GENERATION TRANSMISSION DISTRIBUTION GAS OTHER ELIMINATIONS TOTAL Revenue from supply of energy 7,037 — 19,967 — — (76 ) 26,928 Revenue from Use of Distribution Systems (the TUSD charge) — — 2,747 — — (25 ) 2,722 CVA Other financial components — — 58 — — — 58 Transmission operation and maintenance — 550 — — — (198 ) 352 Transmission construction revenue — 312 — — — — 312 Interest revenue arising from the financing component in transmission contract asset — 328 — — — — 328 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 82 28 1,468 — 151 (8 ) 1,721 Sector / Regulatory charges reported as Deductions from revenue (1,408 ) (407 ) (10,041 ) (483 ) (12 ) — (12,351 ) Net revenue 6,882 811 15,919 1,858 323 (307 ) 25,486 T 2018 (Restated) ENERGY GAS OTHER ELIMINATIONS TOTAL GENERATION TRANSMISSION DISTRIBUTIO 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 operation and maintenance — 520 — — — (177 ) 343 Transmission construction revenue — 138 — — — — 138 Interest revenue arising from the financing component in transmission contract asset — 311 — — — — 311 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 — 145 (16 ) 1,585 Sector / Regulatory charges reported as Deductions from revenue (1,366 ) (290 ) (10,226 ) (421 ) (11 ) — (12,314 ) Net revenue 6,374 708 13,757 1,619 134 (293 ) 22,299 |
6. CASH AND CASH EQUIVALENTS (T
6. CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash and cash equivalents [abstract] | |
Schedule of cash and cash equivalents | 2020 2019 Bank accounts 93 210 Cash equivalents Bank deposit certificates (CDBs) (1) 1,416 290 Overnight (2) 171 36 1,587 326 1,680 536 (1) Bank Deposit Certificates (2) Overnight |
7. MARKETABLE SECURITIES (Table
7. MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of investment securities [abstract] | |
Schedule of marketable securities | 2020 2019 Investments Current Bank deposit certificates (CDBs) (1) 545 — Financial Notes (LFs) – Banks (2) 2,074 645 Treasury Financial Notes (LFTs) (3) 731 94 Others 10 1 3,360 740 Non-current Financial Notes (LFs) – Banks (2) 730 11 Debentures (4) 25 2 Others 10 — 765 13 4,125 753 (1) Bank Deposit Certificates (2) Bank Financial Notes ( Letras Financeiras (3) Treasury Financial Notes (LFTs) (4) Debentures |
8. RECEIVABLES FROM CUSTOMERS_2
8. RECEIVABLES FROM CUSTOMERS, TRADERS AND POWER TRANSPORT CONCESSION HOLDERS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 Billed supply 1,518 637 387 583 3,125 3,130 Unbilled supply 1,145 — — — 1,145 1,204 Other concession holders – wholesale supply 18 26 1 5 50 47 Other concession holders – wholesale supply, unbilled 260 — — — 260 204 CCEE (Power Trading Chamber) 21 189 — — 210 386 Concession Holders – power transport 45 14 17 85 161 187 Concession Holders – power transport, unbilled 295 — — — 295 253 (–) Provision for doubtful receivables (278 ) (12 ) (15 ) (407 ) (712 ) (810 ) 3,024 854 390 266 4,534 4,601 Current assets 4,373 4,524 Non-current assets 161 77 |
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: 2020 2019 Residential 110 131 Industrial 188 197 Commercial, services and others 190 161 Rural 30 32 Public authorities 83 201 Public lighting 2 2 Public services 35 31 Charges for use of the network (TUSD) 74 55 712 810 |
Schedule of changes in provision for doubtful accounts | Changes in the allowance for doubtful accounts in 2020, 2019 and 2018 are as follows: 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 Additions, net (Note 30 d) 146 Disposals (244 ) Balance at December 31, 2020 712 |
9. RECOVERABLE TAXES (Tables)
9. RECOVERABLE TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of recoverable taxes [abstract] | |
Schedule of recoverable taxes | 2020 2019 Current ICMS (VAT) 97 65 PIS/Pasep (a) (b) 311 3 Cofins (a) (b) 1,426 7 Others 16 24 1,850 99 Non-current ICMS (VAT) (b) 257 277 PIS/Pasep (a) 588 1,102 Cofins (a) 2,594 4,968 Others 3 2 3,442 6,349 5,292 6,448 |
10. INCOME AND SOCIAL CONTRIB_2
10. INCOME AND SOCIAL CONTRIBUTION TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of income and social contribution taxes [abstract] | |
Schedule of income and social contribution taxes recoverable | Current tax assets and current tax liabilities related to income tax and social contribution tax are offset in the statement of financial position subject to criteria established in IAS 12. 2020 2019 Income tax 698 608 Social contribution tax 247 241 945 849 Current 598 621 Non-current 347 228 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. 2020 2019 Current Income tax 108 99 Social contribution tax 32 35 140 134 |
Schedule of deferred income and social contribution taxes | The Company has deferred taxed assets and liabilities 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: 2020 2019 (Restated) 01/01/2019 (Restated) Deferred tax assets Tax loss carryforwards 401 116 373 Provisions for contingencies 538 544 218 Impairment on investments 640 660 882 Fair value of derivative financial instruments (PUT SAAG) 182 164 143 Post-employment obligations 2,168 2,090 1,477 Estimated provision for doubtful receivables 256 283 279 Others 138 171 99 Total 4,323 4,028 3,471 Deferred tax liabilities Funding cost (11 ) (16 ) (25 ) Deemed cost (225 ) (232 ) (239 ) Acquisition costs of equity interests (486 ) (503 ) (501 ) Borrowing costs capitalized (169 ) (166 ) (168 ) Adjustment to expectation of cash flow – Concession assets (242 ) (247 ) (252 ) Revenues arising from transmission contract asset (768 ) (624 ) (627 ) Adjustment to fair value: Swap/Gains (1,002 ) (575 ) (277 ) Others (7 ) (5 ) (38 ) Total (2,910 ) (2,368 ) (2,127 ) Total, net 1,413 1,660 1,344 Total assets 2,453 2,430 2,147 Total liabilities (1,040 ) (770 ) (803 ) |
Schedule of changes in deferred income and social contribution taxes | The changes in deferred income tax and social contribution tax were as follows: 2020 2019 (Restated) 01/01/2019 (Restated) Balance at January 01 1,660 1,344 1,072 Effects allocated to net profit from continuing operations (252 ) (145 ) (27 ) Effect allocated to other comprehensive income 4 544 239 Effects allocated to net profit from discontinuing operations (note 32) — (85 ) — 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 ) Others 1 2 — Balance at December 1 1,413 1,660 1,344 |
Schedule of estimated balance of deferred tax asset | Based on the estimative from the Company and its subsidiaries, it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilized and the Company estimated that the balance of deferred tax asset as of December 31, 2020 will be recovered, as follows: Consolidated 2021 681 2022 708 2023 624 2024 563 2025 563 2026 to 2028 743 2029 to 2030 441 4,323 |
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: 2020 2019 (Restated) 2018 ((Restated) Profit before income tax and social contribution tax 3,800 4,570 2,011 Income tax and social contribution tax – nominal expense (34%) (1,292 ) (1,554 ) (683 ) Tax effects applicable to: Gain (loss) in subsidiaries by equity method 93 8 (61 ) Interest on Equity 188 136 71 Non-deductible contributions and donations (10 ) (13 ) (6 ) Tax incentives 39 66 29 Effects from subsidiaries taxed based on gross revenues 97 89 89 Non-deductible penalties (25 ) (135 ) (12 ) Impairment of accounts receivable from related parties (13 ) (234 ) — Others (13 ) 38 (37 ) I ncome tax and social contribution tax – effective expense (936 ) (1,599 ) (610 ) Current tax (684 ) (1,454 ) (583 ) Deferred tax (252 ) (145 ) (27 ) (936 ) (1,599 ) (610 ) Effective rate 24.63 % 35.00 % 30.33% |
12. ESCROW DEPOSITS (Tables)
12. ESCROW DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of escrow deposits [abstract] | |
Schedule of payments related to escrow deposits | 2020 2019 Labor claims 278 355 Tax contingencies Income tax on Interest on Equity 29 29 PIS/Pasep and Cofins taxes (1) 66 1,448 Donations and legacy tax (ITCD) 54 53 Urban property tax (IPTU) 84 79 Finsocial tax 40 40 Income tax and social contr. tax on indemnity for employees’ ‘Anuênio’ benefit (2) 286 282 Income tax withheld at source on inflationary profit 9 9 Contribution tax effective rate (3) 18 18 ICMS (VAT) credits on PP&E — 39 Others (4) 98 92 684 2,089 Others Regulatory 52 43 Third party 9 11 Customer relations 8 7 Court embargo 13 12 Others 12 23 94 96 1,056 2,540 (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. (2) See more details in Note 25 – 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 |
14. CONCESSION FINANCIAL AND _2
14. CONCESSION FINANCIAL AND SECTOR ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Financial Assets And Liabilities Of The Concession [abstract] | |
Schedule of financial assets and liabilities of concession | Concession financial assets 2020 2019 (Restated) 01/01/2019 (Restated) Concession financial assets related to the infrastructure Energy distribution concession (14.1) 530 460 396 Gas distribution concession (14.1) 29 24 — Indemnifiable receivable – Generation (14.2) 816 816 816 Concession grant fee – Generation concessions (14.3) 2,549 2,468 2,409 3,924 3,768 3,621 Sector financial assets Amounts receivable from Parcel A (CVA) and Other Financial Components (14.4) 133 882 1,081 Total 4,058 4,650 4,702 Current assets 258 891 890 Non-current assets 3,799 3,759 3,812 Concession sector liabilities 2020 2019 Amounts receivable from Parcel A (CVA) and Other Financial Components (14.4) 231 — Total 231 — Current liabilities 231 — Non-current liabilities — — |
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 January 1st 2018 (Restated) — 4,238 371 — 4,609 Amounts received — (1,389 ) — — (1,389 ) Transfers from PP&E — — 27 — 27 Others transfers — (1 ) (1 ) — (2 ) Monetary updating — 377 — — 377 Disposals — — (1 ) — (1 ) Balances at January 1, 2019 (Restated) — 3,225 396 — 3,621 Amounts received — (259 ) — — (259 ) Transfers from contract assets — — 48 — 48 Transfers from (to) intangible assets — — (1 ) 24 23 Monetary updating — 318 18 — 336 Disposals — — (1 ) — (1 ) Balances at December 31, 2019 (Restated) — 3,284 460 24 3,768 Amounts received — (266 ) — — (266 ) Transfers from contract assets — 60 60 Transfers from (to) intangible assets — (5 ) (5 ) Monetary updating — 347 15 5 367 Balances at December 31, 2020 — 3,365 530 29 3,924 |
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, 2020 and 2019. Generation plant Concession expiration date Installed capacity (MW) Net balance of assets based on historical cost Net balance of assets based on fair value (replacement cost) Lot D UHE Tress 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 Dec. 2016 408 27 23 UHE Jaguara Aug. 2013 424 40 174 UHE São Simão Jan. 2015 1,710 2 3 3,601.70 204 816 |
Schedule of auction won transferred to related specific purpose companies | The changes in these concession financial assets are as follows: SPE Plants 2019 Monetary updating Amounts received 2020 Cemig Geração Três Marias S.A. Três Marias 1,402 188 (143 ) 1,447 Cemig Geração Salto Grande S.A. Salto Grande 440 59 (45 ) 454 Cemig Geração Itutinga S.A. Itutinga 165 25 (19 ) 171 Cemig Geração Camargos S.A. Camargos 124 18 (14 ) 128 Cemig Geração Sul S.A. Coronel Domiciano, Joasal, Marmelos, Paciência and Piau 161 26 (20 ) 167 Cemig Geração Leste S.A. Dona Rita, Ervália, Neblina, Peti, Sinceridade and Tronqueiras 110 19 (15 ) 114 Cemig Geração Oeste S.A. Cajurú, Gafanhoto and Martins 66 12 (9 ) 69 Total 2,468 347 (265 ) 2,550 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 |
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, are as follows: Financial position 2020 2019 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 84 1,562 1,646 1,286 2,144 3,430 Current assets 84 834 918 1,286 1,269 2,555 Non-current assets — 728 728 — 875 875 Liabilities (246 ) (1,498 ) (1,744 ) (882 ) (1,666 ) (2,548 ) Current liabilities (246 ) (903 ) (1,149 ) (882 ) (1,033 ) (1,915 ) Non-current liabilities — (595 ) (595 ) — (633 ) (633 ) Total current, net (162 ) (69 ) (231 ) 404 236 640 Total non-current, net — 133 133 — 242 242 Total, net (162 ) 64 (98 ) 404 478 882 Financial components 2020 2019 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 1 — 1 119 29 148 Tariff for use of transmission facilities of grid participants 1 218 219 (18 ) 114 96 Tariff for transport of Itaipu supply — 18 18 9 16 25 Alternative power source program (Proinfa) — 6 6 11 (6 ) 5 ESS/EER System Service/Energy Charges (1 ) 39 38 (161 ) (136 ) (297 ) Energy bought for resale 4 449 453 661 632 1,293 Other financial components Over contracting of supply (1) (56 ) 165 109 (84 ) 216 132 Neutrality of Parcel A (3 ) 110 107 (30 ) (12 ) (42 ) Other financial items (86 ) (899 ) (985 ) (71 ) (206 ) (277 ) Tariff Flag balances — — — — (103 ) (103 ) Excess demand and reactive power (22 ) (42 ) (64 ) (32 ) (66 ) (98 ) TOTAL (162 ) 64 (98 ) 404 478 882 (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. On August 27, 2020, Aneel published the Dispatch 2,508/2020-SRM-SGT, which set new amounts for distributors’ over contracting for the years 2016 and 2017, based on a new valuation criterion established by Aneel Technical Note 97/2020-SRM-SGT – not contained in the regulatory rules which were currently in force. As a result, Cemig D filed an appeal with the Council of Aneel, for the amounts of distribution agents’ over contracting to be reset in accordance with the calculation criteria based on maximum effort contained in Aneel Normative Resolution 453/2011. The Company’s position on this case is reinforced by the fact that the Brazilian Energy Distributors’ Association (Abradee) filed a similar appeal, supported by the opinion of contracted legal advisers. The Company has no expectation of loss in relation to realization of these amounts. The Company recognizes this receivable asset, in the amount of R$222 on December 31, 2020, as ‘Other financial components’ to be ratified. At the reporting date for this financial statements, this matter was pending analysis by Aneel. |
Schedule of changes in balances of financial assets and liabilities | Changes in balances of these sector assets and liabilities: 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 Additions 611 Amortization (156 ) Payments from the Flag Tariff Centralizing Account (63 ) Receipt funds of “Covid-account” (1) (1,404 ) Updating – Selic rate (Note 29) 32 Balance at December 31, 2020 (98 ) (1) The amount received via ‘Covid-account’ will be reversed in a negative financial component in the 2021 or 2022 tariff processes, as detailed in note 1. |
15. CONCESSION CONTRACT ASSETS
15. CONCESSION CONTRACT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [abstract] | |
Schedule of detailed information about concession contract assets | Under IFRS 15 – Revenue from contracts with customers 2020 2019 (Restated) 01/01/2019 (Restated) Distribution – Infrastructure assets under construction 1,142 740 518 Gas – Infrastructure assets under construction 94 68 81 Transmission – Assets reincorporated into the assets remuneration base 1,896 1,928 2,272 Transmission – Assets remunerated by tariff 1,848 1,147 637 4,980 3,883 3,509 Current 737 576 482 Non-current 4,243 3,307 3,026 |
Schedule of changes in concession contract assets | Changes in concession contract assets are as follows: Transmission Distribution Gas Total Balances at January 1, 2018 - - - - Effects of adoption of IFRS 15 (Restated) 2,927 532 90 3,549 Additions 138 727 70 935 Inflation adjustment 311 — — 311 Amounts received (467 ) — — (467 ) Transfers to financial assets — (27 ) — (27 ) Transfers to intangible assets — (672 ) (78 ) (750 ) Impairment — (42 ) — (42 ) Balances at January 1, 2019 (Restated) 2,909 518 82 3,509 Additions 312 903 43 1,258 Inflation adjustment 328 — — 328 Amounts received (473 ) — — (473 ) Disposals — — (2 ) (2 ) Transfers to financial assets — (48 ) — (48 ) Transfers to intangible assets — (630 ) (55 ) (685 ) Impairment — (3 ) — (3 ) Balances at December 31, 2019 (Restated) 3,076 740 68 3,884 Additions 201 1,346 50 1,597 Inflation adjustment 438 — — 438 Results of the Periodic Tariff Review 552 — — 552 Amounts received (623 ) — — (623 ) Disposals (7 ) — (2 ) (9 ) Transfers to financial assets — (60 ) — (60 ) Transfers to intangible assets — (883 ) (23 ) (906 ) Contract assets arising from business combination (Note 16d) 108 — — 108 Impairment — (1 ) — (1 ) Balances at December 31, 2020 3.745 1,142 93 4,980 |
Schedule of concession contracts | 2020 2019 01/01/2019 (Restated) Current Concession contract - 004/05 19 — — Concession contract - 079/00 29 21 19 Concession contract - 006/97 Basic Network of the Existing System (BNES) 533 434 347 Basic Network of New Facilities (BNNF) 156 121 116 737 576 482 Non-current Concession contract - 004/05 91 — — Concession contract - 079/00 133 95 93 Concession contract - 006/97 Basic Network of the Existing System (BNES) 1,363 1,494 1,714 Basic Network of New Facilities (BNNF) 1,421 911 620 3,008 2,500 2,427 3,745 3,076 2,909 a) Concession contract n. 006/97 |
16. INVESTMENTS (Tables)
16. INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about investment property [abstract] | |
Schedule of percentage of the company's equity interest | Control 2020 2019 Hidrelétrica Cachoeirão Jointly-controlled 53 54 Guanhães Energia Jointly-controlled 131 131 Hidrelétrica Pipoca Jointly-controlled 36 31 Retiro Baixo Jointly-controlled 195 180 Aliança Norte (Belo Monte plant) Jointly-controlled 631 671 Amazônia Energia (Belo Monte plant) Jointly-controlled 965 1,028 Madeira Energia (Santo Antônio plant) Affiliated 209 167 FIP Melbourne (Santo Antônio plant) Affiliated 158 385 Lightger Jointly-controlled 131 128 Baguari Energia Jointly-controlled 159 157 Aliança Geração Jointly-controlled 1,167 1,192 Taesa Jointly-controlled 1,467 1,213 Ativas Data Center Affiliated 17 16 UFV Janaúba Geração de Energia Elétrica Distribuída Jointly-controlled 10 10 UFV Manga Geração de Energia Elétrica Distribuída Jointly-controlled 11 — UFV Corinto Geração de Energia Elétrica S.A. Jointly-controlled 10 — UFV Bonfinópolis Geração de Energia Elétrica Distribuída Jointly-controlled 6 — UFV Lagoa Grande Geração de Energia Elétrica Distribuída Jointly-controlled 15 — UFV Lontra Geração de Energia Elétrica Distribuída Jointly-controlled 17 — UFV Mato Verde Geração de Energia Elétrica Distribuída Jointly-controlled 6 — UFV Mirabela Geração de Energia Elétrica Distribuída Jointly-controlled 4 — UFV Porteirinha I Geração de Energia Elétrica Distribuída Jointly-controlled 6 — UFV Porteirinha II Geração de Energia Elétrica Distribuída Jointly-controlled 7 — Companhia de Transmissão Centroeste de Minas Subsidiary — 24 Axxiom Soluções Tecnológicas Jointly-controlled 4 13 Total of investments 5,415 5,400 Itaocara – equity deficit (1) Jointly-controlled (30 ) (22 ) Total 5,385 5,378 (1) On December 31, 2020 and 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$30 (R$22 on December 31, 2019), 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 2017 Additions Amortization Written off 2018 Amortization 2019 Amortization 2020 Retiro Baixo 28 6 (2 ) — 32 (1 ) 31 (1 ) 30 Central Eólica Praias de Parajuru (1) 17 — (2 ) (15 ) — — — — — Central Eólica Volta do Rio (1) 11 — (1 ) (10 ) — — — — — Central Eólica Praias de Morgado (1) 24 — (2 ) (22 ) — — — — — Madeira Energia (Santo Antônio plant) 151 — (6 ) (127 ) 18 (1 ) 17 (1 ) 16 Lightger — 84 — — 84 (3 ) 81 (3 ) 78 Aliança Geração 403 — (25 ) — 378 (25 ) 353 (25 ) 328 Aliança Norte (Belo Monte plant) 55 — (2 ) — 53 (2 ) 51 (2 ) 49 Taesa 189 — (9 ) — 180 (9 ) 171 (8 ) 163 Light 186 — (20 ) (166 ) — — — — — RME 44 20 (5 ) (59 ) — — — — — Total 1,108 110 (74 ) (399 ) 745 (41 ) 704 (40 ) 664 (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 2019 Gain (loss) by equity method Remeasurement of previously held equity interest in subsidiaries acquired (step-acquisition) Dividends Additions / acquisitions Others Disposals 2020 Companhia de Transmissão Centroeste de Minas 24 — 37 — 45 14 (120 ) — Hidrelétrica Cachoeirão 54 9 — (10 ) — — — 53 Guanhães Energia (1) 131 — — — — — — 131 Hidrelétrica Pipoca 31 11 — (6 ) — — — 36 Madeira Energia (Santo Antônio plant) 167 42 — — — — — 209 FIP Melbourne (Santo Antônio plant) 385 (227 ) — — — — — 158 Lightger (1) 128 10 — (7 ) — — — 131 Baguari Energia 157 23 — (21 ) — — — 159 Amazônia Energia (Belo Monte plant) 1,028 (63 ) — — — — — 965 Aliança Norte (Belo Monte plant) 671 (40 ) — — — — — 631 Ativas Data Center 16 1 — — — — — 17 Taesa 1,213 494 — (240 ) — — — 1,467 Aliança Geração 1,192 89 — (114 ) — — — 1,167 Retiro Baixo 180 15 — — — — — 195 UFV Janaúba Geração de Energia Elétrica Distribuída 10 1 — (1 ) — — — 10 UFV Corinto Geração de Energia Elétrica Distribuída — 1 — — 9 — — 10 UFV Manga Geração de Energia Elétrica Distribuída — 1 — — 10 — — 11 UFV Bonfinópolis II Geração de Energia Elétrica Distribuída — — — — 6 — — 6 UFV Lagoa Grande Geração de Energia Elétrica Distribuída — 3 — — 12 — — 15 UFV Lontra Geração de Energia Elétrica Distribuída — 3 — — 14 — — 17 UFV Mato Verde Geração de Energia Elétrica Distribuída — 1 — — 5 — — 6 UFV Mirabela Geração de Energia Elétrica Distribuída — — — — 5 (1 ) — 4 UFV Porteirinha I Geração de Energia Elétrica Distribuída — — — — 6 — — 6 UFV Porteirinha II Geração de Energia Elétrica Distribuída — 1 — — 6 — — 7 Axxiom Soluções Tecnológicas (1) 13 (9 ) — — — — — 4 Total of investments 5,400 366 37 (399 ) 118 13 (120 ) 5,415 Itaocara – equity déficit (2) (22 ) (9 ) — — 1 — — (30 ) Total 5,378 357 37 (399 ) 119 13 (120 ) 5,385 (1) With the loss 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. More details see notes 1 and 33. (2) On December 31, 2019, the investee had negative shareholders’ equity. Thus, after reducing the accounting value of its interest to zero, the Company recognized the provision for losses on investments, in the amount of R$22, resulting from contractual obligations assumed with the subsidiary and the other shareholders. (3) Includes bargain purchase related to the acquisition of the joint-controlled entities UFV Corinto, UFV Manga, UFV Lagoa Grande, UFV Lontra, UFV Mato Verde and UFV Porteirinha II, in the amount of R$7. Investee 2018 Gain (loss) by equity method 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 (1) 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. More details see notes 1 and 32. (2) On December 31, 2019, the investee had negative shareholders’ equity. Thus, after reducing the accounting value of its interest to zero, the Company recognized the provision for losses on investments, in the amount of R$22, resulting from contractual obligations assumed with the subsidiary and the other shareholders. Investee 2017 Gain (loss) by equity method 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. (!) 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 |
Schedule of changes in dividends receivable | Changes in dividends receivable are as follows: 2020 2019 Opening balances 186 119 Dividends proposed by investees 399 285 Elimination of dividends due to business combination (1 ) — Dividends proposed by investee classified as held for sale — 73 Adjustment of dividends proposed by investee classified as held for sale (1 ) — Withholding income tax on Interest on equity (8 ) (8 ) Amounts received (387 ) (283 ) Ending balances 188 186 |
Schedule of subsidiaries and jointly controlled entities percentage by the company's ownership interest | c) Main information on the subsidiaries, jointly-controlled entities and affiliates, not adjusted for the percentage represented by the Company’s ownership interest: Investee Number 2020 2019 01/01/2019 Cemig interest % Share Equity Cemig interest % Share Equity Cemig interest % Share Equity Cemig Geração e Transmissão 2,896,785,358 100.00 4,000 5,842 100.00 2,600 5,348 100.00 2,600 5,125 Madeira Energia 12,034,025,147 15.51 10,620 2,259 15.51 10,620 3,705 15.51 10,620 4,657 Hidrelétrica Cachoeirão 35,000,000 49.00 35 110 49.00 35 110 49.00 35 100 Guanhães Energia 548,626,000 49.00 549 268 49.00 549 268 49.00 396 228 Hidrelétrica Pipoca 41,360,000 49.00 41 73 49.00 41 63 49.00 41 63 Baguari Energia (1) 26,157,300,278 69.39 187 229 69.39 187 227 69.39 187 234 Central Eólica Praias de Parajuru 70,560,000 100.00 71 107 100.00 72 89 100.00 72 80 Central Eólica Volta do Rio 117,230,000 100.00 117 171 100.00 139 58 100.00 139 84 Lightger 79,078,937 49.00 79 106 49.00 79 95 49.00 79 86 Aliança Norte 41,923.360.811 49.00 1,209 1,189 49.00 1,208 1,266 49.00 1,206 1,247 Amazônia Energia 1,322,597,723 74.50 1,323 1,296 74.50 1,323 1,380 74.50 1,322 1,359 Aliança Geração 1,291,500 45.00 1,291 1,858 45.00 1,291 1,858 45.00 1,291 1,858 Retiro Baixo 225,350,000 49.90 225 325 49.90 225 300 49.90 223 278 Renova (1) (2) 41,719,724 36.23 2,961 (1,108) 36.23 2,961 (1,130 ) 36.23 2,919 (76 ) Usina Hidrelétrica Itaocara S.A. 71,708,500 49.00 72 (60 ) 49.00 69 (45 ) 49.00 22 10 Cemig Ger.Três Marias S.A. 1,291,423,369 100.00 1,291 1,452 100.00 1,291 1,408 100.00 1,291 1,396 Cemig Ger.Salto Grande S.A 405,267,607 100.00 405 455 100.00 405 446 100.00 405 440 Cemig Ger. Itutinga S.A. 151,309,332 100.00 151 180 100.00 151 184 100.00 151 179 Cemig Geração Camargos S.A. 113,499,102 100.00 113 144 100.00 113 136 100.00 113 132 Cemig Geração Sul S.A. 148,146,505 100.00 148 174 100.00 148 179 100.00 148 176 Cemig Geração Leste S.A. 100,568,929 100.00 101 127 100.00 101 127 100.00 101 121 Cemig Geração Oeste S.A. 60,595,484 100.00 61 84 100.00 61 73 100.00 61 70 Rosal Energia S.A. 46,944,467 100.00 47 127 100.00 47 128 100.00 47 125 Sá Carvalho S.A. 361,200,000 100.00 37 115 100.00 37 124 100.00 37 94 Horizontes Energia S.A. 39,257,563 100.00 39 55 100.00 39 57 100.00 39 55 Cemig PCH S.A. 45,952,000 100.00 46 90 100.00 46 98 100.00 46 93 Cemig Geração Poço Fundo S.A. 1,402,000 100.00 1 4 100.00 1 4 100.00 17 18 Empresa de Serviços de Comercialização de Energia Elétrica S.A. 486,000 100.00 — 57 100.00 — 28 100.00 — 27 Cemig Comercializadora de Energia Incentivada S.A. (3) — — — — 100.00 1 3 100.00 1 3 Cemig Trading S.A. 1,000,000 100.00 1 30 100.00 1 31 100.00 1 28 Cemig Distribuição 2,359,113,452 100.00 5,372 6,022 100.00 5,372 4,708 100.00 2,772 4,708 TAESA 1,033,496,721 21.68 3,042 6,026 21.68 3,042 4,927 21.68 3,042 4,572 Ativas Data Center 456,540,718 19.60 182 86 19.60 182 82 19.60 182 84 Gasmig 409,255,483 99.57 665 1,079 99.57 665 988 99.57 665 1,001 Cemig Geração Distribuída (4) — — — — 100.00 — 11 100.00 — 3 LEPSA — — — — — — — 100.00 406 447 RME — — — — — — — 100.00 403 423 Cemig Sim (Efficientia) (5) 24,431,845 100.00 24 94 100.00 15 17 100.00 15 18 Companhia de Transmissão Centroeste de Minas (6) 28,000,000 51.00 28 118 51.00 28 47 51.00 28 39 Axxiom Soluções Tecnológicas 65,165,000 49.00 65 9 49.00 58 27 49.00 47 17 UFV Janaúba Geração de Energia Elétrica Distribuída 18,509,900 49.00 19 22 — — — — — — UFV Corinto Geração de Energia Elétrica Distribuída 18,000,000 49.00 18 20 — — — — — — UFV Manga Geração de Energia Elétrica Distribuída 21,235,933 49.00 21 24 — — — — — — UFV Bonfinópolis Geração de Energia Elétrica Distribuída 13,197,187 49.00 13 13 — — — — — — UFV Lagoa Grande Geração de Energia Elétrica Distribuída 25,471,844 49.00 25 26 — — — — — — UFV Lontra Geração de Energia Elétrica Distribuída 29,010,219 49.00 29 29 — — — — — — UFV Mato Verde Geração de Energia Elétrica Distribuída 11,030,391 49.00 11 12 — — — — — — UFV Mirabela Geração de Energia Elétrica Distribuída 9,320,875 49.00 9 9 — — — — — — UFV Porteirinha I Geração de Energia Elétrica Distribuída 12,348,392 49.00 12 13 — — — — — — UFV Porteirinha II Geração de Energia Elétrica Distribuída 11,702,733 49.00 12 12 — — — — — — (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. Renova adjusted its equity interest in the joint-venture Brasil PCH and recognized adjustments in its financial statements related to shares in profits and losses arising from this investee from the year of 2018, which resulted in restatement of its financial statements of December 31, 2019. (3) On October 1, 2020, Cemig GT completed the merger of its subsidiary Cemig Comercializadora de Energia Incentivada S.A., at book value, with consequent extinction of this investee, and the Cemig GT becoming its successor in all its assets, rights and obligations. (4) On October 19, 2020, the Cemig Geração Distribuída was merged with the Company, at book value, with consequent extinction of this investee, and the Company becoming its successor in all its assets, rights and obligations. (5) On April 14, 2020, the minute of the Annual General Meeting that decided about changes in this subsidiary’s By-laws was registered in the commercial registry authority, changing the name of this subsidiary to Cemig Soluções Inteligentes em Energia S.A.-CEMIG SIM. (6) On January 13, 2020, the Company concluded acquisition of the equity interest of 49% of the share capital held by Eletrobras in Centroeste. |
Schedule of direct and indirect equity interests | On December 31, 2020, the Company had indirect equity interests in the following investees: 2020 and 2019 (1) Direct interest % Indirect interest % Amazônia 74.50 % 5.76 % LightGer 49.00 % 11.52 % Guanhães 49.00 % 11.52 % Axxiom 49.00 % 11.52 % UHE Itaocara 49.00 % 11.52 % (1) After selling the shares held in Light, on January 22, 2021, the Company no longer holds the indirect interest above. |
Schedule of summarized financial information of the company's equity investees | The main balances for the affiliated and jointly-controlled entities, at December 31, 2020, 2019 and 2018, are as follows: 2020 Hidrelétrica Itaocara S.A. Ativas Data Center Taesa Axxiom Soluções Tecnológicas Lightger Hidrelétrica Cachoeirão Assets Current 3 39 2,360 20 103 30 Cash and cash equivalents 2 12 896 3 80 26 Non-current 10 104 11,745 21 129 80 Total assets 13 143 14,105 41 232 110 Liabilities Current 73 39 841 25 72 2 Loans and financings – Current — 27 121 7 9 — Non-current — 18 7,238 7 54 — Loans and financings – Non-Current — 16 923 1 54 — Equity (60 ) 86 6,026 9 106 108 Total liabilities and equity 13 143 14,105 41 232 110 Statement of income Net sales revenue — 94 3,561 41 52 34 Cost of sales (13 ) (78 ) (1,048 ) (38 ) (9 ) (15 ) Depreciation and amortization — (15 ) (7 ) (2 ) (11 ) (3 ) Gross profit (loss) (13 ) 16 2,513 3 43 19 General and administrative expenses — (8 ) (153 ) (5 ) (1 ) — Finance income — — 39 — 2 1 Finance expenses (5 ) (3 ) (514 ) (1 ) (16 ) — Operational profit (loss) (18 ) 5 1,885 (3 ) 28 20 Share of (loss) profit, net, of subsidiaries and joint ventures — — 834 — — — Income tax and social contribution tax — (2 ) (456 ) — (2 ) (1 ) Net income (loss) for the year (18 ) 3 2,263 (3 ) 26 19 Comprehensive income (loss) for the year (18 ) 3 2,263 (3 ) 26 19 2020 Hidrelétrica Pipoca Retiro Baixo Aliança Norte Guanhães Energia Amazônia Energia Renova Madeira Energia Assets Current 21 87 13 998 945 Cash and cash equivalents 8 74 6 29 263 Non-current 89 331 1,189 405 1,296 1,299 21,370 Total assets 110 418 1,189 418 1,296 2,297 22,315 Liabilities Current 17 30 27 725 1,150 Loans and financings Current 7 14 12 380 108 Non-current 20 63 123 2,680 18,906 Loans and financings Non-Current 20 55 106 1,083 4,902 Equity 73 325 1,189 268 1,296 (1,108 ) 2,259 Total liabilities and equity 110 418 1,189 418 1,296 2,297 22,315 Statement of income Net sales revenue 33 73 49 70 3,200 Cost of sales (6 ) (29 ) (36 ) (46 ) (2,720) Depreciation and amortization (3 ) (11 ) (17 ) (7 ) (869) Gross profit (loss) 27 44 13 24 480 General and administrative expenses (1 ) (4 ) (1 ) (122 ) (82) Finance income 2 258 Finance expenses (2 ) (6 ) (10 ) 26 (2,112) Operational profit (loss) 24 36 (1 ) 3 (72 ) (1,456) Share of (loss) profit, net, of subsidiaries and joint ventures (77 ) (84 ) 95 Income tax and social contribution tax (2 ) (3 ) (2 ) (1 ) 10 Net income (loss) for the year 22 33 (78 ) 1 (84 ) 22 (1,446) Comprehensive income (loss) for the year 22 33 (78 ) 1 (84 ) 22 (1,446) 2020 Baguari Energia Aliança Geração UFV Janaúba UFV Corinto UFV Manga UFV Bonfinópolis II Assets Current 63 805 3 2 1 Cash and cash equivalents 10 385 2 1 Non-current 209 2,461 19 18 23 13 Total assets 272 3,266 22 20 24 13 Liabilities Current 22 503 Loans and financings Current 19 Non-current 21 905 1 2 Loans and financings Non-Current 261 Equity 229 1,858 22 19 22 13 Total liabilities and equity 272 3,266 22 20 24 13 Statement of income Net sales revenue 73 1,042 3 3 Cost of sales (30 ) (580 ) 3 Depreciation and amortization (11 ) (154 ) (1 ) (1 ) (1 ) Gross profit (loss) 43 462 3 3 3 General and administrative expenses 5 (47 ) (1 ) (2 ) Finance income 2 28 Finance expenses (1 ) (63 ) Operational profit (loss) 49 380 3 2 1 Share of (loss) profit, net, of subsidiaries and joint ventures Income tax and social contribution tax (17 ) (126 ) Net income (loss) for the year 32 254 3 2 1 Comprehensive income (loss) for the year 32 254 3 2 1 2020 UFV Lagoa Grande UFV Lontra UFV Mato Verde UFV Mirabela UFV Porteirinha I UFV Porteirinha II Assets Current 2 — 1 — 1 — Cash and cash equivalents 1 — — — — — Non-current 24 29 11 9 12 12 Total assets 26 29 12 9 13 12 Liabilities Current — 1 — — — — Non-current — 1 — — — — Equity 26 27 12 9 13 12 Total liabilities and equity 26 29 12 9 13 12 Statement of income Net sales revenue 2 — — 1 — — Cost of sales — (1 ) — — — — Gross profit (loss) 2 (1 ) — 1 — — General and administrative expenses (1 ) (1 ) — — — (1 ) Operational profit (loss) 1 (2 ) — 1 — (1 ) Income tax and social contribution tax — — — — — 1 Net income (loss) for the year 1 (2 ) — 1 — — Comprehensive income (loss) for the year 1 (2 ) — 1 — — 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 and equity 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 2,269 124 419 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 (1,130 ) 95 267 1,858 Total liabilities and equity 1,380 22,430 247 2,291 211 430 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 Pipoca 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 and equity 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 (restated) Aliança Geração Assets Current — 618 44 1,738 791 Cash and cash equivalents — 69 8 15 381 Non-current 1,360 22,453 201 867 2,440 Total assets 1,360 23,071 245 2,605 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 (100 ) 1,858 Total liabilities and equity 1,360 23,071 245 2,605 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 |
Schedule of restatement of prior holding in subsidiaries acquired | The fair value of the net assets acquired and the remeasurement of the previously held interest, which impacts were recognized in 2020, are 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 at fair value on the date control was obtained 61 Carrying value of the investment (24 ) Remeasurement of previously held equity interest in subsidiaries acquired 37 |
Schedule of remeasurement of interest previously held in subsidiaries at fair value | The fair value of interest acquired in relation to cash consideration 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 fair value of the assets and liabilities acquired at the acquisition date, is as follows: Assets Fair value Liabilities Fair value 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 108 Non-current 11 Loans and financings 8 Provisions 3 Fair value of net identifiable assets 120 |
Schedule of recognized in profit or loss | Regarding the adjustments mentioned above, the total amounts recognized in profit or loss in 2020 arising from the acquisition of Centroeste’s equity interest of 49% is as follows: Centroeste Gain on remeasurement of previously held equity interest in the subsidiaries acquired (51%) 37 Bargain purchase – gain arising from the acquisition of the additional equity interest of 49% 14 Total 51 |
Schedule of acquisition-date fair values of the identifiable assets and liabilities and other related information | The acquisition-date fair values of the identifiable assets and liabilities and other related information are presented below: Entity Generation Capacity (MW) Generation Capacity (MWp) Acquisition date Net fair value of the identifiable assets and liabilities – Cemig Sim shareholding (49%) Transaction price - R$ Bargain purchase /Loss Corinto 5 5.28 19/08/2020 9 9 — Manga 5 6.34 30/09/2020 11 10 1 Bonfinópolis 2.5 3.45 25/11/ 2020 6 6 — Lagoa Grande 5 7.33 25 /11/2020 15 12 3 Lontra 5 6.38 25/11/2020 17 14 3 Mato Verde 2.5 3.23 25/11/2020 6 5 1 Mirabela 2 2.59 25/11/2020 4 5 (1 ) Porteirinha 2.5 3.23 25/11/2020 6 6 — Porteirinha II 2.5 3.23 25/11/2020 6 6 — Total 32 41.06 — 80 73 7 |
17. PROPERTY, PLANT AND EQUIP_2
17. PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Schedule of movement in property, plant and equipment | 2020 2019 Historical cost Accumulated depreciation Net value Historical cost Accumulated depreciation Net value In service Land 247 (23 ) 224 248 (19 ) 229 Reservoirs, dams and watercourses 3,300 (2,280 ) 1,020 3,280 (2,200 ) 1,080 Buildings, works and improvements 1,100 (836 ) 264 1,092 (818 ) 274 Machinery and equipment 2,647 (1,930 ) 717 2,598 (1,869 ) 729 Vehicles 21 (19 ) 2 20 (18 ) 2 Furniture and utensils 14 (11 ) 3 14 (11 ) 3 7,329 (5,099 ) 2,230 7,252 (4,935 ) 2,317 In progress 177 — 177 133 — 133 Net property, plant and equipment 7,506 (5,099 ) 2,407 7,385 (4,935 ) 2,450 Changes in PP&E are as follows: 2019 Additions Disposals (3) Depreciation Transfers / capitalizations (2) 2020 In service Land (1) 229 — (1 ) (4 ) — 224 Reservoirs, dams and watercourses 1,080 — — (80 ) 20 1,020 Buildings, works and improvements 274 — — (18 ) 8 264 Machinery and equipment 729 20 (2 ) (79 ) 49 717 Vehicles 2 — — — — 2 Furniture and utensils 3 — — — — 3 2,317 20 (3 ) (181 ) 77 2,230 In progress 133 112 11 — (79 ) 177 Net property, plant and equipment 2,450 132 8 (181 ) (2 ) 2,407 (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$2 were transferred to Intangible assets from PP&E. (3) Includes the impairment loss recognized for assets in progress. 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. |
Schedule of summary of property plant and equipment depreciation rate | 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 Floodgate 3.33 The average annual depreciation rate for the year 2020 is 3.14% (3.13% in 2019 and 3.72% in 2018). The segregation by activity is as follows: Hydroelectric Generation Wind Power Generation Administration 2.96 % 4.94 % 6,19 % |
Schedule of consortium | The Company’s portion in the consortium is recorded and controlled individually in the respective categories of PP&E and Intangible assets. Stake in power output (%) Average annual depreciation rate (%) 2020 2019 In service Usina de Queimado 82.50 3.93 218 217 Accumulated depreciation (117 ) (109 ) Total 101 108 In progress Usina de Queimado 82.50 — 2 1 Total 2 1 |
18. INTANGIBLE ASSETS (Tables)
18. INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [abstract] | |
Schedule of composition of intangible assets | The composition of the balance at December 31, 2020 and 2019 is as follow: 2020 2019 Historical cost Accumulated amortization Residual value Historical cost Accumulated amortization Residual value In service Useful life defined Temporary easements 13 (4 ) 9 12 (4 ) 8 Onerous concession 19 (13 ) 6 20 (13 ) 7 Assets of concession (1) 20,781 (9.107 ) 11,674 20,039 (8,522 ) 11,517 Others 78 (70 ) 8 77 (67 ) 10 20,891 (9,194 ) 11,697 20,148 (8,606 ) 11,542 In progress 113 — 113 82 — 82 Net intangible assets 21,004 (9,194 ) 11,810 20,230 (8,606 ) 11,624 (1) The rights of authorization to generate wind power granted to the subsidiary Parajuru Volta do Rio |
Schedule of changes in intangible assets | Changes in Intangible assets are as follow: 2019 Additions Disposals (1) Amortization Transfers (2) 2020 In service Useful life defined Temporary easements 8 — — — 1 9 Onerous concession 7 — — (1 ) — 6 Assets of concession 11,517 — (24 ) (738 ) 919 11,674 Others 10 — — (5 ) 3 8 11,542 — (24 ) (744 ) 923 11,697 In progress 82 41 — — (10 ) 113 Net intangible assets 11,624 41 (24 ) (744 ) 913 11,810 (1) This includes the impairment reversal, in the amount of R$14, recognized in the Income Statement under “Other expenses”, as a result of the test of impairment of intangible assets, relating to the authorization for wind power generation granted to Volta do Rio, on December 31, 2020. More information is available on this note. (2) The transfers were made between Intangible assets, concession contract assets, financial assets and property, plant and equipment are as follows: (1) R$906 from concession contract assets to intangible assets; (2) R$2 from property, plant and equipment to intangible assets; and (3) R$5 from concession financial asset to intangible assets. 2018 Additions Disposals (1) Amortization Transfers (2) 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) 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. 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 |
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 4.05%. The segregation by activity is as follows: Hydroelectric Generation Wind Power Generation Gas Distribution Administration 9.06 % 8.88 % 3.48 % 3.90 % 15.74 % |
Schedule of based on the data supplied | Based on the data supplied by CCEE to Aneel, the Company’s plants will have the right to the following periods of extension: Power plant Physical Guarantee (average MW) Concession extension (months) Emboração 500 23 Nova Ponte 270 25 Sá Carvalho 56 22 Rosal 29 46 Others (1) 399 — (1) Includes 11 power plants, of which 7 are owned by Cemig GT, 1 is owned by Cemig PCH and 3 are owned by Horizontes. The average concession extension in months varies between 1 and 84 months. |
19. LEASING TRANSACTIONS (Table
19. LEASING TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leasing Transactions | |
Schedule of credit risk and the market conditions at the lease agreement date | 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 and reflect the Company’s credit risk and the market conditions at the lease agreement date, as follows: Marginal rate Annual rate (%) Monthly rate (%) Initial application Up to two years 7.96 0.64 Three to five years 10.64 0.85 Six to twenty years 13.17 1.04 Contracts entered – 2019 and 2020 Up to three years 6.87 0.56 Three to four years 7.33 0.59 Four to twenty years 8.08 0.65 |
Schedule of right to use | Changes in the right-of-use assets are as follows: Real estate property Vehicles Total Balances at December 31, 2018 - - - Adoption on January 1, 2019 238 104 342 Disposals (contracts terminated) 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 Disposals (contracts terminated) (9 ) — (9 ) Amortization (1) (25 ) (40 ) (65 ) Addition 6 — 6 Remeasurement (2) 7 (4 ) 3 Balances at December 31, 2020 185 27 212 (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 of R$2. (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 lease liabilities | The changes in the lease liabilities are as follows: 2019 Balances at December 31, 2018 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 Addition 6 Disposals (contracts terminated) (10 ) Accrued interest (2) 29 Payment of principal portion of lease liability (84 ) Payment of interest (3 ) Remeasurement (3) 2 Balances at December 31, 2020 227 Current liabilities 48 Non-current liabilities 179 (1) 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 (R$2 on December 31, 2019). (2) 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 644 227 Potential PIS/Pasep and Cofins (9.25%) 55 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: 2021 56 2022 27 2023 26 2024 26 2025 26 2026 at 2045 483 Undiscounted values 644 Embedded interest (417 ) Lease liabilities 227 |
20. SUPPLIERS (Tables)
20. SUPPLIERS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Current raw materials and current production supplies [abstract] | |
Schedule of suppliers | 2020 2019 Energy on spot market – CCEE 490 401 Charges for use of energy network 192 145 Energy purchased for resale 808 764 Itaipu Binacional 325 243 Gas purchased for resale 127 143 Materials and services 416 384 2,358 2,080 |
21. TAXES PAYABLE AND AMOUNTS_2
21. TAXES PAYABLE AND AMOUNTS TO BE REFUNDED TO CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of taxes, income tax and social contribution tax [abstract] | |
Schedule of taxes and amounts to be restituted to customers | 2020 2019 (Restated) 01/01/2019 (Restated) Current ICMS 112 112 168 COFINS (2) 184 177 182 PIS/PASEP (2) 41 39 39 INSS 29 25 23 Others (1) 140 58 41 506 411 453 Non-current COFINS (3) 216 186 206 PIS/PASEP (3) 47 41 43 263 227 249 769 638 702 Amounts to be refunded to customers Current PIS/PASEP and COFINS 448 — — Non-current PIS/PASEP and COFINS 3,570 4,193 1,124 4,018 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. (2) Includes Cofins and PIS/Pasep recognized in current liability includes the deferred taxes related to the interest revenue arising from the financing component in contract asset and to the revenue of construction and upgrade associated with the transmission concession contract, whose consideration will be received in at least twelve months after the reporting period. For more information, see note 2.8 and 15. (3) The deferral of PIS/Pasep and Cofins taxes related to the interest revenue arising from the financing component in contract asset and to the revenue of construction and upgrade associated with the transmission concession contract, whose consideration will be received in at least twelve months after the reporting period. For more information, see note 2.8 and 15. |
22. LOANS, FINANCING AND DEBENT
22. LOANS, FINANCING AND DEBENTURES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure loans financings and debentures [abstract] | |
Schedule of loans financing and debentures | Financing source Principal maturity Annual financial cost % Currency 2020 2019 Current Non-current Total Total FOREIGN CURRENCY Banco do Brasil: Various Bonds (1) (4) 2024 Diverse US$ 2 10 12 18 Eurobonds (2) 2024 9.25% US$ 59 7,795 7,854 6,092 (-)Transaction costs — (16 ) (16 ) (19 ) (±) Interest paid in advance (3) — (25 ) (25 ) (30 ) Debt in foreign currency 61 7,764 7,825 6,061 BRAZILIAN CURRENCY Caixa Econômica Federal (5) 2021 TJLP + 2.50% R$ 17 — 17 61 Caixa Econômica Federal (6) 2022 TJLP + 2.50% R$ 14 — 14 118 Eletrobrás (4) 2023 UFIR + 6.00% at 8.00% R$ 3 5 8 20 Large customers (4) 2024 IGP-DI + 6.00% R$ — — — 5 Sonda (7) 2021 110.00% of CDI R$ 50 — 50 49 Promissory Notes – 1st Issue - Single series (8) 2020 107.00% of CDI R$ — — — 875 (-) FIC Pampulha - Marketable securities of subsidiary companies (9) — — — (3 ) Debt in Brazilian currency 84 5 89 1,125 Total of loans and financings 145 7,769 7,914 7,186 Debentures - 3th Issue – 3rd Series (2) 2022 IPCA + 6.20% R$ 395 367 762 1,088 Debentures - 6th Issue – 2nd Series (2) 2020 IPCA + 8.07% R$ — — — 17 Debentures - 7th Issue – Single series (2) (11) 2021 140.00% of CDI R$ 289 — 289 578 Debentures - 3th Issue – 2nd Series (4) 2021 IPCA + 4.70% R$ 588 — 588 1,109 Debentures - 3th Issue – 3rd Series (4) 2025 IPCA + 5.10% R$ 43 992 1,035 991 Debentures - 7th Issue – 1st Series (4) 2024 CDI + 0.45% R$ 542 1,350 1,892 2,165 Debentures - 7th Issue – 2nd Series (4) 2026 IPCA + 4.10% R$ 3 1,585 1,588 1,520 Debentures – 4th Issue – 1st Series (8) 2022 TJLP+1.82% R$ 10 10 20 31 Debentures – 4th Issue – 2nd Series (8) 2022 Selic + 1,82% R$ 5 4 9 14 Debentures – 4th Issue – 3th Series (8) 2022 TJLP + 1,82% R$ 12 10 22 34 Debentures – 4th Issue – 4th Series (8) 2022 Selic + 1,82% R$ 5 5 10 15 Debentures – 7th Issue – Single series (8) 2023 CDI + 1.50% R$ 20 40 60 80 Debentures – 8th Issue – Single series (8) 2031 IPCA + 5.27% R$ 14 876 890 — (-) Discount on the issuance of debentures (10) — (18 ) (18 ) (22 ) (-) Transaction costs (12 ) (29 ) (41 ) (29 ) Total, debentures 1,914 5,192 7,106 7,591 Total 2,059 12,961 15,020 14,777 (1) Net balance of the Restructured Debt comprising bonds at par and discounted, with balance of R$234, less the amounts given as Deposits in guarantee, with balance of R$222. 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. The proceeds from the 8th debenture issue, concluded by Gasmig on September 10, 2020, in the amount of R$850, were used to redeem the Promissory Notes issued on September 26, 2019, with maturity at 12 months, whose proceeds were used in their entirety for payment of the concession grant fee for the gas distribution concession contract. (9) FIC Pampulha has financial investments in marketable securities issued by subsidiaries of the Company. For more information on this fund, see Note 31. (10) Discount on the sale price of the 2nd series of the Seventh issue of Cemig Distribuição. (11) On February 02, 2021, the Company made the mandatory early redemption of this debentures, in the amount of R$264, with 20% discount of the funds obtained by the sale of the Company’s interest in Light. For more information about the sale of the Company’s interest in Light, see Note 32. |
Schedule of consolidated totals of funds raised | The total of the net proceeds was used for the obligatory early redemption of Gasmig’s first Commercial Promissory Note issue, in a single series, totaling R$850 on the issue date. Financing source 2020 Signature date Principal maturity Annual financial cost % Amount BRAZILIAN CURRENCY Debentures – 8th Issue – Single series September, 2020 2031 IPCA + 5.27% 850 (-)Transactions costs (24 ) Total raised 826 Financing source 2019 Signature date Principal maturity Annual financial cost % Amount BRAZILIAN CURRENCY Debentures – 7th Issue – 1st Series (1) July, 2019 2024 CDI + 0.454% 2,160 Debentures – 7th Issue – 2nd Series (1) July, 2019 2026 4.10% of IPCA 1,500 Promissory Notes – 1st Issue (2) September, 2019 2020 107.00% of CDI 850 (-)Transactions costs (10 ) (-)Discount on the issuance of debentures (3) (23 ) Total raised 4,477 (1) Cemig Distribuição (2) Gasmig (3) Discount on the sale price of the 2nd series of the debentures issued by Cemig Distribuição. Financing source 2018 Signature date Principal maturity Annual financial cost % Amount FOREIGN CURRENCY Eurobonds (1) July, 2018 2024 9.25 % 1,946 (-) Transactions costs (8 ) (±)Interest paid in advance (2) 10 1,948 BRAZILIAN CURRENCY Promissory Notes – 9th Issue - Single Series (3) May, 2018 2019 151% of CDI 400 (-)Transactions costs (4 ) Debentures — Debentures (4) August, 2018 2023 CDI + 1.50% 100 Debentures – 6th Issue – Single Series (5) December, 2018 2020 CDI + 1.75% 550 (-)Transactions costs (4 ) 1,042 Total raised 2,990 (1) In July 2018, Cemig GT completed financial settlement of an additional tranche to its initial Eurobond issue completed on December 5, 2017. The new tranche, of US$ 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 |
Schedule of guarantees of the debtor balance on loans and financings | The guarantees of the debt balance on loans and financing, on December 31, 2020, were as follows: 2020 Promissory notes and Sureties 10,197 Guarantee and Receivables 3,454 Receivables 112 Shares 330 Unsecured 927 TOTAL 15,020 |
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: 2021 2022 2023 2024 2025 2026 Total Currency US dollar 61 — — 7,805 — — 7,866 Total, currency denominated 61 — — 7,805 — — 7,866 Index IPCA (1) 1,043 615 248 341 1,138 1,478 4,863 UFIR/RGR (2) 3 3 2 — — — 8 CDI (3) 912 570 560 268 — — 2,310 URTJ/TJLP (4) 53 20 — — — — 73 Total by index 2,011 1,208 810 609 1,138 1,478 7,254 (-)Transaction costs (12 ) (1 ) (1 ) (18 ) (5 ) (20 ) (57 ) (±)Interest paid in advance — — — (25 ) — — (25 ) (-) Discount — — — — (9 ) (9 ) (18 ) Overall total 2,060 1,207 809 8,371 1,124 1,449 15,020 (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) |
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 2020, % Accumulated change in 2019, % Indexer Accumulated change in 2020, % Accumulated change in 2019, % US dollar 28.93 4.02 IPCA 4.52 4.31 CDI 2.77 5.97 TJLP (18.31 ) (20.20 ) |
Schedule of changes in loans, financings and debentures | The changes in loans, financing and debentures are as follows: 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 Liabilities arising from business combination (1) 10 Initial balance for consolidation purposes 14,787 Loans and financing obtained 850 (–) Transaction costs (24 ) Monetary variation 187 Exchange rate variation 1,742 Financial charges provisioned 1,211 Amortization of transaction cost 15 Financial charges paid (2) (1,212 ) Amortization of financing (2,531 ) Reclassification to “Other obligations” (3) (8 ) Subtotal 15,017 FIC Pampulha: Marketable securities of subsidiary companies 3 Balance at December 31, 2020 15,020 (1) Loans arising from business combinations due to the acquisition of the remaining equity interest in Companhia Centroeste de Minas, settled in full in August 2020. (2) Withholding income tax on remittance of interest on Eurobonds, in the amount of R$130, was offset against PIS/Pasep and Cofins credits. (3) Reclassification to Cemig D’s customers (CMM and Serra da Fortaleza). |
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: 2020 2019 2018 Costs of loans and financing 1,211 1,250 1,287 Financing costs on intangible assets and contract assets (1) (Notes 15 and 18) (33 ) (23 ) (30 ) Net effect in Profit or loss 1,178 1,227 1,257 (1) The average capitalization rate p.a. in 2020 was 5.39% (6.79% in 2019 and 9.64% in 2018). |
Schedule of restrictive covenants | The Company has contracts with financial covenants as follows: Title - Security Covenant Ratio required – Issuer Ratio required Cemig (guarantor) Compliance required 7th Debentures Issue Cemig GT (1) Net debt / (Ebitda + Dividends received) The following or less: 3.0 in 2020 2.5 in 2021 The following or less: 3.0 in 2020 2.5 in 2021 Semi-annual and annual Eurobonds Cemig GT (2) Net debt / Ebitda adjusted for the Covenant (6) The following or less: 3.0 on Dec. 31, 2020 3.0 on June 30, 2021 2.5 on/after Dec. 31, 2021 The following or less: 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 than 3.5 The following or Less than 3.0 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: 2.5 on/after Dec, 31.2020 - Annual 8th Debentures Issue Gasmig Single series (4) EBITDA/Debt servicing Net debt/EBITDA 1.3 or more as of Dec, 31.2020 3.0 or less as of Dec, 31.2020 - - Annual Annual Financings Caixa Econômica Federal (CEF) Parajuru and Volta do Rio (5) Debt servicing coverage index Equity / Total liabilities Share capital subscribed in investee / Total investments made in the project financed 1.20 or more 20.61% or more (Parajuru) 20.63% or more (Volta do Rio) 20.61% or more (Parajuru) 20.63% or more (Volta do Rio) - - - Annual (during amortization) Always 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 by the debenture holders for 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) Non-compliance with the financial covenants results in automatic early maturity. If early maturity is declared by the debenture holders, Gasmig must make the payment after receipt of notification. (5) 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. (6) Ebitda is defined as: (i) Profit before interest, income tax and Social Contribution tax on profit; depreciation; and amortization, calculated in accordance with CVM Instruction 527, of October 4, 2012; – less: (ii) non-operational profit; any non-recurring non-monetary credits or gains that increase net profit; any payments in cash made on consolidated basis during the period relating to non-monetary charges that were newly added in the calculation of Ebitda in any prior period; and any non-recurring non-monetary expenses or charges. |
23. REGULATORY CHARGES (Tables)
23. REGULATORY CHARGES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 | 2020 2019 Liabilities Global Reversion Reserve (RGR) 28 31 Energy Development Account (CDE) 64 58 Grantor inspection fee – ANEEL 3 3 Energy Efficiency Program 265 255 Research and development (R&D) 225 199 Energy System Expansion Research 4 3 National Scientific and Technological Development Fund 8 6 Proinfa – Alternative Energy Program 7 8 Royalties for use of water resources 13 10 Emergency capacity charge 26 26 Customer charges – Tariff flags 90 — Others 4 5 737 604 Current liabilities 446 457 Non-current liabilities 291 147 |
24. POST-EMPLOYMENT OBLIGATIO_2
24. POST-EMPLOYMENT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of defined benefit plans [abstract] | |
Schedule of consolidated actuarial information | 2020 Pension plans and retirement supplement plans Health plan Dental plan Life insurance Total Present value of obligations 13,308 3,319 64 551 17,242 Fair value of plan assets (10,420 ) — — — (10,420 ) Initial net liabilities 2,888 3,319 64 551 6,822 Adjustment to asset ceiling 21 — — — 21 Net liabilities in the statement of financial position 2,909 3,319 64 551 6,843 2019 Pension plans and retirement supplement 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 |
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 and retirement supplement plans Health plan Dental plan Life insurance Total 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 Cost of current service 1 21 1 3 26 Interest on actuarial obligation 887 215 4 41 1,147 Actuarial losses (gains): Due to changes in demographic assumptions 135 395 4 — 534 Due to changes in financial assumptions (375 ) (152 ) (4 ) (34 ) (565 ) Due to adjustments based on experience 289 (119 ) 1 (23 ) 148 49 124 1 (57 ) 117 Benefits paid (914 ) (143 ) (3 ) (10 ) (1,070 ) Defined-benefit obligation at December 31, 2020 13,308 3,319 64 551 17,242 |
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, 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 Return on investments 757 Contributions from employer 211 Benefits paid (914 ) Fair value of the plan assets at December 31, 2020 10,420 |
Schedule of defined benefit plans expense recognised in income statement | The amounts recognized in 2020, 2019 and 2018 statement of income are as follows: 2020 Pension plans and retirement supplement 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 ) Expense (recovery of expense) in 2020 according to actuarial calculation 206 236 5 44 491 2019 Pension plans and retirement supplement 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 and retirement supplement 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 |
Schedule of changes in net liabilities | Pension plans and retirement supplement plans Health plan Dental plan Life insurance Total 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 gains (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 gains (losses) 805 667 10 117 1,599 Net liabilities at December 31, 2019 2,972 3,102 61 574 6,709 Expense recognized in Statement of income 206 236 5 44 491 Contributions paid (211 ) (143 ) (3 ) (10 ) (367 ) Actuarial gains (losses) (58 ) 124 1 (57 ) 10 Net liabilities at December 31, 2020 2,909 3,319 64 551 6,843 2020 2019 Current liabilities 305 288 Non-current liabilities 6,538 6,421 |
Schedule of independent actuaries estimate for the expense amount | The independent actuary’s estimation for the expense to be recognized for 2021 is as follows: Pension plans and retirement supplement plans Health plan Dental plan Life insurance Total Current service cost 2 21 1 3 27 Interest on the actuarial obligation 884 231 5 39 1,159 Expected return on the assets of the Plan (685 ) — — — (685 ) Estimated total expense in 2020 as per actuarial report 201 252 6 42 501 |
Schedule of expectation for payment of benefits | The expectation for payment of benefits for 2021 is as follows: Pension plans and retirement supplement plans – Forluz Health plan Dental plan Life insurance Total Estimated payment of benefits 928 172 3 18 1,121 |
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 Health plan Dental plan Life insurance Plan A Plan B 11.58 12.81 13.8 15.01 18.66 |
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: 2020 2019 Shares 9.25 % 9.51 % Fixed income securities 72.17 % 72.28 % Real estate property 3.71 % 3.79 % Others 14.87 % 14.42 % Total 100.00 % 100.00 % The following assets of the pension plan, measured at fair value, are related to the Company: 2020 2019 Non-convertible debentures issued by the Company 338 398 Shares issued by the Company 4 24 Real estate properties of the Foundation, occupied by the Company 285 503 627 925 |
Schedule of actuarial assumptions | This table provides the main actuarial assumptions: 2020 Pension plans and retirement supplement plans Health plan and Dental plan Life insurance Annual discount rate for present value of the actuarial obligation 6.83% 7.14% 7.25% Annual expected return on plan assets 6.83% Not applicable Not applicable Long-term annual inflation rate 3.32% 3.32% 3.32% Estimated future annual salary increases 3.32% Not applicable 4.56% 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) — 1% — (1) Starting in 2018, Company adopted the assumption of real growth of the contributions above inflation at the rate of 1% p.a. 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) — 1% — (1) Starting in 2018, Company adopted the assumption of real growth of the contributions above inflation at the rate of 1% p.a. 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. |
Schedule of sensitivity analysis of the effects of changes in the principal actuarial assumptions used to determine the defined-benefit obligation | The sensitivity analysis of the effects of changes in the main actuarial assumptions used to determine the defined-benefit obligation at December 31, 2020 is shown below: Effects on the defined-benefit obligation Pension plans and retirement supplement plans Health plan Dental plan Life insurance Total Reduction of one year in the mortality table 336 79 1 (15 ) 401 Increase of one year in the mortality table (338 ) (80 ) (1 ) 16 (403 ) Reduction of 1% in the discount rate 1,513 483 10 111 2,117 |
25. PROVISIONS (Tables)
25. PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: 2019 Additions Reversals Settled / Reversal (1) Provisions arising from business combination (2) 2020 Labor 497 106 (60 ) (116 ) — 427 Civil Customer relations 19 22 — (18 ) — 23 Other civil actions 18 21 — (7 ) — 32 37 43 — (25 ) — 55 Tax 1,260 113 (38 ) (41 ) — 1,294 Regulatory 36 16 — — — 52 Others 58 13 (7 ) (3 ) 3 64 Total 1,888 291 (105 ) (185 ) 3 1,892 (1) This includes the amount of R$39, corresponding to the reversal of the contingency provisions relating to ICMS credits, recognized as recoverable taxes, due to a final judgment, against which there is no further appeal, in favor of the subsidiary Gasmig, on June 9, 2020. (2) On January 13, 2020, the Company obtained the Centroeste control, which is consolidated as of 2020 first quarter. More details see note 16. 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 |
26. EQUITY AND REMUNERATION T_2
26. EQUITY AND REMUNERATION TO SHAREHOLDERS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement of changes in equity [abstract] | |
Schedule of share capital for common shares and preferred shares | As of December 31, 2020, the Company’s issued and share capital is R$7,594 (R$7,294 at December 31, 2019 and 2018), represented by 507,670,289 common shares (487,614,213 at December 31, 2019) and 1,011,082,312 preferred shares (971,138,388 at December 31, 2019), both of them with nominal value of R$5.00 (five Reais), as follows: Shareholders Number of shares on December 31, 2020 Common % Preferred % Total % State of Minas Gerais 258,738,711 51 11,788 — 258,750,499 17 Other entities of Minas Gerais State 20,713 — 7,442,037 1 7,462,750 — FIA Dinâmica Energia S.A. 114,172,677 22 43,975,272 4 158,147,949 10 BNDES Participações 56,578,175 11 27,299,432 3 83,877,607 6 BlackRock — — 153,689,970 15 153,689,970 10 Others In Brazil 55,717,246 11 212,704,725 21 268,421,971 18 Foreign shareholders 22,442,767 5 565,959,088 56 588,401,855 39 Total 507,670,289 100 1,011,082,312 100 1,518,752,601 100 Shareholders Number of shares on December 31, 2019 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 Shareholders Number of shares on December 31, 2018 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 — 704,350 — 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 |
Schedule of shares used in calculation of basic profit and diluted profit per share | The comparative information for 2019 and 2018 was adjusted retrospectively in order to reflect the capital increase. Number of shares 2020 2019 2018 Common shares already paid up 507,670,289 507,670,289 507,670,289 Shares in treasury (71 ) (71 ) (71 ) 507,670,218 507,670,218 507,670,218 Preferred shares already paid up 1,011,082,312 1,011,082,312 1,011,082,312 Shares in treasury (583,709 ) (583,709 ) (583,709 ) 1,010,498,603 1,010,498,603 1,010,498,603 Total 1,518,168,821 1,518,168,821 1,518,168,821 |
Schedule of calculation of basic earnings per share | The calculation of basic and diluted earnings per share is as follows: 2020 2019 (Restated) 2018 (Restated) Net income for the year attributed to equity holders of the parent 2,864 3,194 1,722 Minimum mandatory dividend from net income for the year - preferred shares 986 509 577 Net income for the year not distributed - preferred shares 920 1,617 569 Total earnings - preferred shares (A) 1,906 2,126 1,146 Minimum mandatory dividend from net income for the year - common shares 496 256 290 Net income for the year not distributed - common shares 462 812 286 Total earnings - common shares (B) 958 1,068 576 Basic and diluted earnings per preferred share (A / number of preferred shares) 1.89 2.10 1,13 Basic and diluted earnings per common share (B / number of common shares) 1.89 2.10 1,13 2020 2019 (Restated) 2018 (Restated) Net income for the year from continuing operations attributed to equity holders of the parent 2,864 2,970 1,400 Minimum mandatory dividend from net income for the year from continuing operations – preferred shares 986 509 577 Net income for the year from continuing operations not distributed – preferred shares 920 1,468 355 Total earnings from continuing operations - preferred shares (A.1) 1,906 1,977 932 Minimum mandatory dividend from net income for the year from continuing operations - common shares 496 256 290 Net income for the year from continuing operations not distributed – common shares 462 737 178 Total earnings from continuing operations - common shares (B.1) 958 993 468 Basic and diluted earnings from continuing operations per preferred share (A.1 / number of preferred shares) 1.89 1.95 0.92 Basic and diluted earnings from continuing operations per common share (B.1 / number of common shares) 1.89 1.95 0.92 |
Schedule of equity valuation adjustments | c) Equity valuation adjustments 2020 2019 2018 Adjustments to actuarial liabilities – Employee benefits (340 ) (343 ) (257 ) Subsidiary and jointly-controlled entity Adjustments to actuarial liabilities – Employee benefits (2,660 ) (2.650 ) (1.681 ) Deemed cost of PP&E 569 586 611 (2,091 ) (2.064 ) (1.070 ) Equity valuation adjustments (2,431 ) (2.407 ) (1.327 ) |
Schedule of capital reserves and profit reserves | Capital reserves 2020 2019 2018 Investment-related donations and subsidies 1,857 1,857 1,857 Goodwill on issuance of shares 394 394 394 Shares in treasury (1 ) (1 ) (1 ) 2,250 2,250 2,250 Profit reserves 2020 2019 (Restated) 2018 (Restated) Legal reserve 995 853 853 Statutory reserve 57 57 57 Retained earnings reserve 6,650 5,500 3,965 Unrealized profit reserve 835 835 — Incentive tax reserve 103 85 67 Reserve for mandatory dividends not distributed 1,420 1,420 1,420 10,060 8,750 6,362 |
Schedule of reserve for obligatory dividends not distributed | Reserve for mandatory dividends not distributed 2020 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 2020 unrealized profit assumption mentioned in the previous paragraphs, is as follows: 2020 2019 2018 Calculation of Minimum Dividends required by the By-laws for the preferred shares Nominal value of the preferred shares 5,055 4,856 4,856 5,055 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 506 486 486 Equity 17,473 15,887 14,579 Preferred shares as a percentage of Equity (net of shares held in Treasury) 66.56 % 66.56 % 66.56 % Portion of Equity represented by the preferred shares 11,630 10,574 9,704 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 349 317 291 Minimum Dividends required by the Bylaws for the preferred shares 506 486 486 Calculation of the Minimum Dividend under the by-laws based on the net income for the year Mandatory dividend Net income for the year 2,864 3,127 1,700 Mandatory dividends – 50% of Net income 1,432 1,564 850 Unrealized profit reserve (835 ) (835 ) Reversal of the unrealized profit reserve established in 2019 835 — — Withholding income tax on Interest on equity 50 35 17 1,482 764 867 Dividends recorded, as specified in the by-laws Interest on Equity 553 400 210 Ordinary dividends 929 364 657 1,482 764 867 Total dividends for the preferred shares 986 509 577 Total dividends for the common shares 496 255 290 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) 0.99 0.52 0.59 Dividends proposed: Common (ON) shares 0.99 0.52 0.59 Dividends proposed: Preferred (PN) shares 0.99 0.52 0.59 |
Schedule of dividends and interest on capital payable | This table provides the changes on dividends and interest on capital payable: Balances at December 31, 2018 864 Proposed dividends 764 Withholding income tax on interest on capital (35 ) Dividends retained – Minas Gerais state government (Note 11) (148 ) Dividends paid (701 ) Balances at December 31, 2019 744 Proposed dividends 1,482 Proposed dividends - Non-controlling interests 1 Withholding income tax on interest on capital (50 ) Dividends retained – Minas Gerais state government (Note 11) (130 ) Dividends paid (598 ) Balances at December 31, 2020 1,449 |
27. REVENUE (Tables)
27. REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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. 2020 2019 (Restated) 2018 (Restated) Revenue from supply of energy (a) 26,432 26,928 24,872 Revenue from use of the electricity distribution systems (TUSD) (b) 3,022 2,722 2,045 CVA, and Other financial components (c) 455 58 1,973 Reimbursement of PIS/Pasep and Cofins over ICMS credits to customers– realization (1) 266 — — Transmission revenue Transmission operation and maintenance revenue (d) 280 352 343 Transmission construction revenue (d) (note 14) 201 312 138 Interest revenue arising from the financing component in the transmission contract asset (d) (note 14) 438 328 311 Generation assets - indemnity revenue — — 55 Distribution construction revenue (e) 1,436 980 802 Adjustment to expectation of cash flow from indemnifiable financial assets of distribution concession (g) 16 18 — Revenue on financial updating of the Concession Grant Fee (h) 347 318 321 Energy transactions on the CCEE (i) 154 432 217 Mechanism for the sale of surplus (h) 234 — — Supply of gas 2,011 2,298 1,995 Fine for violation of service continuity indicator (51 ) (58 ) (44 ) Recovery of PIS/Pasep and Cofins (note 9) — 1,428 — Other operating revenues (j) 1,709 1,721 1,585 Deductions on revenue (k) (11,722 ) (12,351 ) (12,314 ) Net revenue 25,228 25,486 22,299 (1) For more information, see note 9 from this financial statements. |
Schedule of the supply of electricity by type of consumer | This table shows energy supply by type of customer: GWh (1) R$ 2020 2019 2018 2020 2019 2018 Residential 10,981 10,538 10,267 9,875 9,668 8,658 Industrial 12,731 14,873 17,689 4,171 4,760 4,893 Commercial, services and others 8,571 9,335 8,380 4,979 5,439 4,683 Rural 3,766 3,795 3,615 2,190 2,058 1,794 Public authorities 714 905 871 522 654 575 Public lighting 1,243 1,357 1,384 550 614 585 Public services 1,362 1,373 1,316 722 725 646 Subtotal 39,368 42,176 43,522 23,009 23,918 21,834 Own consumption 34 38 41 — — — Unbilled revenue — — — 9 134 48 39,402 42,214 43,563 23,018 24,052 21,882 Wholesale supply to other concession holders (2) 13,907 11,920 11,992 3,363 2,943 3,002 Wholesale supply unbilled, net — — — 51 (67 ) (12 ) Total 53,309 54,134 55,555 26,432 26,928 24,872 (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 revenue use distribution system | The total amount of energy transported, in MWh, is as follows: GWh (1) 2020 2019 Industrial 18,612 17,723 Commercial 1,300 1,320 Rural 32 17 Concessionaires 315 341 Total 20,259 19,401 (1) Data not reviewed by external auditors |
Schedule of transmission concession contract | The margin defined for each performance obligation from the transmission concession contract is as follows: 2020 2019 2018 Construction and upgrades revenue 201 312 138 Construction and upgrades costs (147 ) (220 ) (96 ) Margin 54 92 42 Mark-up (%) 36.73 % 41.82 % 43.75 % Operation and maintenance revenue 279 352 343 Operation and maintenance cost (223 ) (388 ) (215 ) Margin 56 (36 ) 128 Mark-up (%) 25,11 % (9.28 %) 59.53 % (1) The negative margin observed in 2019 related to the performance obligation to operate and maintain is due the recognition of the non-recurring tax provision, in the amount of R$135. |
Schedule of other operating revenues | j) Other operating revenues 2020 2019 2018 Charged service 11 17 14 Services rendered 139 183 188 Subsidies (1) 1,395 1,266 1,136 Rental and leasing 164 189 90 Reimbursement for decontracted supply (2) — 65 145 Other — 1 12 1,709 1,721 1,585 (1) Includes the revenue recognized for the tariff subsidies applied to users of the distribution system, in accordance with the Decree n.7,891/2013, in the amount of R$1,035 in 2020 (R$1,079 in 2019). Includes the subsidies for sources that are subject to incentive, rural, irrigators, public services and the generation sources that are subject to the incentive; and also includes the tariff flag revenue in the amount of R$47 in 2020, recognized because of the creditor position assumed by the Company in CCRBT. (2) Reimbursement for suspension of energy supply –Renova. |
Schedule of deductions from revenue | k) Deductions on revenue 2020 2019 (Restated) 2018 (Restated) Taxes on revenue ICMS 6,098 6,358 5,657 Cofins 2,214 2,408 2,549 PIS/Pasep 481 524 553 Others 5 7 8 8,798 9,297 8,767 Charges to the customer Global Reversion Reserve (RGR) 16 16 19 Energy Efficiency Program (PEE) 73 69 64 Energy Development Account (CDE) 2,443 2,448 2,603 Research and Development (R&D) 43 41 38 National Scientific and Technological Development Fund (FNDCT) 43 41 38 Energy System Expansion Research (EPE of MME) 21 20 19 Customer charges – Proinfa alternative sources program 39 52 40 Energy services inspection fee 35 30 26 Royalties for use of water resources 62 43 45 Customer charges – the ‘Flag Tariff’ system 149 294 655 2,924 3,054 3,547 11,722 12,351 12,314 |
28. OPERATING COSTS AND EXPEN_2
28. OPERATING COSTS AND EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Operating Costs And Expenses [abstract] | |
Schedule of operating costs and expenses | The operating costs are as follows: 2020 2019 (Restated) 2018 Personnel (a) 1,276 1,272 1,410 Employees’ and managers’ profit sharing 142 263 77 Post-employment benefits (reversals) – Note 24 438 408 337 Materials 79 91 104 Outsourced services (b) 1,265 1,239 1,087 Energy bought for resale (c) 12,111 11,286 11,084 Depreciation and amortization (1) 989 958 835 Operating provisions and adjustments for operating losses (d) 423 2,401 466 Charges for use of the national grid 1,748 1,426 1,480 Gas bought for resale 1,083 1,436 1,238 Construction costs (e) 1,581 1,200 897 Other operating expenses, net (f) 297 494 405 21,432 22,474 19,420 (1) Net of PIS/Pasep and Cofins taxes applicable to amortization of the right-of-use assets in the amount of R$2. |
Schedule of outsourced services | b) Outsourced services 2020 2019 2018 Meter reading and bill delivery 127 128 129 Communication 71 69 80 Maintenance and conservation of electrical facilities and equipment 443 404 323 Building conservation and cleaning 108 110 110 Contracted labor 9 17 21 Freight and airfares 2 7 7 Accommodation and meals 9 14 12 Security services 19 18 20 Consultant 41 24 16 Maintenance and conservation of furniture and utensils 6 5 4 Information technology 80 63 59 Maintenance and conservation of vehicles 2 3 2 Disconnection and reconnection 39 70 62 Environmental services 10 14 14 Legal services 21 28 27 Tree pruning 48 46 28 Cleaning of power line pathways 75 61 41 Copying and legal publications 17 21 21 Inspection of customer units 35 14 10 Other expenses 103 123 101 1,265 1,239 1,087 |
Schedule of electricity purchased for resale | c) Energy purchased for resale 2020 2019 2018 Supply from Itaipu Binacional 1,990 1,429 1,351 Physical guarantee quota contracts 780 715 679 Quotas for Angra I and II nuclear plants 303 269 267 Spot market 1,497 1,886 1,818 Proinfa Program 318 376 324 ‘Bilateral’ contracts 333 311 484 Energy acquired in Regulated Market auctions 3,334 3,021 3,346 Energy acquired in the Free Market 3,977 4,098 3,871 Distributed generation (‘Geração distribuída’) 678 207 — PIS/Pasep and Cofins credits (1,099 ) (1,026 ) (1,056 ) 12,111 11,286 11,084 |
Schedule of operating provision (reversals) and adjustments for operating losses | d) Operating provision (reversals) and adjustments for operating losses 2020 2019 2018 Estimated losses on doubtful accounts receivables (Note 8) (1) 147 238 264 Estimated losses on other accounts receivables (2) — 11 (4 ) Estimated losses on accounts receivables from related parties (3) (note 30) 37 688 — Contingency provisions (reversals) (Note 25) (4) Labor claims 46 136 42 Civil 43 24 13 Tax (5) 75 1,228 (5 ) Other 22 12 1 186 1,400 51 370 2,337 311 Adjustment for losses Put option – RME and LEPSA — — 48 Put option – SAAG (Note 31) 53 64 107 53 64 155 423 2,401 466 (1) The expected losses on receivables are presented as selling expenses in the Statement of Income. (2) The estimated losses on other accounts receivable are presented in the consolidated Statement of income as operating expenses. (3) Estimated losses on accounts receivable from Renova, as a result of the assessment of the jointly-controlled entity credit risk. (4) The provisions for contingencies of the holding company are presented in the consolidated statement of income for the year as operating expenses. (5) The provision recognized in 2019 is due to the Company’s reassessment, based on the opinion of its legal advisers, of the probability of loss in legal actions disputing social security contributions on the payments of profit-sharing to its employees from 1999 to 2016. For more information, see note 25. |
Schedule of construction cost | e) Construction costs 2020 2019 2018 Personnel and managers 83 85 70 Materials 775 595 379 Outsourced services 598 421 364 Others 125 99 84 1,581 1,200 897 |
Schedule of other operating expenses (revenues), net | f) Other operating expenses (revenues), net 2020 2019 (Restated) 2018 Leasing and rentals 11 20 93 Advertising 7 9 19 Own consumption of energy 24 21 27 Subsidies and donations 22 40 22 Onerous concession 3 3 3 Insurance 25 12 7 CCEE annual charge 6 6 6 Net loss (gain) on deactivation and disposal of assets 81 88 7 Forluz – Administrative running cost 30 30 28 Collection agents 86 88 78 Obligations deriving from investment contracts (1) 9 32 — Taxes and charges 7 10 9 Other expenses (2) (14 ) 135 106 297 494 405 (1) 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$119 (R$98 on December 31, 2019), of which Cemig is responsible for R$41 (R$32 on December 31, 2019). (2) Includes the impairment loss recognized for intangible asset relating to the authorization for wind power generation granted to Volta do Rio in the amount of R$22. |
29. FINANCE INCOME AND EXPENS_2
29. FINANCE INCOME AND EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of finance income expense [abstract] | |
Schedule of financial income and expenses | 2020 2019 2018 FINANCE INCOME Income from financial investments 95 102 116 Interest on sale of energy 399 361 352 Monetary variations 42 30 19 Monetary variations – CVA (Note 14) 32 105 62 Monetary updating of escrow deposits 53 50 34 PIS/Pasep and Cofins charged on finance income (1) (96 ) (128 ) (68 ) Gains on financial instruments –swap (Note 31) 1,753 998 893 Inflation adjustment in arbitration case — — 77 Borrowing costs paid by related parties 30 48 56 Monetary updating on PIS/Pasep and Cofins taxes credits over ICMS (Note 9) 42 1,580 — Others 95 61 165 2,445 3,207 1,706 FINANCE EXPENSES Charges on loans and financings (Note 22) (1,178 ) (1,227 ) (1,257 ) Cost of debt – amortization of transaction cost (Note 22) (15 ) (38 ) (33 ) Foreign exchange variations - loans and financing (Note 22) (1,742 ) (226 ) (582 ) Foreign exchange variations – Itaipu (47 ) (13 ) (29 ) Monetary updating – loans and financings (Note 22) (187 ) (142 ) (134 ) Monetary updating – onerous concessions (9 ) (3 ) (3 ) Charges and monetary updating on post-employment obligations (Note 24) (53 ) (56 ) (68 ) Monetary updating – Lease liabilities (Note 19) (27 ) (34 ) — Finance income of P&D and PEE (21 ) (24 ) (23 ) Others (71 ) (84 ) (95 ) (3,350 ) (1,847 ) (2,224 ) NET FINANCE INCOME (EXPENSES) (906 ) 1,360 (518 ) (1) The PIS/Pasep and Cofins expenses apply to Interest on Equity. |
30. RELATED PARTY TRANSACTIONS
30. RELATED PARTY TRANSACTIONS (Tables) - Related parties [member] | 12 Months Ended |
Dec. 31, 2020 | |
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: COMPANY ASSETS LIABILITIES REVENUE EXPENSES 2020 2019 2020 2019 2020 2019 2018 2020 2019 2018 Shareholder Minas Gerais State Government Current Receivables from customers and traders (1) 335 346 — 127 166 163 — — ICMS tax – early payment — — 11 — — Non-current Accounts Receivable – AFAC (2) 12 115 — 27 17 18 — — Affiliated (3) Madeira Energia 2 6 92 58 35 68 70 (1,200 ) (730 ) (778 ) Current Transactions with energy (4) 35 Jointly-controlled entity Aliança Geração Current Transactions with energy (4) — — 14 14 42 40 35 (174 ) (166 ) (165 ) Provision of services (5) — 1 — — 5 7 12 — — — Interest on Equity, and dividends 114 103 — — — — — — — — Contingency (6) — — 41 32 — — — (9 ) (32 ) — Baguari Energia Current Transactions with energy (4) — — 1 1 — — — (8 ) (8 ) (11 ) Provision of services (5) — — — — — 1 1 — — — Norte Energia Current Transactions with energy (4) — — 25 24 28 22 16 (265 ) (228 ) (202 ) Advance for future power supply (7) — 40 — — — — — — — — Lightger Current Transactions with energy (4) — — 2 2 — — — (23 ) (21 ) (21 ) Hidrelétrica Pipoca Current Transactions with energy (4) — — 3 1 — — — (26 ) (19 ) (19 ) Interest on Equity, and dividends 3 — — — — — — — — — Retiro Baixo Current Transactions with energy (4) — — — 1 5 5 4 (5 ) (5 ) (5 ) Interest on Equity, and dividends — 6 — — — — — — — — Hidrelétrica Cachoeirão Current — Transactions with energy (4) — — — — 2 — — — — — Interest on Equity, and dividends — 3 — — — — — — — — Renova Current Transactions with energy — — — — — 4 — (7 ) — (81 ) Non-current Accounts Receivable (8) — — — — — 94 106 — (688 ) — Loans from related parties (9) — 17 — 6 — — — (37 ) — — Light Current Transactions with energy (4) 6 6 — 1 67 98 60 (2 ) (9 ) (1 ) Interest on Equity, and dividends 71 73 — — — — — — — — Taesa Current Transactions with energy (4) — — 8 9 — — — (100 ) (96 ) (109 ) Provision of services (5) — — — — — 1 1 — — — Hidrelétrica Itaocara Current Adjustment for losses (10) — — 30 22 — — — — — — Axxiom Current Provision of services (11) — — 4 3 — — — — — — Other related parties FIC Pampulha Current Cash and cash equivalents 171 36 — — — — — — — — Marketable securities 3,356 743 — — 33 8 1,106 — — — (-) Marketable securities issued by subsidiary companies (Note 22) — (3 ) — — — — — — — — Non-current Marketable securities 755 2 — — — — — — — — Forluz Current Post-employment obligations (12) — — 159 145 — — — (206 ) (197 ) (192 ) Supplementary pension contributions – Defined contribution plan (13) — — — — — — — (77 ) (78 ) (78 ) Administrative running costs (14) — — — — — — — (30 ) (30 ) (28 ) Operating leasing (15) 167 179 22 35 — — — (2 ) (55 ) (46 ) Non-current Post-employment obligations (12) — — 2,750 2,827 — — — — — — Operating leasing (15) — — 156 149 — — — — — — Cemig Saúde Current Health Plan and Dental Plan (16) — — 154 141 — — — (241 ) (227 ) (186 ) Non-current Health Plan and Dental Plan (16) — — 3,229 3,022 — — — — — — 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 grantor (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, 2020. 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. Cemig D filed an application with the tax authority of Minas Gerais state to accept the terms of State Law 23,510/2020, to enable part of the ICMS tax payable to be offset against the debt owed by the government of Minas Gerais state to the Company. At present, the state tax authority is validating the invoices presented, to authorize the compensation of credits. As a result, the Company has reversed the amount of R$210 previously recognized as expected losses for doubtful receivables. (2) 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 11. (3) The relationship between Cemig and its investees are described in Note 16 – Investments. (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$119 (R$98 on December 31, 2019), of which Cemig’s portion is R$41 (R$32 on December 31, 2019). (7) 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). Norte Energia delivered contracted supply until December 31, 2020, starting on January 01, 2020. There is no financial updating of the contract. (8) As mentioned in Note 16 (b), 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. (9) On November 25 and December 27, 2019, DIP loan contracts under court-supervised reorganization proceedings, referred to as ‘DIP’ and ‘DIP 2’, “DIP 3’ were entered into between the Company and Renova Energia S.A., in the amounts of R$10, R$6.5 and R$20, 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, 2.5% for the DIP2 contract and 1.5% for the DIP3, until the date of respective full payment. The Company recognized an impairment loss for the receivables from Renova, of its total carrying amount of R$3, in the second semester of 2020. For further information, see note 16 (c). (10) A liability was recognized corresponding to the Company’s interest in the share capital of Hidrelétrica Itaocara, due to its negative equity (see Note 16). (11) 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; (12) The contracts of Forluz are updated by the Expanded Customer Price Index ( Índice Nacional de Preços ao Consumidor Amplo (13) 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. (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) Rental of the Company’s administrative head offices, in effect until November 2020 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 and on November, 2020. By the end of the contract term, the Company decided not to renew the lease contract and, therefore, the Company vacated the Aureliano Chaves building facilities. (16) Post-employment obligations relating to the employees’ health and dental plan (see Note 24). |
Schedule of dvidends receivable from equity investees | Dividends receivable from Company’s equity investees are as follows: Dividends receivable 2020 2019 Light 71 73 Aliança Geração 114 103 Others 3 10 188 186 |
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 2020 Maturity Norte Energia (NESA) (1) Affiliated Surety Financing 2,601 2042 Light Affiliated Counter-guarantee Financing 684 2042 Santo Antônio Energia (SAESA) (2) Jointly-controlled Surety Debentures 445 2037 Santo Antônio Energia (SAESA) Jointly-controlled Guarantee Financing 1,023 2034 Norte Energia (NESA) Affiliated Surety Debentures 67 2030 4,820 (1) Related to execution of guarantees of the Norte Energia financing. (2) Corporate guarantee given by Cemig to Saesa. |
Schedule of financial investments in securities of related parties, in the investment fund | The total costs of key personnel, comprising the Executive Board, the Fiscal Council, the Audit Committee and the Board of Directors in 2020, 2019 and 2018, are within the limits approved at a General Shareholders’ Meeting, and the effects on the income statements of the years ended, are as follows: 2020 2019 2018 Remuneration 27 25 34 Profit sharing (reversal) 9 6 4 Pension plans 1 1 3 Total 37 32 41 |
31. FINANCIAL INSTRUMENTS AND_2
31. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 (Restated) Balance Fair value Balance Fair value Financial assets Amortized cost (1) Marketable securities – Cash investments 2 1,214 1,214 102 102 Accounts receivable from Customers and traders; Concession holders (transmission service) 2 4,534 4,534 4,601 4,601 Restricted cash 2 64 64 12 12 Accounts receivable from the State of Minas Gerais (AFAC) 2 12 12 115 115 Concession financial assets – CVA Other financial components 3 133 133 882 882 Reimbursement of tariff subsidies 2 88 88 97 97 Low-income subsidy 2 43 43 30 30 Escrow deposits 2 1,056 1,056 2,540 2,540 Concession grant fee – Generation concessions 3 2,549 2,549 2,468 2,468 9,693 9,693 10,847 10,847 Fair value through profit or loss Cash equivalents – Cash investments 1,587 1,587 326 326 Marketable securities Bank certificates of deposit (CDBs) 545 545 — — Treasury Financial Notes (LFTs) 1 731 731 94 94 Financial Notes – Banks 2 1,635 1,635 557 557 4,498 4,498 977 977 Derivative financial instruments (Swaps) 3 2,949 2,949 1,691 1,691 Derivative financial instruments (Ativas and Sonda Put options) 3 3 3 3 3 Concession financial assets – Distribution infrastructure 3 559 559 484 484 Indemnifiable receivable – Generation 3 816 816 816 816 8,825 8,825 3,971 3,971 18,518 18,518 14,818 14,818 Financial liabilities Amortized cost (1) Loans, financing and debentures 2 (15,020 ) (15,020 ) (14,777 ) (14,777 ) Debt with pension fund (Forluz) 2 (473 ) (473 ) (566 ) (566 ) Deficit of pension fund (Forluz) 2 (540 ) (540 ) (550 ) (550 ) Concessions payable 3 (23 ) (23 ) (20 ) (20 ) Suppliers 2 (2,358 ) (2,358 ) (2,080 ) (2,080 ) Leasing transactions 2 (227 ) (227 ) (288 ) (288 ) Sector financial liabilities 2 (231 ) (231 ) — — (18,872 ) (18,872 ) (18,281 ) (18,281 ) Fair value through profit or loss Derivative financial instruments (SAAG put options) 3 (536 ) (536 ) (483 ) (483 ) (536 ) (536 ) (483 ) (483 ) (19,408 ) (19,408 ) (18,764 ) (18,764 ) (1) On December 31, 2020 and 2019, the book values of financial instruments reflect their fair values. |
Schedule of net liabilities in relation to its equity | On December 31, 2020 and 2019, the options values were as follows: 2020 2019 Put option – SAAG 536 483 Put / call options – Ativas and Sonda (3 ) (3 ) 533 480 |
Schedule of changes in value of options | The changes in the value of the options are as follows: 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 Adjustment to fair value 53 Balance at December 31, 2020 536 |
Schedule of derivative instruments contracted | This table presents the derivative instruments contracted by Company as of December 31, 2020 and 2019: Unrealized gain / loss Unrealized gain / loss Assets (1) Liability (1) Maturity period Trade market Notional amount (2) Carrying amount 2020 Fair value 2020 Carrying amount 2019 Fair value 2019 US$ exchange variation + Local currency + R$ 150.49% of CDI Interest: Over the counter US$1,000 1,772 2,110 814 1,235 US$ exchange variation + Local currency + R$125.52% of CDI Interest: Over the counter US$500 588 839 108 456 2,360 2,949 922 1,691 Current asset 523 235 Non-current asset 2,426 1,456 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$; and (2) a swap was contracted for the interest, resulting in a coupon of 9.25% p.a., with an average rate equivalent to 125.52% of the CDI rate The upper limit for the exchange rate in the hedge instrument contracted by the Company for the principal of the Eurobonds is R$ 5.00/US$. The instrument matures in December 2024. If the USD/BRL exchange rate is still over R$ 5.00 in December 2024, the company will disburse, on that date, the difference between the upper limit of the protection range and the spot dollar on that date. The Company is monitoring the possible risks and impacts associated with the dollar being valued above R$ 5.00, and assessing various strategies for mitigating the foreign exchange risk up to the maturity date of the transaction. The hedge instrument fully protects the payment of six-monthly interest, independently of the USD/BRL exchange rate . 2) In millions of US$. |
Schedule of exposure to exchange rates | This exposure occurs as a result of net assets (liabilities) indexed to variation in interest rates, as follows: Risk: Exposure to domestic interest rate changes 2020 2019 Assets Cash equivalents – Cash investments (Note 6) – CDI 1,587 326 Marketable securities (Note 7) – CDI / SELIC 4,125 753 Restricted cash – CDI 64 12 CVA and in tariffs (Note 14) – SELIC 133 882 5,909 1,973 Liabilities Loans, financing and debentures (Note 22) – CDI (2,310 ) (3,773 ) Loans, financing and debentures (Note 22) – TJLP (73 ) (244 ) Sector financial liabilities (note 14) (231 ) — (2,614 ) (4,017 ) Net assets (liabilities) exposed 3,295 (2,044 ) |
Schedule of exposure to exchange rates | 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. Risk: Increase in Brazilian interest rates 2020 2021 Book value ‘Probable’ scenario Selic 5.50% TJLP 4.87% ‘Possible’ scenario Selic 4.13% TJLP 3.65% ‘Remote’ scenario Selic 2.75% TJLP 2.44% Assets Cash equivalents (Note 6) 1,587 1,674 1,653 1,631 Marketable securities (Note 7) 4,125 4,352 4,295 4,238 Restricted cash 64 68 67 66 CVA and Other financial components – SELIC (note 14) 133 140 138 137 5,909 6,234 6,153 6,072 Liabilities Loans and financing (Note 22) – CDI (2,310 ) (2,437 ) (2,405 ) (2,374 ) Loans and financing (Note 22) – TJLP (73 ) (77 ) (76 ) (75 ) Sector financial liabilities (note 14) (231 ) (244 ) (241 ) (237 ) (2,614 ) (2,758 ) (2,722 ) (2,686 ) Net assets (liabilities) exposed 3,295 3,476 3,431 3,386 Net effect of fluctuation in interest rates 181 136 91 |
Schedule of risk of increase in inflation | This table presents the Company’s net exposure to inflation index: Exposure to increase in inflation 2020 2019 Assets Concession financial assets related to Distribution infrastructure - IPCA (1) 559 484 Receivable from Minas Gerais state government (AFAC) – IGPM (Note 11 and 30) 12 115 Concession Grant Fee – IPCA (Note 14) 2,549 2,468 3,120 3,067 Liabilities Loans, financing and debentures – IPCA and IGP-DI (Note 22) (4,863 ) (4,730 ) Debt with pension fund (Forluz) – IPCA (473 ) (566 ) Deficit of pension plan (Forluz) – IPCA (540 ) (550 ) (5,876 ) (5,846 ) Net assets (liabilities) exposed (2,756 ) (2,779 ) (1) Portion of the concession financial assets relating to the Regulatory Remuneration Base of Assets ratified by the grantor (Aneel) after the 4 rd 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. Risk: increase in inflation 2019 2020 Amount Book value ‘Probable’ scenario IPCA 4.53% IGPM 11.65% ‘Possible’ scenario (25%) IPCA 5.66% IGPM 14.56% ‘Remote’ scenario (50%) IPCA 6.80% IGPM 17.48% Assets Concession financial assets related to Distribution infrastructure – IPCA (1) 559 584 591 597 Accounts receivable from Minas Gerais state government (AFAC) – IGPM index (Note 30) 12 13 14 14 Concession Grant Fee – IPCA (Note 14) 2,549 2,664 2,693 2,722 3,120 3,261 3,298 3,333 Liabilities Loans, financing and debentures – IPCA and IGP-DI (4,863 ) (5,083 ) (5,138 ) (5,194 ) Debt agreed with pension fund (Forluz) – IPCA (473 ) (494 ) (500 ) (505 ) Deficit of pension plan (Forluz) (540 ) (564 ) (571 ) (577 ) (5,876 ) (6,141 ) (6,209 ) (6,276 ) Net liability exposed (2,756 ) (2,880 ) (2,911 ) (2,943 ) Net effect of fluctuation in IPCA and IGP–M indices (124 ) (155 ) (187 ) (1) Portion of the Concession financial assets relating to the Regulatory Remuneration Base of Assets ratified by the grantor (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 79 1,291 1,638 12,845 1,842 17,695 Onerous concessions — 1 2 11 14 28 Debt with pension plan (Forluz) (Note 24) 13 25 115 406 — 559 Deficit of the pension plan (FORLUZ) (Note 24) 6 11 51 295 522 885 98 1,328 1,806 13,557 2,378 19,167 - Fixed rate Suppliers 2,138 218 2 — — 2,358 2,236 1,546 1,808 13,557 2,378 21,525 |
Schedule of credit exposure | Banks that exceed these thresholds are classified in three groups, in accordance with their equity value, plus a specific segment comprising those whose credit risk is associated only with federal government, and within this classification, limits of concentration by group and by institution are set: Group Equity Limit per bank (% of equity)* Federal Risk (FR) - 10% A1 Over R$ 3.5 billion Between 6% and 9% A2 R$ 1.0 billion to R$ 3.5 billion Between 5% and 8% A3 R$ 400 to R$ 1.0 billion Between 0% and 7% |
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, 2020 and 2019: 2020 2019 (Restated) Total liabilities 36,605 34,423 (–) Cash and cash equivalents (1,680 ) (536 ) (–) Restricted cash (64 ) (12 ) Net liabilities 34,861 33,875 Total equity 17,478 16,103 Net liabilities / equity 1.99 2.10 |
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, 2020 ‘Probable’ scenario: ‘Possible’ scenario ‘Remote’ scenario: exchange rate depreciation and interest rate increase 50% Swap (asset) 6,996 6,616 5,866 5,147 Swap (liability) (5,607 ) (5,519 ) (5,595 ) (5,668 ) Option / Call spread 1,560 1,708 1,019 338 Derivative hedge instrument 2,949 2,805 1,290 (183 ) |
Interest rate risk [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Schedule of estimation of company interest rate | This exposure occurs as a result of net assets (liabilities) indexed to variation in interest rates, as follows: Risk: Exposure to domestic interest rate changes 2020 2019 Assets Cash equivalents – Cash investments (Note 6) – CDI 1,587 326 Marketable securities (Note 7) – CDI / SELIC 4,125 753 Restricted cash – CDI 64 12 CVA and in tariffs (Note 14) – SELIC 134 882 5,910 1,973 Liabilities Loans, financing and debentures (Note 22) – CDI (2,310 ) (3,773 ) Loans, financing and debentures (Note 22) – TJLP (73 ) (244 ) Sector financial liabilities (note 14) (231 ) — (2,614 ) (4,017 ) Net assets (liabilities) exposed 3,296 (2,044 ) 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. Risk: Increase in Brazilian interest rates 2020 2021 Book value ‘Probable’ scenario Selic 5.50% TJLP 4.87% ‘Possible’ scenario Selic 4.13% TJLP 3.65% ‘Remote’ scenario Selic 2.75% TJLP 2.44% Assets Cash equivalents (Note 6) 1,587 1,674 1,653 1,631 Marketable securities (Note 7) 4,125 4,352 4,295 4,238 Restricted cash 64 68 67 66 CVA and Other financial components – SELIC (note 14) 134 141 140 138 5,910 6,235 6,155 6,073 Liabilities Loans and financing (Note 22) – CDI (2,310 ) (2,437 ) (2,405 ) (2,374 ) Loans and financing (Note 22) – TJLP (73 ) (77 ) (76 ) (75 ) Sector financial liabilities (note 14) (231 ) (244 ) (241 ) (237 ) (2,614 ) (2,758 ) (2,722 ) (2,686 ) Net assets (liabilities) exposed 3,296 3,477 3,433 3,387 Net effect of fluctuation in interest rates 181 137 91 |
32. ASSETS AS HELD FOR SALE A_2
32. ASSETS AS HELD FOR SALE AND DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Gas Distribution Network Third Party [member] | |
Schedule of assets and liabilities classified as held for sale | Assets and liabilities classified as held for sale, and the results of discontinued and continuing operations, were as follows: Consolidated and Parent company – Statements of financial position 2020 2019 Assets held for sale – investment in an affiliate 1,258 1,258 Consolidated and Parent company – Statements of income 2019 Loss for write-down of non-current assets held for sale arising from continuing operations, before taxes 73 Net income after taxes – continuing operations 73 Profit for write-down of non-current assets held for sale arising from continuing operations, before taxes 309 Deferred taxes arising from non-current assets held for sale, recognized in continuing operations (85 ) Net income after taxes - discontinued operations 224 |
Schedule of assets and liabilities over the cost paid in the step acquisitions | The fiscal cost of the investment was adjusted for the tax calculation, pursuant to tax law, considering the equity value of the investment, plus the goodwill and the excess of net fair value of the investee’s identifiable assets and liabilities over the cost paid in the step-acquisitions. Cemig’s shares 68,621,263 Sale price of the shares – January 21, 2021 20 Total value 1,372 Estimated cost to sell (0.42%) (1) (5 ) Fair value, less cost to sell on 01/22/2021 1,367 Non-current asset held for sale carrying amount in 12/31/2019 (1,258 ) Gains 109 IRPJ and CSLL (2) (37 ) Gain after taxes 72 (1) The estimated cost to sell includes financing, accounting and legal advices services. (2) The adjustment in the tax calculation resulted in a positive effect of R$113. |
33. INSURANCE (Tables)
33. INSURANCE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of types of insurance contracts [abstract] | |
Schedule of amounts arising from insurance contracts | 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 insured (1) Annual premium (1) Companhia Energética de Minas Gerais Facilities in buildings Fire Jan. 8, 2021 to Jan. 8, 2022 R$8,661 R$2 Cemig Geração e Transmissão Air transport / Aircraft Fuselage April 29, 2020 to April 29, 2021 April 29, 2020 to April 29, 2021 US$1,140 US$24 Warehouse stores Fire Nov. 2, 2020 to Nov. 2, 2021 R$18,981 R$17 Buildings Fire Jan. 8, 2021 to Jan. 8, 2022 R$240,527 R$70 Telecoms equipment (3) Fire Jan. 8, 2020 to Jan. 8, 2021 R$2,650 R$2 Operational risk - Transformers above 15MVA and other power distribution equipment with value above R$1,000 (2) Dec. 7, 2020 to Dec. 7, 2021 R$75,118 R$941 Cemig Distribuição Air transport / Aircraft / Guimbal equipment Fuselage April 29, 2020 to April 29, 2021 US$3,370 US$51 Warehouse stores Fire Nov. 2, 2020 to Nov. 2, 2021 R$74,575 R$68 Buildings Fire Jan. 8, 2021 to Jan. 8, 2022 R$616,157 R$179 Telecoms equipment (3) Fire Jul. 8, 2020 to Jul. 8, 2021 R$31,082 R$28 Operational risk – Transformers above 15MVA and other energy distribution equipment with value above R$ 1,000 (2) Total Dec. 7, 2020 to Dec. 7, 2021 R$545.062 R$717 Gasmig Gas distribution network / Third party Third party Dec. 15, 2020 to Dec. 15, 2021 R$60,000 R$378 Own vehicle fleet (Operation) Damage to third parties only Jul. 7, 2020 to Jul. 7, 2021 R$500 R$3 Own vehicle fleet (Directors) Full cover Oct. 25, 2020 to Oct. 25, 2021 R$100 R$2 Facilities – multirisk Robbery, theft and fire Dec. 31, 2020 to Dec. 31, 2021 R$32,667 R$39 (1) Amounts expressed in R$ ‘000 or US$’000. (2) Maximum indemnity limit: R$231 (3) Contracting of a new policy is in progress. |
34.COMITTMENTS (Tables)
34.COMITTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Facilities Multirisk [member] | |
Schedule of detailed information about contractual obligations and commitments | Cemig and its subsidiaries have contractual obligations and commitments as follows: 2021 2022 2023 2024 2025 After 2026 Total Purchase of energy from Itaipu 1,515 1,548 1,595 1,595 1,595 33,499 41,347 Purchase of energy – auctions 3,416 3,387 3,378 3,536 3,328 47,855 64,900 Purchase of energy – ‘bilateral contracts’ 332 332 332 222 67 80 1,365 Quotas of Angra 1 and Angra 2 288 291 299 301 300 6,340 7,819 Transport of energy from Itaipu 189 215 218 222 159 521 1,524 Other energy purchase contracts 4,450 4,723 4,622 3,478 3,310 28,777 49,360 Physical quota guarantees 812 812 812 812 812 17,043 21,103 Total 11,002 11,308 11,256 10,166 9,571 134,115 187,418 |
1. OPERATING CONTEXT (Details)
1. OPERATING CONTEXT (Details) | 12 Months Ended | |
Dec. 31, 2020 | ||
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’) | [1] |
Classification | Affiliated entity | [1] |
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. | [1] |
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. [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%, Baguari I (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’) - court supervised reorganization | |
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. This jointly-controlled investee is currently under court supervised reorganization. | |
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 1,158 MW (physical offtake guarantee 661 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 all states of Brazil through direct and indirect equity interests in investees | |
UFV [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of joint venture | UFV Janaúba Geração de Energia Elétrica Distribuída SA UFV Corinto Geração de Energia Elétrica Distribuída SA UFV Manga Geração de Energia Elétrica Distribuída SA UFV Bonfinópolis II Geração de Energia Elétrica Distribuída SA UFV Lagoa Grande Geração de Energia Elétrica Distribuída SA, UFV Lontra Geração de Energia Elétrica Distribuída SA, UFV Mato Verde Geração de Energia Elétrica Distribuída SA, UFV Mirabela Geração de Energia Elétrica Distribuída SA, UFV Porteirinha Geração de Energia Elétrica Distribuída SA and UFV Porteirinha II Geração de Energia Elétrica Distribuída AS | [2] |
Classification | Jointly-controlled entity | [2] |
Description | Generation of electric power from photovoltaic solar sources to the Distributed Generation market (‘Geração Distribuída’), with total installed capacity of 46.26MWp. The wholly owned subsidiary Cemig Sim and Mori Energia holds 49% and 51% of the total equity, respectively. | [2] |
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 82 power plants (75 of which are hydroelectric, 6 are wind power and 1 is solar) and associated transmission lines, most of which are part of the Brazilian national generation and transmission grid system, with total installed generation capacity of 5,786 MW (5) | |
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 s.a. [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 (5), and guaranteed offtake level of 239 MW (5) 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 (5), and guaranteed offtake level of 75 MW (5) 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 (5), and guaranteed offtake level of 28 MW (5) 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 (5), and guaranteed offtake level of 21 MW (5) 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 (5); guaranteed offtake level of 27.42 MW (5) 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 35.17 MW (5); guaranteed offtake level of 18.80 MW (5) 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 (5), and guaranteed offtake level of 11.21 MW (5) 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 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 sim ('efficientia') [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Efficientia S.A. (‘Efficientia’) | [3] |
Classification | Subsidiary | [3] |
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. | [3] |
Companhia de transmissao centroeste de minas ('centroeste') [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Companhia de Transmissão Centroeste de Minas (‘Centroeste’) | [4] |
Classification | Subsidiary | [4] |
Description | Corporation engaged in the construction, operation and maintenance of the Furnas-Pimenta transmission line – part of the national grid. | [4] |
[1] | In Light's public offering of commom shares, completed on January 22, 2021, the Company sold its entire holding of shares in Light. For further information, see Note 31. | |
[2] | In 2020, Cemig concluded acquisition of interests in special-purpose companies operation in photovoltaic solar generation. For further information, see item (c) of this Note. | |
[3] | On April 14, 2020, the Annual Shareholders General Meeting approved changes in this subsidiary's By-laws, changing the name of this subsidiary, from Efficientia S.A. to Cemig Solucoes Inteligentes em Energia S.A.-CEMIG SIM. | |
[4] | 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. |
1. OPERATING CONTEXT (Details N
1. OPERATING CONTEXT (Details Narrative) - BRL (R$) R$ in Millions | Mar. 16, 2021 | Nov. 25, 2020 | Apr. 08, 2020 | Jan. 13, 2020 | Mar. 31, 2020 | Dec. 31, 2020 |
Disclosure of subsidiaries [line items] | ||||||
Amount of tariff discounts established | R$ 900 | |||||
Regulatory fees | R$ 122 | |||||
Description of consumption of natural gas | The initiatives to reduce transmission of Covid-19, also led to lower consumption of natural gas in 2020 than in 2019: consumption by the industrial sector was 3% lower year-on-year, and consumption by the automotive sector was 28% lower. At the same time, consumption in 2020 by residential users was 20% higher year-on-year, and by commercial users was 14% higher - reflecting the natural motivation of increased use of natural gas as a safer option when supply is continuous | |||||
Description of brazilian national grid fell | The total load on the Brazilian national grid fell in 2020, especially from March to May, and has been recovering gradually since. Year to date, the energy transported and sold to Cemig D customers increased 4.42% and reduced 5.31%, respectively. In the second semester of 2020, the energy transported increased 10.29% and the energy sold expanded 94.66%, compared with the same period of the last year, reflecting the easing of social distancing rules. | |||||
Events after reporting period [member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Cash | R$ 151 | |||||
Amount of capital expenditure | 349 | |||||
Labor expense | R$ 164 | |||||
Eletrobras [member] | Events after reporting period [member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Percentage of equity interest in total share capital | 49.00% | |||||
Companhia de transmissao centroeste de minas ('centroeste') [member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Percentage of shares acquired | 49.00% | |||||
Cemig solucoes inteligentes em energia s.a [member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Description of acquisition of interest in special-purpose companies | The Company’s wholly-owned subsidiary Cemig Soluções Inteligentes em Energia S.A. (‘Cemig Sim’) acquired 49% of interest in seven special-purpose companies operating in photovoltaic solar generation for the distributed generation market (‘geração distribuída’), with total installed capacity of 29.45MWp, for 55. On August 19, 2020 and on September 30, 2020, this wholly-owned subsidiary also acquired 49% of interest in two others SPCs operating in the same market segment for R$8 and R$10, respectively, with total installed capacity of 11.62 MWp |
2. BASIS OF PREPARATION (Detail
2. BASIS OF PREPARATION (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 02, 2019 | Dec. 31, 2018 | |||
CURRENT ASSET | |||||||
TOTAL CURRENT | R$ 15456 | R$ 10354 | [1] | R$ 27796 | |||
NON-CURRENT ASSETS | |||||||
TOTAL NON-CURRENT | 38,627 | 40,172 | [1] | 32,059 | |||
TOTAL ASSETS | 54,083 | 50,526 | [1] | 59,855 | |||
CURRENT LIABILITIES | |||||||
Total current liabilities | 9,690 | 7,913 | [1] | 23,394 | |||
NON-CURRENT LIABILITIES | |||||||
Taxes payable | 263 | ||||||
Total non-current liabilities | 26,915 | 26,458 | [1] | 20,522 | |||
TOTAL LIABILITIES | 36,605 | (34,423) | [1] | ||||
EQUITY | |||||||
Retained earnings | |||||||
NON-CONTROLLING INTERESTS | R$ 4 | ||||||
As presented [member] | |||||||
CURRENT ASSET | |||||||
Concession financial assets | [2] | 1,080 | R$ 1071 | ||||
Concession contract assets | [2],[3] | 172 | 131 | ||||
Others | 8,887 | 26,594 | |||||
TOTAL CURRENT | 10,139 | 27,796 | |||||
NON-CURRENT ASSETS | |||||||
Concession financial assets | [2] | 4,851 | 4,927 | ||||
Concession contract assets - transmission | [2],[3] | 1,024 | 999 | ||||
Others | 33,914 | 26,134 | |||||
TOTAL NON-CURRENT | 39,789 | 32,060 | |||||
TOTAL ASSETS | 49,928 | 59,856 | |||||
CURRENT LIABILITIES | |||||||
Taxes payable | [4] | 359 | 409 | ||||
Others | 7,554 | 22,984 | |||||
Total current liabilities | 7,913 | 23,393 | |||||
NON-CURRENT LIABILITIES | |||||||
Taxes payable | [4] | 1 | 30 | ||||
Deferred income tax and social contribution tax (4) | [5] | 661 | 728 | ||||
Others | 25,461 | 19,766 | |||||
Total non-current liabilities | 26,123 | 20,524 | |||||
TOTAL LIABILITIES | 34,036 | 43,917 | |||||
EQUITY | |||||||
Retained earnings | |||||||
Others | 15,887 | 14,579 | |||||
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT | 15,887 | 14,579 | |||||
NON-CONTROLLING INTERESTS | 4 | 1,360 | |||||
TOTAL EQUITY | 15,891 | 15,939 | |||||
Reclassification [member] | |||||||
CURRENT ASSET | |||||||
Concession financial assets | [2] | (189) | (181) | ||||
Concession contract assets | [2],[3] | 189 | 181 | ||||
Others | |||||||
TOTAL CURRENT | |||||||
NON-CURRENT ASSETS | |||||||
Concession financial assets | [2] | (1,092) | (1,115) | ||||
Concession contract assets - transmission | [2],[3] | 1,092 | 1,115 | ||||
Adjustment [member] | |||||||
CURRENT ASSET | |||||||
Concession financial assets | [2] | ||||||
Concession contract assets | [2],[3] | 215 | 170 | ||||
Others | |||||||
TOTAL CURRENT | 215 | 170 | |||||
NON-CURRENT ASSETS | |||||||
Concession contract assets - transmission | [2],[3] | 383 | 313 | ||||
TOTAL NON-CURRENT | 383 | 313 | |||||
TOTAL ASSETS | 598 | 483 | |||||
CURRENT LIABILITIES | |||||||
Taxes payable | [4] | 52 | 44 | ||||
Others | |||||||
Total current liabilities | 52 | 44 | |||||
NON-CURRENT LIABILITIES | |||||||
Taxes payable | [4] | 226 | 219 | ||||
Deferred income tax and social contribution tax (4) | [5] | 109 | 75 | ||||
Others | |||||||
Total non-current liabilities | 335 | 294 | |||||
TOTAL LIABILITIES | 387 | 338 | |||||
EQUITY | |||||||
Retained earnings | 212 | 145 | |||||
Others | |||||||
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT | 212 | 145 | |||||
NON-CONTROLLING INTERESTS | |||||||
TOTAL EQUITY | 212 | 145 | |||||
Restated [member] | |||||||
CURRENT ASSET | |||||||
Concession financial assets | [2] | 891 | 890 | ||||
Concession contract assets | [2],[3] | 576 | 482 | ||||
Others | 8,887 | 26,594 | |||||
TOTAL CURRENT | [6] | 10,354 | 27,966 | ||||
NON-CURRENT ASSETS | |||||||
Concession financial assets | [2] | 3,759 | 3,812 | ||||
Concession contract assets - transmission | [2],[3] | 2,499 | 2,427 | ||||
Others | 33,914 | 26,134 | |||||
TOTAL NON-CURRENT | [6] | 40,172 | 32,373 | ||||
TOTAL ASSETS | [6] | 50,526 | 60,339 | ||||
CURRENT LIABILITIES | |||||||
Taxes payable | [4] | 411 | 453 | ||||
Others | 7,554 | 22,984 | |||||
Total current liabilities | [6] | 7,965 | 23,437 | ||||
NON-CURRENT LIABILITIES | |||||||
Taxes payable | 227 | [6] | 249 | [6] | 249 | ||
Deferred income tax and social contribution tax (4) | [5] | 770 | 803 | ||||
Others | 25,461 | 19,766 | |||||
Total non-current liabilities | [6] | 26,458 | 20,818 | ||||
TOTAL LIABILITIES | [6] | 34,423 | 44,255 | ||||
EQUITY | |||||||
Retained earnings | 212 | [6] | 145 | [6] | R$ 6362 | ||
Others | 15,887 | 14,579 | |||||
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT | 16,099 | 14,724 | |||||
NON-CONTROLLING INTERESTS | [6] | 4 | 1,360 | ||||
TOTAL EQUITY | R$ 16103 | R$ 16084 | |||||
[1] | See note 2.8. | ||||||
[2] | Reclassification of the financial portion of the national grid ('RBSE') asset to contract asset, since its consideration was included into the remuneration base, and, thus, it is subjected to the efficiency mechanisms applied to the operation and maintenance performance obligation. | ||||||
[3] | Recognition of the profit margin associated to the performance obligation to construct and upgrade the transmission infrastructure, as well as the interest revenue resulting from the financing component in the contract asset and the result of the periodic tariff revision. | ||||||
[4] | Effects of PIS/Pasep and Cofins over contract revenues. | ||||||
[5] | Deferral of income tax and social contribution tax over the adjustments. | ||||||
[6] | For further details of restatement of comparative balances, see Note 2.8 |
2. BASIS OF PREPARATION (Deta_2
2. BASIS OF PREPARATION (Details1) - BRL (R$) R$ / shares in Units, R$ in Millions | Apr. 30, 2021 | Jan. 02, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
CONTINUING OPERATIONS | |||||||||
NET REVENUE | R$ 25228 | R$ 25487 | [1] | R$ 22266 | |||||
TOTAL COST | (19,845) | ||||||||
GROSS PROFIT | 5,383 | ||||||||
OPERATING EXPENSES | (1,587) | ||||||||
Share of profit (loss), net, of affiliates and jointly-controlled entities | 357 | 125 | [1] | (104) | |||||
Dividends declared by investee classified as held for sale | |||||||||
Remeasurement of previously held equity interest in subsidiaries acquired | (119) | ||||||||
Impairment loss on investments | (127) | ||||||||
Net finance income | 2,445 | 3,207 | [1] | 1,706 | |||||
Income before income tax and social contribution tax | 3,801 | 4,469 | [1] | 2,011 | |||||
Current income tax and social contribution tax | (684) | ||||||||
Deferred income tax and social contribution tax | (252) | ||||||||
Net income for the year from continuing operations | 2,865 | 2,969 | [1] | 1,401 | [1] | ||||
DISCONTINUED OPERATIONS | |||||||||
Net income after tax for the year from discontinued operations | 224 | [1] | 363 | [1] | |||||
NET INCOME FOR THE YEAR | R$ 2864 | 2,865 | 3,194 | [1] | 1,764 | [1] | |||
Equity holders of the parent | |||||||||
Net income from continuing operations | 2,864 | ||||||||
Net income for the year attributed to equity holders of the parent | 2,864 | ||||||||
Non-controlling interests | |||||||||
Net income from continuing operations | 1 | ||||||||
NET INCOME FOR THE YEAR | R$ 1 | 1 | [1] | 42 | |||||
Basic and diluted earnings per preferred share - R$ | R$ 1.69 | ||||||||
Basic and diluted earnings per common share - R$ | 1.69 | ||||||||
Basic and diluted earnings per preferred share from continuing operations - R$ | 1.69 | ||||||||
Basic and diluted earnings per common share from continuing operations - R$ | 1.69 | ||||||||
Basic and diluted earnings per preferred share from discontinued operations - R$ | |||||||||
Basic and diluted earnings per common share from discontinued operations - R$ | |||||||||
As presented [member] | |||||||||
CONTINUING OPERATIONS | |||||||||
NET REVENUE | [2] | R$ 22266 | 25,390 | ||||||
TOTAL COST | (17,677) | (19,598) | |||||||
GROSS PROFIT | 4,589 | 5,792 | |||||||
OPERATING EXPENSES | [3] | (1,743) | (2,881) | ||||||
Share of profit (loss), net, of affiliates and jointly-controlled entities | (104) | 125 | |||||||
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) | ||||||||
Net finance income | (518) | 1,360 | |||||||
Income before income tax and social contribution tax | 1,978 | 4,469 | |||||||
Current income tax and social contribution tax | (583) | (1,454) | |||||||
Deferred income tax and social contribution tax | [4] | (16) | (111) | ||||||
Net income for the year from continuing operations | 1,379 | 2,904 | 1,379 | ||||||
DISCONTINUED OPERATIONS | |||||||||
Net income after tax for the year from discontinued operations | 363 | 224 | 363 | ||||||
NET INCOME FOR THE YEAR | 1,742 | 3,128 | 1,742 | ||||||
Equity holders of the parent | |||||||||
Net income from continuing operations | 1,378 | 2,903 | |||||||
Net income from discontinued operations | 322 | 224 | |||||||
Net income for the year attributed to equity holders of the parent | 1,700 | 3,127 | |||||||
Non-controlling interests | |||||||||
Net income from continuing operations | 1 | 1 | |||||||
Net income from discontinued operations | 41 | ||||||||
NET INCOME FOR THE YEAR | R$ 1742 | R$ 3128 | |||||||
Basic and diluted earnings per preferred share - R$ | [5] | R$ 1.17 | R$ 2.06 | ||||||
Basic and diluted earnings per common share - R$ | [5] | 1.17 | 2.06 | ||||||
Basic and diluted earnings per preferred share from continuing operations - R$ | [5] | 0.95 | 1.91 | ||||||
Basic and diluted earnings per common share from continuing operations - R$ | [5] | 0.95 | 1.91 | ||||||
Basic and diluted earnings per preferred share from discontinued operations - R$ | [5] | 0.22 | 0.15 | ||||||
Basic and diluted earnings per common share from discontinued operations - R$ | [5] | R$ 0.22 | R$ 0.15 | ||||||
Adjustment [member] | |||||||||
CONTINUING OPERATIONS | |||||||||
NET REVENUE | [2] | R$ 33 | R$ 96 | ||||||
GROSS PROFIT | 33 | 96 | |||||||
OPERATING EXPENSES | [3] | 5 | |||||||
Share of profit (loss), net, of affiliates and jointly-controlled entities | |||||||||
Dividends declared by investee classified as held for sale | |||||||||
Remeasurement of previously held equity interest in subsidiaries acquired | |||||||||
Impairment loss on investments | |||||||||
Net finance income | |||||||||
Income before income tax and social contribution tax | 33 | 101 | |||||||
Current income tax and social contribution tax | |||||||||
Deferred income tax and social contribution tax | [4] | (11) | (34) | ||||||
Net income for the year from continuing operations | 22 | 65 | 22 | ||||||
DISCONTINUED OPERATIONS | |||||||||
Net income after tax for the year from discontinued operations | |||||||||
NET INCOME FOR THE YEAR | 22 | 65 | 22 | ||||||
Equity holders of the parent | |||||||||
Net income from continuing operations | 22 | 67 | |||||||
Net income from discontinued operations | |||||||||
Net income for the year attributed to equity holders of the parent | 22 | 67 | |||||||
Non-controlling interests | |||||||||
Net income from continuing operations | |||||||||
Net income from discontinued operations | |||||||||
NET INCOME FOR THE YEAR | R$ 22 | R$ 65 | |||||||
Basic and diluted earnings per preferred share - R$ | [5] | R$ 0.15 | R$ 0.17 | ||||||
Basic and diluted earnings per common share - R$ | [5] | (0.15) | 0.17 | ||||||
Basic and diluted earnings per preferred share from continuing operations - R$ | [5] | (0.12) | 0.14 | ||||||
Basic and diluted earnings per common share from continuing operations - R$ | [5] | (0.12) | 0.14 | ||||||
Basic and diluted earnings per preferred share from discontinued operations - R$ | [5] | (0.03) | 0.01 | ||||||
Basic and diluted earnings per common share from discontinued operations - R$ | [5] | R$ 0.03 | R$ 0.01 | ||||||
Restated [member] | |||||||||
CONTINUING OPERATIONS | |||||||||
NET REVENUE | R$ 22299 | [1] | R$ 25486 | [2],[6] | 22,299 | [6] | |||
TOTAL COST | (17,677) | [1] | (19,598) | [6] | (17,677) | [6] | |||
GROSS PROFIT | 4,622 | [1] | 5,888 | [6] | 4,622 | [6] | |||
OPERATING EXPENSES | (1,743) | [1] | (2,876) | [3],[6] | (1,743) | [6] | |||
Share of profit (loss), net, of affiliates and jointly-controlled entities | (104) | [1] | 125 | [6] | (104) | [6] | |||
Dividends declared by investee classified as held for sale | [6] | (73) | |||||||
Remeasurement of previously held equity interest in subsidiaries acquired | (119) | [1] | [6] | (119) | [6] | ||||
Impairment loss on investments | (127) | [1] | [6] | (127) | [6] | ||||
Net finance income | [1] | (518) | 1,360 | ||||||
Income before income tax and social contribution tax | 2,011 | [1] | 4,570 | [6] | 2,011 | [6] | |||
Current income tax and social contribution tax | (583) | [1] | (1,454) | [6] | (583) | [6] | |||
Deferred income tax and social contribution tax | (27) | [1] | (145) | [5],[6] | (27) | [6] | |||
Net income for the year from continuing operations | 1,401 | [1] | 2,971 | [6] | 1,401 | [6] | |||
DISCONTINUED OPERATIONS | |||||||||
Net income after tax for the year from discontinued operations | 363 | [1] | 224 | [6] | 363 | [6] | |||
NET INCOME FOR THE YEAR | 1,764 | [1] | 3,195 | [6] | 1,764 | [6] | |||
Equity holders of the parent | |||||||||
Net income from continuing operations | 1,400 | [1] | 2,970 | [6] | 1,400 | [6] | |||
Net income from discontinued operations | 322 | [1] | 224 | [6] | 322 | [6] | |||
Net income for the year attributed to equity holders of the parent | 1,722 | [1] | 3,194 | [6] | 1,722 | [6] | |||
Non-controlling interests | |||||||||
Net income from continuing operations | 1 | [1] | 1 | [6] | 1 | [6] | |||
Net income from discontinued operations | 41 | [1] | [6] | 41 | [6] | ||||
NET INCOME FOR THE YEAR | R$ 42 | [1] | R$ 1 | [6] | R$ 42 | [6] | |||
Basic and diluted earnings per preferred share - R$ | R$ 1.02 | [5] | R$ 1.89 | [6] | R$ 1.02 | [6] | |||
Basic and diluted earnings per common share - R$ | 1.02 | [5] | 1.89 | [6] | 1.02 | [6] | |||
Basic and diluted earnings per preferred share from continuing operations - R$ | 0.83 | [5] | 1.75 | [6] | 0.83 | [6] | |||
Basic and diluted earnings per common share from continuing operations - R$ | 0.83 | [5] | 1.75 | [6] | 0.83 | [6] | |||
Basic and diluted earnings per preferred share from discontinued operations - R$ | 0.19 | [5] | 0.14 | [5],[6] | 0.19 | [6] | |||
Basic and diluted earnings per common share from discontinued operations - R$ | R$ 0.19 | [5] | R$ 0.14 | [6] | R$ 0.19 | [6] | |||
[1] | See note 2.8. | ||||||||
[2] | Recognition of the profit margin associated to the performance obligation to construct and upgrade the transmission infrastructure, as well as the interest revenue resulting from the financing component; | ||||||||
[3] | Reversal of expected losses recorded in others expenses in prior periods. | ||||||||
[4] | Deferral of income tax and social contribution tax over the adjustments | ||||||||
[5] | The basic and diluted earnings per share for the years ended in December 31, 2019 and 2018 were also adjusted retrospectively in order to reflect the increase in the number of shares in 2021. For more information, see Note 26. | ||||||||
[6] | For further details of restatement of comparative balances, see Note 2.8 |
2. BASIS OF PREPARATION (Deta_3
2. BASIS OF PREPARATION (Details 2) - BRL (R$) R$ in Millions | Jan. 02, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
CASH FLOW FROM OPERATIONS | ||||||||
Net income for the year from continuing operations | R$ 2865 | R$ 2969 | [1] | R$ 1401 | [1] | |||
Net income for the year from discontinuing operations | 224 | [1] | 363 | [1] | ||||
Adjustments to reconcile net income to net cash flows: | ||||||||
Deferred income tax and social contribution tax | 252 | |||||||
Loss on write-off of net residual value of unrecoverable concession financial assets, concessional contract asset, PP&E and Intangible assets | 39 | |||||||
Others | 57 | |||||||
TOTAL | 3,968 | |||||||
Increase (decrease) in liabilities | ||||||||
Others | 106 | |||||||
TOTAL | (1,676) | |||||||
Increase (decrease) in liabilities | (1,676) | |||||||
Cash generated by operating activities | R$ 8607 | |||||||
As presented [member] | ||||||||
CASH FLOW FROM OPERATIONS | ||||||||
Net income for the year from continuing operations | R$ 1379 | 2,904 | 1,379 | |||||
Net income for the year from discontinuing operations | 363 | 224 | 363 | |||||
Adjustments to reconcile net income to net cash flows: | ||||||||
Deferred income tax and social contribution tax | 111 | [2] | 16 | [3] | ||||
Loss on write-off of net residual value of unrecoverable concession financial assets, concessional contract asset, PP&E and Intangible assets | [4] | 130 | ||||||
Adjustment to expectation of contract asset and financial concession asset | (507) | [2] | (585) | [5] | ||||
Deffered PIS/Pasep and Cofins over contract revenues | [6] | 985 | ||||||
Others | 1,072 | |||||||
TOTAL | 3,934 | 2,158 | ||||||
Increase (decrease) in liabilities | ||||||||
Concession contract and financial assets | 373 | [7] | 1,704 | [6] | ||||
Others | (67) | 1,450 | ||||||
TOTAL | 957 | (2,023) | ||||||
Increase (decrease) in liabilities | 957 | (2,023) | ||||||
Cash generated by operating activities | 5,197 | 3,289 | ||||||
Adjustment [member] | ||||||||
CASH FLOW FROM OPERATIONS | ||||||||
Net income for the year from continuing operations | 22 | 65 | 22 | |||||
Net income for the year from discontinuing operations | ||||||||
Adjustments to reconcile net income to net cash flows: | ||||||||
Deferred income tax and social contribution tax | 34 | [2] | 11 | [3] | ||||
Loss on write-off of net residual value of unrecoverable concession financial assets, concessional contract asset, PP&E and Intangible assets | [4] | (5) | ||||||
Adjustment to expectation of contract asset and financial concession asset | (249) | [2] | (92) | [5] | ||||
Deffered PIS/Pasep and Cofins over contract revenues | [6] | 15 | 2 | |||||
Others | ||||||||
TOTAL | (138) | (57) | ||||||
Increase (decrease) in liabilities | ||||||||
Concession contract and financial assets | 138 | [7] | 57 | [6] | ||||
Others | ||||||||
TOTAL | 138 | |||||||
Increase (decrease) in liabilities | 138 | |||||||
Cash generated by operating activities | 136 | 57 | ||||||
Restated [member] | ||||||||
CASH FLOW FROM OPERATIONS | ||||||||
Net income for the year from continuing operations | 1,401 | [1] | 2,971 | [8] | 1,401 | [8] | ||
Net income for the year from discontinuing operations | R$ 363 | [1] | 224 | [8] | 363 | [8] | ||
Adjustments to reconcile net income to net cash flows: | ||||||||
Deferred income tax and social contribution tax | [8] | 145 | 27 | |||||
Loss on write-off of net residual value of unrecoverable concession financial assets, concessional contract asset, PP&E and Intangible assets | [8] | 125 | 61 | |||||
Adjustment to expectation of contract asset and financial concession asset | (756) | [2] | (677) | [5] | ||||
Deffered PIS/Pasep and Cofins over contract revenues | [6] | 15 | 987 | |||||
Others | [8] | (9) | (28) | |||||
TOTAL | [8] | 444 | 3,211 | |||||
Increase (decrease) in liabilities | ||||||||
Concession contract and financial assets | 511 | [7] | 1,761 | [6] | ||||
Others | [8] | 4 | (165) | |||||
TOTAL | [8] | (957) | 2,023 | |||||
Increase (decrease) in liabilities | [8] | (957) | 2,023 | |||||
Cash generated by operating activities | [8] | R$ 2036 | R$ 1008 | |||||
[1] | See note 2.8. | |||||||
[2] | Recognition of the profit margin associated to the performance obligation to construct and upgrade the transmission infrastructure, as well as the interest revenue resulting from the financing component and the result of the periodic tariff revision. | |||||||
[3] | Deferral of income tax and social contribution tax over the adjustments. | |||||||
[4] | Others immaterial adjustments referring to impairment losses and others expected losses. | |||||||
[5] | Recognition of the profit margin associated to the performance obligation to construct and upgrade the transmission infrastructure, as well as the interest revenue resulting from the financing component in the contract asset and the result of the periodic tariff revision. | |||||||
[6] | Effects of PIS/Pasep and Cofins over contract revenues, including the deferred taxes. | |||||||
[7] | Adjustments in the amounts of the contract assets that were received, due to the reallocation of the consideration to performance obligation to construct and upgrade. | |||||||
[8] | For further details of restatement of comparative balances, see Note 2.8 |
2. BASIS OF PREPARATION (Deta_4
2. BASIS OF PREPARATION (Details 3) - BRL (R$) R$ in Millions | Apr. 30, 2021 | Jan. 02, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
BasisOfPreparationLineItems [Line Items] | |||||||||
NET INCOME FOR THE YEAR | R$ 2864 | R$ 2865 | R$ 3194 | [1] | R$ 1764 | [1] | |||
OTHER COMPREHENSIVE INCOME | |||||||||
COMPREHENSIVE INCOME FOR THE YEAR | 2,858 | ||||||||
Total of comprehensive income for the year attributed to: | |||||||||
Equity holders of the parent | 2,857 | ||||||||
Non-controlling interests | 1 | ||||||||
COMPREHENSIVE INCOME FOR THE YEAR | R$ 2858 | ||||||||
As presented [member] | |||||||||
BasisOfPreparationLineItems [Line Items] | |||||||||
NET INCOME FOR THE YEAR | R$ 1742 | 3,128 | 1,742 | ||||||
OTHER COMPREHENSIVE INCOME | |||||||||
Items not to be reclassified to profit or loss in subsequent periods | (1,055) | (463) | |||||||
COMPREHENSIVE INCOME FOR THE YEAR | 2,073 | 1,279 | |||||||
Total of comprehensive income for the year attributed to: | |||||||||
Equity holders of the parent | 2,072 | 1,237 | |||||||
Non-controlling interests | 1 | 42 | |||||||
COMPREHENSIVE INCOME FOR THE YEAR | 2,073 | 1,279 | |||||||
Adjustment [member] | |||||||||
BasisOfPreparationLineItems [Line Items] | |||||||||
NET INCOME FOR THE YEAR | 22 | 65 | 22 | ||||||
OTHER COMPREHENSIVE INCOME | |||||||||
Items not to be reclassified to profit or loss in subsequent periods | |||||||||
COMPREHENSIVE INCOME FOR THE YEAR | 67 | 22 | |||||||
Total of comprehensive income for the year attributed to: | |||||||||
Equity holders of the parent | 66 | 22 | |||||||
Non-controlling interests | |||||||||
COMPREHENSIVE INCOME FOR THE YEAR | 67 | 22 | |||||||
Restated [member] | |||||||||
BasisOfPreparationLineItems [Line Items] | |||||||||
NET INCOME FOR THE YEAR | R$ 1764 | [1] | 3,195 | [2] | 1,764 | [2] | |||
OTHER COMPREHENSIVE INCOME | |||||||||
Items not to be reclassified to profit or loss in subsequent periods | (1,055) | (463) | |||||||
COMPREHENSIVE INCOME FOR THE YEAR | [2] | 2,140 | 1,301 | ||||||
Total of comprehensive income for the year attributed to: | |||||||||
Equity holders of the parent | [2] | 2,139 | 1,259 | ||||||
Non-controlling interests | [2] | 1 | 42 | ||||||
COMPREHENSIVE INCOME FOR THE YEAR | [2] | R$ 2140 | R$ 1301 | ||||||
[1] | See note 2.8. | ||||||||
[2] | For further details of restatement of comparative balances, see Note 2.8 |
3. PRINCIPLES OF CONSOLIDATIO_2
3. PRINCIPLES OF CONSOLIDATION (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
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% | |
Percentage of ownership in subsidiary indirect interest | |||
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% | |
Percentage of ownership in subsidiary indirect interest | |||
Gasmig [member] | |||
Disclosure of subsidiaries [line items] | |||
Form of valuation | Consolidation | Consolidation | |
Percentage of ownership in subsidiary direct interest | 99.57% | 99.57% | |
Percentage of ownership in subsidiary indirect interest | |||
Cemig Geracao Distribuida (Usina Termica Ipatinga) [member] | |||
Disclosure of subsidiaries [line items] | |||
Form of valuation | [1] | Consolidation | Consolidation |
Percentage of ownership in subsidiary direct interest | [1] | 100.00% | 100.00% |
Percentage of ownership in subsidiary indirect interest | |||
Cemig Sim (Efficientia) [member] | |||
Disclosure of subsidiaries [line items] | |||
Form of valuation | [2] | Consolidation | Consolidation |
Percentage of ownership in subsidiary direct interest | [2] | 100.00% | 100.00% |
Percentage of ownership in subsidiary indirect interest | |||
Centroeste [member] | |||
Disclosure of subsidiaries [line items] | |||
Form of valuation | [3] | Consolidation | Equity method |
Percentage of ownership in subsidiary direct interest | [3] | 100.00% | 51.00% |
Percentage of ownership in subsidiary indirect interest | |||
[1] | On October 19, 2020, an Extraordinary General Meeting of Shareholders approved the merger of this wholly-owned subsidiary, at book value, and as a result the investee ceased to exist and the Company took over of all its rights and liabilities. | ||
[2] | On April 14, 2020, the Annual Shareholders General Meeting decided to change this subsidiary's By-laws, changing the name of this subsidiary to Cemig Solucoes Inteligentes em Energia S.A.-Cemig Sim. | ||
[3] | On January 13, 2020, the Company concluded acquisition of the equity interest of 49% of the share capital held by Eletrobras in Centroeste, resulting in its now holding 100% of that investee. More details see notes 1 and 16. |
3. PRINCIPLES OF CONSOLIDATIO_3
3. PRINCIPLES OF CONSOLIDATION (Details Narrative) | Jan. 13, 2020 | Dec. 31, 2020 |
Centroeste [member] | ||
Disclosure of subsidiaries [line items] | ||
Percentage of ownership interest in entities wholly owned directly or indirectly | 49.00% | 100.00% |
4. CONCESSIONS AND AUTHORIZAT_3
4. CONCESSIONS AND AUTHORIZATIONS (Details) | 12 Months Ended | |
Dec. 31, 2020 | ||
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 | [2] |
Concession or authorization contract | 006/1997 | [2] |
Expiration date | 01/2043 | [2] |
Substation - SE Itajub [member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig GT | [2] |
Concession or authorization contract | 79/2000 | [2] |
Expiration date | 10/2030 | [2] |
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 | [3] |
Concession or authorization contract | Resolution 660/2001 | [3] |
Expiration date | 01/2031 | [3] |
Central Geradora Elica Praias De Parajuru Wind Power Plants [member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Parajuru | [3] |
Concession or authorization contract | Resolution 526/2002 | [3] |
Expiration date | 09/2032 | [3] |
GAS DISTRIBUTION [member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Gasmig | [1] |
Concession or authorization contract | State Law 11,021/1993 | [1] |
Expiration date | 01/2053 | [1] |
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 | [4] |
Concession or authorization contract | 01/2004 | [4] |
Expiration date | 12/2024 | [4] |
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] |
Concession or authorization contract | 07/1997 | [5] |
Expiration date | 08/2024 | [5] |
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 | [4],[6] |
Concession or authorization contract | 07/1997 | [4],[6] |
Expiration date | 07/2025 | [4],[6] |
Queimado Consortium [member] | National Electrical Energy Agency [member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig GT | [4] |
Concession or authorization contract | 06/1997 | [4] |
Expiration date | 01/2033 | [4] |
Irape Hydroelectric Plants [member] | National Electrical Energy Agency [member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Cemig GT | [4] |
Concession or authorization contract | 14/2000 | [4] |
Expiration date | 02/2035 | [4] |
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 | [4],[6],[8] |
Concession or authorization contract | 07/1997 | [4],[6],[8] |
Expiration date | 07/2025 | [4],[6],[8] |
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 | [4] |
Concession or authorization contract | Resolution 331/2002 | [4] |
Expiration date | 10/2030 | [4] |
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] |
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 | [4] |
Concession or authorization contract | 02/2013 | [4] |
Expiration date | 08/2025 | [4] |
Poco Fundo Hydroelectric Plants [member] | National Electrical Energy Agency [member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Geracao Poço Fundo | [4] |
Concession or authorization contract | 01/2021 | [4] |
Expiration date | 05/2045 | [4] |
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 | [4] |
Concession or authorization contract | 02/2013 | [4] |
Expiration date | 09/2024 | [4] |
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 | [4] |
Concession or authorization contract | Resolution 331/2002 | [4] |
Expiration date | 10/2030 | [4] |
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 | [4] |
Concession or authorization contract | Authorizing Resolution 377/2005 | [4] |
Expiration date | 04/2032 | [4] |
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 | [4] |
Concession or authorization contract | Resolution 331/2002 | [4] |
Expiration date | 10/2030 | [4] |
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 | [4] |
Concession or authorization contract | Resolution 331/2002 | [4] |
Expiration date | 07/2025 | [4] |
Rosal Hydroelectric Plants [member] | National Electrical Energy Agency [member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Rosal Energia | [4] |
Concession or authorization contract | 01/1997 | [4] |
Expiration date | 05/2032 | [4] |
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 | [4] |
Concession or authorization contract | 07/1997 | [4] |
Expiration date | 02/2026 | [4] |
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] |
Furnas - Pimenta - Transmission line [member] | National Electrical Energy Agency [member] | ||
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Company holding concession or authorization | Centroeste | [2] |
Concession or authorization contract | 004/2005 | [2] |
Expiration date | 03/2035 | [2] |
[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. | |
[2] | 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. | |
[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] | 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'). | |
[5] | On December 6, 2019, Aneel suspended Igarape Plant commercial operation upon Cemig GT's claim for early termination of its concession contract, and, as a result, the corresponding assets were written-off from Cemig GT's financial statement position. In February 2021, the Thermal Plant Igarape concession was extinct. by the Brazilian Mining and Energy Ministry, in consideration of the termination request submitted by Cemig GT. 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. Aneel approved, through Authorizing Resolution n. 9.735, on Februarty 23, 2021, the transfer of the concession contract from Cemig GT to Cemig Poco Fundo. This transfer was formally agreed on April 16, 2021, resulting in a new contract (01/2021), which also extended the concession to 05/2045. | |
[6] | On July 17, 2020, Cemig GT filed a statement of its interest in extending these plants concession, under the independent producer regime, outside the regime of quotas, to ensure its right of option under the legislative changes currently under discussion, relating to the group of measures to modernize the electricity sector. Any actual decision will only be made after publication by the Brazilian Mining and Energy Ministry and by the regulator, Aneel, of the conditions for extension, which will be submitted to decision by Cemig's governance bodies at the due time. | |
[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. | |
[8] | Bank Deposit Certificates (CDBs), accrued interest at 50% to 108%, of the CDI Rate (Interbank deposit rates) published by the Custody and Settlement Chamber (Cetip) in 2020 (80% to 106% in 2019 and 40% to 106% in 2018). 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. |
4. CONCESSIONS AND AUTHORIZAT_4
4. CONCESSIONS AND AUTHORIZATIONS (Details 1) R$ in Millions | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
Queimadao Consortium Enterprise [member] | |
Disclosure Of Concession And Amount To Be Paid [line items] | |
Nominal value in 2019 | R$ 9 |
Present value in 2019 | R$ 5 |
Period of the concession | 01/2004 – 12/2032 |
Updating indexer | IGPM |
Irape Enterprise [member] | |
Disclosure Of Concession And Amount To Be Paid [line items] | |
Nominal value in 2019 | R$ 38 |
Present value in 2019 | R$ 18 |
Period of the concession | 03/2006 – 02/2035 |
Updating indexer | IGPM |
4. CONCESSIONS AND AUTHORIZAT_5
4. CONCESSIONS AND AUTHORIZATIONS (Details 2) R$ in Millions | 12 Months Ended |
Dec. 31, 2020BRL (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 | 1 Months Ended | 12 Months Ended |
Sep. 19, 2020 | Dec. 31, 2020 | |
Disclosure Of Electricity Concessions And Authorizations [line items] | ||
Discount of future payments | 12.50% | |
Concession grant fee | R$ 852 | |
Dividend and interest on equity | 25.00% | |
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 | Apr. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Disclosure of operating segments [line items] | |||||||
SEGMENT ASSETS | R$ 54083 | R$ 50527 | R$ 60339 | ||||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | 5,415 | 5,399 | 5,235 | ||||
INVESTMENTS IN AFFILIATES CLASSIFIED AS HELD FOR SALE | 1,258 | 1,258 | |||||
ADDITIONS TO THE SEGMENT | 1,918 | 2,201 | 1,632 | ||||
NET REVENUE | 25,228 | 25,487 | [1] | 22,266 | |||
COST OF ENERGY AND GAS | |||||||
Energy bought for resale | (12,111) | (11,286) | [1] | (11,084) | |||
Charges for use of the national grid | (1,748) | (1,426) | [1] | (1,480) | |||
Gas bought for resale | (1,083) | (1,436) | (1,238) | ||||
Operating costs, total | (14,942) | (14,148) | (13,802) | ||||
OPERATING COSTS AND EXPENSES | |||||||
Personnel | (1,276) | (1,272) | (1,410) | ||||
Employees' and managers' profit sharing | (142) | (263) | (77) | ||||
Post-employment obligations | (438) | (408) | (337) | ||||
Materials | (79) | (91) | (104) | ||||
Raw materials and inputs for production of energy | |||||||
Outsourced services | (1,265) | (1,239) | (1,087) | ||||
Depreciation and amortization | (989) | (958) | (835) | ||||
Operating provisions (reversals) | (423) | (2,401) | (466) | ||||
Construction costs | (1,581) | (1,200) | (897) | ||||
Other operating expenses, net | (297) | (495) | (405) | ||||
Total cost of operation | (6,490) | (8,327) | (5,618) | ||||
OPERATING COSTS AND EXPENSES | (21,432) | (22,475) | (19,420) | ||||
Equity in earnings of unconsolidated investees, net | 357 | 125 | [1] | (104) | |||
Dividends declared by investee classified as held for sale | 73 | ||||||
Gain on a bargain purchase and remeasurement of previously held equity interest in subsidiary acquired in business combinations transactions | 51 | ||||||
Remeasurement of previously held equity interest in subsidiaries acquired | (119) | ||||||
Impairment for investments | (127) | ||||||
OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) | 4,706 | 3,210 | [1] | 2,529 | |||
Finance income | 2,445 | 3,207 | [1] | 1,706 | |||
Finance expenses | (3,350) | (1,847) | [1] | (2,224) | |||
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX | 3,801 | 4,469 | [1] | 2,011 | |||
Income tax and social contribution tax | (936) | (1,599) | (610) | ||||
Net income for the year from continuing operations | 2,865 | 2,969 | [1] | 1,401 | [1] | ||
DISCONTINUED OPERATIONS | |||||||
NET INCOME AFTER TAX FROM DISCONTINUED OPERATIONS | 224 | [1] | 363 | [1] | |||
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 | |||||||
NET INCOME (LOSS) FOR THE YEAR | 3,193 | ||||||
NET INCOME FOR THE YEAR | R$ 2864 | 2,865 | 3,194 | [1] | 1,764 | [1] | |
Equity holders of the parent | 2,864 | 3,193 | 1,722 | ||||
Non-controlling interests | 1 | 1 | [1] | 42 | |||
Operating Segments [member] | Elimination Segments [member] | |||||||
Disclosure of operating segments [line items] | |||||||
SEGMENT ASSETS | (663) | (1,127) | |||||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | |||||||
INVESTMENTS IN AFFILIATES CLASSIFIED AS HELD FOR SALE | |||||||
ADDITIONS TO THE SEGMENT | |||||||
NET REVENUE | (333) | (307) | |||||
COST OF ENERGY AND GAS | |||||||
Energy bought for resale | 76 | 72 | |||||
Charges for use of the national grid | 223 | ||||||
Gas bought for resale | |||||||
Operating costs, total | 326 | 295 | |||||
OPERATING COSTS AND EXPENSES | |||||||
Personnel | |||||||
Employees' and managers' profit sharing | |||||||
Post-employment obligations | |||||||
Materials | |||||||
Outsourced services | 7 | 7 | |||||
Depreciation and amortization | |||||||
Operating provisions (reversals) | |||||||
Construction costs | |||||||
Other operating expenses, net | 5 | ||||||
Total cost of operation | 8 | 12 | |||||
OPERATING COSTS AND EXPENSES | 333 | (307) | |||||
Equity in earnings of unconsolidated investees, net | |||||||
Operating Segments [member] | Restated [member] | Elimination Segments [member] | |||||||
Disclosure of operating segments [line items] | |||||||
SEGMENT ASSETS | (957) | ||||||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | |||||||
NET REVENUE | (293) | ||||||
COST OF ENERGY AND GAS | |||||||
Energy bought for resale | 71 | ||||||
Charges for use of the national grid | 199 | ||||||
Operating costs, total | 270 | ||||||
OPERATING COSTS AND EXPENSES | |||||||
Outsourced services | 15 | ||||||
Other operating expenses, net | 8 | ||||||
Total cost of operation | 23 | ||||||
OPERATING COSTS AND EXPENSES | 293 | ||||||
Operating Segments [member] | Other Segments [member] | |||||||
Disclosure of operating segments [line items] | |||||||
SEGMENT ASSETS | 3,712 | 3,888 | |||||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | 21 | 29 | |||||
INVESTMENTS IN AFFILIATES CLASSIFIED AS HELD FOR SALE | |||||||
ADDITIONS TO THE SEGMENT | 9 | ||||||
NET REVENUE | 105 | 324 | |||||
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 | (24) | (35) | |||||
Employees' and managers' profit sharing | (14) | (17) | |||||
Post-employment obligations | (47) | (43) | |||||
Materials | (3) | ||||||
Raw materials and inputs for production of energy | (33) | ||||||
Outsourced services | (3) | (40) | |||||
Depreciation and amortization | (18) | (4) | |||||
Operating provisions (reversals) | (188) | ||||||
Construction costs | |||||||
Other operating expenses, net | (16) | ||||||
Total cost of operation | (155) | (330) | |||||
OPERATING COSTS AND EXPENSES | (155) | (330) | |||||
Equity in earnings of unconsolidated investees, net | (8) | (2) | |||||
OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) | (58) | (8) | |||||
Finance income | 269 | ||||||
Finance expenses | (4) | (19) | |||||
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX | (62) | 242 | |||||
Income tax and social contribution tax | (6) | (124) | |||||
Net income for the year from continuing operations | (68) | 118 | |||||
Items that may be reclassified to profit or loss | |||||||
NET INCOME (LOSS) FOR THE YEAR | 118 | ||||||
NET INCOME FOR THE YEAR | (68) | 118 | |||||
Equity holders of the parent | (68) | 118 | |||||
Operating Segments [member] | Other Segments [member] | Restated [member] | |||||||
Disclosure of operating segments [line items] | |||||||
SEGMENT ASSETS | 2,607 | ||||||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | 17 | ||||||
NET REVENUE | 134 | ||||||
OPERATING COSTS AND EXPENSES | |||||||
Personnel | (29) | ||||||
Employees' and managers' profit sharing | (9) | ||||||
Post-employment obligations | (40) | ||||||
Outsourced services | (30) | ||||||
Depreciation and amortization | (1) | ||||||
Operating provisions (reversals) | (18) | ||||||
Other operating expenses, net | (112) | ||||||
Total cost of operation | (239) | ||||||
OPERATING COSTS AND EXPENSES | (239) | ||||||
Equity in earnings of unconsolidated investees, net | (14) | ||||||
Remeasurement of previously held equity interest in subsidiaries acquired | (147) | ||||||
OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) | (266) | ||||||
Finance income | 13 | ||||||
Finance expenses | (19) | ||||||
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX | (272) | ||||||
Income tax and social contribution tax | 57 | ||||||
Net income for the year from continuing operations | (215) | ||||||
Items that may be reclassified to profit or loss | |||||||
NET INCOME (LOSS) FOR THE YEAR | (115) | ||||||
NET INCOME FOR THE YEAR | (215) | ||||||
Equity holders of the parent | (217) | ||||||
Non-controlling interests | 2 | ||||||
Operating Segments [member] | Gas Segment [member] | |||||||
Disclosure of operating segments [line items] | |||||||
SEGMENT ASSETS | 2,615 | 2,689 | |||||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | |||||||
INVESTMENTS IN AFFILIATES CLASSIFIED AS HELD FOR SALE | |||||||
ADDITIONS TO THE SEGMENT | 50 | 934 | |||||
NET REVENUE | 1,664 | 1,858 | |||||
COST OF ENERGY AND GAS | |||||||
Energy bought for resale | |||||||
Charges for use of the national grid | |||||||
Gas bought for resale | (1,083) | (1,436) | |||||
Operating costs, total | (1,083) | (1,436) | |||||
OPERATING COSTS AND EXPENSES | |||||||
Personnel | (60) | (46) | |||||
Employees' and managers' profit sharing | |||||||
Post-employment obligations | |||||||
Materials | (1) | (20) | |||||
Outsourced services | (25) | (2) | |||||
Depreciation and amortization | (106) | (86) | |||||
Operating provisions (reversals) | (1) | (2) | |||||
Construction costs | (50) | (43) | |||||
Other operating expenses, net | (12) | (10) | |||||
Total cost of operation | (255) | (209) | |||||
OPERATING COSTS AND EXPENSES | (1,338) | (1,645) | |||||
OPERATING INCOME BEFORE EQUITY GAINS (LOSSES) AND FINANCE INCOME (EXPENSES) | 213 | ||||||
Equity in earnings of unconsolidated investees, net | |||||||
OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) | 326 | ||||||
Finance income | 44 | 21 | |||||
Finance expenses | (58) | (46) | |||||
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX | 312 | 188 | |||||
Income tax and social contribution tax | (58) | (48) | |||||
Net income for the year from continuing operations | 227 | 140 | |||||
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 | 139 | ||||||
NET INCOME FOR THE YEAR | 227 | 140 | |||||
Equity holders of the parent | 226 | 139 | |||||
Non-controlling interests | 1 | ||||||
Operating Segments [member] | Gas Segment [member] | Restated [member] | |||||||
Disclosure of operating segments [line items] | |||||||
SEGMENT ASSETS | 1,822 | ||||||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | |||||||
ADDITIONS TO THE SEGMENT | 70 | ||||||
NET REVENUE | 1,619 | ||||||
COST OF ENERGY AND GAS | |||||||
Gas bought for resale | (1,238) | ||||||
Operating costs, total | (1,238) | ||||||
OPERATING COSTS AND EXPENSES | |||||||
Personnel | (60) | ||||||
Materials | (2) | ||||||
Outsourced services | (20) | ||||||
Depreciation and amortization | (74) | ||||||
Operating provisions (reversals) | 2 | ||||||
Construction costs | (44) | ||||||
Other operating expenses, net | (13) | ||||||
Total cost of operation | (211) | ||||||
OPERATING COSTS AND EXPENSES | (1,449) | ||||||
OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) | 170 | ||||||
Finance income | 84 | ||||||
Finance expenses | (38) | ||||||
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX | 216 | ||||||
Income tax and social contribution tax | (53) | ||||||
Net income for the year from continuing operations | 163 | ||||||
Items that may be reclassified to profit or loss | |||||||
NET INCOME FOR THE YEAR | 163 | ||||||
Equity holders of the parent | 162 | ||||||
Non-controlling interests | 1 | ||||||
Operating Segments [member] | Energy Distribution Segment [member] | |||||||
Disclosure of operating segments [line items] | |||||||
SEGMENT ASSETS | 26,399 | 25,616 | |||||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | |||||||
INVESTMENTS IN AFFILIATES CLASSIFIED AS HELD FOR SALE | 1,258 | 1,258 | |||||
ADDITIONS TO THE SEGMENT | 1,384 | 936 | |||||
NET REVENUE | 16,512 | 15,919 | |||||
COST OF ENERGY AND GAS | |||||||
Energy bought for resale | (8,161) | (7,517) | |||||
Charges for use of the national grid | (1,799) | (1,459) | |||||
Gas bought for resale | |||||||
Operating costs, total | (9,960) | (8,976) | |||||
OPERATING COSTS AND EXPENSES | |||||||
Personnel | (886) | (869) | |||||
Employees' and managers' profit sharing | (92) | (183) | |||||
Post-employment obligations | (297) | (277) | |||||
Materials | (61) | (63) | |||||
Outsourced services | (1,055) | (1,016) | |||||
Depreciation and amortization | (668) | (652) | |||||
Operating provisions (reversals) | (272) | (1,101) | |||||
Construction costs | (1,384) | (937) | |||||
Other operating expenses, net | (212) | (299) | |||||
Total cost of operation | (4,927) | (5,397) | |||||
OPERATING COSTS AND EXPENSES | (14,887) | (14,373) | |||||
Equity in earnings of unconsolidated investees, net | |||||||
Dividends declared by investee classified as held for sale | 73 | ||||||
OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) | 1,625 | 1,619 | |||||
Finance income | 514 | 1,535 | |||||
Finance expenses | (505) | (632) | |||||
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX | 1,634 | 2,522 | |||||
Income tax and social contribution tax | (430) | (806) | |||||
Net income for the year from continuing operations | 1,204 | 1,716 | |||||
DISCONTINUED OPERATIONS | |||||||
NET INCOME AFTER TAX FROM DISCONTINUED OPERATIONS | 224 | ||||||
Items that may be reclassified to profit or loss | |||||||
NET INCOME (LOSS) FOR THE YEAR | 1,940 | ||||||
NET INCOME FOR THE YEAR | 1,204 | 1,940 | |||||
Equity holders of the parent | 1,204 | 1,940 | |||||
Operating Segments [member] | Energy Distribution Segment [member] | Restated [member] | |||||||
Disclosure of operating segments [line items] | |||||||
SEGMENT ASSETS | 37,840 | ||||||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | |||||||
ADDITIONS TO THE SEGMENT | 856 | ||||||
NET REVENUE | 13,757 | ||||||
COST OF ENERGY AND GAS | |||||||
Energy bought for resale | (7,238) | ||||||
Charges for use of the national grid | (1,463) | ||||||
Operating costs, total | (8,701) | ||||||
OPERATING COSTS AND EXPENSES | |||||||
Personnel | (965) | ||||||
Employees' and managers' profit sharing | (51) | ||||||
Post-employment obligations | (224) | ||||||
Materials | (58) | ||||||
Outsourced services | (880) | ||||||
Depreciation and amortization | (595) | ||||||
Operating provisions (reversals) | (332) | ||||||
Construction costs | (757) | ||||||
Other operating expenses, net | (203) | ||||||
Total cost of operation | (4,065) | ||||||
OPERATING COSTS AND EXPENSES | (12,766) | ||||||
Equity in earnings of unconsolidated investees, net | 33 | ||||||
Remeasurement of previously held equity interest in subsidiaries acquired | (52) | ||||||
OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) | 972 | ||||||
Finance income | 434 | ||||||
Finance expenses | (621) | ||||||
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX | 785 | ||||||
Income tax and social contribution tax | (217) | ||||||
Net income for the year from continuing operations | 568 | ||||||
DISCONTINUED OPERATIONS | |||||||
NET INCOME AFTER TAX FROM DISCONTINUED OPERATIONS | 62 | ||||||
Items that may be reclassified to profit or loss | |||||||
NET INCOME (LOSS) FOR THE YEAR | 630 | ||||||
NET INCOME FOR THE YEAR | 630 | ||||||
Equity holders of the parent | 599 | ||||||
Non-controlling interests | 31 | ||||||
Operating Segments [member] | Energy Generation Segment [member] | |||||||
Disclosure of operating segments [line items] | |||||||
SEGMENT ASSETS | 16,150 | 14,749 | |||||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | 3,927 | 4,133 | |||||
INVESTMENTS IN AFFILIATES CLASSIFIED AS HELD FOR SALE | |||||||
ADDITIONS TO THE SEGMENT | 238 | 102 | |||||
NET REVENUE | 6,537 | 6,882 | |||||
COST OF ENERGY AND GAS | |||||||
Energy bought for resale | (4,026) | (3,841) | |||||
Charges for use of the national grid | (199) | (190) | |||||
Gas bought for resale | |||||||
Operating costs, total | (4,225) | (4,031) | |||||
OPERATING COSTS AND EXPENSES | |||||||
Personnel | (192) | (207) | |||||
Employees' and managers' profit sharing | (24) | (36) | |||||
Post-employment obligations | (53) | (50) | |||||
Materials | (13) | (17) | |||||
Outsourced services | (113) | (125) | |||||
Depreciation and amortization | (207) | (210) | |||||
Operating provisions (reversals) | (122) | (975) | |||||
Construction costs | |||||||
Other operating expenses, net | (68) | (175) | |||||
Total cost of operation | (792) | (1,795) | |||||
OPERATING COSTS AND EXPENSES | (5,017) | (5,826) | |||||
OPERATING INCOME BEFORE EQUITY GAINS (LOSSES) AND FINANCE INCOME (EXPENSES) | (129) | ||||||
Equity in earnings of unconsolidated investees, net | (88) | ||||||
OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) | 1,391 | 968 | |||||
Finance income | 1,711 | 1,282 | |||||
Finance expenses | (2,509) | (1,035) | |||||
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX | 593 | 1,215 | |||||
Income tax and social contribution tax | (206) | (551) | |||||
Net income for the year from continuing operations | 387 | 664 | |||||
Items that may be reclassified to profit or loss | |||||||
NET INCOME (LOSS) FOR THE YEAR | 664 | ||||||
NET INCOME FOR THE YEAR | 387 | 664 | |||||
Equity holders of the parent | 387 | 664 | |||||
Operating Segments [member] | Energy Generation Segment [member] | Restated [member] | |||||||
Disclosure of operating segments [line items] | |||||||
SEGMENT ASSETS | 14,671 | ||||||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | 4,055 | ||||||
ADDITIONS TO THE SEGMENT | 559 | ||||||
NET REVENUE | 6,374 | ||||||
COST OF ENERGY AND GAS | |||||||
Energy bought for resale | (3,917) | ||||||
Charges for use of the national grid | (216) | ||||||
Operating costs, total | (4,133) | ||||||
OPERATING COSTS AND EXPENSES | |||||||
Personnel | (230) | ||||||
Employees' and managers' profit sharing | (10) | ||||||
Post-employment obligations | (46) | ||||||
Materials | (39) | ||||||
Outsourced services | (123) | ||||||
Depreciation and amortization | (164) | ||||||
Operating provisions (reversals) | (107) | ||||||
Other operating expenses, net | (65) | ||||||
Total cost of operation | (784) | ||||||
OPERATING COSTS AND EXPENSES | (4,917) | ||||||
Equity in earnings of unconsolidated investees, net | (353) | ||||||
Remeasurement of previously held equity interest in subsidiaries acquired | 80 | ||||||
Impairment for investments | (127) | ||||||
OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) | 1,057 | ||||||
Finance income | 1,113 | ||||||
Finance expenses | (1,536) | ||||||
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX | 634 | ||||||
Income tax and social contribution tax | (276) | ||||||
Net income for the year from continuing operations | 358 | ||||||
DISCONTINUED OPERATIONS | |||||||
NET INCOME AFTER TAX FROM DISCONTINUED OPERATIONS | 11 | ||||||
Items that may be reclassified to profit or loss | |||||||
NET INCOME FOR THE YEAR | 369 | ||||||
Equity holders of the parent | 361 | ||||||
Non-controlling interests | 8 | ||||||
Operating Segments [member] | Telecommunications segment [member] | |||||||
Disclosure of operating segments [line items] | |||||||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | |||||||
Operating Segments [member] | Telecommunications segment [member] | Restated [member] | |||||||
Disclosure of operating segments [line items] | |||||||
SEGMENT ASSETS | 10 | ||||||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | |||||||
ADDITIONS TO THE SEGMENT | [2] | 9 | |||||
OPERATING COSTS AND EXPENSES | |||||||
Personnel | [2] | (18) | |||||
Materials | [2] | (1) | |||||
Outsourced services | [2] | (9) | |||||
Depreciation and amortization | [2] | (1) | |||||
Operating provisions (reversals) | [2] | 1 | |||||
Other operating expenses, net | [2] | (3) | |||||
Total cost of operation | [2] | (31) | |||||
OPERATING COSTS AND EXPENSES | (31) | ||||||
Equity in earnings of unconsolidated investees, net | [2] | (1) | |||||
OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) | [2] | (32) | |||||
Finance income | [2] | 1 | |||||
Finance expenses | [2] | (5) | |||||
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX | [2] | (36) | |||||
Income tax and social contribution tax | [2] | 12 | |||||
Net income for the year from continuing operations | [2] | (24) | |||||
DISCONTINUED OPERATIONS | |||||||
NET INCOME AFTER TAX FROM DISCONTINUED OPERATIONS | [2] | 290 | |||||
Items that may be reclassified to profit or loss | |||||||
NET INCOME (LOSS) FOR THE YEAR | 266 | ||||||
NET INCOME FOR THE YEAR | [2] | 266 | |||||
Equity holders of the parent | [2] | 266 | |||||
Operating Segments [member] | Energy Transmission Segment [member] | |||||||
Disclosure of operating segments [line items] | |||||||
SEGMENT ASSETS | 5,870 | 4,712 | |||||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | 1,467 | 1,237 | |||||
INVESTMENTS IN AFFILIATES CLASSIFIED AS HELD FOR SALE | |||||||
ADDITIONS TO THE SEGMENT | 246 | 220 | |||||
NET REVENUE | 743 | 811 | |||||
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 | (114) | (115) | |||||
Employees' and managers' profit sharing | (12) | (27) | |||||
Post-employment obligations | (41) | (38) | |||||
Materials | (4) | (6) | |||||
Outsourced services | (46) | (45) | |||||
Depreciation and amortization | (5) | (6) | |||||
Operating provisions (reversals) | (10) | (135) | |||||
Construction costs | (147) | (220) | |||||
Other operating expenses, net | 11 | (16) | |||||
Total cost of operation | (368) | (608) | |||||
OPERATING COSTS AND EXPENSES | (368) | (608) | |||||
Equity in earnings of unconsolidated investees, net | 494 | 215 | |||||
Dividends declared by investee classified as held for sale | 502 | ||||||
Remeasurement of previously held equity interest in subsidiaries acquired | 52 | ||||||
OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) | 1,422 | 418 | |||||
Finance income | 175 | 98 | |||||
Finance expenses | (274) | (115) | |||||
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX | 1,323 | 401 | |||||
Income tax and social contribution tax | (209) | (70) | |||||
Net income for the year from continuing operations | 1,114 | 331 | |||||
Items that may be reclassified to profit or loss | |||||||
NET INCOME (LOSS) FOR THE YEAR | 331 | ||||||
NET INCOME FOR THE YEAR | 1,114 | 331 | |||||
Equity holders of the parent | R$ 1114 | R$ 331 | |||||
Operating Segments [member] | Energy Transmission Segment [member] | Restated [member] | |||||||
Disclosure of operating segments [line items] | |||||||
SEGMENT ASSETS | 4,346 | ||||||
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES | 1,163 | ||||||
ADDITIONS TO THE SEGMENT | 138 | ||||||
NET REVENUE | 708 | ||||||
OPERATING COSTS AND EXPENSES | |||||||
Personnel | (108) | ||||||
Employees' and managers' profit sharing | (7) | ||||||
Post-employment obligations | (27) | ||||||
Materials | (4) | ||||||
Outsourced services | (40) | ||||||
Operating provisions (reversals) | (12) | ||||||
Construction costs | (96) | ||||||
Other operating expenses, net | (17) | ||||||
Total cost of operation | (311) | ||||||
OPERATING COSTS AND EXPENSES | (311) | ||||||
Equity in earnings of unconsolidated investees, net | 231 | ||||||
OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES) | 628 | ||||||
Finance income | 61 | ||||||
Finance expenses | (5) | ||||||
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX | 684 | ||||||
Income tax and social contribution tax | (133) | ||||||
Net income for the year from continuing operations | 551 | ||||||
Items that may be reclassified to profit or loss | |||||||
NET INCOME (LOSS) FOR THE YEAR | 551 | ||||||
NET INCOME FOR THE YEAR | 551 | ||||||
Equity holders of the parent | R$ 551 | ||||||
[1] | See note 2.8. | ||||||
[2] | 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 | Jan. 02, 2019 | [1] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of revenue [line items] | |||||||
Revenue from supply of energy | R$ 26432 | R$ 26927 | R$ 24872 | ||||
Revenue from Use of Distribution Systems (the TUSD charge) | 3,022 | ||||||
CVA and Other financial components in tariff adjustment | 455 | ||||||
Reimbursement of PIS/Pasep and Cofins over ICMS credits to customers- realization | 266 | ||||||
Transmission operation and maintenance revenue | 280 | ||||||
Transmission construction revenue | 201 | ||||||
Interest revenue arising from the financing component in transmission contract asset | 438 | ||||||
Generation assets - indemnity revenue | |||||||
Distribution construction revenue | 1,436 | ||||||
Adjustment to expectation of cash flow from Financial assets of distribution concession to be indemnified | 16 | ||||||
Gain on inflation updating of concession grant fee | 347 | ||||||
Transactions in energy on the CCEE | 154 | ||||||
Mechanism for the sale of surplus | 234 | ||||||
Supply of gas | 2,011 | ||||||
Fine for violation of continuity indicator | (51) | ||||||
Other operating revenues | 1,709 | 1,721 | 1,585 | ||||
Sector / Regulatory charges reported as Deductions from revenue | (11,722) | ||||||
NET REVENUE | 25,228 | 25,487 | [1] | 22,266 | |||
Restated [member] | |||||||
Disclosure of revenue [line items] | |||||||
Revenue from supply of energy | 26,928 | ||||||
Revenue from Use of Distribution Systems (the TUSD charge) | 2,722 | 2,045 | |||||
CVA and Other financial components in tariff adjustment | 58 | 1,973 | |||||
Reimbursement of PIS/Pasep and Cofins over ICMS credits to customers- realization | 1,428 | ||||||
Transmission operation and maintenance revenue | 352 | 343 | |||||
Transmission construction revenue | 312 | 138 | |||||
Interest revenue arising from the financing component in transmission contract asset | 328 | ||||||
Generation assets - indemnity revenue | 328 | 55 | |||||
Transmission assets - indemnity revenue | 311 | ||||||
Distribution construction revenue | 980 | 802 | |||||
Adjustment to expectation of cash flow from Financial assets of distribution concession to be indemnified | 18 | ||||||
Gain on inflation updating of concession grant fee | 318 | 321 | |||||
Transactions in energy on the CCEE | 432 | 217 | |||||
Supply of gas | 2,298 | 1,995 | |||||
Fine for violation of continuity indicator | (58) | (44) | |||||
Other operating revenues | 1,721 | 1,585 | |||||
Sector / Regulatory charges reported as Deductions from revenue | (12,351) | (12,314) | |||||
NET REVENUE | R$ 22299 | 25,486 | [2],[3] | 22,299 | [2] | ||
Operating Segments [member] | Elimination Segments [member] | |||||||
Disclosure of revenue [line items] | |||||||
Revenue from supply of energy | (79) | ||||||
Revenue from Use of Distribution Systems (the TUSD charge) | (24) | ||||||
Transmission operation and maintenance revenue | (226) | ||||||
Other operating revenues | (4) | ||||||
NET REVENUE | (333) | (307) | |||||
Operating Segments [member] | Elimination Segments [member] | Restated [member] | |||||||
Disclosure of revenue [line items] | |||||||
Revenue from supply of energy | (76) | (78) | |||||
Revenue from Use of Distribution Systems (the TUSD charge) | (25) | (22) | |||||
CVA and Other financial components in tariff adjustment | |||||||
Reimbursement of PIS/Pasep and Cofins over ICMS credits to customers- realization | |||||||
Transmission operation and maintenance revenue | (198) | (177) | |||||
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 | |||||||
Other operating revenues | (8) | (16) | |||||
Sector / Regulatory charges reported as Deductions from revenue | |||||||
NET REVENUE | (307) | (293) | |||||
Operating Segments [member] | Energy Generation Segment [member] | |||||||
Disclosure of revenue [line items] | |||||||
Revenue from supply of energy | 7,337 | ||||||
Gain on inflation updating of concession grant fee | 347 | ||||||
Transactions in energy on the CCEE | 154 | ||||||
Other operating revenues | 5 | ||||||
Sector / Regulatory charges reported as Deductions from revenue | (1,306) | ||||||
NET REVENUE | 6,537 | 6,882 | |||||
Operating Segments [member] | Energy Generation Segment [member] | Restated [member] | |||||||
Disclosure of revenue [line items] | |||||||
Revenue from supply of energy | 7,037 | 7,065 | |||||
Revenue from Use of Distribution Systems (the TUSD charge) | |||||||
CVA and Other financial components in tariff adjustment | |||||||
Reimbursement of PIS/Pasep and Cofins over ICMS credits to customers- realization | 414 | ||||||
Transmission operation and maintenance revenue | |||||||
Transmission construction revenue | |||||||
Generation assets - indemnity revenue | 55 | ||||||
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 | |||||
Transactions in energy on the CCEE | 439 | 217 | |||||
Supply of gas | |||||||
Fine for violation of continuity indicator | |||||||
Other operating revenues | 82 | 82 | |||||
Sector / Regulatory charges reported as Deductions from revenue | (1,408) | (1,366) | |||||
NET REVENUE | 6,882 | 6,374 | |||||
Operating Segments [member] | Energy Transmission Segment [member] | |||||||
Disclosure of revenue [line items] | |||||||
Transmission operation and maintenance revenue | 506 | ||||||
Transmission construction revenue | 201 | ||||||
Interest revenue arising from the financing component in transmission contract asset | 438 | ||||||
Other operating revenues | 34 | ||||||
Sector / Regulatory charges reported as Deductions from revenue | (436) | ||||||
NET REVENUE | 743 | 811 | |||||
Operating Segments [member] | Energy Transmission Segment [member] | Restated [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 | |||||||
Reimbursement of PIS/Pasep and Cofins over ICMS credits to customers- realization | |||||||
Transmission operation and maintenance revenue | 550 | 520 | |||||
Transmission construction revenue | 312 | 138 | |||||
Interest revenue arising from the financing component in transmission contract asset | 328 | 311 | |||||
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 | |||||||
Other operating revenues | 28 | 29 | |||||
Sector / Regulatory charges reported as Deductions from revenue | (407) | (290) | |||||
NET REVENUE | 811 | 708 | |||||
Operating Segments [member] | Energy Distribution Segment [member] | |||||||
Disclosure of revenue [line items] | |||||||
Revenue from supply of energy | 19,174 | ||||||
Revenue from Use of Distribution Systems (the TUSD charge) | 3,046 | ||||||
CVA and Other financial components in tariff adjustment | 455 | ||||||
Reimbursement of PIS/Pasep and Cofins over ICMS credits to customers- realization | 266 | ||||||
Distribution construction revenue | 1,385 | ||||||
Adjustment to expectation of cash flow from Financial assets of distribution concession to be indemnified | 16 | ||||||
Mechanism for the sale of surplus | 234 | ||||||
Fine for violation of continuity indicator | (51) | ||||||
Other operating revenues | 1,561 | ||||||
Sector / Regulatory charges reported as Deductions from revenue | (9,574) | ||||||
NET REVENUE | 16,512 | 15,919 | |||||
Operating Segments [member] | Energy Distribution Segment [member] | Restated [member] | |||||||
Disclosure of revenue [line items] | |||||||
Revenue from supply of energy | 19,967 | 17,885 | |||||
Revenue from Use of Distribution Systems (the TUSD charge) | 2,747 | 2,067 | |||||
CVA and Other financial components in tariff adjustment | 58 | 1,973 | |||||
Reimbursement of PIS/Pasep and Cofins over ICMS credits to customers- realization | 830 | ||||||
Transmission operation and maintenance revenue | |||||||
Transmission construction revenue | |||||||
Transmission assets - indemnity revenue | |||||||
Distribution construction revenue | 937 | 757 | |||||
Adjustment to expectation of cash flow from Financial assets of distribution concession to be indemnified | 18 | ||||||
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) | |||||
Other operating revenues | 1,468 | 1,345 | |||||
Sector / Regulatory charges reported as Deductions from revenue | (10,041) | (10,226) | |||||
NET REVENUE | 15,919 | 13,757 | |||||
Operating Segments [member] | Gas Segment [member] | |||||||
Disclosure of revenue [line items] | |||||||
Distribution construction revenue | 51 | ||||||
Supply of gas | 2,011 | ||||||
Other operating revenues | |||||||
Sector / Regulatory charges reported as Deductions from revenue | (398) | ||||||
NET REVENUE | 1,664 | 1,858 | |||||
Operating Segments [member] | Gas Segment [member] | Restated [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 | |||||||
Reimbursement of PIS/Pasep and Cofins over ICMS credits to customers- realization | |||||||
Transmission operation and maintenance revenue | |||||||
Transmission construction revenue | |||||||
Transmission assets - indemnity revenue | |||||||
Distribution construction revenue | 43 | 45 | |||||
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 | |||||
Fine for violation of continuity indicator | |||||||
Other operating revenues | |||||||
Sector / Regulatory charges reported as Deductions from revenue | (483) | (421) | |||||
NET REVENUE | 1,858 | 1,619 | |||||
Operating Segments [member] | Other Segments [member] | |||||||
Disclosure of revenue [line items] | |||||||
Other operating revenues | 113 | ||||||
Sector / Regulatory charges reported as Deductions from revenue | (8) | ||||||
NET REVENUE | R$ 105 | 324 | |||||
Operating Segments [member] | Other Segments [member] | Restated [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 | |||||||
Reimbursement of PIS/Pasep and Cofins over ICMS credits to customers- realization | 184 | ||||||
Transmission operation and maintenance 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 | |||||||
Other operating revenues | 151 | 145 | |||||
Sector / Regulatory charges reported as Deductions from revenue | (12) | (11) | |||||
NET REVENUE | R$ 323 | R$ 134 | |||||
[1] | See note 2.8. | ||||||
[2] | For further details of restatement of comparative balances, see Note 2.8 | ||||||
[3] | Recognition of the profit margin associated to the performance obligation to construct and upgrade the transmission infrastructure, as well as the interest revenue resulting from the financing component; |
6. CASH AND CASH EQUIVALENTS (D
6. CASH AND CASH EQUIVALENTS (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash and cash equivalents [abstract] | ||||
Bank accounts | R$ 93 | R$ 210 | ||
Cash equivalents | ||||
Bank deposit certificates (CDBs) | [1] | 1,416 | 290 | |
Overnight | [2] | 171 | 36 | |
Short term investments | 1,587 | 326 | ||
Cash and cash equivalents | R$ 1680 | R$ 536 | R$ 891 | |
[1] | Bank Deposit Certificates (CDBs), accrued interest at 50% to 108%, of the CDI Rate (Interbank deposit rates) published by the Custody and Settlement Chamber (Cetip) in 2020 (80% to 106% in 2019 and 40% to 106% in 2018). 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 1.89% in 2020 (4.39%, in 2019 and 6.39% in 2018). 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash and cash equivalents1 [line items] | |||
Percentage of fixed interest rate | 1.89% | 4.39% | 6.39% |
Top of Range [member] | |||
Cash and cash equivalents1 [line items] | |||
Percentage of accrued interest on certificate of deposits | 108.00% | 106.00% | 106.00% |
Bottom Of Range [member] | |||
Cash and cash equivalents1 [line items] | |||
Percentage of accrued interest on certificate of deposits | 50.00% | 80.00% | 40.00% |
7. MARKETABLE SECURITIES (Detai
7. MARKETABLE SECURITIES (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure of Investment Securities [line items] | ||||
Current investments | R$ 3360 | R$ 740 | [1] | |
Non-current investments | 765 | 13 | [1] | |
Investments | 4,125 | 753 | ||
Bank deposit certificates (CDBs) [member] | ||||
Disclosure of Investment Securities [line items] | ||||
Current investments | [2] | 545 | ||
Financial Notes Banks [member] | ||||
Disclosure of Investment Securities [line items] | ||||
Current investments | [3] | 2,074 | 645 | |
Non-current investments | 730 | 11 | ||
Marketable securities - treasury financial notes [member] | ||||
Disclosure of Investment Securities [line items] | ||||
Current investments | [4] | 731 | 94 | |
Debentures [member] | ||||
Disclosure of Investment Securities [line items] | ||||
Current investments | [5] | |||
Non-current investments | [6] | 25 | 2 | |
Other Investment [member] | ||||
Disclosure of Investment Securities [line items] | ||||
Current investments | 10 | R$ 1 | ||
Non-current investments | R$ 10 | |||
[1] | See note 2.8. | |||
[2] | Bank Deposit Certificates (CBDs), accrued interest at 106% a 110% of the CDI Rate (Interbank deposit rates) published by the Custody and Settlement Chamber (Cetip) in 2020. | |||
[3] | 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 99.5% and 130% of the CDI rate in 2020 (101.95% and 113% in 2019 and 102% to 111.25% in 2018). | |||
[4] | 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. | |||
[5] | 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). | |||
[6] | 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 TR+1% to 109% of the CDI Rate in 2020 (108.25% to 113% of CDI in 2019 and 104.25% to 151% of CDI in 2018). |
7. MARKETABLE SECURITIES (Det_2
7. MARKETABLE SECURITIES (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debentures [member] | Bottom Of Range [member] | |||
Disclosure of Investment Securities [line items] | |||
Investment rate remunerated at percentage of rate for interbank deposits | 1.00% | 108.25% | 104.25% |
Debentures [member] | Top of Range [member] | |||
Disclosure of Investment Securities [line items] | |||
Investment rate remunerated at percentage of rate for interbank deposits | 109.00% | 113.00% | 151.00% |
Financial Notes Banks [member] | Bottom Of Range [member] | |||
Disclosure of Investment Securities [line items] | |||
Investment rate remunerated at percentage of rate for interbank deposits | 99.50% | 101.95% | 102.00% |
Financial Notes Banks [member] | Top of Range [member] | |||
Disclosure of Investment Securities [line items] | |||
Investment rate remunerated at percentage of rate for interbank deposits | 130.00% | 113.00% | 111.25% |
8. RECEIVABLES FROM CUSTOMERS_3
8. RECEIVABLES FROM CUSTOMERS, TRADERS AND POWER TRANSPORT CONCESSION HOLDERS (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of trade and other receivables [line items] | |||
Billed supply | R$ 3125 | R$ 3130 | |
Unbilled supply | 1,145 | 1,204 | |
Other concession holders - wholesale supply | 50 | 47 | |
Other concession holders - wholesale supply, unbilled | 260 | 204 | |
CCEE (Power Trading Chamber) | 210 | 386 | |
Concession Holders - power transport | 161 | 187 | |
Concession Holders - power transport, unbilled | 295 | 253 | |
Provision for doubtful receivables | (712) | (810) | |
Trade and other receivables | 4,534 | 4,601 | |
Current assets | 4,373 | 4,524 | [1] |
Non-current assets | 161 | R$ 77 | [1] |
Balances Not Yet Due [member] | |||
Disclosure of trade and other receivables [line items] | |||
Billed supply | 1,518 | ||
Unbilled supply | 1,145 | ||
Other concession holders - wholesale supply | 18 | ||
Other concession holders - wholesale supply, unbilled | 260 | ||
CCEE (Power Trading Chamber) | 21 | ||
Concession Holders - power transport | 45 | ||
Concession Holders - power transport, unbilled | 295 | ||
Provision for doubtful receivables | (278) | ||
Trade and other receivables | 3,024 | ||
Not Later Than Three Months [member] | |||
Disclosure of trade and other receivables [line items] | |||
Billed supply | 637 | ||
Unbilled supply | |||
Other concession holders - wholesale supply | 26 | ||
Other concession holders - wholesale supply, unbilled | |||
CCEE (Power Trading Chamber) | 189 | ||
Concession Holders - power transport | 14 | ||
Concession Holders - power transport, unbilled | |||
Provision for doubtful receivables | (12) | ||
Trade and other receivables | 854 | ||
3 months to 1 year [member] | |||
Disclosure of trade and other receivables [line items] | |||
Billed supply | 387 | ||
Unbilled supply | |||
Other concession holders - wholesale supply | 1 | ||
Other concession holders - wholesale supply, unbilled | |||
CCEE (Power Trading Chamber) | |||
Concession Holders - power transport | 17 | ||
Concession Holders - power transport, unbilled | |||
Provision for doubtful receivables | (15) | ||
Trade and other receivables | 390 | ||
More Than One Year [member] | |||
Disclosure of trade and other receivables [line items] | |||
Billed supply | 583 | ||
Unbilled supply | |||
Other concession holders - wholesale supply | 5 | ||
Other concession holders - wholesale supply, unbilled | |||
CCEE (Power Trading Chamber) | |||
Concession Holders - power transport | 85 | ||
Concession Holders - power transport, unbilled | |||
Provision for doubtful receivables | (407) | ||
Trade and other receivables | R$ 266 | ||
[1] | See note 2.8. |
8. RECEIVABLES FROM CUSTOMERS_4
8. RECEIVABLES FROM CUSTOMERS, TRADERS AND POWER TRANSPORT CONCESSION HOLDERS (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial assets [line items] | ||
Allowance account for credit losses of financial assets | R$ 712 | R$ 810 |
Residential [member] | ||
Disclosure of financial assets [line items] | ||
Allowance account for credit losses of financial assets | 110 | 131 |
Industrial [member] | ||
Disclosure of financial assets [line items] | ||
Allowance account for credit losses of financial assets | 188 | 197 |
Commercial, services and others [member] | ||
Disclosure of financial assets [line items] | ||
Allowance account for credit losses of financial assets | 190 | 161 |
Rural [member] | ||
Disclosure of financial assets [line items] | ||
Allowance account for credit losses of financial assets | 30 | 32 |
Public authorities [member] | ||
Disclosure of financial assets [line items] | ||
Allowance account for credit losses of financial assets | 83 | 201 |
Public lighting [member] | ||
Disclosure of financial assets [line items] | ||
Allowance account for credit losses of financial assets | 2 | 2 |
Public services [member] | ||
Disclosure of financial assets [line items] | ||
Allowance account for credit losses of financial assets | 35 | 31 |
Charges for use of the network (TUSD) [member] | ||
Disclosure of financial assets [line items] | ||
Allowance account for credit losses of financial assets | R$ 74 | R$ 55 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cemig GT [member] | |||
Disclosure Of Advances From Customers [line items] | |||
Beginning balance | R$ 810 | R$ 751 | R$ 568 |
Effect of adoption of IFRS 9 on Jan. 1, 2018 | 150 | ||
Additions | 146 | 264 | |
Write-off | (231) | ||
Disposals | (244) | ||
Ending Balance | 712 | 810 | 751 |
Eletrobras [member] | |||
Disclosure Of Advances From Customers [line items] | |||
Beginning balance | R$ 810 | 751 | |
Additions | 238 | ||
Disposals | (179) | ||
Ending Balance | R$ 810 | R$ 751 |
8. RECEIVABLES FROM CUSTOMERS_6
8. RECEIVABLES FROM CUSTOMERS, TRADERS AND POWER TRANSPORT CONCESSION HOLDERS (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2019 | |
Disclosure Of Advances From Customers [line items] | ||
Debts | R$ 240 | |
Impairment | R$ 210 | |
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, 2020 | Dec. 31, 2019 | |
Disclosure of recoverable taxes [line items] | |||
Recoverable taxes, current | R$ 1850 | R$ 99 | [1] |
Recoverable taxes, non-current | 3,442 | 6,349 | [1] |
Recoverable taxes | 5,292 | 6,448 | |
ICMS (VAT) [member] | |||
Disclosure of recoverable taxes [line items] | |||
Recoverable taxes, current | 97 | 65 | |
Recoverable taxes, non-current | 257 | 277 | |
PIS/PasepTaxes [member] | |||
Disclosure of recoverable taxes [line items] | |||
Recoverable taxes, current | 311 | 3 | |
Recoverable taxes, non-current | 588 | 1,102 | |
Cofins [member] | |||
Disclosure of recoverable taxes [line items] | |||
Recoverable taxes, current | 1,426 | 7 | |
Recoverable taxes, non-current | 2,594 | 4,968 | |
Other Tax Recoverable [member] | |||
Disclosure of recoverable taxes [line items] | |||
Recoverable taxes, current | 16 | 24 | |
Recoverable taxes, non-current | R$ 3 | R$ 2 | |
[1] | See note 2.8. |
9. RECOVERABLE TAXES (Details N
9. RECOVERABLE TAXES (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
RecoverableTaxesLineItems [Line Items] | ||||
TOTAL CURRENT | R$ 15456 | R$ 10354 | [1] | R$ 27796 |
TOTAL NON-CURRENT | 38,627 | 40,172 | [1] | R$ 32059 |
Recognized financial revenue | 42 | |||
PIS/PasepTaxes and Cofins [member] | ||||
RecoverableTaxesLineItems [Line Items] | ||||
TOTAL CURRENT | 1,725 | |||
TOTAL NON-CURRENT | 3,180 | |||
Recognized operational revenue | 1,428 | R$ 1965 | ||
Recognized financial revenue | 1,550 | |||
Payable federal taxes | 1,275 | |||
IRPJ and CSLL [member] | ||||
RecoverableTaxesLineItems [Line Items] | ||||
Addition amount | R$ 1012 | |||
[1] | See note 2.8. |
10. INCOME AND SOCIAL CONTRIB_3
10. INCOME AND SOCIAL CONTRIBUTION TAXES (Details) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of income and social contribution taxes [abstract] | ||
Income tax | R$ 698 | R$ 608 |
Social contribution tax | 247 | 241 |
Income and social contribution tax credits | 945 | 849 |
Current | 598 | 621 |
Non-current | 347 | 228 |
Current | ||
Income tax | 108 | 99 |
Social contribution tax | 32 | 35 |
Total | R$ 140 | R$ 134 |
10. INCOME AND SOCIAL CONTRIB_4
10. INCOME AND SOCIAL CONTRIBUTION TAXES (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 02, 2019 | [1] | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax assets | R$ 4323 | ||||||
Deferred tax liabilities | (2,910) | ||||||
Total, net | 1,413 | ||||||
Total assets | 2,453 | ||||||
Total liabilities | (1,040) | ||||||
Revenues arising from transmission contract asset [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax liabilities | (768) | R$ 768 | |||||
Tax loss carryforwards [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax assets | 401 | ||||||
Provisions for contingencies [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax assets | 538 | ||||||
Impairment on investments [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax assets | 640 | ||||||
Fair value of derivative financial instruments (PUT SAAG ) [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax assets | 182 | ||||||
Post employment obligations [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax assets | 2,168 | ||||||
Estimated provision for doubtful receivables [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax assets | 256 | ||||||
Others [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax assets | 138 | ||||||
Deferred tax liabilities | (7) | ||||||
Funding cost [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax liabilities | (11) | ||||||
Deemed cost [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax liabilities | (225) | ||||||
Acquisition costs of equity interests [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax liabilities | (486) | ||||||
Borrowing costs capitalized [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax liabilities | (169) | ||||||
Adjustment to expectation of cash flow concession assets [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax liabilities | (242) | ||||||
Adjustment to fair value: swap/gains [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax liabilities | (1,002) | ||||||
Restated [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax assets | R$ 4028 | 3,471 | |||||
Deferred tax liabilities | (2,368) | (2,127) | |||||
Total, net | R$ 1413 | 1,660 | 1,344 | R$ 1072 | |||
Total assets | 2,430 | [1] | R$ 2147 | 2,147 | |||
Total liabilities | (770) | [1] | R$ 803 | (803) | |||
Restated [member] | Revenues arising from transmission contract asset [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax liabilities | (624) | (627) | |||||
Restated [member] | Tax loss carryforwards [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax assets | 116 | 373 | |||||
Restated [member] | Provisions for contingencies [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax assets | 544 | 218 | |||||
Restated [member] | Impairment on investments [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax assets | 660 | 882 | |||||
Restated [member] | Fair value of derivative financial instruments (PUT SAAG ) [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax assets | 164 | 143 | |||||
Restated [member] | Post employment obligations [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax assets | 2,090 | 1,477 | |||||
Restated [member] | Estimated provision for doubtful receivables [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax assets | 283 | 279 | |||||
Restated [member] | Others [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax assets | 171 | 99 | |||||
Deferred tax liabilities | (5) | (38) | |||||
Restated [member] | Funding cost [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax liabilities | (16) | (25) | |||||
Restated [member] | Deemed cost [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax liabilities | (232) | (239) | |||||
Restated [member] | Acquisition costs of equity interests [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax liabilities | (503) | (501) | |||||
Restated [member] | Borrowing costs capitalized [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax liabilities | (166) | (168) | |||||
Restated [member] | Adjustment to expectation of cash flow concession assets [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax liabilities | (247) | (252) | |||||
Restated [member] | Adjustment to fair value: swap/gains [member] | |||||||
Disclosure Of Income And Social Contribution Taxes Recoverable [line items] | |||||||
Deferred tax liabilities | R$ 575 | R$ 277 | |||||
[1] | For further details of restatement of comparative balances, see Note 2.8 |
10. INCOME AND SOCIAL CONTRIB_5
10. INCOME AND SOCIAL CONTRIBUTION TAXES (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effects allocated to Equity | |||
Ending balance | R$ 1413 | ||
Restated [member] | |||
DisclosureOfIncomeAndSocialContributionTaxesLineItems [Line Items] | |||
Beginning balance | 1,660 | R$ 1344 | R$ 1072 |
Effects allocated to net profit from continuing operations | (252) | (145) | (27) |
Effect allocated to other comprehensive income | 4 | 544 | 239 |
Effects allocated to net profit from discontinuing operations (note 32) | (85) | ||
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 | ||
Others | 1 | 2 | |
Ending balance | R$ 1413 | R$ 1660 | R$ 1344 |
10. INCOME AND SOCIAL CONTRIB_6
10. INCOME AND SOCIAL CONTRIBUTION TAXES (Details 3) R$ in Millions | Dec. 31, 2020BRL (R$) |
Disclosure Of Future Taxable Profits Enable Deferred Tax Assets [line items] | |
Deferred tax assets future taxable profits | R$ 4323 |
2021 [member] | |
Disclosure Of Future Taxable Profits Enable Deferred Tax Assets [line items] | |
Deferred tax assets future taxable profits | 681 |
2021 [member] | |
Disclosure Of Future Taxable Profits Enable Deferred Tax Assets [line items] | |
Deferred tax assets future taxable profits | 708 |
2025 [member] | |
Disclosure Of Future Taxable Profits Enable Deferred Tax Assets [line items] | |
Deferred tax assets future taxable profits | 624 |
2023 [member] | |
Disclosure Of Future Taxable Profits Enable Deferred Tax Assets [line items] | |
Deferred tax assets future taxable profits | 563 |
2024 [member] | |
Disclosure Of Future Taxable Profits Enable Deferred Tax Assets [line items] | |
Deferred tax assets future taxable profits | 563 |
2026 to 2028 [member] | |
Disclosure Of Future Taxable Profits Enable Deferred Tax Assets [line items] | |
Deferred tax assets future taxable profits | 743 |
2029 to 2030 [member] | |
Disclosure Of Future Taxable Profits Enable Deferred Tax Assets [line items] | |
Deferred tax assets future taxable profits | R$ 441 |
10. INCOME AND SOCIAL CONTRIB_7
10. INCOME AND SOCIAL CONTRIBUTION TAXES (Details 4) - BRL (R$) R$ in Millions | Jan. 02, 2019 | [1] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
DisclosureOfIncomeAndSocialContributionTaxesLineItems [Line Items] | |||||||
Profit before income tax and social contribution tax | R$ 3800 | ||||||
Income tax and social contribution tax - nominal expense (34%) | (1,292) | ||||||
Tax effects applicable to: | |||||||
Gain (loss) in subsidiaries by equity method | 93 | ||||||
Interest on Equity | 188 | ||||||
Non-deductible contributions and donations | (10) | ||||||
Tax incentives | 39 | ||||||
Effects from subsidiaries taxed based on gross revenues | 97 | ||||||
Non-deductible penalties | (25) | ||||||
Impairment of accounts receivable from related parties | (13) | ||||||
Others | (13) | ||||||
Income tax and social contribution tax - effective expense | (936) | R$ 1599 | R$ 610 | ||||
Current tax | (684) | ||||||
Deferred tax | (252) | ||||||
Income tax and social contribution tax - effective expense | R$ 936 | 1,599 | 610 | ||||
Effective rate | 24.63% | ||||||
Restated [member] | |||||||
DisclosureOfIncomeAndSocialContributionTaxesLineItems [Line Items] | |||||||
Profit before income tax and social contribution tax | 4,570 | 2,011 | |||||
Income tax and social contribution tax - nominal expense (34%) | (1,554) | (683) | |||||
Tax effects applicable to: | |||||||
Gain (loss) in subsidiaries by equity method | 8 | (61) | |||||
Interest on Equity | 136 | 71 | |||||
Non-deductible contributions and donations | (13) | (6) | |||||
Tax incentives | 66 | 29 | |||||
Effects from subsidiaries taxed based on gross revenues | 89 | 89 | |||||
Non-deductible penalties | (135) | (12) | |||||
Impairment of accounts receivable from related parties | (234) | ||||||
Others | 38 | (37) | |||||
Income tax and social contribution tax - effective expense | (1,599) | (610) | |||||
Current tax | R$ 583 | (1,454) | [2] | (583) | [2] | ||
Deferred tax | R$ 27 | (145) | [2],[3] | (27) | [2] | ||
Income tax and social contribution tax - effective expense | R$ 1599 | R$ 610 | |||||
Effective rate | 35.00% | 30.33% | |||||
[1] | See note 2.8. | ||||||
[2] | For further details of restatement of comparative balances, see Note 2.8 | ||||||
[3] | The basic and diluted earnings per share for the years ended in December 31, 2019 and 2018 were also adjusted retrospectively in order to reflect the increase in the number of shares in 2021. For more information, see Note 26. |
10. INCOME AND SOCIAL CONTRIB_8
10. INCOME AND SOCIAL CONTRIBUTION TAXES (Details Narrative) | 12 Months Ended |
Dec. 31, 2020 | |
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% |
11. ACCOUNTS RECEIVABLE FROM _2
11. ACCOUNTS RECEIVABLE FROM THE STATE OF MINAS GERAIS (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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$ 130 | R$ 148 |
Remaining amounts receivable from recognized in non current assets | R$ 12 | R$ 115 |
12. ESCROW DEPOSITS (Details)
12. ESCROW DEPOSITS (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2018 | |
Disclosure of escrow deposits [abstract] | |||
Labor claims | R$ 278 | R$ 355 | |
Tax contingencies | |||
Income tax on Interest on Equity | 29 | 29 | |
PIS/Pasep and Cofins taxes | [1] | 66 | 1,448 |
Donations and legacy tax (ITCD) | 54 | 53 | |
Urban property tax (IPTU) | 84 | 79 | |
Finsocial tax | 40 | 40 | |
Income tax and social contr. tax on indemnity for employees' 'Anuenio' benefit | [1] | 286 | 282 |
Income tax withheld at source on inflationary profit | 9 | 9 | |
Contribution tax effective rate | [1] | 18 | 18 |
ICMS (VAT) credits on PP&E | 39 | ||
Others | [1] | 98 | 92 |
Escrow deposits tax issues | 684 | 2,089 | |
Others | |||
Regulatory | 52 | 43 | |
Third party | 9 | 11 | |
Customer relations | 8 | 7 | |
Court embargo | 13 | 12 | |
Others | 12 | 23 | |
Escrow deposits other | 94 | 96 | |
Long term escrow deposit | R$ 1056 | R$ 2540 | |
[1] | See more details in Note 25 - Provisions under the section relating to the Anuenio indemnity. |
12. ESCROW DEPOSITS (Details Na
12. ESCROW DEPOSITS (Details Narrative) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Feb. 13, 2020 |
Disclosure of escrow deposits [line items] | ||
Escrow deposits | R$ 6 | |
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 |
13. REIMBURSEMENT OF TARIFF S_2
13. REIMBURSEMENT OF TARIFF SUBSIDIES (Details Narrative) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Energy Development Account [line items] | |||
Subsidies revenue recognized | R$ 1057 | R$ 1097 | R$ 953 |
Ceming GT [member] | |||
Disclosure Of Energy Development Account [line items] | |||
Current subsidy receivable | 6 | 3 | |
Cemig D [member] | |||
Disclosure Of Energy Development Account [line items] | |||
Current subsidy receivable | R$ 88 | R$ 94 |
14. CONCESSION FINANCIAL AND _3
14. CONCESSION FINANCIAL AND SECTOR ASSETS AND LIABILITIES (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 02, 2019 | [1] | Dec. 31, 2018 | |
Financial assets of the concession | ||||||
Assets | R$ 4058000 | |||||
Current assets | 258,000 | |||||
Non-current assets | 3,799,000 | |||||
Current liabilities | 231,000 | |||||
Non-current liabilities | ||||||
Restated [member] | ||||||
Financial assets of the concession | ||||||
Assets | R$ 4650000 | R$ 4702000 | ||||
Current assets | 891,000 | [1] | R$ 890000 | 890,000 | ||
Non-current assets | 3,759,000 | [1] | R$ 3812000 | 3,812,000 | ||
Current liabilities | ||||||
Non-current liabilities | ||||||
Assets related to infrastructure [member] | ||||||
Financial assets of the concession | ||||||
Assets | 3,924,000 | |||||
Assets related to infrastructure [member] | Restated [member] | ||||||
Financial assets of the concession | ||||||
Assets | 3,924,000 | 3,768,000 | 3,621,000 | |||
Energy distribution concession [member] | Assets related to infrastructure [member] | ||||||
Financial assets of the concession | ||||||
Assets | 530,000 | |||||
Energy distribution concession [member] | Assets related to infrastructure [member] | Restated [member] | ||||||
Financial assets of the concession | ||||||
Assets | 460,000 | 396,000 | ||||
Gas distribution concession [member] | Assets related to infrastructure [member] | ||||||
Financial assets of the concession | ||||||
Assets | 29,000 | |||||
Gas distribution concession [member] | Assets related to infrastructure [member] | Restated [member] | ||||||
Financial assets of the concession | ||||||
Assets | 24,000 | |||||
Generation receivable [member] | Assets related to infrastructure [member] | ||||||
Financial assets of the concession | ||||||
Assets | 816,000 | |||||
Generation receivable [member] | Assets related to infrastructure [member] | Restated [member] | ||||||
Financial assets of the concession | ||||||
Assets | 816,000 | 816,000 | ||||
Concession grant fee [member] | Assets related to infrastructure [member] | ||||||
Financial assets of the concession | ||||||
Assets | 2,549,000 | |||||
Concession grant fee [member] | Assets related to infrastructure [member] | Restated [member] | ||||||
Financial assets of the concession | ||||||
Assets | 2,468,000 | 2,409 | ||||
Cva and other financial components in tariff adjustments [member] | Assets related to infrastructure [member] | ||||||
Financial assets of the concession | ||||||
Assets | 133,000 | |||||
Cva and other financial components in tariff adjustments [member] | Assets related to infrastructure [member] | Restated [member] | ||||||
Financial assets of the concession | ||||||
Assets | 882,000 | |||||
Cva and other financial components in tariff adjustments [member] | Liabilities related to infrastructure [member] | ||||||
Financial assets of the concession | ||||||
Current liabilities | R$ 231000 | |||||
Cva and other financial components in tariff adjustments [member] | Liabilities related to infrastructure [member] | Restated [member] | ||||||
Financial assets of the concession | ||||||
Assets | R$ 1081000 | |||||
Current liabilities | ||||||
[1] | For further details of restatement of comparative balances, see Note 2.8 |
14. CONCESSION FINANCIAL AND _4
14. CONCESSION FINANCIAL AND SECTOR ASSETS AND LIABILITIES (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial assets [line items] | |||
Amounts received | R$ 265 | R$ 250 | R$ 250 |
Monetary updating | 347 | 317 | 322 |
Restated [member] | |||
Disclosure of financial assets [line items] | |||
Beginning Balance | 3,621 | 7,084 | |
Effects of first-time adoption of IFRS 15 (Restated) | (2,475) | ||
Amounts received | (1,389) | ||
Others transfers | (2) | ||
Ending Balance | 3,621 | ||
Infrastructure [member] | |||
Disclosure of financial assets [line items] | |||
Beginning Balance | 3,768 | 3,621 | |
Amounts received | (266) | ||
Transfers from contract assets | 60 | 48 | |
Transfers from (to) intangible assets | (5) | 23 | |
Monetary updating | 367 | 336 | 377 |
Disposals | (1) | (1) | |
Transfers from PP&E | 27 | ||
Ending Balance | 3,924 | 3,768 | 3,621 |
Infrastructure [member] | Restated [member] | |||
Disclosure of financial assets [line items] | |||
Beginning Balance | 3,768 | 3,621 | |
Amounts received | (259) | ||
Ending Balance | 3,768 | 3,621 | |
Infrastructure [member] | Transmission [member] | |||
Disclosure of financial assets [line items] | |||
Beginning Balance | |||
Amounts received | |||
Transfers from contract assets | |||
Transfers from (to) intangible assets | |||
Monetary updating | |||
Disposals | |||
Transfers from PP&E | |||
Ending Balance | |||
Infrastructure [member] | Transmission [member] | Restated [member] | |||
Disclosure of financial assets [line items] | |||
Beginning Balance | 2,475 | ||
Effects of first-time adoption of IFRS 15 (Restated) | (2,475) | ||
Amounts received | |||
Others transfers | |||
Ending Balance | |||
Infrastructure [member] | Generation [member] | |||
Disclosure of financial assets [line items] | |||
Beginning Balance | 3,284 | 3,225 | |
Amounts received | (266) | ||
Transfers from contract assets | |||
Transfers from (to) intangible assets | |||
Monetary updating | 347 | 318 | 377 |
Disposals | |||
Transfers from PP&E | |||
Ending Balance | 3,365 | 3,284 | 3,225 |
Infrastructure [member] | Generation [member] | Restated [member] | |||
Disclosure of financial assets [line items] | |||
Beginning Balance | 3,284 | 3,225 | 4,238 |
Effects of first-time adoption of IFRS 15 (Restated) | |||
Amounts received | (259) | (1,389) | |
Others transfers | (1) | ||
Ending Balance | 3,284 | 3,225 | |
Infrastructure [member] | Distribution [member] | |||
Disclosure of financial assets [line items] | |||
Beginning Balance | 460 | 396 | |
Amounts received | |||
Transfers from contract assets | 60 | 48 | |
Transfers from (to) intangible assets | (5) | (1) | |
Monetary updating | 15 | 18 | |
Disposals | (1) | (1) | |
Transfers from PP&E | 27 | ||
Ending Balance | 530 | 460 | 396 |
Infrastructure [member] | Distribution [member] | Restated [member] | |||
Disclosure of financial assets [line items] | |||
Beginning Balance | 460 | 396 | 371 |
Effects of first-time adoption of IFRS 15 (Restated) | |||
Amounts received | |||
Others transfers | (1) | ||
Ending Balance | 460 | 396 | |
Infrastructure [member] | Gas [member] | |||
Disclosure of financial assets [line items] | |||
Beginning Balance | 24 | ||
Amounts received | |||
Transfers from contract assets | |||
Transfers from (to) intangible assets | 24 | ||
Monetary updating | 5 | ||
Disposals | |||
Transfers from PP&E | |||
Ending Balance | 29 | 24 | |
Infrastructure [member] | Gas [member] | Restated [member] | |||
Disclosure of financial assets [line items] | |||
Beginning Balance | R$ 24 | ||
Effects of first-time adoption of IFRS 15 (Restated) | |||
Amounts received | |||
Others transfers | |||
Ending Balance | R$ 24 |
14. CONCESSION FINANCIAL AND _5
14. CONCESSION FINANCIAL AND SECTOR ASSETS AND LIABILITIES (Details 2) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020BRL (R$)MW | Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) | |
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | |||
Installed capacity (MW) | MW | 360,170 | ||
Net balance of assets based on historical cost | R$ 204 | ||
Net balance of assets based on fair value (replacement cost) | 816 | R$ 816 | |
Amounts received | R$ 265 | R$ 250 | R$ 250 |
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 | 2015-01 | ||
Installed capacity (MW) | MW | 1.710 | ||
Net balance of assets based on historical cost | R$ 2 | ||
Net balance of assets based on fair value (replacement cost) | R$ 3 | ||
Usina hidreletrica jaguara [member] | |||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | |||
Concession expiration date | 2013-08 | ||
Installed capacity (MW) | MW | 424 | ||
Net balance of assets based on historical cost | R$ 40 | ||
Net balance of assets based on fair value (replacement cost) | R$ 174 | ||
Usina hidreletrica miranda [member] | |||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | |||
Concession expiration date | 2016-12 | ||
Installed capacity (MW) | MW | 408 | ||
Net balance of assets based on historical cost | R$ 27 | ||
Net balance of assets based on fair value (replacement cost) | 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 tress 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 |
14. CONCESSION FINANCIAL AND _6
14. CONCESSION FINANCIAL AND SECTOR ASSETS AND LIABILITIES (Details 3) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | |||
Beginning Balance | R$ 2468 | R$ 2409 | R$ 2337 |
Monetary updating | 347 | 317 | 322 |
Amounts received | (265) | (250) | (250) |
Ending Balance | 2,550 | 2,468 | 2,409 |
Cemig geracao tres marias s.a. [member] | |||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | |||
Beginning Balance | 1,402 | 1,370 | |
Monetary updating | 188 | 171 | 174 |
Amounts received | (143) | (139) | (134) |
Ending Balance | 1,447 | 1,402 | 1,370 |
Cemig geracao salto grande sa [member] | |||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | |||
Beginning Balance | 440 | 430 | |
Monetary updating | 59 | 54 | 55 |
Amounts received | (45) | (44) | (42) |
Ending Balance | 454 | 440 | 430 |
Cemig geracao itutinga s.a. [member] | |||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | |||
Beginning Balance | 165 | 161 | |
Monetary updating | 25 | 23 | 23 |
Amounts received | (19) | (19) | (18) |
Ending Balance | 171 | 165 | 161 |
Cemig geracao camargos s.a. [member] | |||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | |||
Beginning Balance | 124 | 120 | |
Monetary updating | 18 | 17 | 17 |
Amounts received | (14) | (13) | (13) |
Ending Balance | 128 | 124 | 120 |
Cemig geracao sul s.a. [member] | |||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | |||
Beginning Balance | 161 | 157 | |
Monetary updating | 26 | 24 | 24 |
Amounts received | (20) | (20) | (19) |
Ending Balance | 167 | 161 | 157 |
Cemig geracao leste s.a. [member] | |||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | |||
Beginning Balance | 110 | 107 | |
Monetary updating | 19 | 18 | 18 |
Amounts received | (15) | (15) | (14) |
Ending Balance | 114 | 110 | 107 |
Cemig geracao oeste s.a. [member] | |||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | |||
Beginning Balance | 66 | 64 | |
Monetary updating | 12 | 12 | 11 |
Amounts received | (9) | (9) | (10) |
Ending Balance | R$ 69 | R$ 66 | R$ 64 |
14. CONCESSION FINANCIAL AND _7
14. CONCESSION FINANCIAL AND SECTOR ASSETS AND LIABILITIES (Details 4) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Assets | R$ 4058 | ||||
Current assets | 258 | ||||
Non-current assets | 3,799 | ||||
Liabilities | R$ 18764 | ||||
Current liabilities | 231 | ||||
Non-current liabilities | |||||
Financial assets (liabilities), net | (98) | 882 | R$ 1080 | R$ 46 | |
CVA account for compensation of changes in portion a costs [member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Assets | 1,646 | 3,430 | |||
Current assets | 918 | 2,555 | |||
Non-current assets | 728 | 875 | |||
Liabilities | (1,744) | (2,548) | |||
Current liabilities | (1,149) | (1,915) | |||
Non-current liabilities | (595) | (633) | |||
Total current, net | (231) | 640 | |||
Total non-current,net | 133 | 242 | |||
Financial assets (liabilities), net | (98) | 882 | |||
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 | 1 | 148 | |||
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 | 219 | 96 | |||
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 | 18 | 25 | |||
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 | 6 | 5 | |||
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 | 38 | (297) | |||
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 | 453 | 1,293 | |||
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] | 109 | 132 | ||
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 | 107 | (42) | |||
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 | (985) | (277) | |||
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 | (103) | ||||
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 | (64) | (98) | |||
CVA account for compensation of changes in portion a costs [member] | Amounts ratified by aneel in the last tariff ajustment [member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Assets | 84 | 1,286 | |||
Current assets | 84 | 1,286 | |||
Non-current assets | |||||
Liabilities | (246) | (882) | |||
Current liabilities | (246) | (882) | |||
Non-current liabilities | |||||
Total current, net | (162) | 404 | |||
Total non-current,net | |||||
Financial assets (liabilities), net | (162) | 404 | |||
CVA account for compensation of changes in portion a costs [member] | Amounts ratified by aneel in the last tariff ajustment [member] | Quota for the energy development account [member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | 1 | 119 | |||
CVA account for compensation of changes in portion a costs [member] | Amounts ratified by aneel in the last tariff ajustment [member] | Tariff for use of transmission facilities of grid participants [member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | 1 | (18) | |||
CVA account for compensation of changes in portion a costs [member] | Amounts ratified by aneel in the last tariff ajustment [member] | Tariff for transport of electricity provided by itaiputs [member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | 9 | ||||
CVA account for compensation of changes in portion a costs [member] | Amounts ratified by aneel in the last tariff ajustment [member] | Program to encourage alternative sources of electricity proinfa [member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | 11 | ||||
CVA account for compensation of changes in portion a costs [member] | Amounts ratified by aneel in the last tariff ajustment [member] | System service charges and reserve energy charge [member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | (1) | (161) | |||
CVA account for compensation of changes in portion a costs [member] | Amounts ratified by aneel in the last tariff ajustment [member] | Energy purchased for resale [member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | 4 | 661 | |||
CVA account for compensation of changes in portion a costs [member] | Amounts ratified by aneel in the last tariff ajustment [member] | Overcontracting of supply [member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | [1] | (56) | (84) | ||
CVA account for compensation of changes in portion a costs [member] | Amounts ratified by aneel in the last tariff ajustment [member] | Neutrality of portion a [member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | (3) | (30) | |||
CVA account for compensation of changes in portion a costs [member] | Amounts ratified by aneel in the last tariff ajustment [member] | Other financial items [member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | (86) | (71) | |||
CVA account for compensation of changes in portion a costs [member] | Amounts ratified by aneel in the last tariff ajustment [member] | Tariff flag [member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | |||||
CVA account for compensation of changes in portion a costs [member] | Amounts ratified by aneel in the last tariff ajustment [member] | Excess demand and reactive power [member] | |||||
Disclosure Of Financial Assets and Financial Liabilities [line items] | |||||
Financial assets (liabilities), net | (22) | (32) | |||
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 | 1,562 | 2,144 | |||
Current assets | 834 | 1,269 | |||
Non-current assets | 728 | 875 | |||
Liabilities | (1,498) | (1,666) | |||
Current liabilities | (903) | (1,033) | |||
Non-current liabilities | (595) | (633) | |||
Total current, net | (69) | 236 | |||
Total non-current,net | 133 | 242 | |||
Financial assets (liabilities), net | 64 | 478 | |||
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 | ||||
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 | 218 | 114 | |||
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 | 18 | 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 | (6) | |||
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 | 39 | (136) | |||
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 | 449 | 632 | |||
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] | 165 | 216 | ||
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 | 110 | (12) | |||
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 | (899) | (206) | |||
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 | (103) | ||||
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$ 42 | R$ 66 | |||
[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. On August 27, 2020, Aneel published the Dispatch 2,508/2020-SRM-SGT, which set new amounts for distributors' over contracting for the years 2016 and 2017, based on a new valuation criterion established by Aneel Technical Note 97/2020-SRM-SGT - not contained in the regulatory rules which were currently in force. As a result, Cemig D filed an appeal with the Council of Aneel, for the amounts of distribution agents' over contracting to be reset in accordance with the calculation criteria based on maximum effort contained in Aneel Normative Resolution 453/2011. The Company's position on this case is reinforced by the fact that the Brazilian Energy Distributors' Association (Abradee) filed a similar appeal, supported by the opinion of contracted legal advisersadvisors. The Company has no expectation of loss in relation to realization of these amounts. The Company recognizes this receivable asset, in the amount of R$222 on December 31, 2020, as Other financial components' to be ratified. At the reporting date for this financial statements, this matter was still pending analysis by Aneel. |
14. CONCESSION FINANCIAL AND _8
14. CONCESSION FINANCIAL AND SECTOR ASSETS AND LIABILITIES (Details 5) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure Of Financial Assets And Financial Liabilities With The Tariff Adjustments [abstract] | ||||
Beginning balance | R$ 882 | R$ 1080 | R$ 46 | |
Additions | 611 | 724 | 1,638 | |
Amortization | (156) | (666) | 335 | |
Others - R&D Reimbursement | (115) | |||
Payments from the Flag Tariff Centralizing Account | (63) | (361) | (794) | |
Receipt funds of ''Covid-account'' | [1] | (1,404) | ||
Updating - Selic rate (Note 31) | 32 | 105 | 62 | |
Ending balance | R$ 98 | R$ 882 | R$ 1080 | |
[1] | The amount received via 'Covid-account' will be reversed in a negative financial component in the 2021 or 2022 tariff processes, as detailed in note 1. |
14. CONCESSION FINANCIAL AND _9
14. CONCESSION FINANCIAL AND SECTOR ASSETS AND LIABILITIES (Details Narrative) R$ in Millions | Aug. 18, 2020BRL (R$) | Aug. 05, 2020BRL (R$) | Jun. 25, 2020 | Dec. 31, 2020BRL (R$)N | Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) |
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||||
Net balance of assets deemed cost | R$ 816 | R$ 816 | ||||
Grant acquisition period | 30 years | |||||
Pass-throughs of funds | R$ 63 | R$ 361 | R$ 794 | |||
Aneel [member] | ||||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||||
Receivable asset | R$ 222 | |||||
Other Disposals Of Assets [member] | Regulated Market [member] | ||||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||||
Output sales percentage | 70.00% | |||||
Other Disposals Of Assets [member] | Free Market [member] | ||||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||||
Output sales percentage | 30.00% | |||||
Usina hidreletrica jaguara [member] | ||||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||||
Net balance of assets deemed cost | R$ 174 | |||||
Usina hidreletrica sao simao [member] | ||||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||||
Net balance of assets deemed cost | 3 | |||||
Usina hidreletrica miranda [member] | ||||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||||
Net balance of assets deemed cost | R$ 23 | |||||
Hydro Electric Plant [member] | ||||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||||
Number of plants | N | 18 | |||||
Cost of acquisition | R$ 2216 | |||||
Cemig D [member] | Aneel [member] | ||||||
Disclosure Of Financial Assets and Liabilities Of The Concession [line items] | ||||||
Tariff amount | R$ 714 | R$ 714 | R$ 266 | |||
Description of tariff adjustment | The grantor (Aneel) approved the Annual Adjustment for Cemig D, which would be in effect from May 28, 2020 to May 27, 2021, with an average increase for customers of 4.27%. This result reflected Cemig D’s manageable costs (Portion B), of 0.84% and the direct pass-through, within the tariff, of 3.43%, the latter having zero economic effect, not affecting profitability, relating to the following itens: (i) increase of 5.30% in non-manageable (‘Parcel A’) costs – mainly purchase of energy supply, regulatory charges and transmission charges; (ii) increase of 6.71% in the financial components of the current process, led by the CVA currently being processed, which had an effect of 5.47%; and (iii) 8.58% was withdrawn from the financial components of the prior process. Although the adjustment is effective from May 28, 2020 to May 27, 2021, its application was suspended until June 30, 2020, maintaining the previous tariffs during the suspension period. Cemig D also recognized the right to receive a total of R$51, based on the energy market, for non-receipt of the additional tariff component in the period. Considering that the amount of R$63 was received from Covid Account funds on July 31, 2020, completing the total amount established for Cemig D to receive in Covid Account funds, under Normative Resolution 885/2020, the Company recognized a net obligation of R$12, updated by the Selic rate until September 30, 2020. For more information on the Covid-account, see Note 1(e) to this financial statements. |
15. CONCESSION CONTRACT ASSET_2
15. CONCESSION CONTRACT ASSETS (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 02, 2019 | [1] | Dec. 31, 2018 | |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||||||
Contract assets | R$ 4980000 | |||||
Current | 737,000 | |||||
Non current | 4,243,000 | |||||
Restated [member] | ||||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||||||
Contract assets | R$ 3884000 | R$ 3509000 | ||||
Current | 576,000 | [1] | R$ 482000 | 482,000 | ||
Non current | 3,307,000 | [1] | R$ 3026000 | 3,026,000 | ||
Distribution - infrastructure assets under construction [member] | ||||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||||||
Contract assets | 1,142,000 | |||||
Distribution - infrastructure assets under construction [member] | Restated [member] | ||||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||||||
Contract assets | 740,000 | 518,000 | ||||
Gas - infrastructure assets under construction [member] | ||||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||||||
Contract assets | 94,000 | |||||
Gas - infrastructure assets under construction [member] | Restated [member] | ||||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||||||
Contract assets | 68,000 | 81,000 | ||||
Transmission - assets rrincorporated into the assets remuneration base [member] | ||||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||||||
Contract assets | 1,896,000 | |||||
Transmission - assets rrincorporated into the assets remuneration base [member] | Restated [member] | ||||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||||||
Contract assets | 1,928,000 | 2,272,000 | ||||
Transmission - assets remunerated by tariff [member] | ||||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||||||
Contract assets | R$ 1848000 | |||||
Transmission - assets remunerated by tariff [member] | Restated [member] | ||||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||||||
Contract assets | R$ 1147000 | R$ 637000 | ||||
[1] | For further details of restatement of comparative balances, see Note 2.8 |
15. CONCESSION CONTRACT ASSET_3
15. CONCESSION CONTRACT ASSETS (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Additions | R$ 1597 | ||
Inflation adjustment | 438 | ||
Results of the Periodic Tariff Review | 552 | ||
Amounts received | (623) | ||
Disposals | (9) | ||
Transfers to financial assets | (60) | ||
Transfers to intangible assets | (906) | ||
Contract assets arising from business combination (Note 16d) | 108 | ||
Impairment | (1) | ||
Ending balance | 4,980 | ||
Restated [member] | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Balance at December 31, 2017 | 3,884 | R$ 3509 | |
Effects of IFRS 15 first-time adoption | 1,258 | R$ 3549 | |
Additions | 328 | 935 | |
Inflation adjustment | (473) | 311 | |
Amounts received | (2) | (467) | |
Disposals | (48) | ||
Transfers to financial assets | (685) | (27) | |
Transfers to intangible assets | (3) | (750) | |
Impairment | (42) | ||
Ending balance | 3,884 | 3,509 | |
Energy Transmission Segment [member] | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Balance at December 31, 2017 | 3,076 | ||
Additions | 201 | ||
Inflation adjustment | 438 | ||
Results of the Periodic Tariff Review | 552 | ||
Amounts received | (623) | ||
Disposals | (7) | ||
Contract assets arising from business combination (Note 16d) | 108 | ||
Ending balance | 3,745 | 3,076 | |
Energy Transmission Segment [member] | Restated [member] | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Balance at December 31, 2017 | 3,076 | 2,909 | |
Effects of IFRS 15 first-time adoption | 2,927 | ||
Additions | 312 | 138 | |
Inflation adjustment | 328 | 311 | |
Amounts received | (473) | (467) | |
Ending balance | 3,076 | 2,909 | |
Energy Distribution Segment [member] | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Balance at December 31, 2017 | 740 | ||
Additions | 1,346 | ||
Transfers to financial assets | (60) | ||
Transfers to intangible assets | (883) | ||
Impairment | (1) | ||
Ending balance | 1,142 | 740 | |
Energy Distribution Segment [member] | Restated [member] | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Balance at December 31, 2017 | 740 | 518 | |
Effects of IFRS 15 first-time adoption | 532 | ||
Additions | 903 | 727 | |
Transfers to financial assets | (27) | ||
Transfers to intangible assets | (48) | (672) | |
Transfers from PP&E | (630) | ||
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 | 68 | ||
Additions | 50 | ||
Disposals | (2) | ||
Transfers to intangible assets | (23) | ||
Ending balance | 93 | 68 | |
Gas Segment [member] | Restated [member] | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Balance at December 31, 2017 | R$ 68 | 82 | |
Effects of IFRS 15 first-time adoption | 90 | ||
Additions | 43 | 70 | |
Disposals | (2) | ||
Transfers to intangible assets | (78) | ||
Transfers from PP&E | (55) | ||
Ending balance | R$ 68 | R$ 82 |
15. CONCESSION CONTRACT ASSET_4
15. CONCESSION CONTRACT ASSETS (Details 2) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
ConcessionContractAssetsLineItems [Line Items] | |||
Current consideration | R$ 737 | ||
Non current consideration | 3,008 | ||
Total consideration | 3,745 | ||
Restated [member] | |||
ConcessionContractAssetsLineItems [Line Items] | |||
Current consideration | R$ 576 | R$ 482 | |
Non current consideration | 2,500 | 2,427 | |
Total consideration | 3,076 | 2,909 | |
Concession contract - 004/05 [member] | |||
ConcessionContractAssetsLineItems [Line Items] | |||
Current consideration | 19 | ||
Non current consideration | 91 | ||
Concession contract - 004/05 [member] | Restated [member] | |||
ConcessionContractAssetsLineItems [Line Items] | |||
Current consideration | |||
Non current consideration | |||
Concession contract - 079/00 [member] | |||
ConcessionContractAssetsLineItems [Line Items] | |||
Current consideration | 29 | ||
Non current consideration | 133 | ||
Concession contract - 079/00 [member] | Restated [member] | |||
ConcessionContractAssetsLineItems [Line Items] | |||
Current consideration | 21 | 19 | |
Non current consideration | 95 | 93 | |
Basic Network of the Existing System (BNES) [member] | |||
ConcessionContractAssetsLineItems [Line Items] | |||
Current consideration | 533 | ||
Non current consideration | 1,363 | ||
Basic Network of the Existing System (BNES) [member] | Restated [member] | |||
ConcessionContractAssetsLineItems [Line Items] | |||
Current consideration | 434 | 347 | |
Non current consideration | 1,494 | 1,714 | |
Basic Network of New Facilities (BNNF) [member] | |||
ConcessionContractAssetsLineItems [Line Items] | |||
Current consideration | 156 | ||
Non current consideration | R$ 1421 | ||
Basic Network of New Facilities (BNNF) [member] | Restated [member] | |||
ConcessionContractAssetsLineItems [Line Items] | |||
Current consideration | 121 | 116 | |
Non current consideration | R$ 911 | R$ 620 |
15. CONCESSION CONTRACT ASSET_5
15. CONCESSION CONTRACT ASSETS (Details Narrative) - BRL (R$) R$ / shares in Units, R$ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||||
Borrowing costs capitalised | R$ 34 | |||
Impairment on assets | 14 | R$ 22 | ||
Contract assets | R$ 4980 | |||
Periodic Tariff Revision of Permitted Annual Revenue | 9.13% | |||
Increase in revenues | 13.15% | |||
NET REVENUE | R$ 25228 | R$ 25487 | [1] | R$ 22266 |
Assets | 54,083 | R$ 50526 | [1] | R$ 59855 |
Basic Network of the Existing System (BNES) [member] | ||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||||
Assets | R$ 207 | |||
Percentage of changes in the asset base | 7.00% | |||
Percentage of account write-offs and assets | 38.00% | |||
Basic Network of New Facilities (BNNF) [member] | ||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||||
Assets | R$ 321 | |||
Net of PIS/Pasep and Cofins taxes | 502 | |||
contract 006/1997 [member] | ||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||||
NET REVENUE | R$ 528 | |||
Amounts reclassified | R$ 1296 | R$ 1281 | ||
contract 079/2020 [member] | ||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||||
NET REVENUE | R$ 23 | |||
Repositioning factor | 57.50% | |||
Commercial operation | R$ 24 | |||
contract 079/2020 [member] | Bottom Of Range [member] | ||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||||
Weighted average cost of capital after tax | 6.64% | |||
contract 079/2020 [member] | Top of Range [member] | ||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||||
Weighted average cost of capital after tax | 7.71% | |||
[1] | See note 2.8. |
16. INVESTMENTS (Details)
16. INVESTMENTS (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure of detailed information about investment property [line items] | |||
Total investments | R$ 5385 | R$ 5378 | |
Hidreletrica cachoeirao [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Jointly-controlled | ||
Total investments | R$ 53 | 54 | |
Guanhaes energia [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Jointly-controlled | ||
Total investments | R$ 131 | 131 | |
Hidreletrica pipoca [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Jointly-controlled | ||
Total investments | R$ 36 | 31 | |
Retiro baixo [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Jointly-controlled | ||
Total investments | R$ 195 | 180 | |
Alianca norte (belo monte plant) [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Jointly-controlled | ||
Total investments | R$ 631 | 671 | |
Madeira energia (santo antonio plant) [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Affiliated | ||
Total investments | R$ 209 | 167 | |
FIP melbourne (usina de santo antonio) [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Affiliated | ||
Total investments | R$ 158 | 385 | |
Lightger [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Jointly-controlled | ||
Total investments | R$ 131 | 128 | |
Baguari energia [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Jointly-controlled | ||
Total investments | R$ 159 | 157 | |
Alianca geracao [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Jointly-controlled | ||
Total investments | R$ 1167 | 1,192 | |
TAESA [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Jointly-controlled | ||
Total investments | R$ 1467 | 1,213 | |
Ativas data center [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Affiliated | ||
Total investments | R$ 17 | 16 | |
UFV janauba geracao de energia eletrica distribuida [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Jointly-controlled | ||
Total investments | R$ 10 | 10 | |
Companhia de transmissao centroeste de minas [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Subsidiary | ||
Total investments | 24 | ||
Axxiom solucoes tecnologicas [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Jointly-controlled | ||
Total investments | R$ 4 | 13 | |
Total of investments [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Total investments | R$ 5415 | 5,400 | |
Itaocara - equity deficit [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Jointly-controlled | ||
Total investments | [1] | R$ 30 | (22) |
Amazonia energia (belo monte plant) [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Jointly-controlled | ||
Total investments | R$ 965 | 1,028 | |
UFV manga geracao de energia eletrica distribuida [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Jointly-controlled | ||
Total investments | R$ 11 | ||
UFV corinto geracao de energia eletrica s.a. [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Jointly-controlled | ||
Total investments | R$ 10 | ||
UFV bonfinopolis geracao de energia eletrica distribuida [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Jointly-controlled | ||
Total investments | R$ 6 | ||
UFV lagoa grande geracao de energia eletrica distribuida [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Jointly-controlled | ||
Total investments | R$ 15 | ||
UFV lontra geracao de energia eletrica distribuida [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Jointly-controlled | ||
Total investments | R$ 17 | ||
UFV mato verde geracao de energia eletrica distribuida [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Jointly-controlled | ||
Total investments | R$ 6 | ||
UFV mirabela geracao de energia eletrica distribuida [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Jointly-controlled | ||
Total investments | R$ 4 | ||
UFV porteirinha i geracao de energia eletrica distribuida [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Jointly-controlled | ||
Total investments | R$ 6 | ||
UFV porteirinha ii geracao de energia eletrica distribuida [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Control | Jointly-controlled | ||
Total investments | R$ 7 | ||
[1] | On December 31, 2020 and 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$30 (R$22 on December 31, 2019), resulting from contractual obligations assumed with the jointly-controlled entity and the other shareholders. |
16. INVESTMENTS (Details 1)
16. INVESTMENTS (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Disclosure of detailed information about investment property [line items] | ||||||
Beginning balance | R$ 704 | R$ 745 | R$ 1108 | |||
Additions | 110 | |||||
Amortization | (40) | (41) | (74) | |||
Written off | (399) | |||||
Ending balance | 664 | 704 | 745 | |||
Retiro baixo [member] | ||||||
Disclosure of detailed information about investment property [line items] | ||||||
Beginning balance | 31 | 32 | 28 | |||
Additions | 6 | |||||
Amortization | (1) | (1) | (2) | |||
Written off | ||||||
Ending balance | 30 | 31 | 32 | |||
Central eolica praias de parajuru [member] | ||||||
Disclosure of detailed information about investment property [line items] | ||||||
Beginning balance | [1] | 17 | ||||
Additions | [1] | |||||
Amortization | [1] | (2) | ||||
Written off | [1] | (15) | ||||
Ending balance | [1] | |||||
Central eolica volta do rio [member] | ||||||
Disclosure of detailed information about investment property [line items] | ||||||
Beginning balance | [1] | 11 | ||||
Additions | [1] | |||||
Amortization | [1] | (1) | ||||
Written off | [2] | (10) | [1] | |||
Ending balance | [1] | |||||
Central eolica praias de morgado [member] | ||||||
Disclosure of detailed information about investment property [line items] | ||||||
Beginning balance | [1] | 24 | ||||
Additions | [1] | |||||
Amortization | [1] | (2) | ||||
Written off | [1] | (22) | ||||
Ending balance | [1] | |||||
TAESA [member] | ||||||
Disclosure of detailed information about investment property [line items] | ||||||
Beginning balance | 171 | 180 | 189 | |||
Additions | ||||||
Amortization | (8) | (9) | (9) | |||
Written off | ||||||
Ending balance | 163 | 171 | 180 | |||
Madeira energia (santo antonio plant) [member] | ||||||
Disclosure of detailed information about investment property [line items] | ||||||
Beginning balance | 17 | 18 | 151 | |||
Additions | ||||||
Amortization | (1) | (1) | (6) | |||
Written off | (127) | |||||
Ending balance | 16 | 17 | 18 | |||
Lightger [member] | ||||||
Disclosure of detailed information about investment property [line items] | ||||||
Beginning balance | 81 | 84 | ||||
Additions | 84 | |||||
Amortization | (3) | (3) | ||||
Written off | ||||||
Ending balance | 78 | 81 | 84 | |||
Light [member] | ||||||
Disclosure of detailed information about investment property [line items] | ||||||
Beginning balance | 186 | |||||
Additions | ||||||
Amortization | (20) | |||||
Written off | (166) | |||||
Ending balance | ||||||
Alianca geracao [member] | ||||||
Disclosure of detailed information about investment property [line items] | ||||||
Beginning balance | 353 | 378 | 403 | |||
Additions | ||||||
Amortization | (25) | (25) | (25) | |||
Written off | ||||||
Ending balance | 328 | 353 | 378 | |||
Alianca norte (belo monte plant) [member] | ||||||
Disclosure of detailed information about investment property [line items] | ||||||
Beginning balance | 51 | 53 | 55 | |||
Additions | ||||||
Amortization | (2) | (2) | (2) | |||
Written off | ||||||
Ending balance | 49 | 51 | 53 | |||
RME [member] | ||||||
Disclosure of detailed information about investment property [line items] | ||||||
Beginning balance | 44 | |||||
Additions | 20 | |||||
Amortization | (5) | |||||
Written off | (59) | |||||
Ending balance | ||||||
[1] | As from 2018 the investees Central Eolica Praias de Parajuru and Central Eolica Volta do Rio are being consolidated | |||||
[2] | As from 2018 the investees Central Eolica Praias de Parajuru and Central Eolica Volta do Rio are being consolidated. |
16. INVESTMENTS (Details 2)
16. INVESTMENTS (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | R$ 5378 | R$ 5235 | |||||
Gain (loss) by equity method (Income statement) | 357 | [1] | 125 | ||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | 37 | 268 | |||||
Dividends | (399) | (284) | |||||
Additions / acquisitions | 119 | 33 | |||||
Other | 13 | 1 | |||||
Disposals | (120) | ||||||
Reclassification to held for sale | |||||||
Ending balance | 5,385 | 5,378 | R$ 5235 | ||||
Companhia de transmissao centroeste de minas [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Gain (loss) by equity method (Income statement) | 5 | ||||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | (6) | ||||||
Additions / acquisitions | |||||||
Other | |||||||
Disposals | |||||||
Reclassification to held for sale | |||||||
Light [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | [2] | 1,534 | |||||
Gain (loss) by equity method (Income statement) | [2] | 19 | |||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | [2] | (231) | |||||
Dividends | [2] | (8) | |||||
Additions / acquisitions | [2] | ||||||
Other | [2] | (59) | |||||
Disposals | [2] | ||||||
Reclassification to held for sale | [2] | (1,255) | |||||
Ending balance | [2] | ||||||
RME [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | [2] | 383 | |||||
Gain (loss) by equity method (Income statement) | [2] | 3 | |||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | [2] | (52) | |||||
Dividends | [2] | (1) | |||||
Additions / acquisitions | [2] | 104 | |||||
Other | [2] | (111) | |||||
Disposals | [2] | ||||||
Reclassification to held for sale | [2] | (326) | |||||
Ending balance | [2] | ||||||
Axxiom solucoes tecnologicas [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 13 | [2] | 12 | [2] | |||
Gain (loss) by equity method (Income statement) | (9) | [1],[3] | (7) | [2] | |||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | [3] | 4 | [2] | ||||
Dividends | [3] | [2] | |||||
Additions / acquisitions | [3] | 9 | [2] | ||||
Other | [3] | (1) | [2] | ||||
Disposals | [3] | [2] | |||||
Reclassification to held for sale | [2] | (4) | |||||
Ending balance | 4 | [3] | 13 | [2] | |||
Lightger [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 128 | [2] | 41 | [2] | |||
Gain (loss) by equity method (Income statement) | 10 | [1],[3] | 3 | [2] | |||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | [3] | 128 | 84 | [2] | |||
Dividends | (7) | [3] | (2) | [2] | |||
Additions / acquisitions | [3] | [2] | |||||
Other | [3] | [2] | |||||
Disposals | [3] | [2] | |||||
Reclassification to held for sale | [2] | (126) | |||||
Ending balance | 131 | [3] | 128 | [2] | |||
Guanhaes energia [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 131 | [2] | 25 | [2] | |||
Gain (loss) by equity method (Income statement) | [1],[3] | 30 | [2] | ||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | [3] | 131 | [2] | ||||
Dividends | [3] | [2] | |||||
Additions / acquisitions | [3] | 57 | [2] | ||||
Other | [3] | [2] | |||||
Disposals | [3] | [2] | |||||
Reclassification to held for sale | [2] | (112) | |||||
Ending balance | 131 | [3] | 131 | [2] | |||
Usina hidreletrica itaocara S.A. [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | [2] | 4 | [2] | ||||
Gain (loss) by equity method (Income statement) | (50) | (4) | [2] | ||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | 5 | [2] | |||||
Dividends | [2] | ||||||
Additions / acquisitions | 23 | 5 | [2] | ||||
Other | 22 | [2] | |||||
Disposals | [2] | ||||||
Reclassification to held for sale | [2] | (5) | |||||
Ending balance | [2] | ||||||
Hidreletrica pipoca [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 31 | 31 | 26 | ||||
Gain (loss) by equity method (Income statement) | 11 | [1] | 4 | 7 | |||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | (6) | (4) | (2) | ||||
Additions / acquisitions | |||||||
Other | |||||||
Disposals | |||||||
Reclassification to held for sale | |||||||
Ending balance | 36 | 31 | 31 | ||||
Madeira energia (santo antonio plant) [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 167 | 270 | [4],[5] | 535 | [4],[5] | ||
Gain (loss) by equity method (Income statement) | 42 | [1] | (103) | (163) | [4],[5] | ||
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] | ||||||
Ending balance | 209 | 167 | 270 | [4],[5] | |||
FIP melbourne (usina de santo antonio) [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 385 | 470 | [5] | 582 | [5] | ||
Gain (loss) by equity method (Income statement) | (85) | (139) | [5] | ||||
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] | ||||||
Ending balance | 385 | 470 | [5] | ||||
Hidreletrica cachoeirao [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 54 | 49 | 58 | ||||
Gain (loss) by equity method (Income statement) | 9 | [1] | 11 | 10 | |||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | (10) | (6) | (19) | ||||
Additions / acquisitions | |||||||
Other | |||||||
Disposals | |||||||
Reclassification to held for sale | |||||||
Ending balance | 53 | 54 | 49 | ||||
Baguari energia [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 157 | 162 | 148 | ||||
Gain (loss) by equity method (Income statement) | 23 | [1] | 22 | 28 | |||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | (21) | (27) | (15) | ||||
Additions / acquisitions | |||||||
Other | 1 | ||||||
Disposals | |||||||
Reclassification to held for sale | |||||||
Ending balance | 159 | 157 | 162 | ||||
Central eolica praias de parajuru [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | [6] | 60 | |||||
Gain (loss) by equity method (Income statement) | [6] | (6) | |||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | [6] | 21 | |||||
Dividends | [6] | ||||||
Additions / acquisitions | [6] | 74 | |||||
Other | [6] | (146) | |||||
Disposals | [6] | (3) | |||||
Reclassification to held for sale | [6] | ||||||
Ending balance | [6] | ||||||
Central eolica volta do rio [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | [6] | 68 | |||||
Gain (loss) by equity method (Income statement) | [6] | (16) | |||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | [6] | 59 | |||||
Dividends | [6] | ||||||
Additions / acquisitions | [6] | 92 | |||||
Other | [6] | (181) | |||||
Disposals | [6] | (22) | |||||
Reclassification to held for sale | [6] | ||||||
Ending balance | [6] | ||||||
Central eolica praias de morgado [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | [6] | 51 | |||||
Gain (loss) by equity method (Income statement) | [6] | (15) | |||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | [6] | ||||||
Dividends | [6] | ||||||
Additions / acquisitions | [6] | ||||||
Other | [6] | (24) | |||||
Disposals | [6] | (12) | |||||
Reclassification to held for sale | [6] | ||||||
Ending balance | [6] | ||||||
Amazonia energia (belo monte plant) [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 1,028 | 1,013 | 867 | ||||
Gain (loss) by equity method (Income statement) | (63) | [1] | 15 | 80 | |||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | |||||||
Additions / acquisitions | 69 | ||||||
Other | (3) | ||||||
Disposals | |||||||
Reclassification to held for sale | |||||||
Ending balance | 965 | 1,028 | 1,013 | ||||
Alianca norte (belo monte plant) [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 671 | 664 | 577 | ||||
Gain (loss) by equity method (Income statement) | (40) | [1] | 6 | 44 | |||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | |||||||
Additions / acquisitions | 1 | 43 | |||||
Other | |||||||
Disposals | |||||||
Reclassification to held for sale | |||||||
Ending balance | 631 | 671 | 664 | ||||
Ativas data center [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 16 | 16 | 17 | ||||
Gain (loss) by equity method (Income statement) | 1 | [1] | (1) | ||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | |||||||
Additions / acquisitions | |||||||
Other | |||||||
Disposals | |||||||
Reclassification to held for sale | |||||||
Ending balance | 17 | 16 | 16 | ||||
TAESA [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 1,213 | 1,143 | [2] | 1,101 | [2] | ||
Gain (loss) by equity method (Income statement) | 494 | [1] | 210 | 225 | [2] | ||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | [2] | ||||||
Dividends | (240) | (141) | (208) | [2] | |||
Additions / acquisitions | [2] | ||||||
Other | 1 | 25 | [2] | ||||
Disposals | [2] | ||||||
Reclassification to held for sale | [2] | ||||||
Ending balance | 1,467 | 1,213 | 1,143 | [2] | |||
Renova [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 282 | ||||||
Gain (loss) by equity method (Income statement) | (282) | ||||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | |||||||
Additions / acquisitions | |||||||
Other | |||||||
Disposals | |||||||
Reclassification to held for sale | |||||||
Ending balance | |||||||
Alianca geracao [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 1,192 | 1,217 | 1,242 | ||||
Gain (loss) by equity method (Income statement) | 89 | [1] | 78 | 65 | |||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | (114) | (103) | (90) | ||||
Additions / acquisitions | |||||||
Other | |||||||
Disposals | |||||||
Reclassification to held for sale | |||||||
Ending balance | 1,167 | 1,192 | 1,217 | ||||
Retiro baixo [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 180 | 171 | 158 | ||||
Gain (loss) by equity method (Income statement) | 15 | [1] | 12 | 10 | |||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | (3) | (3) | |||||
Additions / acquisitions | 6 | ||||||
Other | |||||||
Disposals | |||||||
Reclassification to held for sale | |||||||
Ending balance | 195 | 180 | 171 | ||||
UFV janauba geracao de energia eletrica distribuida [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 10 | 9 | |||||
Gain (loss) by equity method (Income statement) | 1 | [1] | 1 | ||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | (1) | ||||||
Additions / acquisitions | 9 | ||||||
Other | |||||||
Disposals | |||||||
Reclassification to held for sale | |||||||
Ending balance | 10 | 10 | 9 | ||||
Total of investments [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 5,400 | 5,235 | 7,792 | ||||
Gain (loss) by equity method (Income statement) | 366 | [1] | 125 | (104) | |||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | 37 | 268 | (119) | ||||
Dividends | (399) | (284) | (354) | ||||
Additions / acquisitions | 118 | 33 | 511 | ||||
Other | 13 | 23 | (626) | ||||
Disposals | (120) | (37) | |||||
Reclassification to held for sale | (1,828) | ||||||
Ending balance | 5,415 | 5,400 | 5,235 | ||||
Companhia de transmissao centroeste de minas [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 24 | 20 | 21 | ||||
Gain (loss) by equity method (Income statement) | [1] | 4 | |||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | 37 | ||||||
Dividends | |||||||
Additions / acquisitions | 45 | ||||||
Other | 14 | ||||||
Disposals | (120) | ||||||
Ending balance | 24 | 20 | |||||
Itaocara - equity deficit [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | (22) | [7] | |||||
Gain (loss) by equity method (Income statement) | (9) | [1],[7] | |||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | [7] | ||||||
Dividends | [7] | ||||||
Additions / acquisitions | 1 | [7] | |||||
Other | [7] | (22) | |||||
Disposals | [7] | ||||||
Ending balance | (30) | [7] | (22) | [7] | |||
FIP Melbourne (Santo Antonio plant) [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | 385 | ||||||
Gain (loss) by equity method (Income statement) | [1] | (227) | |||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | |||||||
Additions / acquisitions | |||||||
Other | |||||||
Disposals | |||||||
Ending balance | 158 | 385 | |||||
UFV Corinto Geracao de Energia Eletrica Distribuida [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | |||||||
Gain (loss) by equity method (Income statement) | [1] | 1 | |||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | |||||||
Additions / acquisitions | 9 | ||||||
Other | |||||||
Disposals | |||||||
Ending balance | 10 | ||||||
UFV Manga Geracao de Energia Eletrica Distribuida [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | |||||||
Gain (loss) by equity method (Income statement) | [1] | 1 | |||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | |||||||
Additions / acquisitions | 10 | ||||||
Other | |||||||
Disposals | |||||||
Ending balance | 11 | ||||||
UFV Bonfinopolis II Geracao de Energia Eletrica Distribuida [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | |||||||
Gain (loss) by equity method (Income statement) | [1] | ||||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | |||||||
Additions / acquisitions | 6 | ||||||
Other | |||||||
Disposals | |||||||
Ending balance | 6 | ||||||
UFV lagoa grande geracao de energia eletrica distribuida [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | |||||||
Gain (loss) by equity method (Income statement) | [1] | 3 | |||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | |||||||
Additions / acquisitions | 12 | ||||||
Other | |||||||
Disposals | |||||||
Ending balance | 15 | ||||||
UFV lontra geracao de energia eletrica distribuida [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | |||||||
Gain (loss) by equity method (Income statement) | [1] | 3 | |||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | |||||||
Additions / acquisitions | 14 | ||||||
Other | |||||||
Disposals | |||||||
Ending balance | 17 | ||||||
UFV mato verde geracao de energia eletrica distribuida [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | |||||||
Gain (loss) by equity method (Income statement) | [1] | 1 | |||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | |||||||
Additions / acquisitions | 5 | ||||||
Other | |||||||
Disposals | |||||||
Ending balance | 6 | ||||||
UFV mirabela geracao de energia eletrica distribuida [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | |||||||
Gain (loss) by equity method (Income statement) | [1] | ||||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | |||||||
Additions / acquisitions | 5 | ||||||
Other | (1) | ||||||
Disposals | |||||||
Ending balance | 4 | ||||||
UFV porteirinha i geracao de energia eletrica distribuida [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | |||||||
Gain (loss) by equity method (Income statement) | [1] | ||||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | |||||||
Additions / acquisitions | 6 | ||||||
Other | |||||||
Disposals | |||||||
Ending balance | 6 | ||||||
UFV porteirinha ii geracao de energia eletrica distribuida [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Beginning balance | |||||||
Gain (loss) by equity method (Income statement) | [1] | 1 | |||||
Remeasurement of previously held equity interest in subsidiaries acquired (step- acquisition) | |||||||
Dividends | |||||||
Additions / acquisitions | 6 | ||||||
Other | |||||||
Disposals | |||||||
Ending balance | R$ 7 | ||||||
[1] | Includes bargain purchase related to the acquisition of the joint-controlled entities UFV Corinto, UFV Manga, UFV Lagoa Grande, UFV Lontra, UFV Mato Verde and UFV Porteirinha II, in the amount of R$7. | ||||||
[2] | 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. | ||||||
[3] | With the loss 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. More details see notes 1 and 33. | ||||||
[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 December 31, 2019, the investee had negative shareholders' equity. Thus, after reducing the accounting value of its interest to zero, the Company recognized the provision for losses on investments, in the amount of R$22, resulting from contractual obligations assumed with the subsidiary and the other shareholders. |
16. INVESTMENTS (Details 3)
16. INVESTMENTS (Details 3) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about investment property [abstract] | ||
Opening balances | R$ 186 | R$ 119 |
Dividends proposed by investees | 399 | 285 |
Elimination of dividends due to business combination | (1) | |
Dividends proposed by investee classified as held for sale | 73 | |
Adjustment of dividends proposed by investee classified as held for sale | (1) | |
Withholding income tax on Interest on equity | (8) | (8) |
Amounts received | (387) | (283) |
Ending balances | R$ 188 | R$ 186 |
16. INVESTMENTS (Details 4)
16. INVESTMENTS (Details 4) - BRL (R$) R$ in Millions | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Disclosure of detailed information about investment property [line items] | |||||||
Share capital | R$ 7594 | R$ 7294 | [1] | R$ 7294 | |||
Equity | R$ 17478 | R$ 15891 | [1],[2] | R$ 15939 | [3] | ||
UFV janauba geracao de energia eletrica distribuida [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | UFV Janaúba Geração de Energia Elétrica Distribuída | ||||||
Number of shares | 18,509,900 | ||||||
Cemig interest % | 49.00% | ||||||
Share capital | R$ 19 | ||||||
Equity | R$ 21 | ||||||
UFV Corinto Geracao de Energia Eletrica Distribuida [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | UFV Corinto Geração de Energia Elétrica Distribuída | ||||||
Number of shares | 18,000,000 | ||||||
Cemig interest % | 49.00% | ||||||
Share capital | R$ 18 | ||||||
Equity | R$ 20 | ||||||
UFV Manga Geracao de Energia Eletrica Distribuida [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | UFV Manga Geração de Energia Elétrica Distribuída | ||||||
Number of shares | 21,235,933 | ||||||
Cemig interest % | 49.00% | ||||||
Share capital | R$ 21 | ||||||
Equity | R$ 24 | ||||||
UFV Bonfinopolis II Geracao de Energia Eletrica Distribuida [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | UFV Bonfinópolis Geração de Energia Elétrica Distribuída | ||||||
Number of shares | 13,197,187 | ||||||
Cemig interest % | 49.00% | ||||||
Share capital | R$ 13 | ||||||
Equity | R$ 13 | ||||||
UFV lagoa grande geracao de energia eletrica distribuida [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | UFV Lagoa Grande Geração de Energia Elétrica Distribuída | ||||||
Number of shares | 25,471,844 | ||||||
Cemig interest % | 49.00% | ||||||
Share capital | R$ 25 | ||||||
Equity | R$ 26 | ||||||
UFV lontra geracao de energia eletrica distribuida [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | UFV Lontra Geração de Energia Elétrica Distribuída | ||||||
Number of shares | 29,010,219 | ||||||
Cemig interest % | 49.00% | ||||||
Share capital | R$ 29 | ||||||
Equity | R$ 29 | ||||||
UFV mato verde geracao de energia eletrica distribuida [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | UFV Mato Verde Geração de Energia Elétrica Distribuída | ||||||
Number of shares | 11,030,391 | ||||||
Cemig interest % | 49.00% | ||||||
Share capital | R$ 11 | ||||||
Equity | R$ 11 | ||||||
UFV mirabela geracao de energia eletrica distribuida [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | UFV Mirabela Geração de Energia Elétrica Distribuída | ||||||
Number of shares | 9,320,875 | ||||||
Cemig interest % | 49.00% | ||||||
Share capital | R$ 9 | ||||||
Equity | R$ 9 | ||||||
UFV porteirinha i geracao de energia eletrica distribuida [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | UFV Porteirinha I Geração de Energia Elétrica Distribuída | ||||||
Number of shares | 12,348,392 | ||||||
Cemig interest % | 49.00% | ||||||
Share capital | R$ 12 | ||||||
Equity | R$ 12 | ||||||
UFV porteirinha ii geracao de energia eletrica distribuida [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | UFV Porteirinha II Geração de Energia Elétrica Distribuída | ||||||
Number of shares | 11,702,733 | ||||||
Cemig interest % | 49.00% | ||||||
Share capital | R$ 12 | ||||||
Equity | R$ 12 | ||||||
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$ 4000 | R$ 2600 | R$ 2600 | ||||
Equity | R$ 5842 | R$ 5348 | R$ 5125 | ||||
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% | 15.51% | ||||
Share capital | R$ 10620 | R$ 10620 | R$ 10620 | ||||
Equity | R$ 2259 | R$ 3705 | R$ 4657 | ||||
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$ 110 | R$ 100 | ||||
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$ 549 | R$ 396 | ||||
Equity | R$ 268 | R$ 268 | R$ 228 | ||||
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$ 73 | R$ 63 | R$ 63 | ||||
Baguari energia [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | [4] | Baguari Energia | |||||
Number of shares | [4] | 26,157,300,278 | |||||
Cemig interest % | [4] | 69.39% | 69.39% | 69.39% | |||
Share capital | [4] | R$ 187 | R$ 187 | R$ 187 | |||
Equity | [4] | R$ 229 | R$ 227 | R$ 234 | |||
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 | 70,560,000 | ||||||
Cemig interest % | 100.00% | 100.00% | 100.00% | ||||
Share capital | R$ 71 | R$ 72 | R$ 72 | ||||
Equity | R$ 107 | R$ 89 | R$ 80 | ||||
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 | 117,230,000 | ||||||
Cemig interest % | 100.00% | 100.00% | 100.00% | ||||
Share capital | R$ 117 | R$ 139 | R$ 139 | ||||
Equity | R$ 171 | R$ 58 | R$ 84 | ||||
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$ 106 | R$ 95 | R$ 86 | ||||
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 | 41,923,360,811 | ||||||
Cemig interest % | 49.00% | 49.00% | 49.00% | ||||
Share capital | R$ 1209 | R$ 1208 | R$ 1206 | ||||
Equity | R$ 1189 | R$ 1266 | R$ 1247 | ||||
Amazonia energia (belo monte plant) [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | [4] | Amazônia Energia (Belo Monte plant) | |||||
Number of shares | [4] | 1,322,597,723 | |||||
Cemig interest % | [4] | 74.50% | 74.50% | 74.50% | |||
Share capital | [4] | R$ 1323 | R$ 1323 | R$ 1322 | |||
Equity | [4] | R$ 1296 | R$ 1380 | R$ 1359 | |||
Alianca geracao [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | Aliança Geração | ||||||
Number of shares | 1,291,500 | ||||||
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$ 225 | R$ 223 | ||||
Equity | R$ 325 | R$ 300 | R$ 278 | ||||
Renova [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | [4],[5] | Renova | |||||
Number of shares | [4],[5] | 41,719,724 | |||||
Cemig interest % | [4],[5] | 36.23% | 36.23% | 36.23% | |||
Share capital | [4],[5] | R$ 2961 | R$ 2961 | R$ 2919 | |||
Equity | [4],[5] | R$ 1108 | R$ 1130 | R$ 76 | |||
Usina hidreletrica itaocara S.A. [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | [6] | Usina Hidrelétrica Itaocara S.A | |||||
Number of shares | [6] | 71,708,500 | |||||
Cemig interest % | [6] | 49.00% | 49.00% | 49.00% | |||
Share capital | R$ 72 | [6] | R$ 69 | R$ 22 | |||
Equity | R$ 60 | [6] | R$ 45 | R$ 10 | |||
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$ 1452 | R$ 1408 | R$ 1396 | ||||
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$ 455 | R$ 446 | 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$ 180 | R$ 180 | R$ 179 | ||||
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$ 144 | R$ 136 | R$ 132 | ||||
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$ 174 | R$ 179 | R$ 176 | ||||
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$ 127 | R$ 121 | ||||
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$ 84 | R$ 73 | R$ 70 | ||||
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$ 127 | R$ 128 | R$ 125 | ||||
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$ 115 | R$ 124 | R$ 94 | ||||
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$ 55 | R$ 57 | R$ 55 | ||||
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$ 90 | R$ 98 | R$ 93 | ||||
Cemig Geracao Poco Fundo S.A. [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | [7] | Cemig Geração Poço Fundo S.A. | |||||
Number of shares | [7] | 1,402,000 | |||||
Cemig interest % | [7] | 100.00% | 100.00% | 100.00% | |||
Share capital | [7] | R$ 1 | R$ 1 | R$ 17 | |||
Equity | [7] | R$ 4 | R$ 4 | 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$ 57 | R$ 28 | R$ 27 | ||||
Cemig Comercializadora De Energia Incentivada S.A. [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | [8] | Cemig Comercializadora de Energia Incentivada S.A. | |||||
Number of shares | [8] | ||||||
Cemig interest % | [8] | 100.00% | 100.00% | ||||
Share capital | [8] | R$ 1 | R$ 1 | ||||
Equity | [8] | R$ 3 | R$ 3 | ||||
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$ 30 | R$ 31 | R$ 28 | ||||
Cemig distribuicao [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | Cemig Distribuição | ||||||
Number of shares | 2,359,113,452 | ||||||
Cemig interest % | 100.00% | 100.00% | 100.00% | ||||
Share capital | R$ 5372 | R$ 5372 | R$ 2772 | ||||
Equity | R$ 6022 | R$ 4708 | R$ 4708 | ||||
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$ 6026 | R$ 4927 | R$ 4572 | ||||
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% | 19.60% | ||||
Share capital | R$ 182 | R$ 182 | R$ 182 | ||||
Equity | R$ 86 | 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$ 1079 | R$ 988 | R$ 1001 | ||||
Cemig Geracao Distribuida [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | [9] | Cemig Geração Distribuída | |||||
Number of shares | [9] | ||||||
Cemig interest % | [9] | 100.00% | 100.00% | ||||
Share capital | [9] | ||||||
Equity | [9] | R$ 11 | R$ 3 | ||||
LEPSA [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | LEPSA | ||||||
Number of shares | |||||||
Cemig interest % | 100.00% | ||||||
Share capital | R$ 406 | ||||||
Equity | R$ 447 | ||||||
RME [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | RME | ||||||
Number of shares | |||||||
Cemig interest % | 100.00% | ||||||
Share capital | R$ 403 | ||||||
Equity | R$ 423 | ||||||
Cemig Sim (Efficientia) [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | [10] | Cemig Sim (Efficientia) | |||||
Number of shares | [10] | 24,431,845 | |||||
Cemig interest % | [10] | 100.00% | 100.00% | 100.00% | |||
Share capital | [10] | R$ 24 | R$ 15 | R$ 15 | |||
Equity | [10] | R$ 94 | R$ 17 | R$ 18 | |||
Companhia de transmissao centroeste de minas [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | [11] | Companhia de Transmissão Centroeste de Minas | |||||
Number of shares | [11] | 28,000,000 | |||||
Cemig interest % | [11] | 51.00% | 51.00% | 51.00% | |||
Share capital | [11] | R$ 28 | R$ 28 | R$ 28 | |||
Equity | [11] | R$ 118 | R$ 47 | R$ 39 | |||
Axxiom solucoes tecnologicas [member] | |||||||
Disclosure of detailed information about investment property [line items] | |||||||
Name of subsidiary | Axxiom Soluções Tecnológicas | ||||||
Number of shares | 65,165,000 | ||||||
Cemig interest % | 49.00% | 49.00% | 49.00% | ||||
Share capital | R$ 65 | R$ 58 | R$ 47 | ||||
Equity | R$ 9 | R$ 27 | R$ 17 | ||||
[1] | See note 2.8. | ||||||
[2] | For further details of restatement of comparative balances, see Note 2.8 | ||||||
[3] | 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. On August 27, 2020, Aneel published the Dispatch 2,508/2020-SRM-SGT, which set new amounts for distributors' over contracting for the years 2016 and 2017, based on a new valuation criterion established by Aneel Technical Note 97/2020-SRM-SGT - not contained in the regulatory rules which were currently in force. As a result, Cemig D filed an appeal with the Council of Aneel, for the amounts of distribution agents' over contracting to be reset in accordance with the calculation criteria based on maximum effort contained in Aneel Normative Resolution 453/2011. The Company's position on this case is reinforced by the fact that the Brazilian Energy Distributors' Association (Abradee) filed a similar appeal, supported by the opinion of contracted legal advisersadvisors. The Company has no expectation of loss in relation to realization of these amounts. The Company recognizes this receivable asset, in the amount of R$222 on December 31, 2020, as Other financial components' to be ratified. At the reporting date for this financial statements, this matter was still pending analysis by Aneel. | ||||||
[4] | Jointly-control under a Shareholders' Agreement. | ||||||
[5] | 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. | ||||||
[6] | 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. | ||||||
[7] | 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. | ||||||
[8] | On October 1, 2020, Cemig GT completed the merger of its subsidiary Cemig Comercializadora de Energia Incentivada S.A., at book value, with consequent extinction of this investee, and the Cemig GT becoming its successor in all its assets, rights and obligations. | ||||||
[9] | On October 19, 2020, the Cemig Geracao Distribuida was merged with the Company, at book value, with consequent extinction of this investee, and the Company becoming its successor in all its assets, rights and obligations. | ||||||
[10] | On April 14, 2020, the minute of the Annual General Meeting that decided about changes in this subsidiary's By-laws was registered in the commercial registry authority, changing the name of this subsidiary to Cemig Solucoes Inteligentes em Energia S.A.-CEMIG SIM. | ||||||
[11] | On January 13, 2020, the Company concluded acquisition of the equity interest of 49% of the share capital held by Eletrobras in Centroeste. |
16. INVESTMENTS (Details 5)
16. INVESTMENTS (Details 5) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Amazonia [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Direct interest % | [1] | 74.50% | 74.50% |
Indirect interest % | [1] | 5.76% | 5.76% |
Lightger [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Direct interest % | [1] | 49.00% | 49.00% |
Indirect interest % | [1] | 11.52% | 11.52% |
Guanhaes [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Direct interest % | [1] | 49.00% | 49.00% |
Indirect interest % | [1] | 11.52% | 11.52% |
Axxion [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Direct interest % | [1] | 49.00% | 49.00% |
Indirect interest % | [1] | 11.52% | 11.52% |
UHE Itaocara [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Direct interest % | [1] | 49.00% | 49.00% |
Indirect interest % | [1] | 11.52% | 11.52% |
[1] | After selling the shares held in Light, on January 22, 2021, the Company no longer holds the indirect interest above. |
16. INVESTMENTS (Details 6)
16. INVESTMENTS (Details 6) - BRL (R$) R$ in Millions | Apr. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Assets | |||||||
TOTAL CURRENT | R$ 15456 | R$ 10354 | [1] | R$ 27796 | |||
Cash and cash equivalents | 1,680 | 536 | 891 | ||||
TOTAL NON-CURRENT | 38,627 | 40,172 | [1] | 32,059 | |||
TOTAL ASSETS | 54,083 | 50,526 | [1] | 59,855 | |||
Liabilities | |||||||
Current | 9,690 | 7,913 | [1] | 23,394 | |||
Suppliers | 2,358 | 2,080 | [1] | 1,801 | |||
Total non-current liabilities | 26,915 | 26,458 | [1] | 20,522 | |||
Equity | 17,478 | 15,891 | [1],[2] | 15,939 | [3] | ||
TOTAL LIABILITIES AND EQUITY | 54,083 | 50,526 | [1] | 43,916 | |||
Statement of income | |||||||
NET REVENUE | 25,228 | 25,487 | [1] | 22,266 | |||
Cost of sales | (19,845) | ||||||
Depreciation and amortization | (865) | ||||||
Gross profit (loss) | 5,383 | ||||||
General and administrative expenses | (583) | ||||||
Finance income | 2,445 | 3,207 | [1] | 1,706 | |||
Finance expenses | (3,350) | (1,847) | [1] | (2,224) | |||
Share of (loss) profit, net, of subsidiaries and joint ventures | 357 | 125 | [1] | (104) | |||
NET INCOME FOR THE YEAR | R$ 2864 | 2,865 | 3,194 | [1] | 1,764 | [1] | |
COMPREHENSIVE INCOME FOR THE YEAR | 2,858 | ||||||
Centroeste [member] | |||||||
Assets | |||||||
TOTAL CURRENT | 29 | 19 | |||||
Cash and cash equivalents | 27 | ||||||
TOTAL NON-CURRENT | 35 | 36 | |||||
TOTAL ASSETS | 64 | 55 | |||||
Liabilities | |||||||
Current | 6 | 6 | |||||
Loans and financings - Current | 3 | 3 | |||||
Total non-current liabilities | 11 | 10 | |||||
Loans and financings - Non-Current | 8 | 10 | |||||
Equity | 47 | 39 | |||||
TOTAL LIABILITIES AND EQUITY | 64 | 55 | |||||
Statement of income | |||||||
NET REVENUE | 17 | 14 | |||||
Cost of sales | (5) | (1) | |||||
Depreciation and amortization | (1) | ||||||
Gross profit (loss) | 12 | 13 | |||||
General and administrative expenses | (2) | ||||||
Finance income | 2 | 1 | |||||
Finance expenses | (2) | (3) | |||||
Operational profit (loss) | 10 | 11 | |||||
Share of (loss) profit, net, of subsidiaries and joint ventures | |||||||
Income tax and social contribution tax | (1) | (1) | |||||
NET INCOME FOR THE YEAR | 9 | 10 | |||||
COMPREHENSIVE INCOME FOR THE YEAR | 9 | 10 | |||||
Ativas data center [member] | |||||||
Assets | |||||||
TOTAL CURRENT | 39 | 33 | 17 | ||||
Cash and cash equivalents | 12 | 8 | 1 | ||||
TOTAL NON-CURRENT | 104 | 107 | 106 | ||||
TOTAL ASSETS | 143 | 140 | 123 | ||||
Liabilities | |||||||
Current | 39 | 24 | 23 | ||||
Loans and financings - Current | 27 | 13 | 9 | ||||
Total non-current liabilities | 18 | 34 | 16 | ||||
Loans and financings - Non-Current | 16 | 31 | 13 | ||||
Equity | 86 | 82 | 84 | ||||
TOTAL LIABILITIES AND EQUITY | 143 | 140 | 123 | ||||
Statement of income | |||||||
NET REVENUE | 94 | 83 | 70 | ||||
Cost of sales | (78) | (75) | (72) | ||||
Depreciation and amortization | (15) | (18) | |||||
Gross profit (loss) | 16 | 8 | (2) | ||||
General and administrative expenses | (8) | (7) | (16) | ||||
Finance income | |||||||
Finance expenses | (3) | (3) | (3) | ||||
Operational profit (loss) | 5 | (2) | (21) | ||||
Share of (loss) profit, net, of subsidiaries and joint ventures | |||||||
Income tax and social contribution tax | (2) | ||||||
NET INCOME FOR THE YEAR | 3 | (2) | (21) | ||||
COMPREHENSIVE INCOME FOR THE YEAR | 3 | (2) | (21) | ||||
TAESA [member] | |||||||
Assets | |||||||
TOTAL CURRENT | 2,360 | 3,568 | 1,927 | ||||
Cash and cash equivalents | 896 | 83 | 21 | ||||
TOTAL NON-CURRENT | 11,745 | 7,662 | 6,689 | ||||
TOTAL ASSETS | 14,105 | 11,230 | 8,616 | ||||
Liabilities | |||||||
Current | 841 | 996 | 647 | ||||
Loans and financings - Current | 121 | 10 | 11 | ||||
Total non-current liabilities | 7,238 | 5,307 | 3,397 | ||||
Loans and financings - Non-Current | 923 | 4,159 | 410 | ||||
Equity | 6,026 | 4,927 | 4,572 | ||||
TOTAL LIABILITIES AND EQUITY | 14,105 | 11,230 | 8,616 | ||||
Statement of income | |||||||
NET REVENUE | 3,561 | 1,795 | 1,635 | ||||
Cost of sales | (1,048) | (574) | (362) | ||||
Depreciation and amortization | (7) | (5) | |||||
Gross profit (loss) | 2,513 | 1,221 | 1,273 | ||||
General and administrative expenses | (153) | (122) | (144) | ||||
Finance income | 39 | 97 | 63 | ||||
Finance expenses | (514) | (356) | (274) | ||||
Operational profit (loss) | 1,885 | 840 | 918 | ||||
Share of (loss) profit, net, of subsidiaries and joint ventures | 834 | 306 | 301 | ||||
Income tax and social contribution tax | (456) | (144) | (147) | ||||
NET INCOME FOR THE YEAR | 2,263 | 1,002 | 1,072 | ||||
COMPREHENSIVE INCOME FOR THE YEAR | 2,263 | 1,002 | 1,072 | ||||
Axxiom solucoes tecnologicas [member] | |||||||
Assets | |||||||
TOTAL CURRENT | 20 | 34 | |||||
Cash and cash equivalents | 3 | 7 | |||||
TOTAL NON-CURRENT | 21 | 26 | |||||
TOTAL ASSETS | 41 | 60 | |||||
Liabilities | |||||||
Current | 25 | 28 | |||||
Loans and financings - Current | 7 | 8 | |||||
Total non-current liabilities | 7 | 5 | |||||
Loans and financings - Non-Current | 1 | ||||||
Equity | 9 | 27 | |||||
TOTAL LIABILITIES AND EQUITY | 41 | 60 | |||||
Statement of income | |||||||
NET REVENUE | 41 | 53 | |||||
Cost of sales | (38) | (54) | |||||
Depreciation and amortization | (2) | (2) | |||||
Gross profit (loss) | 3 | (1) | |||||
General and administrative expenses | (5) | (11) | |||||
Finance income | |||||||
Finance expenses | (1) | (2) | |||||
Operational profit (loss) | (3) | (14) | |||||
Share of (loss) profit, net, of subsidiaries and joint ventures | |||||||
Income tax and social contribution tax | 5 | ||||||
NET INCOME FOR THE YEAR | (3) | (9) | |||||
COMPREHENSIVE INCOME FOR THE YEAR | (3) | (9) | |||||
Hidreletrica cachoeirao [member] | |||||||
Assets | |||||||
TOTAL CURRENT | 30 | 35 | 23 | ||||
Cash and cash equivalents | 26 | 30 | 18 | ||||
TOTAL NON-CURRENT | 80 | 82 | 85 | ||||
TOTAL ASSETS | 110 | 117 | 108 | ||||
Liabilities | |||||||
Current | 2 | 7 | 8 | ||||
Loans and financings - Current | |||||||
Total non-current liabilities | |||||||
Loans and financings - Non-Current | |||||||
Equity | 108 | 110 | 100 | ||||
TOTAL LIABILITIES AND EQUITY | 110 | 117 | 108 | ||||
Statement of income | |||||||
NET REVENUE | 34 | 38 | 50 | ||||
Cost of sales | (15) | (17) | (29) | ||||
Depreciation and amortization | (3) | (3) | (3) | ||||
Gross profit (loss) | 19 | 21 | 21 | ||||
General and administrative expenses | |||||||
Finance income | 1 | 1 | 1 | ||||
Finance expenses | |||||||
Operational profit (loss) | 20 | 22 | 22 | ||||
Share of (loss) profit, net, of subsidiaries and joint ventures | |||||||
Income tax and social contribution tax | (1) | (2) | (2) | ||||
NET INCOME FOR THE YEAR | 19 | 20 | 20 | ||||
COMPREHENSIVE INCOME FOR THE YEAR | 19 | 20 | 20 | ||||
Hidreletrica pipoca [member] | |||||||
Assets | |||||||
TOTAL CURRENT | 21 | 11 | 12 | ||||
Cash and cash equivalents | 8 | 2 | 4 | ||||
TOTAL NON-CURRENT | 89 | 89 | 95 | ||||
TOTAL ASSETS | 110 | 100 | 107 | ||||
Liabilities | |||||||
Current | 17 | 11 | 11 | ||||
Loans and financings - Current | 7 | 7 | 7 | ||||
Total non-current liabilities | 20 | 26 | 33 | ||||
Loans and financings - Non-Current | 20 | 26 | 33 | ||||
Equity | 73 | 63 | 63 | ||||
TOTAL LIABILITIES AND EQUITY | 110 | 100 | 107 | ||||
Statement of income | |||||||
NET REVENUE | 33 | 30 | 29 | ||||
Cost of sales | (6) | (15) | (12) | ||||
Depreciation and amortization | (3) | (3) | (3) | ||||
Gross profit (loss) | 27 | 15 | 17 | ||||
General and administrative expenses | (1) | ||||||
Finance income | |||||||
Finance expenses | (2) | (3) | (4) | ||||
Operational profit (loss) | 24 | 12 | 13 | ||||
Share of (loss) profit, net, of subsidiaries and joint ventures | |||||||
Income tax and social contribution tax | (2) | (1) | (1) | ||||
NET INCOME FOR THE YEAR | 22 | 11 | 12 | ||||
COMPREHENSIVE INCOME FOR THE YEAR | 22 | 11 | 12 | ||||
Retiro baixo [member] | |||||||
Assets | |||||||
TOTAL CURRENT | 87 | 68 | 47 | ||||
Cash and cash equivalents | 74 | 56 | 36 | ||||
TOTAL NON-CURRENT | 331 | 343 | 354 | ||||
TOTAL ASSETS | 418 | 411 | 401 | ||||
Liabilities | |||||||
Current | 30 | 34 | 32 | ||||
Loans and financings - Current | 14 | 14 | 14 | ||||
Total non-current liabilities | 63 | 77 | 91 | ||||
Loans and financings - Non-Current | 55 | 68 | 82 | ||||
Equity | 325 | 300 | 278 | ||||
TOTAL LIABILITIES AND EQUITY | 418 | 411 | 401 | ||||
Statement of income | |||||||
NET REVENUE | 73 | 70 | 71 | ||||
Cost of sales | (29) | (30) | (29) | ||||
Depreciation and amortization | (11) | (9) | (10) | ||||
Gross profit (loss) | 44 | 40 | 42 | ||||
General and administrative expenses | (4) | (4) | (4) | ||||
Finance income | 2 | 3 | 2 | ||||
Finance expenses | (6) | (8) | (11) | ||||
Operational profit (loss) | 36 | 31 | 29 | ||||
Share of (loss) profit, net, of subsidiaries and joint ventures | |||||||
Income tax and social contribution tax | (3) | (3) | (3) | ||||
NET INCOME FOR THE YEAR | 33 | 28 | 26 | ||||
COMPREHENSIVE INCOME FOR THE YEAR | 33 | 28 | 26 | ||||
Alianca norte (belo monte plant) [member] | |||||||
Assets | |||||||
TOTAL CURRENT | 1 | ||||||
Cash and cash equivalents | 1 | ||||||
TOTAL NON-CURRENT | 1,189 | 1,266 | 1,247 | ||||
TOTAL ASSETS | 1,189 | 1,267 | 1,247 | ||||
Liabilities | |||||||
Current | 1 | ||||||
Loans and financings - Current | |||||||
Total non-current liabilities | |||||||
Loans and financings - Non-Current | |||||||
Equity | 1,189 | 1,266 | 1,247 | ||||
TOTAL LIABILITIES AND EQUITY | 1,189 | 1,267 | 1,247 | ||||
Statement of income | |||||||
NET REVENUE | |||||||
Cost of sales | |||||||
Depreciation and amortization | |||||||
Gross profit (loss) | |||||||
General and administrative expenses | (1) | (2) | (3) | ||||
Finance income | 1 | ||||||
Finance expenses | (1) | ||||||
Operational profit (loss) | (1) | (2) | (3) | ||||
Share of (loss) profit, net, of subsidiaries and joint ventures | (77) | 19 | 97 | ||||
Income tax and social contribution tax | |||||||
NET INCOME FOR THE YEAR | (78) | 17 | 94 | ||||
COMPREHENSIVE INCOME FOR THE YEAR | (78) | 17 | 94 | ||||
Renova [member] | |||||||
Assets | |||||||
TOTAL CURRENT | 998 | 21 | 1,738 | ||||
Cash and cash equivalents | 29 | 5 | 15 | ||||
TOTAL NON-CURRENT | 1,299 | 2,269 | 867 | ||||
TOTAL ASSETS | 2,297 | 2,330 | 2,605 | ||||
Liabilities | |||||||
Current | 725 | 2,928 | 2,195 | ||||
Loans and financings - Current | 380 | 1,507 | 349 | ||||
Total non-current liabilities | 2,680 | 493 | 510 | ||||
Loans and financings - Non-Current | 1,083 | 55 | 64 | ||||
Equity | (1,108) | (1,130) | (100) | ||||
TOTAL LIABILITIES AND EQUITY | 2,297 | 2,291 | 2,605 | ||||
Statement of income | |||||||
NET REVENUE | 70 | 98 | 710 | ||||
Cost of sales | (46) | (66) | (834) | ||||
Depreciation and amortization | (7) | (9) | (10) | ||||
Gross profit (loss) | 24 | 32 | (124) | ||||
General and administrative expenses | (122) | (660) | (458) | ||||
Finance income | 3 | 3 | |||||
Finance expenses | 26 | (448) | (320) | ||||
Operational profit (loss) | (72) | (1,073) | (899) | ||||
Share of (loss) profit, net, of subsidiaries and joint ventures | 95 | 66 | 49 | ||||
Income tax and social contribution tax | (1) | (7) | (6) | ||||
NET INCOME FOR THE YEAR | 22 | (1,014) | (856) | ||||
COMPREHENSIVE INCOME FOR THE YEAR | 22 | (1,014) | (856) | ||||
Guanhaes energia [member] | |||||||
Assets | |||||||
TOTAL CURRENT | 13 | 11 | |||||
Cash and cash equivalents | 6 | 5 | |||||
TOTAL NON-CURRENT | 405 | 419 | |||||
TOTAL ASSETS | 418 | 430 | |||||
Liabilities | |||||||
Current | 27 | 27 | |||||
Loans and financings - Current | 12 | 12 | |||||
Total non-current liabilities | 123 | 136 | |||||
Loans and financings - Non-Current | 106 | 127 | |||||
Equity | 268 | 267 | |||||
TOTAL LIABILITIES AND EQUITY | 418 | 430 | |||||
Statement of income | |||||||
NET REVENUE | 49 | 51 | |||||
Cost of sales | (36) | (38) | |||||
Depreciation and amortization | (17) | (14) | |||||
Gross profit (loss) | 13 | 13 | |||||
General and administrative expenses | (5) | ||||||
Finance income | 1 | ||||||
Finance expenses | (10) | (9) | |||||
Operational profit (loss) | 3 | ||||||
Share of (loss) profit, net, of subsidiaries and joint ventures | |||||||
Income tax and social contribution tax | (2) | (2) | |||||
NET INCOME FOR THE YEAR | 1 | (2) | |||||
COMPREHENSIVE INCOME FOR THE YEAR | 1 | (2) | |||||
UFV Porteirinha II [member] | |||||||
Assets | |||||||
TOTAL CURRENT | 1 | ||||||
Cash and cash equivalents | |||||||
TOTAL NON-CURRENT | 12 | ||||||
TOTAL ASSETS | 13 | ||||||
Liabilities | |||||||
Current | |||||||
Total non-current liabilities | |||||||
Equity | 13 | ||||||
TOTAL LIABILITIES AND EQUITY | 13 | ||||||
Statement of income | |||||||
NET REVENUE | |||||||
Cost of sales | |||||||
Gross profit (loss) | |||||||
General and administrative expenses | (1) | ||||||
Operational profit (loss) | (1) | ||||||
Income tax and social contribution tax | 1 | ||||||
NET INCOME FOR THE YEAR | |||||||
COMPREHENSIVE INCOME FOR THE YEAR | |||||||
Amazonia energia (belo monte plant) [member] | |||||||
Assets | |||||||
TOTAL CURRENT | |||||||
Cash and cash equivalents | |||||||
TOTAL NON-CURRENT | 1,296 | 1,380 | 1,360 | ||||
TOTAL ASSETS | 1,296 | 1,380 | 1,360 | ||||
Liabilities | |||||||
Current | 1 | 1 | |||||
Loans and financings - Current | |||||||
Total non-current liabilities | |||||||
Loans and financings - Non-Current | |||||||
Equity | 1,296 | 1,379 | 1,359 | ||||
TOTAL LIABILITIES AND EQUITY | 1,296 | 1,380 | 1,360 | ||||
Statement of income | |||||||
NET REVENUE | |||||||
Cost of sales | |||||||
Depreciation and amortization | |||||||
Gross profit (loss) | |||||||
General and administrative expenses | (1) | ||||||
Finance income | 2 | ||||||
Finance expenses | (2) | ||||||
Operational profit (loss) | (1) | ||||||
Share of (loss) profit, net, of subsidiaries and joint ventures | (84) | 20 | 105 | ||||
Income tax and social contribution tax | (1) | ||||||
NET INCOME FOR THE YEAR | (84) | 20 | 103 | ||||
COMPREHENSIVE INCOME FOR THE YEAR | (84) | 20 | 103 | ||||
Madeira energia (santo antonio plant) [member] | |||||||
Assets | |||||||
TOTAL CURRENT | 945 | 750 | 618 | ||||
Cash and cash equivalents | 263 | 78 | 69 | ||||
TOTAL NON-CURRENT | 21,370 | 21,680 | 22,453 | ||||
TOTAL ASSETS | 22,315 | 22,430 | 23,071 | ||||
Liabilities | |||||||
Current | 1,150 | 1,177 | 1,281 | ||||
Loans and financings - Current | 108 | 73 | 53 | ||||
Total non-current liabilities | 18,906 | 17,548 | 17,134 | ||||
Loans and financings - Non-Current | 4,902 | 10,925 | 10,220 | ||||
Equity | 2,259 | 3,705 | 4,656 | ||||
TOTAL LIABILITIES AND EQUITY | 22,315 | 22,430 | 23,071 | ||||
Statement of income | |||||||
NET REVENUE | 3,200 | 3,198 | 3,006 | ||||
Cost of sales | (2,720) | (2,508) | (2,689) | ||||
Depreciation and amortization | (869) | (869) | (887) | ||||
Gross profit (loss) | 480 | 690 | 317 | ||||
General and administrative expenses | (82) | (99) | (195) | ||||
Finance income | 258 | 131 | 128 | ||||
Finance expenses | (2,112) | (1,683) | (1,881) | ||||
Operational profit (loss) | (1,456) | (961) | (1,631) | ||||
Share of (loss) profit, net, of subsidiaries and joint ventures | |||||||
Income tax and social contribution tax | 10 | 10 | (112) | ||||
NET INCOME FOR THE YEAR | (1,446) | (951) | (1,743) | ||||
COMPREHENSIVE INCOME FOR THE YEAR | (1,446) | (951) | (1,743) | ||||
Baguari energia [member] | |||||||
Assets | |||||||
TOTAL CURRENT | 63 | 60 | 44 | ||||
Cash and cash equivalents | 10 | 9 | 8 | ||||
TOTAL NON-CURRENT | 209 | 187 | 201 | ||||
TOTAL ASSETS | 272 | 247 | 245 | ||||
Liabilities | |||||||
Current | 22 | 16 | 7 | ||||
Loans and financings - Current | |||||||
Total non-current liabilities | 21 | 4 | 5 | ||||
Loans and financings - Non-Current | |||||||
Equity | 229 | 227 | 233 | ||||
TOTAL LIABILITIES AND EQUITY | 272 | 247 | 245 | ||||
Statement of income | |||||||
NET REVENUE | 73 | 68 | 74 | ||||
Cost of sales | (30) | (23) | (31) | ||||
Depreciation and amortization | (11) | (9) | (9) | ||||
Gross profit (loss) | 43 | 45 | 43 | ||||
General and administrative expenses | 5 | ||||||
Finance income | 2 | 4 | 3 | ||||
Finance expenses | (1) | (1) | (1) | ||||
Operational profit (loss) | 49 | 48 | 45 | ||||
Share of (loss) profit, net, of subsidiaries and joint ventures | |||||||
Income tax and social contribution tax | (17) | (16) | (4) | ||||
NET INCOME FOR THE YEAR | 32 | 32 | 41 | ||||
COMPREHENSIVE INCOME FOR THE YEAR | 32 | 32 | 41 | ||||
Lightger [member] | |||||||
Assets | |||||||
TOTAL CURRENT | 103 | 87 | |||||
Cash and cash equivalents | 80 | 69 | |||||
TOTAL NON-CURRENT | 129 | 124 | |||||
TOTAL ASSETS | 232 | 211 | |||||
Liabilities | |||||||
Current | 72 | 53 | |||||
Loans and financings - Current | 9 | 9 | |||||
Total non-current liabilities | 54 | 63 | |||||
Loans and financings - Non-Current | 54 | 63 | |||||
Equity | 106 | 95 | |||||
TOTAL LIABILITIES AND EQUITY | 232 | 211 | |||||
Statement of income | |||||||
NET REVENUE | 52 | 50 | |||||
Cost of sales | (9) | (27) | |||||
Depreciation and amortization | (11) | (11) | |||||
Gross profit (loss) | 43 | 23 | |||||
General and administrative expenses | (1) | (2) | |||||
Finance income | 2 | 4 | |||||
Finance expenses | (16) | (7) | |||||
Operational profit (loss) | 28 | 18 | |||||
Share of (loss) profit, net, of subsidiaries and joint ventures | |||||||
Income tax and social contribution tax | (2) | (3) | |||||
NET INCOME FOR THE YEAR | 26 | 15 | |||||
COMPREHENSIVE INCOME FOR THE YEAR | 26 | 15 | |||||
Alianca geracao [member] | |||||||
Assets | |||||||
TOTAL CURRENT | 805 | 935 | 791 | ||||
Cash and cash equivalents | 385 | 435 | 381 | ||||
TOTAL NON-CURRENT | 2,461 | 2,409 | 2,440 | ||||
TOTAL ASSETS | 3,266 | 3,344 | 3,231 | ||||
Liabilities | |||||||
Current | 503 | 610 | 564 | ||||
Loans and financings - Current | 19 | 161 | 168 | ||||
Total non-current liabilities | 905 | 876 | 809 | ||||
Loans and financings - Non-Current | 261 | 276 | 348 | ||||
Equity | 1,858 | 1,858 | 1,858 | ||||
TOTAL LIABILITIES AND EQUITY | 3,266 | 3,344 | 3,231 | ||||
Statement of income | |||||||
NET REVENUE | 1,042 | 1,103 | 984 | ||||
Cost of sales | (580) | (681) | (599) | ||||
Depreciation and amortization | (154) | (151) | (153) | ||||
Gross profit (loss) | 462 | 422 | 385 | ||||
General and administrative expenses | (47) | (31) | (31) | ||||
Finance income | 28 | 39 | 33 | ||||
Finance expenses | (63) | (90) | (89) | ||||
Operational profit (loss) | 380 | 340 | 298 | ||||
Share of (loss) profit, net, of subsidiaries and joint ventures | |||||||
Income tax and social contribution tax | (126) | (111) | (100) | ||||
NET INCOME FOR THE YEAR | 254 | 229 | 198 | ||||
COMPREHENSIVE INCOME FOR THE YEAR | 254 | R$ 229 | 198 | ||||
Capital management [member] | |||||||
Assets | |||||||
Cash and cash equivalents | 1,680 | 891 | |||||
Liabilities | |||||||
Equity | 17,478 | 15,939 | |||||
TOTAL LIABILITIES AND EQUITY | R$ 43916 | ||||||
Hidreletrica Itaocara S.A. [member] | |||||||
Assets | |||||||
TOTAL CURRENT | 3 | ||||||
Cash and cash equivalents | 2 | ||||||
TOTAL NON-CURRENT | 10 | ||||||
TOTAL ASSETS | 13 | ||||||
Liabilities | |||||||
Current | 73 | ||||||
Loans and financings - Current | |||||||
Total non-current liabilities | |||||||
Loans and financings - Non-Current | |||||||
Equity | (60) | ||||||
TOTAL LIABILITIES AND EQUITY | 13 | ||||||
Statement of income | |||||||
NET REVENUE | |||||||
Cost of sales | (13) | ||||||
Depreciation and amortization | |||||||
Gross profit (loss) | (13) | ||||||
General and administrative expenses | |||||||
Finance income | |||||||
Finance expenses | (5) | ||||||
Operational profit (loss) | (18) | ||||||
Share of (loss) profit, net, of subsidiaries and joint ventures | |||||||
Income tax and social contribution tax | |||||||
NET INCOME FOR THE YEAR | (18) | ||||||
COMPREHENSIVE INCOME FOR THE YEAR | (18) | ||||||
UFV Janauba [member] | |||||||
Assets | |||||||
TOTAL CURRENT | 3 | ||||||
Cash and cash equivalents | 2 | ||||||
TOTAL NON-CURRENT | 19 | ||||||
TOTAL ASSETS | 22 | ||||||
Liabilities | |||||||
Current | |||||||
Loans and financings - Current | |||||||
Total non-current liabilities | |||||||
Loans and financings - Non-Current | |||||||
Equity | 22 | ||||||
TOTAL LIABILITIES AND EQUITY | 22 | ||||||
Statement of income | |||||||
NET REVENUE | |||||||
Cost of sales | 3 | ||||||
Depreciation and amortization | (1) | ||||||
Gross profit (loss) | 3 | ||||||
General and administrative expenses | |||||||
Finance income | |||||||
Finance expenses | |||||||
Operational profit (loss) | 3 | ||||||
Share of (loss) profit, net, of subsidiaries and joint ventures | |||||||
Income tax and social contribution tax | |||||||
NET INCOME FOR THE YEAR | 3 | ||||||
COMPREHENSIVE INCOME FOR THE YEAR | 3 | ||||||
UFV Corinto [member] | |||||||
Assets | |||||||
TOTAL CURRENT | 2 | ||||||
Cash and cash equivalents | 1 | ||||||
TOTAL NON-CURRENT | 18 | ||||||
TOTAL ASSETS | 20 | ||||||
Liabilities | |||||||
Current | |||||||
Loans and financings - Current | |||||||
Total non-current liabilities | 1 | ||||||
Loans and financings - Non-Current | |||||||
Equity | 19 | ||||||
TOTAL LIABILITIES AND EQUITY | 20 | ||||||
Statement of income | |||||||
NET REVENUE | 3 | ||||||
Cost of sales | |||||||
Depreciation and amortization | (1) | ||||||
Gross profit (loss) | 3 | ||||||
General and administrative expenses | (2) | ||||||
Finance income | |||||||
Finance expenses | |||||||
Operational profit (loss) | 1 | ||||||
Share of (loss) profit, net, of subsidiaries and joint ventures | |||||||
Income tax and social contribution tax | |||||||
NET INCOME FOR THE YEAR | 1 | ||||||
COMPREHENSIVE INCOME FOR THE YEAR | 1 | ||||||
UFV Manga [member] | |||||||
Assets | |||||||
TOTAL CURRENT | 1 | ||||||
Cash and cash equivalents | |||||||
TOTAL NON-CURRENT | 23 | ||||||
TOTAL ASSETS | 24 | ||||||
Liabilities | |||||||
Current | |||||||
Loans and financings - Current | |||||||
Total non-current liabilities | 2 | ||||||
Loans and financings - Non-Current | |||||||
Equity | 22 | ||||||
TOTAL LIABILITIES AND EQUITY | 24 | ||||||
Statement of income | |||||||
NET REVENUE | 3 | ||||||
Cost of sales | |||||||
Depreciation and amortization | (1) | ||||||
Gross profit (loss) | 3 | ||||||
General and administrative expenses | (2) | ||||||
Finance income | |||||||
Finance expenses | |||||||
Operational profit (loss) | 1 | ||||||
Share of (loss) profit, net, of subsidiaries and joint ventures | |||||||
Income tax and social contribution tax | |||||||
NET INCOME FOR THE YEAR | 1 | ||||||
COMPREHENSIVE INCOME FOR THE YEAR | 1 | ||||||
UFV Bonfinopolis II [member] | |||||||
Assets | |||||||
TOTAL CURRENT | |||||||
Cash and cash equivalents | |||||||
TOTAL NON-CURRENT | 13 | ||||||
TOTAL ASSETS | 13 | ||||||
Liabilities | |||||||
Current | |||||||
Total non-current liabilities | |||||||
Loans and financings - Non-Current | |||||||
Equity | 13 | ||||||
TOTAL LIABILITIES AND EQUITY | 13 | ||||||
Statement of income | |||||||
NET REVENUE | |||||||
Cost of sales | |||||||
Depreciation and amortization | |||||||
Gross profit (loss) | |||||||
General and administrative expenses | |||||||
Finance income | |||||||
Finance expenses | |||||||
Operational profit (loss) | |||||||
Share of (loss) profit, net, of subsidiaries and joint ventures | |||||||
Income tax and social contribution tax | |||||||
NET INCOME FOR THE YEAR | |||||||
COMPREHENSIVE INCOME FOR THE YEAR | |||||||
UFV Lagoa Grande [member] | |||||||
Assets | |||||||
TOTAL CURRENT | 2 | ||||||
Cash and cash equivalents | 1 | ||||||
TOTAL NON-CURRENT | 24 | ||||||
TOTAL ASSETS | 26 | ||||||
Liabilities | |||||||
Current | |||||||
Total non-current liabilities | |||||||
Equity | 26 | ||||||
TOTAL LIABILITIES AND EQUITY | 26 | ||||||
Statement of income | |||||||
NET REVENUE | 2 | ||||||
Cost of sales | |||||||
Gross profit (loss) | 2 | ||||||
General and administrative expenses | (1) | ||||||
Operational profit (loss) | 1 | ||||||
Income tax and social contribution tax | |||||||
NET INCOME FOR THE YEAR | 1 | ||||||
COMPREHENSIVE INCOME FOR THE YEAR | 1 | ||||||
UFV Lontra [member] | |||||||
Assets | |||||||
TOTAL CURRENT | |||||||
Cash and cash equivalents | |||||||
TOTAL NON-CURRENT | 29 | ||||||
TOTAL ASSETS | 29 | ||||||
Liabilities | |||||||
Current | 1 | ||||||
Total non-current liabilities | 1 | ||||||
Equity | 27 | ||||||
TOTAL LIABILITIES AND EQUITY | 29 | ||||||
Statement of income | |||||||
NET REVENUE | |||||||
Cost of sales | (1) | ||||||
Gross profit (loss) | (1) | ||||||
General and administrative expenses | (1) | ||||||
Operational profit (loss) | (2) | ||||||
Income tax and social contribution tax | |||||||
NET INCOME FOR THE YEAR | (2) | ||||||
COMPREHENSIVE INCOME FOR THE YEAR | (2) | ||||||
UFV Mato Verde [member] | |||||||
Assets | |||||||
TOTAL CURRENT | 1 | ||||||
Cash and cash equivalents | |||||||
TOTAL NON-CURRENT | 11 | ||||||
TOTAL ASSETS | 12 | ||||||
Liabilities | |||||||
Current | |||||||
Total non-current liabilities | |||||||
Equity | 12 | ||||||
TOTAL LIABILITIES AND EQUITY | 12 | ||||||
Statement of income | |||||||
NET REVENUE | |||||||
Cost of sales | |||||||
Gross profit (loss) | |||||||
General and administrative expenses | |||||||
Operational profit (loss) | |||||||
Income tax and social contribution tax | |||||||
NET INCOME FOR THE YEAR | |||||||
COMPREHENSIVE INCOME FOR THE YEAR | |||||||
UFV Mirabela [member] | |||||||
Assets | |||||||
TOTAL CURRENT | |||||||
Cash and cash equivalents | |||||||
TOTAL NON-CURRENT | 9 | ||||||
TOTAL ASSETS | 9 | ||||||
Liabilities | |||||||
Current | |||||||
Total non-current liabilities | |||||||
Equity | 9 | ||||||
TOTAL LIABILITIES AND EQUITY | 9 | ||||||
Statement of income | |||||||
NET REVENUE | 1 | ||||||
Cost of sales | |||||||
Gross profit (loss) | 1 | ||||||
General and administrative expenses | |||||||
Operational profit (loss) | 1 | ||||||
Income tax and social contribution tax | |||||||
NET INCOME FOR THE YEAR | 1 | ||||||
COMPREHENSIVE INCOME FOR THE YEAR | 1 | ||||||
UFV Porteirinha I [member] | |||||||
Assets | |||||||
TOTAL CURRENT | |||||||
Cash and cash equivalents | |||||||
TOTAL NON-CURRENT | 12 | ||||||
TOTAL ASSETS | 12 | ||||||
Liabilities | |||||||
Current | |||||||
Total non-current liabilities | |||||||
Equity | 12 | ||||||
TOTAL LIABILITIES AND EQUITY | R$ 12 | ||||||
Statement of income | |||||||
NET REVENUE | |||||||
Cost of sales | |||||||
Gross profit (loss) | |||||||
General and administrative expenses | |||||||
Operational profit (loss) | |||||||
Income tax and social contribution tax | |||||||
NET INCOME FOR THE YEAR | |||||||
COMPREHENSIVE INCOME FOR THE YEAR | |||||||
[1] | See note 2.8. | ||||||
[2] | For further details of restatement of comparative balances, see Note 2.8 | ||||||
[3] | 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. On August 27, 2020, Aneel published the Dispatch 2,508/2020-SRM-SGT, which set new amounts for distributors' over contracting for the years 2016 and 2017, based on a new valuation criterion established by Aneel Technical Note 97/2020-SRM-SGT - not contained in the regulatory rules which were currently in force. As a result, Cemig D filed an appeal with the Council of Aneel, for the amounts of distribution agents' over contracting to be reset in accordance with the calculation criteria based on maximum effort contained in Aneel Normative Resolution 453/2011. The Company's position on this case is reinforced by the fact that the Brazilian Energy Distributors' Association (Abradee) filed a similar appeal, supported by the opinion of contracted legal advisersadvisors. The Company has no expectation of loss in relation to realization of these amounts. The Company recognizes this receivable asset, in the amount of R$222 on December 31, 2020, as Other financial components' to be ratified. At the reporting date for this financial statements, this matter was still pending analysis by Aneel. |
16. INVESTMENTS (Details 7)
16. INVESTMENTS (Details 7) - Centroeste [member] R$ in Millions | Dec. 31, 2020BRL (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) |
Remeasurement of previously held equity interest in subsidiaries acquired | R$ 37 |
16. INVESTMENTS (Details 8)
16. INVESTMENTS (Details 8) - Centroeste [member] R$ in Millions | Dec. 31, 2020BRL (R$) |
Disclosure of detailed information about business combination [line items] | |
Cash consideration paid for 49% of the equity of Centroeste | R$ 45 |
Previously held interest, valued at fair value on the acquisition date | 61 |
Bargain purchase | 14 |
Total | R$ 120 |
16. INVESTMENTS (Details 9)
16. INVESTMENTS (Details 9) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets | ||||
Cash and cash equivalents | R$ 1680 | R$ 536 | R$ 891 | |
TOTAL CURRENT | 15,456 | 10,354 | [1] | 27,796 |
TOTAL NON-CURRENT | 38,627 | 40,172 | [1] | 32,059 |
Contract assets | 4,980 | |||
Liabilities | ||||
TOTAL CURRENT | 9,690 | 7,913 | [1] | 23,394 |
Total non-current liabilities | 26,915 | R$ 26458 | [1] | R$ 20522 |
Provisions | 1,892 | |||
At Fair Value [member] | ||||
Assets | ||||
Cash and cash equivalents | 27 | |||
Other current assets | 2 | |||
TOTAL CURRENT | 29 | |||
TOTAL NON-CURRENT | 108 | |||
Contract assets | 108 | |||
Liabilities | ||||
Loans and financings | 3 | |||
Interest on equity and dividends payable | 2 | |||
Other current liabilities | 1 | |||
TOTAL CURRENT | 6 | |||
Total non-current liabilities | 11 | |||
Loans and financings | 8 | |||
Provisions | 3 | |||
Fair value of net identifiable assets | R$ 120 | |||
[1] | See note 2.8. |
16. INVESTMENTS (Details 10)
16. INVESTMENTS (Details 10) - Centroeste [member] R$ in Millions | Dec. 31, 2020BRL (R$) |
Disclosure of detailed information about investment property [line items] | |
Gain on remeasurement of previously held equity interest in the subsidiaries acquired (51%) | R$ 37 |
Bargain purchase - gain arising from the acquisition of the additional equity interest of 49% | 14 |
Total | R$ 51 |
16. INVESTMENTS (Details 11)
16. INVESTMENTS (Details 11) R$ in Millions | 12 Months Ended |
Dec. 31, 2020BRL (R$)MWh | |
Disclosure of detailed information about investment property [line items] | |
Generation Capacity (MW) | MWh | 32 |
Generation Capacity (MWp) | MWh | 41.06 |
Net fair value of the identifiable assets and liabilities - Cemig Sim shareholding (49%) | R$ 80 |
Transaction price | 73 |
Bargain purchase /Loss | R$ 7 |
Corinto [member] | |
Disclosure of detailed information about investment property [line items] | |
Generation Capacity (MW) | MWh | 5 |
Generation Capacity (MWp) | MWh | 5.28 |
Acquisition date | Aug. 19, 2020 |
Net fair value of the identifiable assets and liabilities - Cemig Sim shareholding (49%) | R$ 9 |
Transaction price | 9 |
Bargain purchase /Loss | |
Manga [member] | |
Disclosure of detailed information about investment property [line items] | |
Generation Capacity (MW) | MWh | 5 |
Generation Capacity (MWp) | MWh | 6.34 |
Acquisition date | Sep. 30, 2020 |
Net fair value of the identifiable assets and liabilities - Cemig Sim shareholding (49%) | R$ 11 |
Transaction price | 10 |
Bargain purchase /Loss | R$ 1 |
Bonfinopolis [member] | |
Disclosure of detailed information about investment property [line items] | |
Generation Capacity (MW) | MWh | 2.5 |
Generation Capacity (MWp) | MWh | 3.45 |
Acquisition date | Nov. 25, 2020 |
Net fair value of the identifiable assets and liabilities - Cemig Sim shareholding (49%) | R$ 6 |
Transaction price | 6 |
Bargain purchase /Loss | |
Lagoa Grande [member] | |
Disclosure of detailed information about investment property [line items] | |
Generation Capacity (MW) | MWh | 5 |
Generation Capacity (MWp) | MWh | 7.33 |
Acquisition date | Nov. 25, 2020 |
Net fair value of the identifiable assets and liabilities - Cemig Sim shareholding (49%) | R$ 15 |
Transaction price | 12 |
Bargain purchase /Loss | R$ 3 |
Lontra [member] | |
Disclosure of detailed information about investment property [line items] | |
Generation Capacity (MW) | MWh | 5 |
Generation Capacity (MWp) | MWh | 6.38 |
Acquisition date | Nov. 25, 2020 |
Net fair value of the identifiable assets and liabilities - Cemig Sim shareholding (49%) | R$ 17 |
Transaction price | 14 |
Bargain purchase /Loss | R$ 3 |
Mato Verde [member] | |
Disclosure of detailed information about investment property [line items] | |
Generation Capacity (MW) | MWh | 2.5 |
Generation Capacity (MWp) | MWh | 3.23 |
Acquisition date | Nov. 25, 2020 |
Net fair value of the identifiable assets and liabilities - Cemig Sim shareholding (49%) | R$ 6 |
Transaction price | 5 |
Bargain purchase /Loss | R$ 1 |
Mirabela [member] | |
Disclosure of detailed information about investment property [line items] | |
Generation Capacity (MW) | MWh | 2 |
Generation Capacity (MWp) | MWh | 2.59 |
Acquisition date | Nov. 25, 2020 |
Net fair value of the identifiable assets and liabilities - Cemig Sim shareholding (49%) | R$ 4 |
Transaction price | 5 |
Bargain purchase /Loss | R$ 1 |
Porteirinha [member] | |
Disclosure of detailed information about investment property [line items] | |
Generation Capacity (MW) | MWh | 2.5 |
Generation Capacity (MWp) | MWh | 3.23 |
Acquisition date | Nov. 25, 2020 |
Net fair value of the identifiable assets and liabilities - Cemig Sim shareholding (49%) | R$ 6 |
Transaction price | 6 |
Bargain purchase /Loss | |
Porteirinha II [member] | |
Disclosure of detailed information about investment property [line items] | |
Generation Capacity (MW) | MWh | 2.5 |
Generation Capacity (MWp) | MWh | 3.23 |
Acquisition date | Nov. 25, 2020 |
Net fair value of the identifiable assets and liabilities - Cemig Sim shareholding (49%) | R$ 6 |
Transaction price | 6 |
Bargain purchase /Loss |
16. INVESTMENTS (Details Narrat
16. INVESTMENTS (Details Narrative) - BRL (R$) R$ in Millions | Apr. 30, 2021 | Mar. 01, 2021 | Feb. 11, 2021 | Dec. 18, 2020 | Nov. 25, 2020 | May 02, 2020 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 25, 2019 | Oct. 31, 2018 | ||
Disclosure of detailed information about investment property [line items] | ||||||||||||||
Loss | R$ 2407 | R$ 1962 | ||||||||||||
Adjustment for impairment | R$ 688 | |||||||||||||
Description of arbitration judgment recognized the right of Cemig GT and SAAG | 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, and posted a provision for receivables in the amount of R$678 in its financial statements as of December 31, 2017. On December 31, 2020, the investee confirmed its assets recoverability expectation and maintained the provision for receivables in the amount of R$678. | |||||||||||||
Cash consideration paid for the acquisition | R$ 45 | |||||||||||||
NET INCOME FOR THE YEAR | R$ 2864 | 2,865 | 3,194 | [1] | R$ 1764 | [1] | ||||||||
Retained earnings | ||||||||||||||
TOTAL EQUITY | R$ 17478 | 15,891 | [1],[2] | 15,939 | [3] | |||||||||
Loan Agreements [member] | ||||||||||||||
Disclosure of detailed information about investment property [line items] | ||||||||||||||
Loan granted | R$ 36 | |||||||||||||
Renova [member] | ||||||||||||||
Disclosure of detailed information about investment property [line items] | ||||||||||||||
Description of bridge loan for completion of the alto sertao III wind complex | Bridge loan for completion of the Alto Sertão III wind complex - this was signed on December 17, 2020, in the amount of R$350, in the Debtor in Possession (DIP) financing form, by the subsidiary Chipley SP Participações S.A., with co-obligations by Renova Energia S.A. And Renova Participações S.A., to be allocated specifically to resumption of the works on Phase A of the Alto Sertão III Wind Complex | |||||||||||||
Description of agreement | Agreement of contracts by Renova, including: (i) payments without evidence of the consideration of services, in the total amount of approximately R$40; (ii) payments not in accordance with the company’s internal policies and best governance practices, in the total amount of approximately R$137; and (iii) deficiencies in the internal controls of the investee. | |||||||||||||
Effective assets | R$ 35 | |||||||||||||
Impaired assets | 142 | |||||||||||||
NET INCOME FOR THE YEAR | 22 | (1,014) | (856) | |||||||||||
Retained earnings | 3,994 | 4,017 | 3,058 | |||||||||||
TOTAL EQUITY | (1,108) | (1,130) | (100) | |||||||||||
Net equity | 273 | 2,907 | R$ 457 | |||||||||||
Renova [member] | Events after reporting period [member] | ||||||||||||||
Disclosure of detailed information about investment property [line items] | ||||||||||||||
Description of tender | PSS Principal Fundo de Investimento em Participações Multiestratégia, managed by Prisma Capital Ltda., won the competitive tender for sale of the Phase B UPI specified in the Renova Group’s court-supervised reorganization Plan, with the proposal of R$58, 16.77% higher than the minimum value specified in the Plan. Renova and the PSS Principal Fund will sign the final instruments for acquisition, in the terms of the Tender of the Phase B UPI, in order to begin compliance with the precedent conditions that are usual in such transactions. | |||||||||||||
Increase in the share capitaL | R$ 1421 | |||||||||||||
Amount of partial subscription | R$ 332 | |||||||||||||
Renova [member] | Events after reporting period [member] | Bottom Of Range [member] | ||||||||||||||
Disclosure of detailed information about investment property [line items] | ||||||||||||||
Percentage of equity interest | 29.81% | |||||||||||||
Renova [member] | Events after reporting period [member] | Top of Range [member] | ||||||||||||||
Disclosure of detailed information about investment property [line items] | ||||||||||||||
Percentage of equity interest | 15.15% | |||||||||||||
Renova [member] | Loan Agreements [member] | ||||||||||||||
Disclosure of detailed information about investment property [line items] | ||||||||||||||
Loan granted | R$ 37 | |||||||||||||
Amazonia energia s.a. and alianca norte energia s.a [member] | ||||||||||||||
Disclosure of detailed information about investment property [line items] | ||||||||||||||
Percentage of equity interest | 11.69% | |||||||||||||
Madeira energia s.a. ('MESA') [member] | ||||||||||||||
Disclosure of detailed information about investment property [line items] | ||||||||||||||
Loss | R$ 1446 | 951 | ||||||||||||
Negative net working capital | 205 | 427 | ||||||||||||
Adjustment for impairment | 678 | |||||||||||||
Capital increases | 678 | R$ 25 | ||||||||||||
FIP melbourne [member] | ||||||||||||||
Disclosure of detailed information about investment property [line items] | ||||||||||||||
Capital increases | R$ 26 | |||||||||||||
Central eolica praias de parajuru s.a. ('central eolica praias de parajuru') [member] | ||||||||||||||
Disclosure of detailed information about investment property [line items] | ||||||||||||||
Amount of authorization to generate wind energy | 54 | 60 | ||||||||||||
Central eolica volta do rio s.a. ('central eolica volta do rio') [member] | ||||||||||||||
Disclosure of detailed information about investment property [line items] | ||||||||||||||
Amount of authorization to generate wind energy | 74 | 67 | ||||||||||||
UFV [member] | ||||||||||||||
Disclosure of detailed information about investment property [line items] | ||||||||||||||
Bargain amount related to acquisition | 7 | |||||||||||||
Cemig GT [member] | ||||||||||||||
Disclosure of detailed information about investment property [line items] | ||||||||||||||
Advance against future capital increase | 5 | |||||||||||||
Cemig GT [member] | Renova [member] | ||||||||||||||
Disclosure of detailed information about investment property [line items] | ||||||||||||||
Advance against future capital increase | R$ 5 | |||||||||||||
Amazonia Energia S.A. and Alianca Norte Energia S.A. | ||||||||||||||
Disclosure of detailed information about investment property [line items] | ||||||||||||||
Negative net working capital | 160 | 3,309 | ||||||||||||
Cemig Solucoes inteligentes em energia s.a. [member] | ||||||||||||||
Disclosure of detailed information about investment property [line items] | ||||||||||||||
Description of acquiree | The Company’s wholly-owned subsidiary Cemig Soluções Inteligentes em Energia S.A. (‘Cemig Sim’) acquired 49% of interest in seven special-purpose companies operating in photovoltaic solar generation for the distributed generation market (‘geração distribuída’), with total installed capacity of 29.45MWp, for R$55. On August 19, 2020 and on September 30, 2020, this wholly-owned subsidiary also acquired 49% of interest in two others SPCs operating in the same market segment for R$8 and R$10, respectively, with total installed capacity of 11.62 MWp. | |||||||||||||
Usina hidreletrica itaocara S.A. [member] | ||||||||||||||
Disclosure of detailed information about investment property [line items] | ||||||||||||||
Negative shareholders equity | 30 | 22 | ||||||||||||
Norte energia s.a. [member] | ||||||||||||||
Disclosure of detailed information about investment property [line items] | ||||||||||||||
Investment write downs | 183 | |||||||||||||
Itaocara - equity deficit [member] | ||||||||||||||
Disclosure of detailed information about investment property [line items] | ||||||||||||||
Provision for losses on investments | R$ 30 | R$ 22 | ||||||||||||
[1] | See note 2.8. | |||||||||||||
[2] | For further details of restatement of comparative balances, see Note 2.8 | |||||||||||||
[3] | 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. On August 27, 2020, Aneel published the Dispatch 2,508/2020-SRM-SGT, which set new amounts for distributors' over contracting for the years 2016 and 2017, based on a new valuation criterion established by Aneel Technical Note 97/2020-SRM-SGT - not contained in the regulatory rules which were currently in force. As a result, Cemig D filed an appeal with the Council of Aneel, for the amounts of distribution agents' over contracting to be reset in accordance with the calculation criteria based on maximum effort contained in Aneel Normative Resolution 453/2011. The Company's position on this case is reinforced by the fact that the Brazilian Energy Distributors' Association (Abradee) filed a similar appeal, supported by the opinion of contracted legal advisersadvisors. The Company has no expectation of loss in relation to realization of these amounts. The Company recognizes this receivable asset, in the amount of R$222 on December 31, 2020, as Other financial components' to be ratified. At the reporting date for this financial statements, this matter was still pending analysis by Aneel. |
17. PROPERTY, PLANT AND EQUIP_3
17. PROPERTY, PLANT AND EQUIPMENT (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Net PP&E | R$ 2407 | R$ 2450 | [1] | R$ 2662 | R$ 2762 | |
Investment property completed [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Net PP&E | 2,230 | 2,317 | 2,542 | 2,656 | ||
Investment property under construction or sevelopment [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Net PP&E | 177 | 133 | 120 | 106 | ||
Land [member] | Investment property completed [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Net PP&E | 224 | 229 | [2],[3] | 215 | [2] | 211 |
Reservoirs, dams and watercourses [member] | Investment property completed [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Net PP&E | 1,020 | 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] | ||||||
Net PP&E | 264 | 274 | 314 | 331 | ||
Machinery and equipment [member] | Investment property completed [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Net PP&E | 717 | 729 | 854 | 874 | ||
Vehicles [member] | Investment property completed [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Net PP&E | 2 | 2 | 5 | 3 | ||
Furniture and utensils [member] | Investment property completed [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Net PP&E | 3 | 3 | R$ 4 | R$ 3 | ||
Historical cost [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Net PP&E | 7,506 | 7,385 | ||||
Historical cost [member] | Investment property completed [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Net PP&E | 7,329 | 7,252 | ||||
Historical cost [member] | Investment property under construction or sevelopment [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Net PP&E | 177 | 133 | ||||
Historical cost [member] | Land [member] | Investment property completed [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Net PP&E | 247 | 248 | ||||
Historical cost [member] | Reservoirs, dams and watercourses [member] | Investment property completed [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Net PP&E | 3,300 | 3,280 | ||||
Historical cost [member] | Buildings works and improvements [member] | Investment property completed [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Net PP&E | 1,100 | 1,092 | ||||
Historical cost [member] | Machinery and equipment [member] | Investment property completed [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Net PP&E | 2,647 | 2,598 | ||||
Historical cost [member] | Vehicles [member] | Investment property completed [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Net PP&E | 21 | 20 | ||||
Historical cost [member] | Furniture and utensils [member] | Investment property completed [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Net PP&E | 14 | 14 | ||||
Accumulated depreciation and amortisation [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Net PP&E | (5,099) | (4,935) | ||||
Accumulated depreciation and amortisation [member] | Investment property completed [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Net PP&E | (5,099) | (4,935) | ||||
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 | (23) | (19) | ||||
Accumulated depreciation and amortisation [member] | Reservoirs, dams and watercourses [member] | Investment property completed [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Net PP&E | (2,280) | (2,200) | ||||
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 | (836) | (818) | ||||
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 | (1,930) | (1,869) | ||||
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 | (19) | (18) | ||||
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 | R$ 11 | R$ 11 | ||||
[1] | See note 2.8. | |||||
[2] | Balances of R$4 were transferred between Intangible assets, concession contract assets and PP&E. | |||||
[3] | Certain land sites linked to concession contracts and without provision for reimbursement are amortized in accordance with the period of the concession. |
17. PROPERTY, PLANT AND EQUIP_4
17. PROPERTY, PLANT AND EQUIPMENT (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Property plant and equipment, Beginning balance | R$ 2450 | [1] | R$ 2662 | R$ 2762 | |||
Additions | 132 | 70 | |||||
Jaguara, Miranda and Volta Grande Plants | 77 | ||||||
Disposals | [2] | 8 | (103) | (33) | |||
Depreciation | (181) | (183) | (175) | ||||
Transfer to Held for sale | (256) | ||||||
Adjustment for business combination | 296 | ||||||
Transfers / capitalizations | (2) | [3] | 4 | [4] | (9) | [3] | |
Property plant and equipment, Ending balance | 2,407 | 2,450 | [1] | 2,662 | |||
Investment property completed [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Property plant and equipment, Beginning balance | 2,317 | 2,542 | 2,656 | ||||
Additions | 20 | ||||||
Jaguara, Miranda and Volta Grande Plants | |||||||
Disposals | [2] | (3) | (91) | (11) | |||
Depreciation | (181) | (183) | (175) | ||||
Transfer to Held for sale | (256) | ||||||
Adjustment for business combination | 296 | ||||||
Transfers / capitalizations | 77 | [3] | 49 | [4] | 32 | [3] | |
Property plant and equipment, Ending balance | 2,230 | 2,317 | 2,542 | ||||
Investment property under construction or sevelopment [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Property plant and equipment, Beginning balance | 133 | 120 | 106 | ||||
Additions | 112 | 70 | |||||
Jaguara, Miranda and Volta Grande Plants | 77 | ||||||
Disposals | [2] | 11 | (12) | (22) | |||
Depreciation | |||||||
Transfers / capitalizations | (79) | [3] | (45) | [4] | (41) | [3] | |
Property plant and equipment, Ending balance | 177 | 133 | 120 | ||||
Land [member] | Investment property completed [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Property plant and equipment, Beginning balance | 229 | [4],[5] | 215 | [4] | 211 | ||
Additions | [4] | ||||||
Disposals | [2] | (1) | [4] | ||||
Depreciation | (4) | (3) | [4] | (2) | |||
Transfer to Held for sale | |||||||
Adjustment for business combination | |||||||
Transfers / capitalizations | [3] | 17 | [4] | 6 | [3] | ||
Property plant and equipment, Ending balance | 224 | 229 | [4],[5] | 215 | [4] | ||
Reservoirs, dams and watercourses [member] | Investment property completed [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Property plant and equipment, Beginning balance | 1,080 | 1,150 | 1,234 | ||||
Additions | |||||||
Jaguara, Miranda and Volta Grande Plants | |||||||
Disposals | [2] | (4) | (2) | ||||
Depreciation | (80) | (80) | (82) | ||||
Transfer to Held for sale | |||||||
Adjustment for business combination | |||||||
Transfers / capitalizations | 20 | [3] | 14 | [4] | [3] | ||
Property plant and equipment, Ending balance | 1,020 | 1,080 | 1,150 | ||||
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 | 274 | 314 | 331 | ||||
Additions | |||||||
Jaguara, Miranda and Volta Grande Plants | |||||||
Disposals | [2] | (5) | |||||
Depreciation | (18) | (19) | (19) | ||||
Transfer to Held for sale | |||||||
Adjustment for business combination | |||||||
Transfers / capitalizations | 8 | [3] | (16) | [4] | 2 | [3] | |
Property plant and equipment, Ending balance | 264 | 274 | 314 | ||||
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 | 729 | 854 | 874 | ||||
Additions | 20 | ||||||
Jaguara, Miranda and Volta Grande Plants | |||||||
Disposals | [2] | (2) | (81) | (9) | |||
Depreciation | (79) | (78) | (70) | ||||
Transfer to Held for sale | (256) | ||||||
Adjustment for business combination | 296 | ||||||
Transfers / capitalizations | 49 | [3] | 34 | [4] | 19 | [3] | |
Property plant and equipment, Ending balance | 717 | 729 | 854 | ||||
Vehicles [member] | Investment property completed [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Property plant and equipment, Beginning balance | 2 | 5 | 3 | ||||
Additions | |||||||
Jaguara, Miranda and Volta Grande Plants | |||||||
Disposals | [2] | ||||||
Depreciation | (3) | (2) | |||||
Transfer to Held for sale | |||||||
Adjustment for business combination | |||||||
Transfers / capitalizations | [3] | [4] | 4 | [3] | |||
Property plant and equipment, Ending balance | 2 | 2 | 5 | ||||
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 | 3 | 4 | 3 | ||||
Additions | |||||||
Jaguara, Miranda and Volta Grande Plants | |||||||
Disposals | [2] | ||||||
Depreciation | |||||||
Transfer to Held for sale | |||||||
Adjustment for business combination | |||||||
Transfers / capitalizations | [3] | 1 | |||||
Property plant and equipment, Ending balance | 3 | 3 | 4 | ||||
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 | R$ 3 | 4 | |||||
Additions | |||||||
Disposals | [2] | (1) | |||||
Depreciation | |||||||
Transfers / capitalizations | [4] | ||||||
Property plant and equipment, Ending balance | R$ 3 | R$ 4 | |||||
[1] | See note 2.8. | ||||||
[2] | Includes the impairment loss recognized for assets in progress. | ||||||
[3] | Balances of R$2 were transferred to Intangible assets from PP&E. | ||||||
[4] | Balances of R$4 were transferred between Intangible assets, concession contract assets and PP&E. | ||||||
[5] | Certain land sites linked to concession contracts and without provision for reimbursement are amortized in accordance with the period of the concession. |
17. PROPERTY, PLANT AND EQUIP_5
17. PROPERTY, PLANT AND EQUIPMENT (Details 2) | 12 Months Ended |
Dec. 31, 2020 | |
Reservoirs, dams and watercourses [member] | Generation unit [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property plant and equipment depreciation rate | 2.00% |
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% |
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% |
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% |
Generator [member] | Generation unit [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property plant and equipment depreciation rate | 3.33% |
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% |
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% |
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% |
Floodgate [member] | Generation unit [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property plant and equipment depreciation rate | 3.33% |
Software [member] | Administration unit [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property plant and equipment depreciation rate | 20.00% |
Vehicles [member] | Administration unit [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property plant and equipment depreciation rate | 14.29% |
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% |
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% |
17. PROPERTY, PLANT AND EQUIP_6
17. PROPERTY, PLANT AND EQUIPMENT (Details 3) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Average annual depreciation rate | 3.14% | 3.13% | 3.72% |
Hydroelectric generation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Average annual depreciation rate | 2.96% | ||
Wind power generation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Average annual depreciation rate | 4.94% | ||
Administration [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Average annual depreciation rate | 6.19% |
17. PROPERTY, PLANT AND EQUIP_7
17. PROPERTY, PLANT AND EQUIPMENT (Details 4) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | R$ 101 | R$ 108 |
Usina de Queimado [meber] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | R$ 218 | 217 |
Usina de Queimado [meber] | Investment property completed [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Stake in power output (%) | 82.50% | |
Average annual depreciation rate (%) | 3.93% | |
Usina de Queimado [meber] | Investment property completed [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Stake in power output (%) | 82.50% | |
Average annual depreciation rate (%) | ||
Accumulated depreciation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | R$ 117 | (109) |
Usina de Queimado [meber] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | R$ 2 | R$ 1 |
17. PROPERTY, PLANT AND EQUIP_8
17. PROPERTY, PLANT AND EQUIPMENT (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |||
Average annual depreciation rate | 3.14% | 3.13% | 3.72% |
18. INTANGIBLE ASSETS (Details)
18. INTANGIBLE ASSETS (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | R$ 11810 | R$ 11624 | [1] | R$ 10777 | R$ 11156 | ||
Temporary Easements Intangible Assets [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 9 | 9 | 8 | ||||
Onerous Concession [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 6 | 7 | 7 | ||||
Assets Of Concession [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 11,674 | [2] | 11,517 | [2] | 10,680 | ||
Other Intangible Assets [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 8 | 10 | 18 | ||||
Intangible Assets Under Development [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 113 | 82 | |||||
Useful Life Defined Intangible Asset [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 11,697 | 11,542 | R$ 10714 | ||||
Temporary Easement Intangible Assets [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 8 | ||||||
Historical cost [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 21,004 | 20,230 | |||||
Historical cost [member] | Onerous Concession [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 19 | 20 | |||||
Historical cost [member] | Assets Of Concession [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | [2] | 20,781 | 20,039 | ||||
Historical cost [member] | Other Intangible Assets [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 78 | 77 | |||||
Historical cost [member] | Intangible Assets Under Development [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 20,891 | 82 | |||||
Historical cost [member] | Useful Life Defined Intangible Asset [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 113 | 20,148 | |||||
Historical cost [member] | Temporary Easement Intangible Assets [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | 13 | 12 | |||||
Accumulated depreciation and amortisation [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | (8,606) | ||||||
Accumulated depreciation and amortisation [member] | Onerous Concession [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | (13) | (13) | |||||
Accumulated depreciation and amortisation [member] | Assets Of Concession [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | [2] | (9,107) | (8,522) | ||||
Accumulated depreciation and amortisation [member] | Other Intangible Assets [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | (70) | (67) | |||||
Accumulated depreciation and amortisation [member] | Useful Life Defined Intangible Asset [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | (9,194) | (8,606) | |||||
Accumulated depreciation and amortisation [member] | Temporary Easement Intangible Assets [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Intangible assets | R$ 4 | R$ 4 | |||||
[1] | See note 2.8. | ||||||
[2] | The rights of authorization to generate wind power granted to the subsidiary Parajuru and Volta do Rio, at the net value of R$128, and of the gas distribution concession, granted to Gasmig, valued at R$412, are classified in the consolidated statement of financial position under intangibles assets and are amortized by the straight-line method, for the period of the concessions. |
18. INTANGIBLE ASSETS (Details
18. INTANGIBLE ASSETS (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | R$ 11624 | [1] | R$ 10777 | R$ 11156 | |||
Assets arising from business combination | 166 | ||||||
Additions | 41 | 934 | 34 | ||||
Disposals | (24) | [2] | (41) | (27) | [3] | ||
Effects of first-time adoption of IFRS 15 | (621) | ||||||
Amortization | (744) | (704) | (675) | ||||
Transfer to Held for sale | (7) | ||||||
Transfer | 913 | [4] | 658 | 751 | [5] | ||
Ending balance | 11,810 | 11,624 | [1] | 10,777 | |||
Intangible Assets Under Development [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 82 | 63 | |||||
Additions | 41 | 36 | 33 | ||||
Disposals | (4) | ||||||
Effects of first-time adoption of IFRS 15 | (621) | ||||||
Transfer | (10) | [4] | (17) | [5] | (31) | ||
Ending balance | 113 | 82 | 63 | ||||
Temporary Easements Intangible Assets [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 9 | 8 | |||||
Amortization | (1) | (1) | (1) | ||||
Transfer | [4] | 2 | |||||
Ending balance | 9 | 9 | 8 | ||||
Onerous Concession [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 7 | 7 | |||||
Amortization | (1) | (1) | |||||
Ending balance | 6 | 7 | 7 | ||||
Assets Of Concession [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 11,517 | [6] | 10,680 | ||||
Assets arising from business combination | 162 | ||||||
Additions | 891 | ||||||
Disposals | (24) | [2] | (41) | [3] | (23) | ||
Amortization | (738) | (698) | (668) | ||||
Transfer | 919 | [4] | 685 | [5] | 774 | ||
Ending balance | 11,674 | [6] | 11,517 | [6] | 10,680 | ||
Other Intangible Assets [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 10 | 18 | |||||
Assets arising from business combination | 4 | ||||||
Additions | 7 | 1 | |||||
Disposals | [3] | (5) | |||||
Amortization | (5) | (5) | |||||
Transfer to Held for sale | (7) | ||||||
Transfer | 3 | [4] | (10) | [5] | 8 | ||
Ending balance | 8 | 10 | 18 | ||||
Useful Life Defined Intangible Asset [member] | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Beginning balance | 11,542 | 10,714 | |||||
Assets arising from business combination | 166 | ||||||
Additions | 898 | 1 | |||||
Disposals | (24) | [2] | (41) | [3] | (23) | ||
Amortization | (744) | (704) | (675) | ||||
Transfer to Held for sale | (7) | ||||||
Transfer | 923 | [4] | 675 | [5] | 782 | ||
Ending balance | R$ 11697 | R$ 11542 | R$ 10714 | ||||
[1] | See note 2.8. | ||||||
[2] | This includes the impairment reversal, in the amount of R$14, recognized in the Income Statement under "Other expenses", as a result of the test of impairment of intangible assets, relating to the authorization for wind power generation granted to Volta do Rio, on December 31, 2020. More information is available on this note. | ||||||
[3] | 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. | ||||||
[4] | The transfers were made between Intangible assets, concession contract assets, financial assets and property, plant and equipment are as follows: (1) R$906 from concession contract assets to intangible assets; (2) R$2 from property, plant and equipment to intangible assets; and (3) R$5 from concession financial asset to intangible assets. | ||||||
[5] | 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. | ||||||
[6] | The rights of authorization to generate wind power granted to the subsidiary Parajuru and Volta do Rio, at the net value of R$128, and of the gas distribution concession, granted to Gasmig, valued at R$412, 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. |
18. INTANGIBLE ASSETS (Detail_2
18. INTANGIBLE ASSETS (Details 2) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 4.05% |
Administration [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rates | 15.74% |
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 | 4.00% |
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% |
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% |
18. INTANGIBLE ASSETS (Detail_3
18. INTANGIBLE ASSETS (Details 3) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [line items] | |
Annual average amortization rate | 4.05% |
Hydroelectric generation [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Annual average amortization rate | 9.06% |
Wind power generation [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Annual average amortization rate | 8.88% |
Administration [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Annual average amortization rate | 15.74% |
Distribution [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Annual average amortization rate | 3.90% |
Gas [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Annual average amortization rate | 3.48% |
18. INTANGIBLE ASSETS (Detail_4
18. INTANGIBLE ASSETS (Details 4) | 12 Months Ended | |
Dec. 31, 2020MWh | ||
Emboracao [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Physical Guarantee | 500 | |
Concession extension (months) | 23 | |
Nova Ponte [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Physical Guarantee | 270 | |
Concession extension (months) | 25 | |
Sa Carvalho [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Physical Guarantee | 56 | |
Concession extension (months) | 22 | |
Rosal [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Physical Guarantee | 29 | |
Concession extension (months) | 46 | |
Other [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Physical Guarantee | 399 | [1] |
Concession extension (months) | ||
[1] | Includes 11 power plants, of which 7 are owned by Cemig GT, 1 is owned by Cemig PCH and 3 are owned by Horizontes. The average concession extension in months varies between 1 and 84 months. |
18. INTANGIBLE ASSETS (Detail_5
18. INTANGIBLE ASSETS (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of detailed information about intangible assets [line items] | |||||
Capitalized borrowing costs | R$ 1 | R$ 2 | R$ 4 | ||
Annual average amortization rate | 4.05% | ||||
Assets | R$ 4058 | ||||
impairment reversal | 14 | 22 | |||
Intangible assets | 11,810 | 11,624 | [1] | R$ 10777 | R$ 11156 |
Gasmig [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets | 412 | 427 | |||
Parajuru and Volta do Rio [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets | 128 | 127 | |||
concession contract assets to intangible assets [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Assets | 906 | 685 | |||
plant and equipment to intangible assets [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Assets | 2 | 4 | |||
concession financial asset to intangible assets [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Assets | R$ 5 | R$ 23 | |||
[1] | See note 2.8. |
19. LEASING TRANSACTIONS (Detai
19. LEASING TRANSACTIONS (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Up to two years [member] | |
LeasingTransactionsLineItems [Line Items] | |
Annual rate | 7.96% |
Monthly rate | 0.64% |
Three to five years [member] | |
LeasingTransactionsLineItems [Line Items] | |
Annual rate | 10.64% |
Monthly rate | 0.85% |
Six to twenty years [member] | |
LeasingTransactionsLineItems [Line Items] | |
Annual rate | 13.17% |
Monthly rate | 1.04% |
Up to three years [member] | |
LeasingTransactionsLineItems [Line Items] | |
Annual rate | 6.87% |
Monthly rate | 0.56% |
Three to four years [member] | |
LeasingTransactionsLineItems [Line Items] | |
Annual rate | 7.33% |
Monthly rate | 0.59% |
Four to twenty years [member] | |
LeasingTransactionsLineItems [Line Items] | |
Annual rate | 8.08% |
Monthly rate | 0.65% |
19. LEASING TRANSACTIONS (Det_2
19. LEASING TRANSACTIONS (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | ||||
Disclosure of fair value measurement of assets [line items] | |||||
January 1, 2019 | R$ 277 | [1] | |||
Addition | (9) | 32 | |||
Disposals (contracts terminated) | (65) | (13) | |||
Amortization | [2] | 6 | (76) | ||
Remeasurement | [3] | 3 | (8) | ||
Balances at December 31, 2019 | 212 | 277 | [1] | ||
Real Estate Property [member] | |||||
Disclosure of fair value measurement of assets [line items] | |||||
January 1, 2019 | 206 | 238 | |||
Addition | (9) | 28 | |||
Disposals (contracts terminated) | (25) | (13) | |||
Amortization | [2] | 6 | (37) | ||
Remeasurement | [3] | 7 | (10) | ||
Balances at December 31, 2019 | 185 | 206 | |||
Vehicles [member] | |||||
Disclosure of fair value measurement of assets [line items] | |||||
January 1, 2019 | 71 | 104 | |||
Addition | 4 | ||||
Disposals (contracts terminated) | (40) | ||||
Amortization | [2] | (39) | |||
Remeasurement | [3] | (4) | 2 | ||
Balances at December 31, 2019 | R$ 27 | R$ 71 | |||
[1] | See note 2.8. | ||||
[2] | 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$5. | ||||
[3] | The Company has identified events giving rise to modifications of their principal contracts. When occurred, the lease liabilities adjustments are recognized in counterpart of the right-of-use assets. |
19. LEASING TRANSACTIONS (Det_3
19. LEASING TRANSACTIONS (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | |||
Leasing Transactions | ||||
January 1, 2019 | R$ 288 | R$ 342 | [1] | |
Addition | 6 | 32 | ||
Disposals (contracts terminated) | (10) | (13) | ||
Accrued interest | [2] | 29 | 36 | |
Payment of principal portion of lease liability | (84) | (96) | ||
Payment of interest | (4) | (5) | ||
Remeasurement | 2 | (8) | ||
Balances at December 31, 2019 | 227 | 288 | ||
Current liabilities | 6 | R$ 31 | ||
Non-current liabilities | R$ 179 | |||
[1] | 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 (R$2 on December 31, 2019). | |||
[2] | The Company identified events that give rise to modifications of their principal contracts. When occurred, the lease liabilities adjustments are recognized in counterpart of the right-of-use assets. |
19. LEASING TRANSACTIONS (Det_4
19. LEASING TRANSACTIONS (Details 3) R$ in Millions | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
Nominal [member] | |
Disclosure of fair value measurement of assets [line items] | |
Consideration for the leasing | R$ 644 |
Potential PIS/Pasep and Cofins (9.25%) | 55 |
Adjusted To Present Value [member] | |
Disclosure of fair value measurement of assets [line items] | |
Consideration for the leasing | 227 |
Potential PIS/Pasep and Cofins (9.25%) | R$ 18 |
19. LEASING TRANSACTIONS (Det_5
19. LEASING TRANSACTIONS (Details 4) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | [1] |
Disclosure of fair value measurement of assets [line items] | ||||
Undiscounted values | R$ 644 | |||
Embedded interest | (417) | |||
Lease liabilities | 227 | R$ 288 | R$ 342 | |
2021 [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Undiscounted values | 56 | |||
2022 [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Undiscounted values | 27 | |||
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 [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Undiscounted values | 26 | |||
2026 To 2045 [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Undiscounted values | R$ 483 | |||
[1] | 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 (R$2 on December 31, 2019). |
19. LEASING TRANSACTIONS (Det_6
19. LEASING TRANSACTIONS (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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 | R$ 2 |
20. SUPPLIERS (Details)
20. SUPPLIERS (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of trade payables [line items] | ||||
Total suppliers | R$ 2358 | R$ 2080 | [1] | R$ 1801 |
Energy on spot market - CCEE [member] | ||||
Disclosure of trade payables [line items] | ||||
Total suppliers | 490 | 401 | ||
Charges for use of energy network [member] | ||||
Disclosure of trade payables [line items] | ||||
Total suppliers | 192 | 145 | ||
Energy purchased for resale [member] | ||||
Disclosure of trade payables [line items] | ||||
Total suppliers | 808 | 764 | ||
Itaipu Binacional [member] | ||||
Disclosure of trade payables [line items] | ||||
Total suppliers | 325 | 243 | ||
GAS DISTRIBUTION [member] | ||||
Disclosure of trade payables [line items] | ||||
Total suppliers | 127 | 143 | ||
Materials and services [member] | ||||
Disclosure of trade payables [line items] | ||||
Total suppliers | R$ 416 | R$ 384 | ||
[1] | See note 2.8. |
21. TAXES PAYABLE AND AMOUNTS_3
21. TAXES PAYABLE AND AMOUNTS TO BE REFUNDED TO CUSTOMERS (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 02, 2019 | [1] | Dec. 31, 2018 | ||
Disclosure of taxes payable [line items] | |||||||
Current taxes payable | R$ 506 | ||||||
Non current Taxes payable | 263 | ||||||
Total tax payable | 769 | ||||||
Pasep and Cofins taxes to be reimbursed to customers | 4,018 | ||||||
Restated [member] | |||||||
Disclosure of taxes payable [line items] | |||||||
Current taxes payable | R$ 411 | [1] | R$ 453 | R$ 453 | |||
Non current Taxes payable | 227 | [1] | R$ 249 | 249 | |||
Total tax payable | 638 | ||||||
Pasep and Cofins taxes to be reimbursed to customers | 4,193 | ||||||
ICMS [member] | |||||||
Disclosure of taxes payable [line items] | |||||||
Current taxes payable | 112 | ||||||
ICMS [member] | Restated [member] | |||||||
Disclosure of taxes payable [line items] | |||||||
Current taxes payable | 112 | 168 | |||||
COFINS [member] | |||||||
Disclosure of taxes payable [line items] | |||||||
Current taxes payable | [2] | 184 | |||||
Non current Taxes payable | [3] | 216 | |||||
COFINS [member] | Restated [member] | |||||||
Disclosure of taxes payable [line items] | |||||||
Current taxes payable | [2] | 177 | 182 | ||||
Non current Taxes payable | [3] | 186 | 206 | ||||
PIS/PASEP [member] | |||||||
Disclosure of taxes payable [line items] | |||||||
Current taxes payable | [2] | 41 | |||||
Non current Taxes payable | [3] | 47 | |||||
PIS/PASEP [member] | Restated [member] | |||||||
Disclosure of taxes payable [line items] | |||||||
Current taxes payable | [2] | 39 | 39 | ||||
Non current Taxes payable | [3] | 40 | 43 | ||||
INSS [member] | |||||||
Disclosure of taxes payable [line items] | |||||||
Current taxes payable | 29 | ||||||
INSS [member] | Restated [member] | |||||||
Disclosure of taxes payable [line items] | |||||||
Current taxes payable | 25 | 23 | |||||
Others [member] | |||||||
Disclosure of taxes payable [line items] | |||||||
Current taxes payable | [4] | 140 | |||||
Others [member] | Restated [member] | |||||||
Disclosure of taxes payable [line items] | |||||||
Current taxes payable | [4] | 58 | R$ 41 | ||||
PIS/PASEP and COFINS [member] | |||||||
Disclosure of taxes payable [line items] | |||||||
Current taxes payable | 448 | ||||||
Non current Taxes payable | R$ 3570 | ||||||
PIS/PASEP and COFINS [member] | Restated [member] | |||||||
Disclosure of taxes payable [line items] | |||||||
Current taxes payable | |||||||
Non current Taxes payable | R$ 4193 | ||||||
[1] | For further details of restatement of comparative balances, see Note 2.8 | ||||||
[2] | Includes Cofins and PIS/Pasep recognized in current liability includes the deferred taxes related to the interest revenue arising from the financing component in contract asset and to the revenue of construction and upgrade associated with the transmission concession contract, whose consideration will be received in at least twelve months after the reporting period. For more information, see note 2.8 and 15. | ||||||
[3] | The deferral of PIS/Pasep and Cofins taxes related to the interest revenue arising from the financing component in contract asset and to the revenue of construction and upgrade associated with the transmission concession contract, whose consideration will be received in at least twelve months after the reporting period. For more information, see note 2.8 and 15. | ||||||
[4] | This includes the withholding income tax on Interest on equity paid in January 2020, in accordance with the tax legislation. |
21. TAXES PAYABLE AND AMOUNTS_4
21. TAXES PAYABLE AND AMOUNTS TO BE REFUNDED TO CUSTOMERS (Details Narrative) R$ in Millions | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
Disclosure of taxes, income tax and social contribution tax [abstract] | |
Amounts unduly paid | 10 years |
Negative financial component | R$ 714 |
22. LOANS, FINANCING AND DEBE_2
22. LOANS, FINANCING AND DEBENTURES (Details) - BRL (R$) R$ in Millions | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2019 | ||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | R$ 2059 | |||||
Non-current | 12,961 | |||||
Total | 2,310 | R$ 14777 | ||||
United States of America, Dollars | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Total | 7,866 | |||||
United States of America, Dollars | Transaction Costs [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | ||||||
Non-current | (16) | |||||
Total | (16) | (19) | ||||
United States of America, Dollars | Interest Paid in Advance [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | [1] | |||||
Non-current | [1] | (25) | ||||
Total | [1] | (25) | (30) | |||
Debt In Foreign Currency [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 61 | |||||
Non-current | 7,764 | |||||
Total | R$ 7825 | 6,061 | ||||
Sonda [member] | One One Zero Percent Of Interbank Rate For Certificates Of Deposit [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Principal maturity | 2021 | |||||
Annual financial cost | 110.00% do CDI | |||||
Currency | R$ | |||||
Current | [2] | R$ 50 | ||||
Non-current | [2] | |||||
Total | [2] | R$ 50 | 49 | |||
Eletrobras [member] | Ufir Plus Six Point Zero To Eight Point Zero Zero [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Principal maturity | 2023 | |||||
Annual financial cost | UFIR + 6.00% a 8.00% | |||||
Currency | R$ | |||||
Current | [3] | R$ 3 | ||||
Non-current | [3] | 5 | ||||
Total | [3] | R$ 8 | 20 | |||
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 | 2019 | |||||
Currency | R$ | |||||
Eurobonds [member] | United States of America, Dollars | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Principal maturity | 2024 | |||||
Annual financial cost | 9.25 | |||||
Currency | US$ | |||||
Current | [4] | R$ 59 | ||||
Non-current | [4] | 7,795 | ||||
Total | [4] | R$ 7854 | 6,092 | |||
Large Customers [member] | General Domestic Availability Price Index Plus Six Point Zero [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Principal maturity | 2024 | |||||
Annual financial cost | IGP-DI + 6.00% | |||||
Currency | R$ | |||||
Current | [3] | |||||
Non-current | [3] | |||||
Total | [3] | 5 | ||||
Debentures [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Principal maturity | [5] | 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 | 2023 | |||||
Annual financial cost | CDI + 1.50% | |||||
Currency | R$ | |||||
Current | [6] | R$ 20 | ||||
Non-current | [6] | 40 | ||||
Total | [6] | 60 | 80 | |||
Debentures [member] | Transaction Costs [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | (12) | |||||
Non-current | (29) | |||||
Total | R$ 41 | (29) | [6] | |||
Debentures Third Issue Third Series [member] | IPCA Plus Six Point Two Zero [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Principal maturity | 2022 | |||||
Annual financial cost | IPCA + 6.20% | |||||
Currency | R$ | |||||
Current | [4] | R$ 395 | ||||
Non-current | [4] | 367 | ||||
Total | [4] | R$ 762 | 1,088 | |||
Debentures Third Issue Third Series [member] | IPCA Plus Five Point One Zero [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Principal maturity | 2025 | |||||
Annual financial cost | IPCA + 5.10% | |||||
Currency | R$ | |||||
Current | [3] | R$ 43 | ||||
Non-current | [3] | 992 | ||||
Total | [3] | R$ 1035 | 991 | |||
Debentures Third Issue Second Series [member] | IPCA Plus Four Point Seven Zero [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Principal maturity | 2021 | |||||
Annual financial cost | IPCA + 4.70% | |||||
Currency | R$ | |||||
Current | [3] | R$ 588 | ||||
Non-current | [3] | |||||
Total | [3] | R$ 588 | 1,109 | |||
Debentures Third Issue Second Series [member] | IPCA Plus Five Point Twenty Seven [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Principal maturity | 2031 | |||||
Annual financial cost | IPCA + 5.27% | |||||
Currency | R$ | |||||
Current | [6] | R$ 14 | ||||
Non-current | [6] | 876 | ||||
Total | R$ 890 | [6] | ||||
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 | 2022 | |||||
Annual financial cost | TJLP + 2.50% | |||||
Currency | R$ | |||||
Current | [7] | R$ 14 | ||||
Non-current | [7] | |||||
Total | [7] | R$ 14 | 118 | |||
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 | 2021 | |||||
Annual financial cost | TJLP + 2.50% | |||||
Currency | R$ | |||||
Current | [8] | R$ 17 | ||||
Non-current | [8] | |||||
Total | [8] | R$ 17 | 61 | |||
Promissory Notes First Issue Single Series [member] | One Zero Seven Percent Of CDI [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Principal maturity | 2020 | |||||
Annual financial cost | 107.00% of CDI | |||||
Currency | R$ | |||||
Current | [6] | |||||
Non-current | [6] | |||||
Total | [6] | 875 | ||||
Banco do Brasil Various Bonds [member] | United States of America, Dollars | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Principal maturity | 2024 | |||||
Annual financial cost | Diverse | |||||
Currency | US$ | |||||
Current | [3],[9] | R$ 2 | ||||
Non-current | [3],[9] | 10 | ||||
Total | [3],[9] | 12 | 18 | |||
Subsidiary Securities [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | [10] | |||||
Non-current | [10] | |||||
Total | [10] | (3) | ||||
Debentures Sixth Issue Second Series [member] | IPCA Plus Eight Point Zero Seven [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Principal maturity | 2020 | |||||
Annual financial cost | IPCA + 8.07% | |||||
Currency | R$ | |||||
Current | [4] | |||||
Non-current | [4] | |||||
Total | [4] | 17 | ||||
Debentures Seventh Issue Single Series [member] | One Four Zero Percent of CDI [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Principal maturity | 2021 | |||||
Annual financial cost | 140.00% of CDI | |||||
Currency | R$ | |||||
Current | [4],[11] | R$ 289 | ||||
Non-current | [4],[11] | |||||
Total | [4],[11] | R$ 289 | 578 | |||
Debentures Seventh Issue First Series [member] | CDI Plus Zero Point Four Five Percent [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Principal maturity | 2024 | |||||
Annual financial cost | CDI + 0.45% | |||||
Currency | R$ | |||||
Current | [3] | R$ 542 | ||||
Non-current | [3] | 1,350 | ||||
Total | [3] | R$ 1892 | 2,165 | |||
Debentures Seventh Issue Second Series [member] | IPCA Plus Four Point One Zero Percent [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Principal maturity | 2026 | |||||
Annual financial cost | IPCA + 4.10% | |||||
Currency | R$ | |||||
Current | [3] | R$ 3 | ||||
Non-current | [3] | 1,585 | ||||
Total | [3] | R$ 1588 | 1,520 | |||
Debentures Fourth Issue First Series [member] | TJLP Plus One Point Eight Two Percent [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Principal maturity | 2022 | |||||
Annual financial cost | TJLP+1.82% | |||||
Currency | R$ | |||||
Current | [6] | R$ 10 | ||||
Non-current | [6] | 10 | ||||
Total | [6] | R$ 20 | 31 | |||
Debentures Fourth Issue Second Series [member] | Selic Plus One Point Eight Two Percent [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Principal maturity | 2022 | |||||
Annual financial cost | Selic + 1,82% | |||||
Currency | R$ | |||||
Current | [6] | R$ 5 | ||||
Non-current | [6] | 5 | ||||
Total | [6] | 10 | 14 | |||
Debentures Sixth Issue Single Series [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Principal maturity | [12] | 2020 | ||||
Discount On The Issuance Of Debentures [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | [13] | |||||
Non-current | [13] | (18) | ||||
Total | [13] | (18) | (22) | |||
Net Debentures [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 1,914 | |||||
Non-current | 5,192 | |||||
Total | R$ 7106 | R$ 7591 | ||||
[1] | Advance of funds to achieve the yield to maturity agreed in the Eurobonds contract. | |||||
[2] | Arising from merger of Cemig Telecom. | |||||
[3] | Cemig Distribuicao: | |||||
[4] | Cemig Geracao e Transmissao; | |||||
[5] | In August 2018 Gasmig completed its 7th debenture issue, with maturity at 5 years, paying CDI 1.50%, with annual amortization from August 2019. | |||||
[6] | Gasmig. The proceeds from the 8th debenture issue, concluded by Gasmig on September 10, 2020, in the amount of R$850, were used to redeem the Promissory Notes issued on September 26, 2019, with maturity at 12 months, whose proceeds were used in their entirety for payment of the concession grant fee for the gas distribution concession contract. | |||||
[7] | Central Eolica Volta do Rio; | |||||
[8] | Central Eolica Praias de Parajuru; | |||||
[9] | Net balance of the Restructured Debt comprising bonds at par and discounted, with balance of R$234, less the amounts given as Deposits in guarantee, with balance of R$222. Interest rates vary - from 2 to 8% p.a.; six-month Libor plus spread of 0.81% to 0.88% p.a. | |||||
[10] | FIC Pampulha has financial investments in marketable securities issued by subsidiaries of the Company. For more information on this fund, see Note 31. | |||||
[11] | On February 02, 2021, the Company made the mandatory early redemption of this debentures, in the amount of R$264, with 20% discount of the funds obtained by the sale of the Company's interest in Light. For more information about the sale of the Company's interest in Light, see Note 32. | |||||
[12] | In December 2018 the 6th Debenture Issue was placed, with maturity at 18 months, annual remuneration of CDI +1.75%, and monthly amortization in 12 payments from July 3, 2019. | |||||
[13] | Discount on the sale price of the 2nd series of the Seventh issue of Cemig Distribuicao. |
22. LOANS, FINANCING AND DEBE_3
22. LOANS, FINANCING AND DEBENTURES (Detail 1) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of detailed information about borrowings [line items] | ||||
Transaction costs | R$ 57 | |||
Discount on the issuance of debentures | (18) | |||
Interest paid in advance | R$ 25 | |||
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 Sixth 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 | R$ 10 | (4) | ||
Discount on the issuance of debentures | [3] | (23) | ||
Total raised | R$ 4477 | R$ 2990 | ||
Brazilian Currency [member] | Debentures - 7th Issue - 1st Series [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Signature date | [4] | Jul. 31, 2019 | ||
Principal maturity | [4] | 2024 | ||
Annual financial cost, % | [4] | CDI + 0.454% | ||
Amount | [4] | R$ 2160 | ||
Brazilian Currency [member] | Debentures - 7th Issue - 2nd Series [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Signature date | [4] | Jul. 31, 2019 | ||
Principal maturity | [4] | 2026 | ||
Annual financial cost, % | [4] | 4.10% of IPCA | ||
Amount | [4] | R$ 1500 | ||
Brazilian Currency [member] | Promissory Notes - 1st Issue [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Signature date | [5] | Sep. 30, 2019 | ||
Principal maturity | [5] | 2020 | ||
Annual financial cost, % | [5] | 107.00% of CDI | ||
Amount | [5] | R$ 850 | ||
Brazilian Currency [member] | Promissory Notes - 9th Issue - Single Series [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Signature date | [6] | May 31, 2018 | ||
Principal maturity | [6] | 2019 | ||
Annual financial cost, % | [6] | 151% of CDI | ||
Amount | [6] | R$ 400 | ||
Brazilian Currency [member] | Debentures - 8th Issue - Single Series [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Signature date | Sep. 30, 2020 | |||
Principal maturity | 2031 | |||
Annual financial cost, % | IPCA + 5.27% | |||
Amount | R$ 850 | |||
Transaction costs | 24 | |||
Total raised | R$ 826 | |||
Foreign Currency [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Transaction costs | (8) | |||
Interest paid in advance | [7] | 10 | ||
Total raised | R$ 1948 | |||
Foreign Currency [member] | Eurobonds [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Signature date | [8] | Jul. 31, 2018 | ||
Principal maturity | [8] | 2024 | ||
Annual financial cost, % | [8] | 9.25% | ||
Amount | [8] | R$ 1946 | ||
[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] | Discount on the sale price of the 2nd series of the debentures issued by Cemig Distribuicao. | |||
[4] | Cemig Distribuicao. | |||
[5] | Gasmig. | |||
[6] | 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. | |||
[7] | Advance of funds to achieve the yield to maturity agreed in the Eurobonds contract. | |||
[8] | 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. |
22. LOANS, FINANCING AND DEBE_4
22. LOANS, FINANCING AND DEBENTURES (Detaills 2) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 2310 | R$ 14777 |
Promissory Notes and Sureties [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 10,197 | |
Guarantee and Receivables [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 3,454 | |
Receivables [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 112 | |
Shares [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 330 | |
Unsecured [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 927 |
22. LOANS, FINANCING AND DEBE_5
22. LOANS, FINANCING AND DEBENTURES (Detaills 3) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | R$ 2310 | R$ 14777 | |
Transaction costs | 57 | ||
Interest paid in advance | (25) | ||
Discount | (18) | ||
Overall total | 15,020 | ||
IPCA [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [1] | 4,863 | |
UFIR/RGR [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 8 | |
CDI [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [3] | 2,310 | |
URTJ/TJLP [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [4] | 73 | |
Total By Index [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 7,254 | ||
Total Currency Denominated [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 7,866 | ||
2021 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction costs | (12) | ||
Interest paid in advance | |||
Discount | |||
Overall total | 2,060 | ||
2021 [member] | IPCA [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [1] | 1,043 | |
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] | 912 | |
2021 [member] | URTJ/TJLP [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [4] | 53 | |
2021 [member] | Total By Index [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 2,011 | ||
2021 [member] | Total Currency Denominated [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 61 | ||
3 months to 1 year [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction costs | (18) | ||
Interest paid in advance | (25) | ||
Discount | |||
Overall total | 8,371 | ||
3 months to 1 year [member] | IPCA [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [1] | 341 | |
3 months to 1 year [member] | CDI [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [3] | 268 | |
3 months to 1 year [member] | Total By Index [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 609 | ||
3 months to 1 year [member] | Total Currency Denominated [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 7,805 | ||
1 to 3 months [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction costs | (1) | ||
Interest paid in advance | |||
Discount | |||
Overall total | 1,207 | ||
1 to 3 months [member] | IPCA [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [1] | 615 | |
1 to 3 months [member] | UFIR/RGR [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 3 | |
1 to 3 months [member] | CDI [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [3] | 570 | |
1 to 3 months [member] | URTJ/TJLP [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [4] | 20 | |
1 to 3 months [member] | Total By Index [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 1,208 | ||
2023 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction costs | (1) | ||
Interest paid in advance | |||
Discount | |||
Overall total | 809 | ||
2023 [member] | IPCA [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [1] | 248 | |
2023 [member] | UFIR/RGR [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 2 | |
2023 [member] | CDI [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [3] | 560 | |
2023 [member] | Total By Index [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 810 | ||
2025 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction costs | (5) | ||
Interest paid in advance | |||
Discount | (9) | ||
Overall total | 1,124 | ||
2025 [member] | IPCA [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [1] | 1,138 | |
2025 [member] | Total By Index [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 1,138 | ||
2026 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction costs | (20) | ||
Interest paid in advance | |||
Discount | (9) | ||
Overall total | 1,449 | ||
2026 [member] | IPCA [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [1] | 1,478 | |
2026 [member] | Total By Index [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 1,478 | ||
United States of America, Dollars | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 7,866 | ||
United States of America, Dollars | 2021 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 61 | ||
United States of America, Dollars | 3 months to 1 year [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | R$ 7805 | ||
[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) |
22. LOANS, FINANCING AND DEBE_6
22. LOANS, FINANCING AND DEBENTURES (Detaills 4) - United States of America, Dollars | Dec. 31, 2020 | Dec. 31, 2019 |
IPCA [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Accumulated change | 28.93% | 4.02% |
Accumulated change | 4.52% | 4.31% |
CDI [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Accumulated change | 2.77% | 5.97% |
TJLP [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Accumulated change | (18.31%) | (20.20%) |
22. LOANS, FINANCING AND DEBE_7
22. LOANS, FINANCING AND DEBENTURES (Detaills 5) - BRL (R$) R$ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Disclosure of detailed information about borrowings [line items] | |||||
Beginning Balance | R$ 14777 | ||||
(-) Transaction costs | 57 | ||||
(-) Discount in the issues of securities | (18) | ||||
(-) Interest paid in advance | (25) | ||||
Ending Balance | 2,310 | R$ 14777 | |||
Loans, financing and debentures [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Beginning Balance | 14,777 | 14,772 | R$ 14398 | ||
Liabilities arising from business combination | 10 | [1] | 163 | ||
Initial balance for consolidation purposes | 14,787 | 14,561 | |||
Loans and financings obtained | 850 | 4,510 | 2,996 | ||
(-) Transaction costs | (24) | (10) | (16) | ||
(-) Discount in the issues of securities | (23) | ||||
(-) Interest paid in advance | 10 | ||||
Financings obtained, net | 4,477 | 2,990 | |||
Monetary variation | 187 | 142 | 134 | ||
Exchange rate variation | 1,742 | 226 | 582 | ||
Financial charges provisioned | 1,211 | [2] | 1,250 | 1,287 | |
Amortization of transaction cost | 15 | 38 | 33 | ||
Financial charges paid | (1,212) | (1,265) | (1,290) | ||
Amortization of financings | (2,531) | (4,883) | (3,527) | ||
Reclassification to "Other obligations" | [3] | (8) | |||
Subtotal | 15,017 | 14,757 | 14,770 | ||
FIC Pampulha: Marketable securities of subsidiary companies | 3 | 20 | 2 | ||
Ending Balance | R$ 15020 | R$ 14777 | R$ 14772 | ||
[1] | Loans arising from business combinations due to the acquisition of the remaining equity interest in Companhia Centroeste de Minas, settled in full in August 2020. | ||||
[2] | Withholding income tax on remittance of interest on Eurobonds, in the amount of R$130, was offset against PIS/Pasep and Cofins credits. | ||||
[3] | Reclassification to Cemig D's customers (CMM and Serra da Fortaleza). |
22. LOANS, FINANCING AND DEBE_8
22. LOANS, FINANCING AND DEBENTURES (Detaills 6) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
DisclosureLoansFinancingsAndDebenturesLineItems [Line Items] | ||||
Costs of loans and financing | R$ 1211 | |||
Financing costs on intangible assets and contract assets | [1] | (33) | ||
Net effect in Profit or loss | R$ 1178 | |||
Restated [member] | ||||
DisclosureLoansFinancingsAndDebenturesLineItems [Line Items] | ||||
Costs of loans and financing | R$ 1250 | R$ 1287 | ||
Financing costs on intangible assets and contract assets | [1] | (23) | (30) | |
Net effect in Profit or loss | R$ 1227 | R$ 1257 | ||
[1] | The average capitalization rate p.a. in 2020 was 5.39% (6.79% in 2019 and 9.64% in 2018). |
22. LOANS, FINANCING AND DEBE_9
22. LOANS, FINANCING AND DEBENTURES (Detaills 7) | 12 Months Ended | |
Dec. 31, 2020 | ||
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 requirement - issuer | 3.50% | |
Ratio requirement - cemig (guarantor) | 3.00% | |
Ratio required - parajuru and volta do rio | ||
Compliance required | Semi-annual and annual | |
Cemig GT [member] | 8th Debentures Issue Single Series [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Transaction | 8th Debentures Issue Gasmig Single series | |
Covenant | EBITDA/Debt servicing Net debt/EBITDA | |
Ratio requirement - issuer | 1.3 or more as of Dec, 31.2020 3.0 or less as of Dec, 31.2020 | |
Compliance required | Annual Annual | |
Cemig GT [member] | Two Thousand Twenty [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 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 - issuer | 3.50% | |
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] | ||
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. |
22. LOANS, FINANCING AND DEB_10
22. LOANS, FINANCING AND DEBENTURES (Detaills Narrative) - BRL (R$) R$ in Millions | 1 Months Ended | 12 Months Ended | ||
Sep. 26, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | ||||
Average rate of capitalization rate | 5.39% | |||
Promissory Notes First Issue Single Series [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Aggregate amount | R$ 850 | |||
Maturity term | 11 years | |||
Interest rate | 5.27% | |||
Cemig GT [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Aggregate amount | R$ 50 | |||
Restated [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Average rate of capitalization rate | 6.79% | 9.64% |
23. REGULATORY CHARGES (Details
23. REGULATORY CHARGES (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Liabilities | |||
Global Reversion Reserve (RGR) | R$ 28 | R$ 31 | |
Energy Development Account (CDE) | 64 | 58 | |
Grantor inspection fee - ANEEL | 3 | 3 | |
Energy Efficiency Program | 265 | 255 | |
Research and development (R&D) | 225 | 199 | |
Energy System Expansion Research | 4 | 3 | |
National Scientific and Technological Development Fund | 8 | 6 | |
Proinfa - Alternative Energy Program | 7 | 8 | |
Royalties for use of water resources | 13 | 10 | |
Emergency capacity charge | 26 | 26 | |
Customer charges - Tariff flags | 90 | ||
Others | 4 | 5 | |
Liability | 737 | 604 | |
Current liabilities | 446 | 457 | [1] |
Non-current liabilities | R$ 291 | R$ 147 | [1] |
[1] | See note 2.8. |
24. POST-EMPLOYMENT OBLIGATIO_3
24. POST-EMPLOYMENT OBLIGATIONS (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of defined benefit plans [line items] | ||||
Net liabilities in the statement of financial position | R$ 6843 | R$ 6709 | R$ 4989 | R$ 4186 |
Pension plans and retirement supplement plans [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Fair value of plan assets | (10,420) | (10,366) | (9,063) | (8,546) |
Health plan [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Net liabilities in the statement of financial position | 3,319 | 3,102 | 2,344 | 1,809 |
Pension plans and retirement supplement plans [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Net liabilities in the statement of financial position | 2,909 | 2,972 | 2,170 | 2,068 |
Dental plan [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Net liabilities in the statement of financial position | 64 | 61 | 48 | 38 |
Life insurance plan [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Net liabilities in the statement of financial position | 551 | 574 | R$ 427 | R$ 271 |
Actuarial assumption of expected rates of pension increases [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of obligations | 17,242 | 17,022 | ||
Fair value of plan assets | (10,420) | (10,366) | ||
Net liabilities in the statement of financial position | 6,843 | 6,709 | ||
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 | 6,822 | 6,656 | ||
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 | 21 | 53 | ||
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 | 13,308 | 13,285 | ||
Fair value of plan assets | (10,420) | (10,366) | ||
Net liabilities in the statement of financial position | 2,909 | 2,972 | ||
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 | 2,888 | 2,919 | ||
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 | 21 | 53 | ||
Actuarial assumption of expected rates of pension increases [member] | Health plan [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of obligations | 3,319 | 3,102 | ||
Net liabilities in the statement of financial position | 3,319 | 3,102 | ||
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 | 3,319 | 3,102 | ||
Actuarial assumption of expected rates of pension increases [member] | Dental plan [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of obligations | 64 | 61 | ||
Net liabilities in the statement of financial position | 64 | 61 | ||
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 | 64 | 61 | ||
Actuarial assumption of expected rates of pension increases [member] | Life insurance [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of obligations | 551 | 574 | ||
Net liabilities in the statement of financial position | 551 | 574 | ||
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 | R$ 551 | R$ 574 |
24. POST-EMPLOYMENT OBLIGATIO_4
24. POST-EMPLOYMENT OBLIGATIONS (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning balance | R$ 17022 | R$ 13892 | R$ 12663 |
Cost of current service | 26 | 17 | 15 |
Interest on actuarial obligation | 1,147 | 1,214 | 1,161 |
Actuarial losses (gains): | |||
Due to changes in demographic assumptions | 534 | 6 | |
Due to changes in financial assumptions | (565) | 1,599 | 705 |
Due to adjustments based on experience | 148 | 160 | 161 |
Due to changes and adjustments | (117) | (2,941) | (1,064) |
Benefits paid | (1,070) | (1,042) | (1,011) |
Ending balance | 17,242 | 17,022 | 13,892 |
Pension plans and retirement supplement plans [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning balance | 13,285 | 11,073 | 10,545 |
Cost of current service | 1 | 1 | 4 |
Interest on actuarial obligation | 887 | 963 | 959 |
Actuarial losses (gains): | |||
Due to changes in demographic assumptions | 135 | 6 | |
Due to changes in financial assumptions | (375) | 2,058 | 467 |
Due to adjustments based on experience | 289 | 83 | (20) |
Due to changes and adjustments | (49) | (2,147) | (447) |
Benefits paid | (914) | (899) | (881) |
Ending balance | 13,308 | 13,285 | 11,073 |
Health plan [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning balance | 3,102 | 2,344 | 1,809 |
Cost of current service | 21 | 14 | 10 |
Interest on actuarial obligation | 215 | 208 | 172 |
Actuarial losses (gains): | |||
Due to changes in demographic assumptions | 395 | ||
Due to changes in financial assumptions | (152) | 667 | 402 |
Due to adjustments based on experience | (119) | 91 | 68 |
Due to changes and adjustments | (124) | (667) | (470) |
Benefits paid | (143) | (131) | (118) |
Ending balance | 3,319 | 3,102 | 2,344 |
Dental plan [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning balance | 61 | 48 | 39 |
Cost of current service | 1 | ||
Interest on actuarial obligation | 4 | 5 | 4 |
Actuarial losses (gains): | |||
Due to changes in demographic assumptions | 4 | ||
Due to changes in financial assumptions | (4) | 10 | 8 |
Due to adjustments based on experience | 1 | ||
Due to changes and adjustments | (1) | (11) | (8) |
Benefits paid | (3) | (2) | (3) |
Ending balance | 64 | 61 | 48 |
Life insurance plan [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning balance | 574 | 427 | 270 |
Cost of current service | 3 | 3 | 2 |
Interest on actuarial obligation | 41 | 38 | 25 |
Actuarial losses (gains): | |||
Due to changes in demographic assumptions | |||
Due to changes in financial assumptions | (34) | 117 | 140 |
Due to adjustments based on experience | (23) | (14) | 113 |
Due to changes and adjustments | 57 | (116) | (139) |
Benefits paid | (10) | (10) | (9) |
Ending balance | R$ 551 | R$ 574 | R$ 427 |
24. POST-EMPLOYMENT OBLIGATIO_5
24. POST-EMPLOYMENT OBLIGATIONS (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of fair value of plan assets [line items] | |||
Benefits paid | R$ 1070 | R$ 1042 | R$ 1011 |
Pension plans and retirement supplement plans [member] | |||
Disclosure of fair value of plan assets [line items] | |||
Beginning balance | 10,366 | 9,063 | 8,546 |
Return on investments | 757 | 2,003 | 1,220 |
Contributions from employer | 211 | 199 | 178 |
Benefits paid | (914) | (899) | (881) |
Ending balance | R$ 10420 | R$ 10366 | R$ 9063 |
24. POST-EMPLOYMENT OBLIGATIO_6
24. POST-EMPLOYMENT OBLIGATIONS (Details 3) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of fair value of plan assets [line items] | |||
Cost of current service | R$ 26 | R$ 17 | R$ 15 |
Interest on the actuarial obligation | 1,147 | 1,214 | 1,161 |
Expected return on the assets of the Plan | (682) | (767) | (771) |
Expense according to actuarial calculation | 491 | 464 | 405 |
Pension plans and retirement supplement plans [member] | |||
Disclosure of fair value of plan assets [line items] | |||
Cost of current service | 1 | 1 | 4 |
Interest on the actuarial obligation | 887 | 963 | 959 |
Expected return on the assets of the Plan | (682) | (767) | (771) |
Expense according to actuarial calculation | 206 | 197 | 192 |
Health plan [member] | |||
Disclosure of fair value of plan assets [line items] | |||
Cost of current service | 21 | 14 | 10 |
Interest on the actuarial obligation | 215 | 208 | 172 |
Expected return on the assets of the Plan | |||
Expense according to actuarial calculation | 236 | 222 | 182 |
Dental plan [member] | |||
Disclosure of fair value of plan assets [line items] | |||
Cost of current service | 1 | ||
Interest on the actuarial obligation | 4 | 5 | 4 |
Expected return on the assets of the Plan | |||
Expense according to actuarial calculation | 5 | 5 | 4 |
Life insurance [member] | |||
Disclosure of fair value of plan assets [line items] | |||
Cost of current service | 3 | 2 | 1 |
Interest on the actuarial obligation | 41 | 38 | 26 |
Expected return on the assets of the Plan | |||
Expense according to actuarial calculation | R$ 44 | R$ 40 | R$ 27 |
24. POST-EMPLOYMENT OBLIGATIO_7
24. POST-EMPLOYMENT OBLIGATIONS (Details 4) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of defined benefit plans [line items] | ||||
Net liabilities, Beginning balance | R$ 6709 | R$ 4989 | R$ 4186 | |
Expense recognized in Statement of income | 491 | 464 | 405 | |
Contributions paid | (367) | (343) | (307) | |
Actuarial losses (gains) | 10 | 1,599 | 705 | |
Net liabilities, Ending balance | 6,843 | 6,709 | 4,989 | |
Current liabilities | 305 | 288 | [1] | |
Non-currentliabilities | 6,538 | 6,421 | [1] | |
Pension plans and retirement supplement plans [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Net liabilities, Beginning balance | 2,972 | 2,170 | 2,068 | |
Expense recognized in Statement of income | 206 | 197 | 193 | |
Contributions paid | (211) | (200) | (178) | |
Actuarial losses (gains) | (58) | 805 | 87 | |
Net liabilities, Ending balance | 2,909 | 2,972 | 2,170 | |
Health plan [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Net liabilities, Beginning balance | 3,102 | 2,344 | 1,809 | |
Expense recognized in Statement of income | 236 | 222 | 183 | |
Contributions paid | (143) | (131) | (118) | |
Actuarial losses (gains) | 124 | 667 | 402 | |
Net liabilities, Ending balance | 3,319 | 3,102 | 2,344 | |
Dental plan [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Net liabilities, Beginning balance | 61 | 48 | 38 | |
Expense recognized in Statement of income | 5 | 5 | 4 | |
Contributions paid | (3) | (2) | (2) | |
Actuarial losses (gains) | 1 | 10 | 8 | |
Net liabilities, Ending balance | 64 | 61 | 48 | |
Life insurance plan [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Net liabilities, Beginning balance | 574 | 427 | 271 | |
Expense recognized in Statement of income | 44 | 40 | 25 | |
Contributions paid | (10) | (10) | (9) | |
Actuarial losses (gains) | (57) | 117 | 140 | |
Net liabilities, Ending balance | R$ 551 | R$ 574 | R$ 427 | |
[1] | See note 2.8. |
24. POST-EMPLOYMENT OBLIGATIO_8
24. POST-EMPLOYMENT OBLIGATIONS (Details 5) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of defined benefit plans [line items] | |||
Current service cost | R$ 26 | R$ 17 | R$ 15 |
Interest on the actuarial obligation | (1,147) | (1,214) | (1,161) |
Estimated total expense in 2020 as per actuarial report | 10 | 1,599 | 705 |
Present value of defined benefit obligation [member] | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | 27 | ||
Interest on the actuarial obligation | 1,159 | ||
Expected return on the assets of the Plan | (685) | ||
Estimated total expense in 2020 as per actuarial report | 501 | ||
Pension plans and retirement supplement plans [member] | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | (1) | (1) | (4) |
Interest on the actuarial obligation | (887) | (963) | (959) |
Expected return on the assets of the Plan | 757 | 2,003 | 1,220 |
Pension plans and retirement supplement plans [member] | Present value of defined benefit obligation [member] | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | 2 | ||
Interest on the actuarial obligation | 884 | ||
Expected return on the assets of the Plan | (685) | ||
Estimated total expense in 2020 as per actuarial report | 201 | ||
Health plan [member] | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | (21) | (14) | (10) |
Interest on the actuarial obligation | (215) | (208) | (172) |
Estimated total expense in 2020 as per actuarial report | 124 | 667 | 402 |
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 | 231 | ||
Expected return on the assets of the Plan | |||
Estimated total expense in 2020 as per actuarial report | 252 | ||
Dental plan [member] | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | (1) | ||
Interest on the actuarial obligation | (4) | (5) | (4) |
Estimated total expense in 2020 as per actuarial report | 1 | 10 | 8 |
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 | 5 | ||
Expected return on the assets of the Plan | |||
Estimated total expense in 2020 as per actuarial report | 6 | ||
Life insurance plan [member] | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | (3) | (3) | (2) |
Interest on the actuarial obligation | (41) | (38) | (25) |
Estimated total expense in 2020 as per actuarial report | (57) | R$ 117 | R$ 140 |
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 | 39 | ||
Expected return on the assets of the Plan | |||
Estimated total expense in 2020 as per actuarial report | R$ 42 |
24. POST-EMPLOYMENT OBLIGATIO_9
24. POST-EMPLOYMENT OBLIGATIONS (Details 6) R$ in Millions | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
Disclosure of defined benefit plans [line items] | |
Estimated payment of benefits | R$ 1121 |
Pension plans and retirement supplement plans [member] | |
Disclosure of defined benefit plans [line items] | |
Estimated payment of benefits | 928 |
Health plan [member] | |
Disclosure of defined benefit plans [line items] | |
Estimated payment of benefits | 172 |
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$ 18 |
24. POST-EMPLOYMENT OBLIGATI_10
24. POST-EMPLOYMENT OBLIGATIONS (Details 7) | 12 Months Ended |
Dec. 31, 2020 | |
Pension plans 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 | 11 years 6 months 29 days |
Pension plans 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 | 12 years 9 months 22 days |
Health plan [member] | |
Disclosure of defined benefit plans [line items] | |
Average periods of maturity of the obligations under the benefit plans | 13 years 9 months 18 days |
Dental plan [member] | |
Disclosure of defined benefit plans [line items] | |
Average periods of maturity of the obligations under the benefit plans | 15 years 1 month 6 days |
Life insurance plan [member] | |
Disclosure of defined benefit plans [line items] | |
Average periods of maturity of the obligations under the benefit plans | 18 years 7 months 28 days |
24. POST-EMPLOYMENT OBLIGATI_11
24. POST-EMPLOYMENT OBLIGATIONS (Details 8) | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of fair value of plan assets [abstract] | ||
Shares | 9.25% | 9.51% |
Fixed income securities | 72.17% | 72.28% |
Real estate property | 3.71% | 3.79% |
Others | 14.87% | 14.42% |
Total | 100.00% | 100.00% |
24. POST-EMPLOYMENT OBLIGATI_12
24. POST-EMPLOYMENT OBLIGATIONS (Details 9) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of fair value of plan assets [line items] | ||
Assets of the pension plan | R$ 627 | R$ 925 |
Non convertible debentures issued by the company [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Assets of the pension plan | 338 | 398 |
Shares issued by the company [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Assets of the pension plan | 4 | 24 |
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$ 285 | R$ 503 |
24. POST-EMPLOYMENT OBLIGATI_13
24. POST-EMPLOYMENT OBLIGATIONS (Details 10) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Pension plans and retirement supplement plans [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Annual discount rate for present value of the actuarial obligation | 6.83% | 6.87% | 9.02% | |
Annual expected return on plan assets | 6.83% | 6.87% | 9.02% | |
Long-term annual inflation rate | 3.32% | 3.61% | 4.01% | |
Estimated future annual salary increases | 3.32% | 3.61% | 4.01% | |
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 | |
Real growth in contributions above inflation | [1] | |||
Health plan [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Annual discount rate for present value of the actuarial obligation | 7.14% | 7.09% | 9.60% | |
Long-term annual inflation rate | 3.32% | 3.61% | 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 | MI-85 F | Winklevoss D30% | |
Real growth in contributions above inflation | [1] | 1.00% | 1.00% | 1.00% |
Life insurance plan [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Annual discount rate for present value of the actuarial obligation | 7.25% | 7.19% | 9.57% | |
Long-term annual inflation rate | 3.32% | 3.61% | 4.00% | |
Estimated future annual salary increases | 4.56% | 4.85% | 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 | MI-85 F | Winklevoss D30% | |
Real growth in contributions above inflation | [1] | |||
[1] | Starting in 2018, Company adopted the assumption of real growth of the contributions above inflation at the rate of 1% p.a. |
24. POST-EMPLOYMENT OBLIGATI_14
24. POST-EMPLOYMENT OBLIGATIONS (Details 11) R$ in Millions | Dec. 31, 2020BRL (R$) |
Effects on the defined-benefit obligation | |
Reduction of one year in the mortality table | R$ 401 |
Increase of one year in the mortality table | (403) |
Reduction of 1% in the discount rate | 2,117 |
Pension plans and retirement supplement plans [member] | |
Effects on the defined-benefit obligation | |
Reduction of one year in the mortality table | 336 |
Increase of one year in the mortality table | (338) |
Reduction of 1% in the discount rate | 1,513 |
Health plan [member] | |
Effects on the defined-benefit obligation | |
Reduction of one year in the mortality table | 79 |
Increase of one year in the mortality table | (80) |
Reduction of 1% in the discount rate | 483 |
Dental plan [member] | |
Effects on the defined-benefit obligation | |
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] | |
Effects on the defined-benefit obligation | |
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$ 111 |
24. POST-EMPLOYMENT OBLIGATI_15
24. POST-EMPLOYMENT OBLIGATIONS (Details Narrative) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2021BRL (R$) | Dec. 31, 2020BRL (R$)Installment | Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) | |
Disclosure of defined benefit plans [line items] | ||||
Expense amount recognized in the Statement of income | R$ 53 | R$ 56 | R$ 68 | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 1,121 | |||
Forluz Pension Fund [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Obligation for past actuarial deficits relating to pension fund | R$ 473 | 566 | ||
Inflation index rate | 6.00% | |||
Funded Benefit Plan ('Plan A') [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Benefit amount payable | R$ 540 | 550 | ||
Description of monthly amortizations | The monthly amortizations, calculated by the constant installments system (Price Table), will be paid until 2031 for the 2015 and 2016 deficits, in the amount of R$363, and up to 2033 for the 2017 deficit, in the amount of R$177. | |||
Remuneratory interest applicable on outstanding balance | 6.00% | |||
Estimate of contributions expected to be paid to plan for next annual reporting period | R$ 160 | |||
Number of monthly installments | Installment | 166 | |||
Expectation of contributions in pension plan | R$ 221 | |||
Postretirement Benefits Plan [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Expense amount recognized in the Statement of income | R$ 438 | 408 | 337 | |
Finance expenses | R$ 53 | R$ 56 | R$ 68 | |
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] | ||||
Expectation of contributions in pension plan | R$ 81 |
25. PROVISIONS (Details)
25. PROVISIONS (Details) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of other provisions [line items] | ||||
Other provisions Beginning Balance | R$ 1888 | |||
Additions | 291 | |||
Reversals | (105) | |||
Settled / Reversal | [1] | (185) | ||
Provisions arising from business combination | [2] | 3 | ||
Other provisions ending balance | 1,892 | R$ 1888 | ||
Restated [member] | ||||
Disclosure of other provisions [line items] | ||||
Other provisions Beginning Balance | 1,888 | 641 | R$ 678 | |
Additions | 1,468 | 115 | ||
Reversals | (68) | (64) | ||
Settled | (153) | (88) | ||
Other provisions ending balance | 1,888 | 641 | ||
Labour Provision [member] | ||||
Disclosure of other provisions [line items] | ||||
Other provisions Beginning Balance | 497 | 457 | 474 | |
Additions | 106 | 180 | 67 | |
Reversals | (60) | (44) | (25) | |
Settled | (96) | (59) | ||
Settled / Reversal | [1] | (116) | ||
Provisions arising from business combination | [2] | |||
Other provisions ending balance | 427 | 497 | 457 | |
Customer Relations [member] | ||||
Disclosure of other provisions [line items] | ||||
Other provisions Beginning Balance | 19 | 19 | 18 | |
Additions | 22 | 21 | 17 | |
Reversals | (1) | |||
Settled | (20) | (16) | ||
Settled / Reversal | [1] | (18) | ||
Provisions arising from business combination | [2] | |||
Other provisions ending balance | 23 | 19 | 19 | |
Other Civil Actions [member] | ||||
Disclosure of other provisions [line items] | ||||
Other provisions Beginning Balance | 18 | 29 | 43 | |
Additions | 21 | 16 | 10 | |
Reversals | (12) | (14) | ||
Settled | (15) | (10) | ||
Settled / Reversal | [1] | (7) | ||
Provisions arising from business combination | [2] | |||
Other provisions ending balance | 32 | 18 | 29 | |
Civil Cases [member] | ||||
Disclosure of other provisions [line items] | ||||
Other provisions Beginning Balance | 37 | 48 | 61 | |
Additions | 43 | 37 | 27 | |
Reversals | (13) | (14) | ||
Settled | (35) | (26) | ||
Settled / Reversal | [1] | (25) | ||
Provisions arising from business combination | [2] | |||
Other provisions ending balance | 55 | 37 | 48 | |
Tax [member] | ||||
Disclosure of other provisions [line items] | ||||
Other provisions Beginning Balance | 1,260 | 52 | 57 | |
Additions | 113 | 1,236 | 5 | |
Reversals | (38) | (8) | (10) | |
Settled | (20) | |||
Settled / Reversal | [1] | (41) | ||
Provisions arising from business combination | [2] | |||
Other provisions ending balance | 1,294 | 1,260 | 52 | |
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 | 36 | 37 | 40 | |
Additions | 16 | 2 | 8 | |
Reversals | (1) | (10) | ||
Settled | (2) | (1) | ||
Settled / Reversal | [1] | |||
Provisions arising from business combination | [2] | |||
Other provisions ending balance | 52 | 36 | 37 | |
Other [member] | ||||
Disclosure of other provisions [line items] | ||||
Other provisions Beginning Balance | 58 | 46 | 46 | |
Additions | 13 | 13 | 7 | |
Reversals | (7) | (1) | (5) | |
Settled | (2) | |||
Settled / Reversal | [1] | (3) | ||
Provisions arising from business combination | [2] | 3 | ||
Other provisions ending balance | R$ 64 | R$ 58 | 46 | |
Corporate [member] | ||||
Disclosure of other provisions [line items] | ||||
Other provisions Beginning Balance | ||||
[1] | This includes the amount of R$39, corresponding to the reversal of the contingency provisions relating to ICMS credits, recognized as recoverable taxes, due to a final judgment, against which there is no further appeal, in favor of the subsidiary Gasmig, on June 9, 2020. | |||
[2] | On January 13, 2020, the Company obtained the Centroeste control, which is consolidated as of 2020 first quarter. More details see note 16. |
25. PROVISIONS (Details Narrati
25. PROVISIONS (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2006 | |
Labor Claims [member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | R$ 1386 | R$ 1679 | |
Estimated probably contingent amount | 427 | 497 | |
Customers Claims [member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 142 | 68 | |
Estimated probably contingent amount | 23 | 19 | |
Other Civil Proceedings [member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 359 | 300 | |
Estimated probably contingent amount | 32 | 18 | |
Tax Related To Urban Property Tax [member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 166 | 204 | |
Estimated probably contingent amount | 14 | 43 | |
Tax Related To Urban Land Tax To Real Estate Properties [member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 85 | 79 | |
Estimated probably contingent amount | 4 | 4 | |
Social Security Contributions On Profit Sharing Payments [member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 1,520 | 1,451 | |
Estimated probably contingent amount | 1,276 | 1,213 | |
Regulatory [member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 345 | 280 | |
Estimated probably contingent amount | 52 | 36 | |
Other legal Actions [member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 46 | 41 | |
Luz Para Todos' Program [member] | |||
Disclosure of other provisions [line items] | |||
Estimated probably contingent amount | 1 | ||
Estimate contigent liability amount | 356 | 322 | |
Other Legal Proceedings [member] | |||
Disclosure of other provisions [line items] | |||
Estimated probably contingent amount | 17 | 13 | |
Estimate contigent liability amount | 621 | 452 | |
Employees [member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 295 | 289 | |
Indemnity to employees amount | R$ 178 | ||
Indemnity to employees escrow deposit | 286 | 282 | R$ 122 |
Social Security Contributions [member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 110 | 112 | |
Non-Homologation Of Offsetting Of Tax Credit [member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 203 | 160 | |
Income Tax Withheld On Capital Gain [member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | R$ 234 | 230 | |
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 s.a. ('light') [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$ 425 | 400 | |
Public Lighting Contribution (CIP) [member] | |||
Disclosure of other provisions [line items] | |||
Estimate contigent liability amount | 1,072 | 959 | |
Accounting Of Energy Sale Transactions In The Electricity Trading Chamber (CCEE) [member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 376 | 343 | |
Tariff Increases [member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 357 | 327 | |
Environmental Claims [member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 186 | 165 | |
Estimate contigent liability amount | 106 | 95 | |
Other Contingent Liabilities [member] | |||
Disclosure of other provisions [line items] | |||
Contigent liability amount | 448 | 426 | |
Estimate contigent liability amount | 167 | R$ 149 | |
ICMS (Local State Value Added Tax) [member] | |||
Disclosure of other provisions [line items] | |||
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$ 107 |
26. EQUITY AND REMUNERATION T_3
26. EQUITY AND REMUNERATION TO SHAREHOLDERS (Details) - shares | 1 Months Ended | ||||
Apr. 28, 2018 | Dec. 31, 2020 | Jul. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of shares issued | 1,518,752,601 | 60,000,000 | 1,458,752,601 | 1,458,752,601 | |
Percentage of changes in share capital | 100.00% | 10000.00% | 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 | 507,670,289 | 487,614,213 | 487,614,213 | ||
Percentage of changes in share capital | 100.00% | 100.00% | 100.00% | ||
Preferred Shares [member] | |||||
Number of shares issued | 1,011,082,312 | 39,943,924 | 971,138,388 | 971,138,388 | |
Percentage of changes in share capital | 100.00% | 100.00% | 100.00% | ||
State of minas gerais [member] | |||||
Number of shares issued | 258,750,499 | 248,528,276 | 248,480,146 | ||
Percentage of changes in share capital | 17.00% | 17.00% | 17.00% | ||
State of minas gerais [member] | Common Shares [member] | |||||
Number of shares issued | 258,738,711 | 248,516,953 | 248,480,146 | ||
Percentage of changes in share capital | 51.00% | 51.00% | 51.00% | ||
State of minas gerais [member] | Preferred Shares [member] | |||||
Number of shares issued | 11,788 | 11,323 | |||
Other entities of minas gerais state [member] | |||||
Number of shares issued | 7,462,750 | 1,431,172 | 704,350 | ||
Other entities of minas gerais state [member] | Common Shares [member] | |||||
Number of shares issued | 20,713 | 19,896 | 56,703 | ||
Other entities of minas gerais state [member] | Preferred Shares [member] | |||||
Number of shares issued | 7,442,037 | 1,411,276 | 647,647 | ||
Percentage of changes in share capital | 1.00% | ||||
FIA Dinamica Energia S.A. [member] | |||||
Number of shares issued | 158,147,949 | 103,833,744 | 104,105,344 | ||
Percentage of changes in share capital | 10.00% | 7.00% | 7.00% | ||
FIA Dinamica Energia S.A. [member] | Common Shares [member] | |||||
Number of shares issued | 114,172,677 | 48,700,000 | 48,200,000 | ||
Percentage of changes in share capital | 22.00% | 10.00% | 10.00% | ||
FIA Dinamica Energia S.A. [member] | Preferred Shares [member] | |||||
Number of shares issued | 43,975,272 | 55,133,744 | 55,905,344 | ||
Percentage of changes in share capital | 4.00% | 6.00% | 6.00% | ||
BNDES Participacoes [member] | |||||
Number of shares issued | 83,877,607 | 80,563,930 | 80,563,930 | ||
Percentage of changes in share capital | 6.00% | 6.00% | 5.00% | ||
BNDES Participacoes [member] | Common Shares [member] | |||||
Number of shares issued | 56,578,175 | 54,342,992 | 54,342,992 | ||
Percentage of changes in share capital | 11.00% | 11.00% | 11.00% | ||
BNDES Participacoes [member] | Preferred Shares [member] | |||||
Number of shares issued | 27,299,432 | 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 | 268,421,971 | 430,153,173 | 475,741,149 | ||
Percentage of changes in share capital | 18.00% | 29.00% | 33.00% | ||
Other Shareholders In Brazil [member] | Common Shares [member] | |||||
Number of shares issued | 55,717,246 | 101,170,317 | 105,402,202 | ||
Percentage of changes in share capital | 11.00% | 21.00% | 22.00% | ||
Other Shareholders In Brazil [member] | Preferred Shares [member] | |||||
Number of shares issued | 212,704,725 | 328,982,856 | 370,338,947 | ||
Percentage of changes in share capital | 21.00% | 34.00% | 38.00% | ||
Foreign Shareholders [member] | |||||
Number of shares issued | 588,401,855 | 594,242,306 | 549,157,682 | ||
Percentage of changes in share capital | 39.00% | 41.00% | 38.00% | ||
Foreign Shareholders [member] | Common Shares [member] | |||||
Number of shares issued | 22,442,767 | 34,864,055 | 31,132,170 | ||
Percentage of changes in share capital | 5.00% | 7.00% | 6.00% | ||
Foreign Shareholders [member] | Preferred Shares [member] | |||||
Number of shares issued | 565,959,088 | 559,378,251 | 518,025,512 | ||
Percentage of changes in share capital | 56.00% | 57.00% | 53.00% | ||
BlackRock [member] | |||||
Number of shares issued | 153,689,970 | ||||
Percentage of changes in share capital | 10.00% | ||||
BlackRock [member] | Preferred Shares [member] | |||||
Number of shares issued | 153,689,970 | ||||
Percentage of changes in share capital | 15.00% |
26. EQUITY AND REMUNERATION T_4
26. EQUITY AND REMUNERATION TO SHAREHOLDERS (Details 1) - shares | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Earnings per share [line items] | |||
Number of shares outstanding | 1,692,711,172 | 1,692,711,172 | 1,692,711,172 |
Common Shares [member] | |||
Earnings per share [line items] | |||
Common shares already paid up | 566,036,634 | 566,036,634 | 566,036,634 |
Shares in treasury | (79) | (79) | (79) |
Number of shares outstanding | 566,036,555 | 566,036,555 | 566,036,555 |
Preferred Shares [member] | |||
Earnings per share [line items] | |||
Common shares already paid up | 1,127,325,434 | 1,127,325,434 | 1,127,325,434 |
Shares in treasury | (650,817) | (650,817) | (650,817) |
Number of shares outstanding | 1,126,674,617 | 1,126,674,617 | 1,126,674,617 |
26. EQUITY AND REMUNERATION T_5
26. EQUITY AND REMUNERATION TO SHAREHOLDERS (Details 2) - BRL (R$) R$ / shares in Units, R$ in Millions | Jan. 02, 2019 | [1] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Earnings per share [line items] | |||||||
Net income for the year attributed to equity holders of the parent | R$ 2865 | R$ 2969 | [1] | R$ 1401 | [1] | ||
Net income for the year from continuing operations attributed to equity holders of the parent | 2,865 | 2,969 | [1] | 1,401 | [1] | ||
Restated [member] | |||||||
Earnings per share [line items] | |||||||
Net income for the year attributed to equity holders of the parent | R$ 1401 | 2,971 | [2] | 1,401 | [2] | ||
Total earnings | |||||||
Net income for the year from continuing operations attributed to equity holders of the parent | R$ 1401 | 2,971 | [2] | 1,401 | [2] | ||
Preferred Shares [member] | |||||||
Earnings per share [line items] | |||||||
Minimum mandatory dividend from net income for the year | 986 | ||||||
Net income for the year not distributed | 920 | ||||||
Total earnings | R$ 1906 | ||||||
Basic and diluted earnings per share | R$ 1.69 | ||||||
Minimum mandatory dividend from net income for the year from continuing operations | R$ 496 | ||||||
Net income for the year from continuing operations not distributed | 462 | ||||||
Total earnings from continuing operations | R$ 958 | ||||||
Basic and diluted earnings from continuing operations per share | R$ 1.69 | ||||||
Preferred Shares [member] | Restated [member] | |||||||
Earnings per share [line items] | |||||||
Minimum mandatory dividend from net income for the year | 509 | 577 | |||||
Net income for the year not distributed | 1,573 | 554 | |||||
Total earnings | R$ 2082 | R$ 1131 | |||||
Basic and diluted earnings per share | R$ 1.89 | R$ 1.02 | |||||
Minimum mandatory dividend from net income for the year from continuing operations | R$ 509 | R$ 527 | |||||
Net income for the year from continuing operations not distributed | 1,424 | 390 | |||||
Total earnings from continuing operations | R$ 1933 | R$ 917 | |||||
Basic and diluted earnings from continuing operations per share | R$ 1.75 | R$ 0.83 | |||||
Common Shares [member] | |||||||
Earnings per share [line items] | |||||||
Minimum mandatory dividend from net income for the year | R$ 496 | ||||||
Net income for the year not distributed | 462 | ||||||
Total earnings | R$ 958 | ||||||
Basic and diluted earnings per share | R$ 1.69 | ||||||
Minimum mandatory dividend from net income for the year from continuing operations | R$ 986 | ||||||
Net income for the year from continuing operations not distributed | 920 | ||||||
Total earnings from continuing operations | R$ 1906 | ||||||
Basic and diluted earnings from continuing operations per share | R$ 1.69 | ||||||
Common Shares [member] | Restated [member] | |||||||
Earnings per share [line items] | |||||||
Minimum mandatory dividend from net income for the year | R$ 255 | R$ 290 | |||||
Net income for the year not distributed | 790 | 279 | |||||
Total earnings | R$ 1045 | R$ 569 | |||||
Basic and diluted earnings per share | R$ 1.89 | R$ 1.02 | |||||
Minimum mandatory dividend from net income for the year from continuing operations | R$ 256 | R$ 290 | |||||
Net income for the year from continuing operations not distributed | 737 | 171 | |||||
Total earnings from continuing operations | R$ 993 | R$ 461 | |||||
Basic and diluted earnings from continuing operations per share | R$ 1.75 | R$ 0.83 | |||||
[1] | See note 2.8. | ||||||
[2] | For further details of restatement of comparative balances, see Note 2.8 |
26. EQUITY AND REMUNERATION T_6
26. EQUITY AND REMUNERATION TO SHAREHOLDERS (Details 3) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity And Remuneration To Shareholders | |||
Adjustments to actuarial liabilities - Employee benefits | R$ 340 | R$ 343 | R$ 257 |
Subsidiary and jointly-controlled entity | |||
Adjustments to actuarial liabilities - Employee benefits | (2,660) | (2,650) | (1,681) |
Deemed cost of PP&E | 569 | 586 | 611 |
Total | (2,091) | (2,064) | (1,070) |
Equity valuation adjustments | R$ 2431 | R$ 2407 | R$ 1327 |
26. EQUITY AND REMUNERATION T_7
26. EQUITY AND REMUNERATION TO SHAREHOLDERS (Details 4) - BRL (R$) R$ in Millions | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 02, 2019 | ||||
BasicEarningsPerShareLineItems [Line Items] | |||||||
Investment-related donations and subsidies | R$ 1857 | R$ 1857 | R$ 1857 | ||||
Goodwill on issuance of shares | 394 | 394 | 394 | ||||
Shares in treasury | (1) | (1) | (1) | ||||
Capital reserves and shares in Treasury | 2,250 | 2,250 | [1] | 2,250 | |||
Legal reserve | 995 | ||||||
Statutory reserve | 57 | ||||||
Retained earnings reserve | 6,650 | ||||||
Unrealized profit reserve | 835 | ||||||
Incentive tax reserve | 103 | ||||||
Reserve for mandatory dividends not distributed | 1,420 | ||||||
Profit reserves | |||||||
Restated [member] | |||||||
BasicEarningsPerShareLineItems [Line Items] | |||||||
Capital reserves and shares in Treasury | [2] | 2,250 | R$ 2250 | ||||
Legal reserve | 853 | 853 | |||||
Statutory reserve | 57 | 57 | |||||
Retained earnings reserve | 5,500 | 3,965 | |||||
Unrealized profit reserve | 835 | ||||||
Incentive tax reserve | 85 | 67 | |||||
Reserve for mandatory dividends not distributed | 1,420 | 1,420 | |||||
Profit reserves | R$ 212 | [2] | R$ 6362 | R$ 145 | [2] | ||
[1] | See note 2.8. | ||||||
[2] | For further details of restatement of comparative balances, see Note 2.8 |
26. EQUITY AND REMUNERATION T_8
26. EQUITY AND REMUNERATION TO SHAREHOLDERS (Details 5) R$ in Millions | Dec. 31, 2020BRL (R$) |
Disclosure of reserves within equity [line items] | |
Dividends withheld, arising from the net income | R$ 1420 |
Dividends Withheld, Arising From The Profit For 2015 [member] | |
Disclosure of reserves within equity [line items] | |
Dividends withheld, arising from the net income | 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 |
26. EQUITY AND REMUNERATION T_9
26. EQUITY AND REMUNERATION TO SHAREHOLDERS (Details 6) - BRL (R$) R$ / shares in Units, R$ in Millions | Apr. 30, 2021 | Jan. 02, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of Dividends [line items] | |||||||||
Equity | R$ 17478 | R$ 15891 | [1],[2] | R$ 15939 | [3] | ||||
Net income for the year | 2,864 | ||||||||
Unrealized profit reserve | R$ 835 | (835) | |||||||
Reversal of the unrealized profit reserve established in 2019 | 835 | ||||||||
Withholding income tax on Interest on equity | 50 | 35 | 17 | ||||||
Minimum Dividend under the by-laws including income tax on interest on equity | 1,482 | ||||||||
Dividends recorded, as specified in the by-laws Interest on Equity | 553 | 400 | 210 | ||||||
Ordinary dividends | 929 | ||||||||
Total dividends for the common shares | R$ 364 | ||||||||
Restated [member] | |||||||||
Disclosure of Dividends [line items] | |||||||||
Percentage applied to the nominal value of the preferred shares | 6.00% | ||||||||
Equity | R$ 16084 | [1] | R$ 16103 | [1] | 16,084 | [3] | R$ 14296 | ||
Net income for the year | R$ 1722 | [2] | 3,194 | [1] | 1,722 | [1] | |||
Unrealized profit reserve | 835 | ||||||||
Minimum Dividend under the by-laws including income tax on interest on equity | 764 | 867 | |||||||
Ordinary dividends | R$ 364 | R$ 657 | |||||||
Mandatory dividends (including withholding income tax on Interest on Equity) | R$ 0.59 | R$ 0.52 | |||||||
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] | |||||||||
Disclosure of Dividends [line items] | |||||||||
Total dividends for the common shares | R$ 986 | R$ 577 | R$ 509 | ||||||
Minimum dividends required by the by-laws for the preferred shares | R$ 0.50 | ||||||||
Mandatory dividends (including withholding income tax on Interest on Equity) | 0.99 | ||||||||
Dividends proposed: Preferred (PN) shares | R$ 0.99 | ||||||||
Preferred Shares [member] | Restated [member] | |||||||||
Disclosure of Dividends [line items] | |||||||||
Minimum dividends required by the by-laws for the preferred shares | R$ 0.50 | R$ 0.50 | |||||||
Dividends proposed: Common (ON) shares | 0.52 | 0.59 | |||||||
Dividends proposed: Preferred (PN) shares | R$ 0.52 | R$ 0.59 | |||||||
Common Shares [member] | |||||||||
Disclosure of Dividends [line items] | |||||||||
Total dividends for the common shares | R$ 496 | R$ 255 | R$ 290 | ||||||
Dividends proposed: Common (ON) shares | R$ 0.99 | ||||||||
Common Shares [member] | Restated [member] | |||||||||
Disclosure of Dividends [line items] | |||||||||
Dividends proposed: Common (ON) shares | R$ 0.52 | R$ 0.59 | |||||||
Dividends proposed: Preferred (PN) shares | R$ 0.52 | R$ 0.59 | |||||||
Dividend Distribution [member] | |||||||||
Disclosure of Dividends [line items] | |||||||||
Net income for the year | R$ 2864 | R$ 3127 | R$ 1700 | ||||||
Mandatory dividends - 50% of Net income | 1,432 | ||||||||
Dividend Distribution [member] | Preferred Shares [member] | |||||||||
Disclosure of Dividends [line items] | |||||||||
Nominal value of the preferred shares | 5,055 | 4,856 | 4,856 | ||||||
Preferred shares | R$ 5055 | R$ 4856 | R$ 4856 | ||||||
Percentage applied to the nominal value of the preferred shares | 1000.00% | 10.00% | 10.00% | ||||||
Amount of the dividends by the first payment criterion | R$ 506 | R$ 486 | R$ 486 | ||||||
Preferred shares as a percentage of Equity (net of shares held in Treasury) | 6656.00% | 66.56% | 66.56% | ||||||
Percentage applied to the portion of Equity represented by the preferred shares | 300.00% | 3.00% | 3.00% | ||||||
Amount of the dividends by the second payment criterion | R$ 349 | R$ 371 | R$ 291 | ||||||
Minimum Dividends required by the Bylaws for the preferred shares | R$ 506 | 486 | 486 | ||||||
Mandatory dividends - 50% of Net income | R$ 1564 | R$ 850 | |||||||
[1] | For further details of restatement of comparative balances, see Note 2.8 | ||||||||
[2] | See note 2.8. | ||||||||
[3] | 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. On August 27, 2020, Aneel published the Dispatch 2,508/2020-SRM-SGT, which set new amounts for distributors' over contracting for the years 2016 and 2017, based on a new valuation criterion established by Aneel Technical Note 97/2020-SRM-SGT - not contained in the regulatory rules which were currently in force. As a result, Cemig D filed an appeal with the Council of Aneel, for the amounts of distribution agents' over contracting to be reset in accordance with the calculation criteria based on maximum effort contained in Aneel Normative Resolution 453/2011. The Company's position on this case is reinforced by the fact that the Brazilian Energy Distributors' Association (Abradee) filed a similar appeal, supported by the opinion of contracted legal advisersadvisors. The Company has no expectation of loss in relation to realization of these amounts. The Company recognizes this receivable asset, in the amount of R$222 on December 31, 2020, as Other financial components' to be ratified. At the reporting date for this financial statements, this matter was still pending analysis by Aneel. |
26. EQUITY AND REMUNERATION _10
26. EQUITY AND REMUNERATION TO SHAREHOLDERS (Details 7) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of changes in equity [abstract] | ||
Beginning balance | R$ 744 | R$ 864 |
Proposed dividends | 1,482 | 764 |
Proposed dividends - Non-controlling interests | 1 | |
Withholding income tax on interest on capital | (50) | (35) |
Dividends retained - Minas Gerais state government (Note 11) | (130) | (148) |
Dividends paid | 598 | (701) |
Ending balance | R$ 1449 | R$ 744 |
26. EQUITY AND REMUNERATION _11
26. EQUITY AND REMUNERATION TO SHAREHOLDERS (Details Narrative) - BRL (R$) R$ / shares in Units, R$ in Millions | Apr. 30, 2021 | Jul. 31, 2020 | Jul. 31, 2020 | Jan. 02, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Earning per share (in dollars per share) | R$ 1.69 | ||||||||||
Percentage of net income | 5.00% | ||||||||||
Share capital | R$ 7594 | R$ 7294 | [1] | R$ 7294 | |||||||
Number of shares issued | 60,000,000 | 60,000,000 | 1,518,752,601 | 1,458,752,601 | 1,458,752,601 | ||||||
Nominal Value | R$ 5.00 | R$ 5.00 | |||||||||
Net profit share | R$ 2704 | ||||||||||
Unrealized profit reserve | R$ 835 | R$ 835 | |||||||||
Mandatory dividends payout percentage | 6.00% | ||||||||||
NET INCOME FOR THE YEAR | 2,864 | R$ 2865 | R$ 3194 | [1] | R$ 1764 | [1] | |||||
Realization of the deemed cost of PP&E | 17 | ||||||||||
Prior periods adjustments | R$ 212 | ||||||||||
Incentives tax reserve | 18 | R$ 18 | R$ 9 | ||||||||
Profit reserve exceed share capital | 1,529 | ||||||||||
Increase in share capital | 174,609,467 | ||||||||||
Capitalization of profit reserves | R$ 300 | R$ 873 | |||||||||
Nominal unit value | R$ 5.00 | ||||||||||
Share bonus percentage | 4.11% | ||||||||||
Description of allocation of net income | § R$142 to be held in the Legal Reserve, as established in Brazilian corporate law. § R$1,482 for payment of the mandatory minimum dividends to Company’s holders, as follows: - R$553 in the form of Interest on Equity, to be paid in two equal installments, by June 30, 2021 and by December 31, 2021, to shareholders whose names were on the Company’s Nominal Share Registry on September 22, 2020 and December 23, 2020; - R$929 as dividends of 2020, to be paid by December 31, 2021, to holders whose names are in the Company’s Nominal Share Registry on the date of the AGM. R$1,450 to be held in the Retained earnings reserve, to ensure the Company’s consolidated investments planned for 2021, 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. | ||||||||||
Description of issuance of new shares | Issuance of 174.609.467 new shares (58.366.345 ordinary shares and 116.243.122 preference shares), with nominal unit value of R$5.00. | ||||||||||
Bottom Of Range [member] | |||||||||||
Number of shares issued | 68,621,263 | ||||||||||
Increase in share capital | R$ 7294 | R$ 7594 | |||||||||
Top of Range [member] | |||||||||||
Number of shares issued | 303,934,060 | ||||||||||
Increase in share capital | R$ 7594 | R$ 8467 | |||||||||
Common Shares [member] | |||||||||||
Number of shares issued | 20,056,076 | 20,056,076 | 507,670,289 | 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% | ||||||||||
Increase in share capital | R$ 58366345 | ||||||||||
Preferred Shares [member] | |||||||||||
Number of shares issued | 39,943,924 | 39,943,924 | 1,011,082,312 | 971,138,388 | 971,138,388 | ||||||
Minimum percentage right to appoint board member | 10.00% | ||||||||||
Increase in share capital | R$ 58366345 | ||||||||||
Preferred Shares [member] | Bottom Of Range [member] | |||||||||||
Dividend paid | R$ 506 | ||||||||||
Restated [member] | |||||||||||
Earning per share (in dollars per share) | R$ 1.89 | R$ 1.02 | |||||||||
Share capital | [2] | R$ 7294 | R$ 7294 | ||||||||
Unrealized profit reserve | R$ 835 | ||||||||||
NET INCOME FOR THE YEAR | R$ 1764 | [1] | 3,195 | [2] | R$ 1764 | [2] | |||||
Profit reserve exceed share capital | R$ 537 | ||||||||||
[1] | See note 2.8. | ||||||||||
[2] | For further details of restatement of comparative balances, see Note 2.8 |
27. REVENUE (Details)
27. REVENUE (Details) - BRL (R$) R$ in Millions | Jan. 02, 2019 | [2] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
RevenueLineItems [Line Items] | ||||||||
Revenue from supply of energy | R$ 26432 | R$ 26927 | R$ 24872 | |||||
Revenue from use of the electricity distribution systems (TUSD) | 3,022 | |||||||
CVA, and Other financial components | 455 | |||||||
Reimbursement of PIS/Pasep and Cofins over ICMS credits to customers - realization | [1] | (266) | ||||||
Transmission operation and maintenance revenue | 280 | |||||||
Transmission construction revenue | 201 | |||||||
Interest revenue arising from the financing component in the transmission contract asset | 438 | |||||||
Generation assets - indemnity revenue | ||||||||
Distribution construction revenue | 1,436 | |||||||
Adjustment to expectation of cash flow from indemnifiable financial assets of distribution concession | 16 | |||||||
Revenue on financial updating of the Concession Grant Fee | 347 | |||||||
Energy transactions on the CCEE | 154 | |||||||
Mechanism for the sale of surplus | 234 | |||||||
Supply of gas | 2,011 | |||||||
Fine for violation of service continuity indicator | (51) | |||||||
Recovery of PIS/Pasep and Cofins (note 10) | ||||||||
Other operating revenues | 1,709 | 1,721 | 1,585 | |||||
Deductions on revenue | (11,722) | |||||||
NET REVENUE | R$ 25228 | 25,487 | [2] | 22,266 | ||||
Restated [member] | ||||||||
RevenueLineItems [Line Items] | ||||||||
Revenue from supply of energy | 26,928 | |||||||
Revenue from use of the electricity distribution systems (TUSD) | 2,722 | 2,045 | ||||||
CVA, and Other financial components | 58 | 1,973 | ||||||
Reimbursement of PIS/Pasep and Cofins over ICMS credits to customers - realization | [3] | |||||||
Transmission operation and maintenance revenue | 352 | 343 | ||||||
Transmission construction revenue | 312 | 138 | ||||||
Interest revenue arising from the financing component in the transmission contract asset | 328 | 311 | ||||||
Generation assets - indemnity revenue | 55 | |||||||
Distribution construction revenue | 980 | 802 | ||||||
Adjustment to expectation of cash flow from indemnifiable financial assets of distribution concession | 18 | |||||||
Revenue on financial updating of the Concession Grant Fee | 318 | 321 | ||||||
Energy transactions on the CCEE | 432 | 217 | ||||||
Supply of gas | 2,298 | 1,995 | ||||||
Fine for violation of service continuity indicator | (58) | (44) | ||||||
Recovery of PIS/Pasep and Cofins (note 10) | 1,428 | |||||||
Other operating revenues | 1,721 | 1,585 | ||||||
Deductions on revenue | (12,351) | (12,314) | ||||||
NET REVENUE | R$ 22299 | R$ 25486 | [3],[4] | R$ 22299 | [3] | |||
[1] | For more information, see note 9 from this financial statements. | |||||||
[2] | See note 2.8. | |||||||
[3] | For further details of restatement of comparative balances, see Note 2.8 | |||||||
[4] | Recognition of the profit margin associated to the performance obligation to construct and upgrade the transmission infrastructure, as well as the interest revenue resulting from the financing component; |
27. REVENUE (Details 1)
27. REVENUE (Details 1) R$ in Millions | 12 Months Ended | ||||||
Dec. 31, 2020BRL (R$)GW | Dec. 31, 2019BRL (R$)GW | Dec. 31, 2018BRL (R$)GW | |||||
Disclosure of revenue [line items] | |||||||
Supply of electricity in GWh | GW | [1] | 39,368 | 42,176 | 43,522 | |||
Own consumption | GW | [1] | 34 | 38 | 41 | |||
Unbilled revenue | GW | [1] | ||||||
Supply of electricity including own consumption and not invoiced | GW | [1] | 39,402 | 42,214 | 43,563 | |||
Wholesale supply to other concession holders | GW | [1] | 13,907 | [2] | 11,920 | [2] | 11,992 | |
Wholesale supply unbilled, net | GW | [1] | 0 | |||||
Total | GW | [1] | 53,309 | 54,134 | 55,555 | |||
Revenue from sale of electricity | R$ | R$ 23009 | R$ 23918 | R$ 21834 | ||||
Own consumption | R$ | 0 | 0 | |||||
Unbilled revenue | R$ | 9 | 134 | 48 | ||||
Supply of electricity including own consumption and not invoiced | R$ | 23,018 | 24,052 | 21,882 | ||||
Wholesale supply to other concession holders | R$ | [2] | 3,363 | 2,943 | 3,002 | |||
Wholesale supply unbilled, net | R$ | 51 | (67) | (12) | ||||
Revenue from sale of electricity | R$ | R$ 26432 | R$ 26927 | R$ 24872 | ||||
Residential [member] | Electricity distribution [member] | |||||||
Disclosure of revenue [line items] | |||||||
Supply of electricity in GWh | GW | 10,981 | [1] | 10,538 | [1] | 10,267 | [3] | |
Revenue from sale of electricity | R$ | R$ 9875 | R$ 9668 | R$ 8658 | ||||
Industrial [member] | Electricity distribution [member] | |||||||
Disclosure of revenue [line items] | |||||||
Supply of electricity in GWh | GW | 12,731 | [1] | 14,873 | [1] | 17,689 | [3] | |
Revenue from sale of electricity | R$ | R$ 4171 | R$ 4760 | R$ 4892 | ||||
Commercial, services and others [member] | Electricity distribution [member] | |||||||
Disclosure of revenue [line items] | |||||||
Supply of electricity in GWh | GW | 8,571 | [1] | 9,335 | [1] | 8,380 | [3] | |
Revenue from sale of electricity | R$ | R$ 4979 | R$ 5439 | R$ 4683 | ||||
Rural [member] | Electricity distribution [member] | |||||||
Disclosure of revenue [line items] | |||||||
Supply of electricity in GWh | GW | 3,766 | [1] | 3,795 | [1] | 3,615 | [3] | |
Revenue from sale of electricity | R$ | R$ 2190 | R$ 2058 | R$ 1794 | ||||
Public authorities [member] | Electricity distribution [member] | |||||||
Disclosure of revenue [line items] | |||||||
Supply of electricity in GWh | GW | 714 | [1] | 905 | [1] | 871 | [3] | |
Revenue from sale of electricity | R$ | R$ 522 | R$ 654 | R$ 575 | ||||
Public lighting [member] | Electricity distribution [member] | |||||||
Disclosure of revenue [line items] | |||||||
Supply of electricity in GWh | GW | 1,243 | [1] | 1,357 | [1] | 1,384 | [3] | |
Revenue from sale of electricity | R$ | R$ 550 | R$ 614 | R$ 585 | ||||
Public services [member] | Electricity distribution [member] | |||||||
Disclosure of revenue [line items] | |||||||
Supply of electricity in GWh | GW | 1,362 | [1] | 1,373 | [1] | 1,316 | [3] | |
Revenue from sale of electricity | R$ | R$ 722 | R$ 725 | R$ 646 | ||||
[1] | Data not reviewed 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. | ||||||
[3] | Data not audited by external auditors. |
27. REVENUE (Details 2)
27. REVENUE (Details 2) - GW | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
RevenueLineItems [Line Items] | |||
Total amount of energy transported | [1] | 20,259 | 19,401 |
Industrial [member] | |||
RevenueLineItems [Line Items] | |||
Total amount of energy transported | [1] | 18,612 | 17,723 |
Commercial, services and others [member] | |||
RevenueLineItems [Line Items] | |||
Total amount of energy transported | [1] | 1,300 | 1,320 |
Rural [member] | |||
RevenueLineItems [Line Items] | |||
Total amount of energy transported | [1] | 32 | 17 |
Concessionaires [member] | |||
RevenueLineItems [Line Items] | |||
Total amount of energy transported | [1] | 315 | 341 |
[1] | Data not reviewed by external auditors |
27. REVENUE (Details 3)
27. REVENUE (Details 3) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue [abstract] | |||
Construction and upgrades revenue | R$ 201 | R$ 312 | R$ 138 |
Construction and upgrades costs | (147) | (220) | (96) |
Margin | R$ 54 | R$ 92 | R$ 42 |
Mark-up (%) | 36.73% | 41.82% | 43.75% |
Operation and maintenance revenue | R$ 279 | R$ 352 | R$ 343 |
Operation and maintenance cost | (223) | (388) | (215) |
Margin | R$ 56 | R$ 36 | R$ 128 |
Mark-up (%) | 25.11% | (9.28%) | 59.53% |
27. REVENUE (Details 4)
27. REVENUE (Details 4) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of revenue [line items] | ||||
Other revenue | R$ 1709 | R$ 1721 | R$ 1585 | |
Subsidies [member] | ||||
Disclosure of revenue [line items] | ||||
Other revenue | [1] | 1,395 | 1,266 | 1,136 |
Services rendered [member] | ||||
Disclosure of revenue [line items] | ||||
Other revenue | 139 | 183 | 188 | |
Charged Service [member] | ||||
Disclosure of revenue [line items] | ||||
Other revenue | 11 | 17 | 14 | |
Rental and leasing [member] | ||||
Disclosure of revenue [line items] | ||||
Other revenue | R$ 164 | 189 | 90 | |
Other [member] | ||||
Disclosure of revenue [line items] | ||||
Other revenue | 1 | 12 | ||
Reimbursement For Decontracted Supply [member] | ||||
Disclosure of revenue [line items] | ||||
Other revenue | [2] | 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. | |||
[2] | Reimbursement for suspension of energy supply -Renova. |
27. REVENUE (Details 5)
27. REVENUE (Details 5) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of revenue [line items] | |||
Taxes on revenues | R$ 8798 | ||
Charges to the consumer | 2,924 | ||
Deductions from revenue | 11,722 | ||
Restated [member] | |||
Disclosure of revenue [line items] | |||
Taxes on revenues | R$ 9297 | R$ 8767 | |
Charges to the consumer | 3,054 | 3,547 | |
Deductions from revenue | 12,351 | 12,314 | |
Research and Development (R&D) [member] | |||
Disclosure of revenue [line items] | |||
Charges to the consumer | 43 | ||
Research and Development (R&D) [member] | Restated [member] | |||
Disclosure of revenue [line items] | |||
Charges to the consumer | 41 | 38 | |
National Scientific and Technological Development Fund (FNDCT) [member] | |||
Disclosure of revenue [line items] | |||
Charges to the consumer | 43 | ||
National Scientific and Technological Development Fund (FNDCT) [member] | Restated [member] | |||
Disclosure of revenue [line items] | |||
Charges to the consumer | 41 | 38 | |
Customer charges - Proinfa alternative sources program [member] | |||
Disclosure of revenue [line items] | |||
Charges to the consumer | 39 | ||
Customer charges - Proinfa alternative sources program [member] | Restated [member] | |||
Disclosure of revenue [line items] | |||
Charges to the consumer | 52 | 40 | |
Other Taxes [member] | |||
Disclosure of revenue [line items] | |||
Taxes on revenues | 5 | ||
Other Taxes [member] | Restated [member] | |||
Disclosure of revenue [line items] | |||
Taxes on revenues | 7 | 8 | |
Pis and pasep tax [member] | |||
Disclosure of revenue [line items] | |||
Taxes on revenues | 481 | ||
Pis and pasep tax [member] | Restated [member] | |||
Disclosure of revenue [line items] | |||
Taxes on revenues | 524 | 553 | |
ICMS [member] | |||
Disclosure of revenue [line items] | |||
Taxes on revenues | 6,098 | ||
ICMS [member] | Restated [member] | |||
Disclosure of revenue [line items] | |||
Taxes on revenues | 6,358 | 5,657 | |
Cofins [member] | |||
Disclosure of revenue [line items] | |||
Taxes on revenues | 2,214 | ||
Cofins [member] | Restated [member] | |||
Disclosure of revenue [line items] | |||
Taxes on revenues | 2,408 | 2,549 | |
Energy services inspection fee [member] | |||
Disclosure of revenue [line items] | |||
Charges to the consumer | 35 | ||
Energy services inspection fee [member] | Restated [member] | |||
Disclosure of revenue [line items] | |||
Charges to the consumer | 30 | 26 | |
Customer charges - the 'Flag Tariff' system [member] | |||
Disclosure of revenue [line items] | |||
Charges to the consumer | 149 | ||
Customer charges - the 'Flag Tariff' system [member] | Restated [member] | |||
Disclosure of revenue [line items] | |||
Charges to the consumer | 294 | 655 | |
Royalties for use of water resources [member] | |||
Disclosure of revenue [line items] | |||
Charges to the consumer | 62 | ||
Royalties for use of water resources [member] | Restated [member] | |||
Disclosure of revenue [line items] | |||
Charges to the consumer | 43 | 45 | |
Energy System Expansion Research (EPE of MME) [member] | |||
Disclosure of revenue [line items] | |||
Charges to the consumer | 21 | ||
Energy System Expansion Research (EPE of MME) [member] | Restated [member] | |||
Disclosure of revenue [line items] | |||
Charges to the consumer | 20 | 19 | |
Energy Development Account (CDE) [member] | |||
Disclosure of revenue [line items] | |||
Charges to the consumer | 2,443 | ||
Energy Development Account (CDE) [member] | Restated [member] | |||
Disclosure of revenue [line items] | |||
Charges to the consumer | 2,448 | 2,603 | |
Energy Efficiency Program (PEE) [member] | |||
Disclosure of revenue [line items] | |||
Charges to the consumer | 73 | ||
Energy Efficiency Program (PEE) [member] | Restated [member] | |||
Disclosure of revenue [line items] | |||
Charges to the consumer | 69 | 64 | |
Global Reversion Reserve (RGR) [member] | |||
Disclosure of revenue [line items] | |||
Charges to the consumer | R$ 16 | ||
Global Reversion Reserve (RGR) [member] | Restated [member] | |||
Disclosure of revenue [line items] | |||
Charges to the consumer | R$ 16 | R$ 19 |
27. REVENUE (Details Narrative)
27. REVENUE (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue [abstract] | ||
Average of the implicit rates | 6.86% | |
Non-recurring tax provision due | R$ 135 | |
Tariff flag revenue | 47 | |
Revenue recognized for the tariff subsidies | R$ 1035 | R$ 1079 |
28. OPERATING COSTS AND EXPEN_3
28. OPERATING COSTS AND EXPENSES (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Disclosure Of Operating Costs And Expenses [line items] | |||||
Personnel | R$ 1276 | R$ 1410 | |||
Employees' and managers' profit sharing | 142 | 77 | |||
Post-employment benefits (reversals) - Note 24 | 438 | 337 | |||
Materials | 79 | R$ 91 | 104 | ||
Outsourced services | 1,265 | 1,239 | 1,087 | ||
Energy bought for resale | 12,111 | 11,084 | |||
Depreciation and amortization | [1] | 989 | 835 | ||
Operating provisions and adjustments for operating losses | 423 | 466 | [2] | ||
Charges for use of the national grid | 1,748 | 1,480 | |||
Gas bought for resale | 1,083 | 1,238 | |||
Construction costs | 1,581 | 1,200 | 897 | ||
Other operating expenses, net | 297 | 405 | |||
Operating costs and expenses | R$ 21432 | 22,475 | 19,420 | ||
Restated [member] | |||||
Disclosure Of Operating Costs And Expenses [line items] | |||||
Personnel | 1,272 | ||||
Employees' and managers' profit sharing | 263 | ||||
Post-employment benefits (reversals) - Note 24 | 408 | ||||
Materials | 91 | ||||
Outsourced services | 1,239 | ||||
Energy bought for resale | 11,286 | ||||
Depreciation and amortization | [1] | 958 | |||
Operating provisions and adjustments for operating losses | [3] | 2,401 | R$ 466 | ||
Charges for use of the national grid | 1,426 | ||||
Gas bought for resale | 1,436 | ||||
Construction costs | 1,200 | ||||
Other operating expenses, net | 494 | ||||
Operating costs and expenses | R$ 22474 | ||||
[1] | Net of PIS/Pasep and Cofins taxes applicable to amortization of the right-of-use assets in the amount of R$2. | ||||
[2] | See note 2.8. | ||||
[3] | For further details of restatement of comparative balances, see Note 2.8 |
28. OPERATING COSTS AND EXPEN_4
28. OPERATING COSTS AND EXPENSES (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information of outsourced services [abstract] | |||
Meter reading and bill delivery | R$ 127 | R$ 128 | R$ 129 |
Communication | 71 | 69 | 80 |
Maintenance and conservation of electrical facilities and equipment | 443 | 404 | 323 |
Building conservation and cleaning | 108 | 110 | 110 |
Contracted labor | 9 | 17 | 21 |
Freight and airfares | 2 | 7 | 7 |
Accommodation and meals | 9 | 14 | 12 |
Security services | 19 | 18 | 20 |
Consultant | 41 | 24 | 16 |
Maintenance and conservation of furniture and utensils | 6 | 5 | 4 |
Information technology | 80 | 63 | 59 |
Maintenance and conservation of vehicles | 2 | 3 | 2 |
Disconnection and reconnection | 39 | 70 | 62 |
Environmental services | 10 | 14 | 14 |
Legal services | 21 | 28 | 27 |
Tree pruning | 48 | 46 | 28 |
Cleaning of power line pathways | 75 | 61 | 41 |
Copying and legal publications | 17 | 21 | 21 |
Inspection of customer units | 35 | 14 | 10 |
Other expenses | 103 | 123 | 101 |
Outsourced services | R$ 1265 | R$ 1239 | R$ 1087 |
28. OPERATING COSTS AND EXPEN_5
28. OPERATING COSTS AND EXPENSES (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure Of Operating Costs And Expenses [line items] | ||||
Energy purchased for resale | R$ 12111 | R$ 11286 | [1] | R$ 11084 |
Supply from itaipu binacional [member] | ||||
Disclosure Of Operating Costs And Expenses [line items] | ||||
Energy purchased for resale | 1,990 | 1,429 | 1,351 | |
Physical guarantee quota contracts [member] | ||||
Disclosure Of Operating Costs And Expenses [line items] | ||||
Energy purchased for resale | 780 | 715 | 679 | |
Quotas for Angra I and II nuclear plants [member] | ||||
Disclosure Of Operating Costs And Expenses [line items] | ||||
Energy purchased for resale | 303 | 269 | 267 | |
Spot market [member] | ||||
Disclosure Of Operating Costs And Expenses [line items] | ||||
Energy purchased for resale | 1,497 | 1,886 | 1,818 | |
Proinfa program [member] | ||||
Disclosure Of Operating Costs And Expenses [line items] | ||||
Energy purchased for resale | 318 | 376 | 324 | |
Bilateral contracts [member] | ||||
Disclosure Of Operating Costs And Expenses [line items] | ||||
Energy purchased for resale | 333 | 311 | 484 | |
Energy acquired in regulated market auctions [member] | ||||
Disclosure Of Operating Costs And Expenses [line items] | ||||
Energy purchased for resale | 3,334 | 3,021 | 3,346 | |
Energy acquired in the free market [member] | ||||
Disclosure Of Operating Costs And Expenses [line items] | ||||
Energy purchased for resale | 3,977 | 4,098 | 3,871 | |
Distributed generation ('geracao distribuida') [member] | ||||
Disclosure Of Operating Costs And Expenses [line items] | ||||
Energy purchased for resale | 678 | 207 | ||
PIS/pasep and cofins credits [member] | ||||
Disclosure Of Operating Costs And Expenses [line items] | ||||
Energy purchased for resale | R$ 1099 | R$ 1026 | R$ 1056 | |
[1] | See note 2.8. |
28. OPERATING COSTS AND EXPEN_6
28. OPERATING COSTS AND EXPENSES (Details 3) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure Of Operating Provisions Reversals [line items] | ||||
Estimated losses on doubtful accounts receivables | [1] | R$ 147 | R$ 238 | R$ 264 |
Estimated losses on other accounts receivables | [2] | 11 | (4) | |
Estimated losses on accounts receivables from related parties | [3] | 37 | 688 | |
Contingency provisions (reversals) | ||||
Labor claims | [4] | 46 | 136 | 42 |
Civil | [4] | 43 | 24 | 13 |
Tax | [4],[5] | 75 | 1,228 | (5) |
Other | [4] | 22 | 12 | 1 |
Other provisions | [4] | 186 | 1,400 | 51 |
Operating provision (Reversals) | [4] | 370 | 2,337 | 311 |
Adjustment for losses | ||||
Provision for losses | 53 | 64 | 155 | |
Operating provision (reversals) and adjustment for losses , Total | 423 | 2,401 | 466 | |
Written put options [member] | RME and LEPSA [member] | ||||
Adjustment for losses | ||||
Provision for losses | 48 | |||
Written put options [member] | S A A G lnvestimentos S A [member] | ||||
Adjustment for losses | ||||
Provision for losses | R$ 53 | R$ 64 | R$ 107 | |
[1] | The expected losses on receivables are presented as selling expenses in the Statement of Income. | |||
[2] | The estimated losses on other accounts receivable are presented in the consolidated Statement of income as operating expenses. | |||
[3] | Estimated losses on accounts receivable from Renova, as a result of the assessment of the jointly-controlled entity credit risk. | |||
[4] | The provisions for contingencies of the holding company are presented in the consolidated statement of income for the year as operating expenses. | |||
[5] | The provision recognized in 2019 is due to the Company's reassessment, based on the opinion of its legal advisers, of the probability of loss in legal actions disputing social security contributions on the payments of profit-sharing to its employees from 1999 to 2016. For more information, see note 25. |
28. OPERATING COSTS AND EXPEN_7
28. OPERATING COSTS AND EXPENSES (Details 4) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of construction cost [abstract] | |||
Personnel and managers | R$ 83 | R$ 85 | R$ 70 |
Materials | 775 | 595 | 379 |
Outsourced services | 598 | 421 | 364 |
Others | 125 | 99 | 84 |
Construction cost | R$ 1581 | R$ 1200 | R$ 897 |
28. OPERATING COSTS AND EXPEN_8
28. OPERATING COSTS AND EXPENSES (Details 5) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure Of Operating Costs And Expenses [line items] | ||||
Leasing and rentals | R$ 11 | R$ 93 | ||
Advertising | 7 | 19 | ||
Own consumption of energy | 24 | 27 | ||
Subsidies and donations | 22 | 22 | ||
Onerous concession | 3 | 3 | ||
Insurance | 25 | 7 | ||
CCEE annual charge | 6 | 6 | ||
Net loss (gain) on deactivation and disposal of assets | 81 | 7 | ||
Forluz - Administrative running cost | 30 | 28 | ||
Collection agents | 86 | 78 | ||
Obligations deriving from investment contracts | [1] | 9 | ||
Taxes and charges | 7 | 9 | ||
Other expenses | [2] | (14) | 106 | |
Other operating expenses (revenues), net | R$ 297 | R$ 405 | ||
Restated [member] | ||||
Disclosure Of Operating Costs And Expenses [line items] | ||||
Leasing and rentals | R$ 20 | |||
Advertising | 9 | |||
Own consumption of energy | 21 | |||
Subsidies and donations | 40 | |||
Onerous concession | 3 | |||
Insurance | 12 | |||
CCEE annual charge | 6 | |||
Net loss (gain) on deactivation and disposal of assets | 88 | |||
Forluz - Administrative running cost | 30 | |||
Collection agents | 88 | |||
Obligations deriving from investment contracts | [1] | 32 | ||
Taxes and charges | 10 | |||
Other expenses | [2] | 135 | ||
Other operating expenses (revenues), net | R$ 494 | |||
[1] | 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$119 (R$98 on December 31, 2019), of which Cemig is responsible for R$41 (R$32 on December 31, 2019). | |||
[2] | Includes the impairment loss recognized for intangible asset relating to the authorization for wind power generation granted to Volta do Rio in the amount of R$22. |
28. OPERATING COSTS AND EXPEN_9
28. OPERATING COSTS AND EXPENSES (Details Narrative) R$ in Millions | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2019BRL (R$)N | Dec. 31, 2020BRL (R$)N | Dec. 31, 2019BRL (R$) | |
Disclosure Of Operating Costs And Expenses [line items] | |||
Period of eligibility for the severance program | 25 years | ||
Penalty in percentage | 20.00% | ||
Legal payments for severance percentage | 50.00% | ||
Programmed voluntary retirement plan expense | R$ 21 | ||
Number of employees completing severance | N | 155 | ||
Right of use | R$ 9 | R$ 32 | |
Action provisioned at the cost | 119 | 98 | |
Impairment of intangible assets | 22 | ||
Cemig [member] | |||
Disclosure Of Operating Costs And Expenses [line items] | |||
Right of use | 41 | R$ 32 | |
PDVP 2020 [member] | |||
Disclosure Of Operating Costs And Expenses [line items] | |||
Programmed voluntary retirement plan expense | R$ 59 | ||
Number of employees completing severance | N | 396 |
29. FINANCE INCOME AND EXPENS_3
29. FINANCE INCOME AND EXPENSES (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
FINANCE INCOME | |||||
Income from financial investments | R$ 95 | R$ 102 | R$ 116 | ||
Interest on sale of energy | 399 | 361 | 352 | ||
Monetary variations | 42 | 30 | 19 | ||
Monetary variations - CVA (Note 14) | 32 | 105 | 62 | ||
Monetary updating of escrow deposits | 53 | 50 | 34 | ||
PIS/Pasep and Cofins charged on finance income | [1] | (96) | (128) | (68) | |
Gains on financial instruments - swap (Note 31) | 1,753 | 998 | 893 | ||
Inflation adjustment in arbitration case | 77 | ||||
Borrowing costs paid by related parties | 30 | 48 | 56 | ||
Monetary updating on PIS/Pasep and Cofins taxes credits over ICMS (Note 9) | 42 | 1,580 | |||
Others | 95 | 61 | 165 | ||
Finance income | 2,445 | 3,207 | [2] | 1,706 | |
FINANCE EXPENSES | |||||
Charges on loans and financings (Note 22) | (1,178) | (1,227) | (1,257) | ||
Cost of debt - amortization of transaction cost (Note 22) | (15) | (38) | (33) | ||
Foreign exchange variations - loans and financing (Note 22) | (1,742) | (226) | (582) | ||
Foreign exchange variations - Itaipu | (47) | (13) | (29) | ||
Monetary updating - loans and financings (Note 22) | (187) | (142) | (134) | ||
Monetary updating - onerous concessions | (9) | (3) | (3) | ||
Charges and monetary updating on post-employment obligations (Note 24) | (53) | (56) | (68) | ||
Monetary updating - Lease liabilities (Note 19) | (27) | (34) | |||
Finance income of P&D and PEE | (21) | (24) | (23) | ||
Others | (71) | (84) | (95) | ||
Finance costs | (3,350) | (1,847) | [2] | (2,224) | |
NET FINANCE INCOME (EXPENSES) | R$ 906 | R$ 1360 | R$ 518 | ||
[1] | The PIS/Pasep and Cofins expenses apply to Interest on Equity. | ||||
[2] | See note 2.8. |
30. RELATED PARTY TRANSACTION_2
30. RELATED PARTY TRANSACTIONS (Details) - BRL (R$) R$ in Millions | 12 Months Ended | |||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 20, 2019 | |||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | R$ 15456 | R$ 10354 | [1] | R$ 27796 | ||||
TOTAL NON-CURRENT | 38,627 | 40,172 | [1] | 32,059 | ||||
Current liabilities | 9,690 | 7,913 | [1] | 23,394 | ||||
Total non-current liabilities | 26,915 | 26,458 | [1] | 20,522 | ||||
Jointly-Controlled Entity [member] | Lightger [member] | Current [member] | Transactions With Energy [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | [2] | |||||||
Revenue | [2] | |||||||
Expenses | [2] | (21) | (21) | |||||
Current liabilities | [2] | 2 | ||||||
Jointly-Controlled Entity [member] | Hidreletrica pipoca [member] | Current [member] | Transactions With Energy [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | [2] | |||||||
Revenue | [2] | |||||||
Expenses | [2] | (19) | (19) | |||||
Current liabilities | [2] | 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] | ||||||||
TOTAL CURRENT | [2] | |||||||
Revenue | [2] | |||||||
Expenses | [2] | |||||||
Current liabilities | [2] | |||||||
Jointly-Controlled Entity [member] | Cia. Transirape de Transmissao [member] | Current [member] | Provision Of Services [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Revenue | [3] | |||||||
Expenses | [3] | |||||||
Jointly-Controlled Entity [member] | Renova [member] | Current [member] | Transactions With Energy [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | [2] | |||||||
Revenue | [2] | 4 | ||||||
Expenses | [2] | (81) | ||||||
Current liabilities | [2] | 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 | |||||||
TOTAL NON-CURRENT | ||||||||
Expenses | ||||||||
Total 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 | |||||||
TOTAL NON-CURRENT | ||||||||
Expenses | ||||||||
Total 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 | [4] | 7 | ||||||
TOTAL NON-CURRENT | [4] | |||||||
Expenses | [4] | |||||||
Current liabilities | [4] | |||||||
Jointly-Controlled Entity [member] | Renova [member] | Non Current [member] | Accounts Receivable - AFAC [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Revenue | [5] | 37 | 94 | 106 | ||||
TOTAL NON-CURRENT | [5] | 594 | ||||||
Expenses | [5] | (688) | ||||||
Total non-current liabilities | [5] | |||||||
Jointly-Controlled Entity [member] | Renova [member] | Non Current [member] | Loans From Related Parties [Member | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | [6] | 17 | ||||||
Revenue | [6] | |||||||
Expenses | [6] | |||||||
Current liabilities | [6] | 6 | ||||||
Jointly-Controlled Entity [member] | Retiro baixo [member] | Current [member] | Transactions With Energy [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | [2] | |||||||
Revenue | [2] | 5 | 4 | |||||
Expenses | [2] | (5) | (5) | |||||
Current liabilities | [2] | |||||||
Jointly-Controlled Entity [member] | Transudeste [member] | Current [member] | Transactions With Energy [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Revenue | [2] | |||||||
Expenses | [2] | |||||||
Jointly-Controlled Entity [member] | Transudeste [member] | Current [member] | Provision Of Services [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Revenue | [3] | |||||||
Expenses | [3] | |||||||
Jointly-Controlled Entity [member] | Transleste [member] | Current [member] | Transactions With Energy [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Revenue | [2] | |||||||
Expenses | [2] | |||||||
Jointly-Controlled Entity [member] | Transleste [member] | Current [member] | Provision Of Services [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Revenue | [3] | |||||||
Expenses | [3] | |||||||
Jointly-Controlled Entity [member] | Baguari energia [member] | Current [member] | Transactions With Energy [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | [2] | |||||||
Revenue | [2] | |||||||
Expenses | [2] | (8) | (11) | |||||
Current liabilities | [2] | 1 | 1 | |||||
Jointly-Controlled Entity [member] | Baguari energia [member] | Current [member] | Provision Of Services [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | [3] | |||||||
Revenue | [3] | 1 | 1 | |||||
Expenses | [3] | |||||||
Current liabilities | [3] | |||||||
Jointly-Controlled Entity [member] | TAESA [member] | Current [member] | Transactions With Energy [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | [2] | |||||||
Revenue | [2] | |||||||
Expenses | [2] | (96) | (109) | |||||
Current liabilities | [2] | 9 | 8 | |||||
Jointly-Controlled Entity [member] | TAESA [member] | Current [member] | Provision Of Services [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Revenue | [3] | 1 | ||||||
Expenses | [3] | |||||||
Jointly-Controlled Entity [member] | TAESA [member] | Current [member] | Provision Of Services [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Revenue | [3] | 1 | ||||||
Expenses | [3] | |||||||
Jointly-Controlled Entity [member] | Madeira energia (santo antonio plant) [member] | Current [member] | Transactions With Energy [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | [2] | 6 | 6 | |||||
Revenue | 35 | 68 | [2] | 70 | [2] | |||
Expenses | [2] | (730) | (778) | |||||
Current liabilities | [2] | 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] | ||||||||
TOTAL CURRENT | [7] | 4 | 42 | |||||
Revenue | [7] | 2 | 4 | 2 | ||||
Expenses | [7] | |||||||
Current liabilities | [7] | |||||||
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] | ||||||||
TOTAL CURRENT | [8] | 7 | ||||||
Revenue | [8] | 9 | 9 | |||||
TOTAL NON-CURRENT | [8] | |||||||
Expenses | [8] | |||||||
Current liabilities | [8] | |||||||
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 | [7] | |||||||
TOTAL NON-CURRENT | [7] | 4 | ||||||
Expenses | [7] | |||||||
Total non-current liabilities | [7] | |||||||
Jointly-Controlled Entity [member] | Light [member] | Current [member] | Transactions With Energy [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | [2] | |||||||
Revenue | [2] | 67 | 98 | 60 | ||||
Expenses | [2] | (2) | (9) | (1) | ||||
Current liabilities | [2] | 1 | 1 | |||||
Jointly-Controlled Entity [member] | Light [member] | Current [member] | Interest On Equity and Dividends [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | 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] | ||||||||
TOTAL CURRENT | [2] | |||||||
Revenue | 42 | 40 | [2] | 35 | [2] | |||
Expenses | [2] | (166) | (165) | |||||
Current liabilities | [2] | 14 | 13 | |||||
Jointly-Controlled Entity [member] | Alianca geracao [member] | Current [member] | Provision Of Services [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | [3] | 1 | 2 | |||||
Revenue | [3] | 5 | 7 | 12 | ||||
TOTAL NON-CURRENT | [3] | |||||||
Expenses | [3] | |||||||
Current liabilities | [3] | |||||||
Jointly-Controlled Entity [member] | Alianca geracao [member] | Current [member] | Interest On Equity and Dividends [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | 114 | 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] | ||||||||
TOTAL CURRENT | [9] | |||||||
Revenue | [9] | |||||||
Expenses | [9] | (32) | ||||||
Current liabilities | [9] | 32 | ||||||
Jointly-Controlled Entity [member] | Norte Energia [member] | Current [member] | Transactions With Energy [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | [2] | |||||||
Revenue | [2] | 22 | 16 | |||||
Expenses | [2] | (228) | (202) | |||||
Current liabilities | [2] | 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] | ||||||||
TOTAL CURRENT | [2] | |||||||
Revenue | [2] | |||||||
Expenses | [2] | |||||||
Current liabilities | [2] | |||||||
Jointly-Controlled Entity [member] | Hidreletrica cachoeirao [member] | Current [member] | Interest On Equity and Dividends [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | 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] | ||||||||
TOTAL CURRENT | [10] | |||||||
Revenue | [10] | |||||||
Expenses | [10] | |||||||
Current liabilities | [10] | 3 | ||||||
Jointly-Controlled Entity [member] | Hidreletrica Itaocara [member] | Current [member] | Adjustment For Losses [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | [11] | |||||||
Revenue | [11] | |||||||
Expenses | [11] | |||||||
Current liabilities | [11] | 22 | ||||||
Jointly-Controlled Entity [member] | Centroeste [member] | Current [member] | Interest On Equity and Dividends [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | 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] | ||||||||
TOTAL CURRENT | [12] | |||||||
Revenue | [12] | |||||||
Expenses | [12] | (197) | (192) | |||||
Current liabilities | [12] | 145 | 123 | |||||
Other Related Parties [member] | Forluz [member] | Current [member] | Supplementary Pension Contributions [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Revenue | [13] | |||||||
Expenses | [13] | (78) | (78) | |||||
Other Related Parties [member] | Forluz [member] | Current [member] | Operating Leases [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | [14] | 179 | ||||||
Revenue | [14] | |||||||
Expenses | [14] | (55) | (46) | |||||
Current liabilities | [14] | 35 | 2 | |||||
Other Related Parties [member] | Forluz [member] | Current [member] | Administrative Running Costs [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Revenue | [15] | |||||||
Expenses | [15] | (30) | (28) | |||||
Other Related Parties [member] | Forluz [member] | Non Current [member] | Post-Employment Obligations [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | [12] | |||||||
Total non-current liabilities | [12] | 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] | ||||||||
TOTAL CURRENT | [16] | |||||||
Revenue | [16] | (227) | ||||||
Expenses | [16] | (186) | ||||||
Current liabilities | [16] | 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] | ||||||||
TOTAL NON-CURRENT | [16] | |||||||
Total non-current liabilities | [16] | 3,022 | 2,271 | |||||
Other Related Parties [member] | FIC Pampulha [member] | Current [member] | Securities [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Revenue | 33 | 1,106 | ||||||
Expenses | ||||||||
Other Related Parties [member] | FIC Pampulha [member] | Current [member] | Marketable securities [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | 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] | ||||||||
TOTAL CURRENT | 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] | ||||||||
TOTAL CURRENT | (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] | ||||||||
TOTAL NON-CURRENT | 2 | 101 | ||||||
Total 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] | ||||||||
TOTAL CURRENT | [17] | 346 | 245 | |||||
Revenue | 127 | [18] | 166 | [17] | 163 | [17] | ||
Expenses | [17] | |||||||
Current liabilities | [17] | |||||||
Parent [member] | MINAS GERAIS STATE GOVT [member] | Current [member] | ICMS Tax - Early Payment [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | [19] | |||||||
Revenue | [19] | 12 | 11 | |||||
Expenses | [19] | |||||||
Current liabilities | [19] | |||||||
Parent [member] | MINAS GERAIS STATE GOVT [member] | Current [member] | Accounts Receivable - AFAC [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
TOTAL CURRENT | [20] | 115 | 246 | |||||
Revenue | R$ 27 | 17 | [20] | 18 | [20] | |||
Expenses | [20] | |||||||
Current liabilities | [20] | |||||||
[1] | See note 2.8. | |||||||
[2] | 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). | |||||||
[3] | Refers to a contract to provide plant operation and maintenance services. | |||||||
[4] | 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. | |||||||
[5] | 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. | |||||||
[6] | 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$6.5, respectively. The contracts specify interest equal to 100% of the accumulated variation in the DI rate, plus an annual spread, applied pro rata die (on 252-business-days basis), of 1.083% for the DIP contract and 2.5% for the DIP2 contract, up to the date of respective full payment. The proceeds of this loan were allocated to the investee's minimum cash needs. The contracts specify a guarantee, given by the investee and its guarantor, through surety and a fiduciary assignment on the shares of the special-purpose company Mina de Ouro, which represents 120% of the principal value of the loan, according to an independent valuation. | |||||||
[7] | Refers to reimbursement due to termination of contract related to change of the "power purchase agreements" (CCEARs) between Santo Antonio Energia S.A., a subsidiary of Madeira Energia, and Cemig Distribuicao - totaling R$ 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. | |||||||
[8] | 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. | |||||||
[9] | 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. | |||||||
[10] | 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; | |||||||
[11] | 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). | |||||||
[12] | 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). | |||||||
[13] | 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. | |||||||
[14] | 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. | |||||||
[15] | 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. | |||||||
[16] | Post-employment obligations relating to the employees' health and dental plan (see Note 26). | |||||||
[17] | 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. | |||||||
[18] | Refers to sale of energy supply to the Minas Gerais State government. The price of the supply is set by the grantor (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, 2020. 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. Cemig D filed an application with the tax authority of Minas Gerais state to accept the terms of State Law 23,510/2020, to enable part of the ICMS tax payable to be offset against the debt owed by the government of Minas Gerais state to the Company. At present, the state tax authority is validating the invoices presented, to authorize the compensation of credits. As a result, the Company has reversed the amount of R$210 previously recognized as expected losses for doubtful receivables. | |||||||
[19] | Refers to financial income from ICMS tax anticipation, as per Minas Gerais State Decree 47,488. | |||||||
[20] | This refers to the recalculation of the inflation adjustment of amounts relating to the Advance against Future Capital Increase (AFAC), which were returned to the State of Minas Gerais. These receivables have guarantee in the form of Cemig's right to retain dividends and Interest on Equity otherwise payable to the State (in proportion to the State's equity interest in the Company), for as long as any payments are overdue or in default. For further information, see Note 13. |
30. RELATED PARTY TRANSACTION_3
30. RELATED PARTY TRANSACTIONS (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of transactions between related parties [line items] | ||
Dividends receivable | R$ 188 | R$ 186 |
Light [member] | ||
Disclosure of transactions between related parties [line items] | ||
Dividends receivable | 71 | 73 |
Alianca geracao [member] | ||
Disclosure of transactions between related parties [line items] | ||
Dividends receivable | 114 | 103 |
Others [member] | ||
Disclosure of transactions between related parties [line items] | ||
Dividends receivable | R$ 3 | R$ 10 |
30. RELATED PARTY TRANSACTION_4
30. RELATED PARTY TRANSACTIONS (Details 2) R$ in Millions | 12 Months Ended | |
Dec. 31, 2020BRL (R$) | ||
Disclosure of transactions between related parties [line items] | ||
Related party transaction amount | R$ 4820 | |
Norte energia s.a. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Related party | Norte Energia (NESA) | [1] |
Relationship | Affiliated | [1] |
Type | Surety | [1] |
Objective | Financing | [1] |
Related party transaction amount | R$ 2601 | [1] |
Maturity | 2042 | [1] |
Light [member] | ||
Disclosure of transactions between related parties [line items] | ||
Related party | Light | |
Relationship | Affiliated | |
Type | Counter-guarantee | |
Objective | Financing | |
Related party transaction amount | R$ 684 | |
Maturity | 2042 | |
Santo Antnio Energia S.A. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Related party | Santo Antônio Energia (SAESA) | [2] |
Relationship | Jointly-controlled | [2] |
Type | Surety | [2] |
Objective | Debentures | [2] |
Related party transaction amount | R$ 445 | [2] |
Maturity | 2037 | [2] |
Santo Antnio Energia S.A. One [member] | ||
Disclosure of transactions between related parties [line items] | ||
Related party | Santo Antônio Energia (SAESA) | |
Relationship | Jointly-controlled | |
Type | Guarantee | |
Objective | Financing | |
Related party transaction amount | R$ 1023 | |
Maturity | 2034 | |
Norte Energia S.A one [member] | ||
Disclosure of transactions between related parties [line items] | ||
Related party | Norte Energia (NESA) | |
Relationship | Affiliated | |
Type | Surety | |
Objective | Debentures | |
Related party transaction amount | R$ 67 | |
Maturity | 2030 | |
[1] | Related to execution of guarantees of the Norte Energia financing. | |
[2] | Corporate guarantee given by Cemig to Saesa. |
30. RELATED PARTY TRANSACTION_5
30. RELATED PARTY TRANSACTIONS (Details 3) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [abstract] | |||
Remuneration | R$ 27 | R$ 25 | R$ 34 |
Profit sharing (reversal) | 9 | 6 | 4 |
Pension plans | 1 | 1 | 3 |
Total | R$ 37 | R$ 32 | R$ 41 |
30. RELATED PARTY TRANSACTION_6
30. RELATED PARTY TRANSACTIONS (Details Narrative) - BRL (R$) R$ in Millions | Dec. 27, 2019 | Nov. 25, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 |
Disclosure of transactions between related parties [line items] | ||||||
Deliver contracted supply amount | R$ 40.0 | |||||
Loss on realization of the receivables | R$ 688.0 | |||||
In-court reorganization loan amount | R$ 6.5 | R$ 10.0 | R$ 20.0 | |||
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. | |||||
Related parties [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Aggregate amounts of legal actions | R$ 119.0 | 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$ 113.0 | |||||
Loss on realization of the receivables | 210 | |||||
Related parties [member] | Cemig [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Aggregate amounts of legal actions | R$ 41.0 | R$ 32.0 |
31. FINANCIAL INSTRUMENTS AND_3
31. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | R$ 4058 | |||
Financial liabilities | R$ 18764 | |||
Financial liabilities at amortised cost, class [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | [1] | 9,693 | ||
Financial assets at fair value | [1] | 9,693 | ||
Financial liabilities | [1] | (18,872) | ||
Financial liabilities at fair value | [1] | (18,872) | ||
Financial liabilities at fair value through profit or loss, category [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial liabilities | [1] | (536) | ||
Financial liabilities at fair value | [1] | (536) | ||
Loans, financing and debentures [member] | Level 2 [member] | Financial liabilities at amortised cost, class [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial liabilities | [1] | (15,020) | ||
Financial liabilities at fair value | [1] | (15,020) | ||
Debt with pension fund (forluz) [member] | Level 2 [member] | Financial liabilities at amortised cost, class [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial liabilities | [1] | (473) | ||
Financial liabilities at fair value | [1] | (473) | ||
Deficit of pension fund (forluz) [member] | Level 2 [member] | Financial liabilities at amortised cost, class [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial liabilities | [1] | (540) | ||
Financial liabilities at fair value | [1] | (540) | ||
Concessions payable [member] | Level 3 [member] | Financial liabilities at amortised cost, class [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial liabilities | [1] | (23) | ||
Financial liabilities at fair value | [1] | (23) | ||
Suppliers [member] | Level 2 [member] | Financial liabilities at amortised cost, class [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial liabilities | [1] | (2,358) | ||
Financial liabilities at fair value | [1] | (2,358) | ||
Leasing transactions [member] | Level 2 [member] | Financial liabilities at amortised cost, class [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial liabilities | [1] | (227) | ||
Financial liabilities at fair value | [1] | (227) | ||
Sector financial liabilities [member] | Level 2 [member] | Financial liabilities at amortised cost, class [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial liabilities | [1] | (231) | ||
Financial liabilities at fair value | [1] | (231) | ||
Restated [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 4,650 | R$ 4702 | ||
Restated [member] | Financial liabilities at amortised cost, class [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | [1] | 10,847 | ||
Financial assets at fair value | [1] | 10,847 | ||
Financial liabilities | [1] | (18,281) | ||
Financial liabilities at fair value | [1] | (18,281) | ||
Restated [member] | Financial liabilities at fair value through profit or loss, category [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial liabilities | [1] | (483) | ||
Financial liabilities at fair value | [1] | (483) | ||
Restated [member] | Loans, financing and debentures [member] | Level 2 [member] | Financial liabilities at amortised cost, class [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial liabilities | [1] | (14,777) | ||
Financial liabilities at fair value | [1] | (14,777) | ||
Restated [member] | Debt with pension fund (forluz) [member] | Level 2 [member] | Financial liabilities at amortised cost, class [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial liabilities | [1] | (566) | ||
Financial liabilities at fair value | [1] | (566) | ||
Restated [member] | Deficit of pension fund (forluz) [member] | Level 2 [member] | Financial liabilities at amortised cost, class [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial liabilities | [1] | (550) | ||
Financial liabilities at fair value | [1] | (550) | ||
Restated [member] | Concessions payable [member] | Level 3 [member] | Financial liabilities at amortised cost, class [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial liabilities | [1] | (20) | ||
Financial liabilities at fair value | [1] | (20) | ||
Restated [member] | Leasing transactions [member] | Level 2 [member] | Financial liabilities at amortised cost, class [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial liabilities | [1] | (288) | ||
Financial liabilities at fair value | [1] | (288) | ||
Restated [member] | Sector financial liabilities [member] | Level 2 [member] | Financial liabilities at amortised cost, class [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial liabilities | [1] | |||
Financial liabilities at fair value | [1] | |||
Derivative financial instruments [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 8,825 | |||
Financial assets at fair value | 8,825 | |||
Financial liabilities | (19,408) | |||
Financial liabilities at fair value | (19,408) | |||
Derivative financial instruments [member] | Indemnifiable receivable generation [member] | Level 3 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 816 | |||
Financial assets at fair value | 816 | |||
Derivative financial instruments [member] | Concession financial assets - distribution infrastructure [member] | Level 3 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 559 | |||
Financial assets at fair value | 559 | |||
Derivative financial instruments [member] | Derivative financial instrument assets, ativas and sonda put options [member] | Level 3 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 3 | |||
Financial assets at fair value | 3 | |||
Derivative financial instruments [member] | Derivative financial instrument assets, swaps [member] | Level 3 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 2,949 | |||
Financial assets at fair value | 2,949 | |||
Derivative financial instruments [member] | Restated [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 3,971 | |||
Financial assets at fair value | 3,971 | |||
Financial liabilities | (18,764) | |||
Financial liabilities at fair value | (18,764) | |||
Derivative financial instruments [member] | Restated [member] | Indemnifiable receivable generation [member] | Level 3 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 816 | |||
Financial assets at fair value | 816 | |||
Derivative financial instruments [member] | Restated [member] | Concession financial assets - distribution infrastructure [member] | Level 3 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 484 | |||
Financial assets at fair value | 484 | |||
Derivative financial instruments [member] | Restated [member] | Derivative financial instrument assets, ativas and sonda put options [member] | Level 3 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 3 | |||
Financial assets at fair value | 3 | |||
Derivative financial instruments [member] | Restated [member] | Derivative financial instrument assets, swaps [member] | Level 3 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 1,691 | |||
Financial assets at fair value | 1,691 | |||
Financial assets at amortised cost, class [member] | Concession grant fee generation concessions [member] | Level 3 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | [1] | 2,549 | ||
Financial assets at fair value | [1] | 2,549 | ||
Financial assets at amortised cost, class [member] | Escrow deposits [member] | Level 2 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | [1] | 1,056 | ||
Financial assets at fair value | [1] | 1,056 | ||
Financial assets at amortised cost, class [member] | Low income subsidy [member] | Level 2 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | [1] | 43 | ||
Financial assets at fair value | [1] | 43 | ||
Financial assets at amortised cost, class [member] | Reimbursement of tariff subsidy [member] | Level 2 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | [1] | 88 | ||
Financial assets at fair value | [1] | 88 | ||
Financial assets at amortised cost, class [member] | Concession financial assets CVA account and other financial components in tariff adjustments [member] | Level 3 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | [1] | 133 | ||
Financial assets at fair value | [1] | 133 | ||
Financial assets at amortised cost, class [member] | Restricted cash [member] | Level 2 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | [1] | 64 | ||
Financial assets at fair value | [1] | 64 | ||
Financial assets at amortised cost, class [member] | Accounts receivable from customers and traders concession holders (transmission service) [member] | Level 2 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | [1] | 4,534 | ||
Financial assets at fair value | [1] | 4,534 | ||
Financial assets at amortised cost, class [member] | Accounts receivable from the state of minas gerais [member] | Level 2 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | [1] | 12 | ||
Financial assets at fair value | [1] | 12 | ||
Financial assets at amortised cost, class [member] | Marketable securities - cash investments [member] | Level 2 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | [1] | 1,214 | ||
Financial assets at fair value | [1] | 1,214 | ||
Financial assets at amortised cost, class [member] | Restated [member] | Concession grant fee generation concessions [member] | Level 3 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | [1] | 2,468 | ||
Financial assets at fair value | [1] | 2,468 | ||
Financial assets at amortised cost, class [member] | Restated [member] | Escrow deposits [member] | Level 2 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | [1] | 2,540 | ||
Financial assets at fair value | [1] | 2,540 | ||
Financial assets at amortised cost, class [member] | Restated [member] | Low income subsidy [member] | Level 2 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | [1] | 30 | ||
Financial assets at fair value | [1] | 30 | ||
Financial assets at amortised cost, class [member] | Restated [member] | Reimbursement of tariff subsidy [member] | Level 2 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | [1] | 97 | ||
Financial assets at fair value | [1] | 97 | ||
Financial assets at amortised cost, class [member] | Restated [member] | Concession financial assets CVA account and other financial components in tariff adjustments [member] | Level 3 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | [1] | 882 | ||
Financial assets at fair value | [1] | 882 | ||
Financial assets at amortised cost, class [member] | Restated [member] | Restricted cash [member] | Level 2 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | [1] | 12 | ||
Financial assets at fair value | [1] | 12 | ||
Financial assets at amortised cost, class [member] | Restated [member] | Accounts receivable from customers and traders concession holders (transmission service) [member] | Level 2 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | [1] | 4,601 | ||
Financial assets at fair value | [1] | 4,601 | ||
Financial assets at amortised cost, class [member] | Restated [member] | Accounts receivable from the state of minas gerais [member] | Level 2 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | [1] | 115 | ||
Financial assets at fair value | [1] | 115 | ||
Financial assets at amortised cost, class [member] | Restated [member] | Marketable securities - cash investments [member] | Level 2 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | [1] | 102 | ||
Financial assets at fair value | [1] | 102 | ||
Financial assets at amortised cost, class [member] | Restated [member] | Suppliers [member] | Level 2 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial liabilities | [1] | (2,080) | ||
Financial liabilities at fair value | [1] | (2,080) | ||
Financial assets at fair value through profit or loss, category [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 18,518 | |||
Financial assets at fair value | 18,518 | |||
Financial assets at fair value through profit or loss, category [member] | Marketable securities - bank financial notes [member] | Level 2 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 1,635 | |||
Financial assets at fair value | 1,635 | |||
Financial assets at fair value through profit or loss, category [member] | Marketable securities - treasury financial notes [member] | Level 1 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 731 | |||
Financial assets at fair value | 731 | |||
Financial assets at fair value through profit or loss, category [member] | Marketable securities - bank certificates of deposit (CDBs) [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 545 | |||
Financial assets at fair value | 545 | |||
Financial assets at fair value through profit or loss, category [member] | Cash equivalents investments [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 1,587 | |||
Financial assets at fair value | 1,587 | |||
Financial assets at fair value through profit or loss, category [member] | Restated [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 14,818 | |||
Financial assets at fair value | 14,818 | |||
Financial assets at fair value through profit or loss, category [member] | Restated [member] | Marketable securities - bank financial notes [member] | Level 2 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 557 | |||
Financial assets at fair value | 557 | |||
Financial assets at fair value through profit or loss, category [member] | Restated [member] | Marketable securities - treasury financial notes [member] | Level 1 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 94 | |||
Financial assets at fair value | 94 | |||
Financial assets at fair value through profit or loss, category [member] | Restated [member] | Marketable securities - bank certificates of deposit (CDBs) [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | ||||
Financial assets at fair value | ||||
Financial assets at fair value through profit or loss, category [member] | Restated [member] | Cash equivalents investments [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 326 | |||
Financial assets at fair value | 326 | |||
Marketable securities [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 4,498 | |||
Financial assets at fair value | 4,498 | |||
Marketable securities [member] | Restated [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 977 | |||
Financial assets at fair value | 977 | |||
Financial liabilities at fair value through profit or loss, category [member] | Derivative financial instruments (SAAG put options) [member] | Level 3 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial liabilities | (536) | |||
Financial liabilities at fair value | (536) | |||
Financial liabilities at fair value through profit or loss, category [member] | Restated [member] | Derivative financial instruments (SAAG put options) [member] | Level 3 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial liabilities | (483) | |||
Financial liabilities at fair value | (483) | |||
Financial assets at fair value through profit or loss, category [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 4,498 | |||
Financial assets at fair value | R$ 4498 | |||
Financial assets at fair value through profit or loss, category [member] | Restated [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Assets | 977 | |||
Financial assets at fair value | R$ 977 | |||
[1] | On December 31, 2020 and 2019, the book values of financial instruments reflect their fair values. |
31. FINANCIAL INSTRUMENTS AND_4
31. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [line items] | ||
Options in shares | R$ 533 | R$ 480 |
SAAG [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Options in shares | 536 | 483 |
Sonda [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Options in shares | R$ 3 | R$ 3 |
31. FINANCIAL INSTRUMENTS AND_5
31. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 2) - Put option - SAAG [member] - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial liabilities [line items] | |||
Balance | R$ 483 | R$ 419 | R$ 312 |
Adjustment to fair value | 53 | 64 | 107 |
Balance | R$ 536 | R$ 483 | R$ 419 |
31. FINANCIAL INSTRUMENTS AND_6
31. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 3) R$ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020USD ($) | Dec. 31, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) | |||
FinancialInstrumentsAndRiskManagementLineItems [Line Items] | ||||||
Unrealized gain/loss Carrying amount | R$ 2360 | R$ 922 | ||||
Unrealized gain/loss fair value | 2,949 | 1,691 | ||||
TOTAL CURRENT | 15,456 | 10,354 | [1] | R$ 27796 | ||
Non-current asset | R$ 2426 | 1,456 | ||||
Over the counter [member] | ||||||
FinancialInstrumentsAndRiskManagementLineItems [Line Items] | ||||||
Assets | [2] | US$ exchange variation + Rate (9.25% p.y.) | US$ exchange variation + Rate (9.25% p.y.) | |||
Liability | [2] | Local currency + R$ 150.49% of CDI | Local currency + R$ 150.49% of CDI | |||
Maturity period | Interest: Half-yearly Principal: Dec. 2024 | Interest: Half-yearly Principal: Dec. 2024 | ||||
Trade market | Over the counter | Over the counter | ||||
Unrealized gain/loss Carrying amount | R$ 1772 | 814 | ||||
Unrealized gain/loss fair value | R$ 2110 | 1,235 | ||||
Over the counter [member] | USD | ||||||
FinancialInstrumentsAndRiskManagementLineItems [Line Items] | ||||||
Notional amount | $ | [3] | $ 1,000 | ||||
Over the counter one [member] | ||||||
FinancialInstrumentsAndRiskManagementLineItems [Line Items] | ||||||
Assets | [2] | US$ exchange variation + Rate (9.25% p.y.) | US$ exchange variation + Rate (9.25% p.y.) | |||
Liability | [2] | Local currency + R$125.52% of CDI | Local currency + R$125.52% of CDI | |||
Maturity period | Interest: Half-yearly Principal: Dec. 2024 | Interest: Half-yearly Principal: Dec. 2024 | ||||
Trade market | Over the counter | Over the counter | ||||
Unrealized gain/loss Carrying amount | R$ 588 | 108 | ||||
Unrealized gain/loss fair value | R$ 839 | R$ 456 | ||||
Over the counter one [member] | USD | ||||||
FinancialInstrumentsAndRiskManagementLineItems [Line Items] | ||||||
Notional amount | $ | [3] | $ 500 | ||||
[1] | See note 2.8. | |||||
[2] | 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 The upper limit for the exchange rate in the hedge instrument contracted by the Company for the principal of the Eurobonds is R$ 5.00/US$. The instrument matures in December 2024. If the USD/BRL exchange rate is still over R$ 5.00 in December 2024, the company will disburse, on that date, the difference between the upper limit of the protection range and the spot dollar on that date. The Company is monitoring the possible risks and impacts associated with the dollar being valued above R$ 5.00, and assessing various strategies for mitigating the foreign exchange risk up to the maturity date of the transaction. The hedge instrument fully protects the payment of six-monthly interest, independently of the USD/BRL exchange rate. | |||||
[3] | In millions of US$. |
31. FINANCIAL INSTRUMENTS AND_7
31. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 4) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Assets | R$ 4058 | |
Derivative hedge instrument, liability | R$ 18764 | |
Derivative hedge instrument | 3,295 | R$ 2779 |
Swaps [member] | Base scenario [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Assets | 6,996 | |
Derivative hedge instrument, liability | (5,607) | |
Derivative hedge instrument option / call spread | 1,560 | |
Derivative hedge instrument | 2,949 | |
Swaps [member] | Probable scenario [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Assets | 6,616 | |
Derivative hedge instrument, liability | (5,519) | |
Derivative hedge instrument option / call spread | 1,708 | |
Derivative hedge instrument | 2,805 | |
Swaps [member] | Probable scenario exchange rate depreciation and interest rate increase 25% [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Assets | 5,866 | |
Derivative hedge instrument, liability | (5,595) | |
Derivative hedge instrument option / call spread | 1,019 | |
Derivative hedge instrument | 1,290 | |
Swaps [member] | Remote scenario exchange rate depreciation and interest rate increase 50% [mmeber] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Assets | 5,147 | |
Derivative hedge instrument, liability | (5,668) | |
Derivative hedge instrument option / call spread | 338 | |
Derivative hedge instrument | R$ 183 |
31. FINANCIAL INSTRUMENTS AND_8
31. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 5) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | R$ 8191 | R$ 6353 |
Foreign currency risk [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | (1,577) | (1,576) |
Foreign currency risk [member] | Loans and financings [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | (1,514) | (1,516) |
Foreign currency risk [member] | Suppliers (itaipu binacional) [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | (63) | (60) |
Local Currency [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | (8,191) | (6,353) |
Local Currency [member] | Loans and financings [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | (7,866) | (6,110) |
Local Currency [member] | Suppliers (itaipu binacional) [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Net liabilities exposed | R$ 325 | R$ 243 |
31. FINANCIAL INSTRUMENTS AND_9
31. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 6) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
FinancialInstrumentsAndRiskManagementLineItems [Line Items] | ||
Net liabilities exposed | R$ 8191 | R$ 6353 |
Base scenario [member] | ||
FinancialInstrumentsAndRiskManagementLineItems [Line Items] | ||
Net liabilities exposed | (8,191) | |
Probable scenario US$1=R$5.20 [member] | ||
FinancialInstrumentsAndRiskManagementLineItems [Line Items] | ||
Net liabilities exposed | (8,196) | |
Net effect of exchange rate fluctuation | (5) | |
Probable scenario appreciation 25.00% US$1= R$6.50 [member] | ||
FinancialInstrumentsAndRiskManagementLineItems [Line Items] | ||
Net liabilities exposed | (10,245) | |
Net effect of exchange rate fluctuation | (2,054) | |
Remote scenario appreciation 50.00% US$1=R$7.80 [member] | ||
FinancialInstrumentsAndRiskManagementLineItems [Line Items] | ||
Net liabilities exposed | (12,294) | |
Net effect of exchange rate fluctuation | (4,103) | |
Loans and financings [member] | Base scenario [member] | ||
FinancialInstrumentsAndRiskManagementLineItems [Line Items] | ||
Net liabilities exposed | (7,866) | |
Loans and financings [member] | Probable scenario US$1=R$5.20 [member] | ||
FinancialInstrumentsAndRiskManagementLineItems [Line Items] | ||
Net liabilities exposed | (7,871) | |
Loans and financings [member] | Probable scenario appreciation 25.00% US$1= R$6.50 [member] | ||
FinancialInstrumentsAndRiskManagementLineItems [Line Items] | ||
Net liabilities exposed | (9,838) | |
Loans and financings [member] | Remote scenario appreciation 50.00% US$1=R$7.80 [member] | ||
FinancialInstrumentsAndRiskManagementLineItems [Line Items] | ||
Net liabilities exposed | (11,806) | |
Suppliers (itaipu binacional) [member] | Base scenario [member] | ||
FinancialInstrumentsAndRiskManagementLineItems [Line Items] | ||
Net liabilities exposed | (325) | |
Suppliers (itaipu binacional) [member] | Probable scenario US$1=R$5.20 [member] | ||
FinancialInstrumentsAndRiskManagementLineItems [Line Items] | ||
Net liabilities exposed | (325) | |
Suppliers (itaipu binacional) [member] | Probable scenario appreciation 25.00% US$1= R$6.50 [member] | ||
FinancialInstrumentsAndRiskManagementLineItems [Line Items] | ||
Net liabilities exposed | (407) | |
Suppliers (itaipu binacional) [member] | Remote scenario appreciation 50.00% US$1=R$7.80 [member] | ||
FinancialInstrumentsAndRiskManagementLineItems [Line Items] | ||
Net liabilities exposed | R$ 488 |
31. FINANCIAL INSTRUMENTS AN_10
31. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 7) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
ASSETS | ||||
Cash equivalents - Cash investments (Note 6) - CDI | R$ 1587 | R$ 326 | ||
Marketable securities (Note 7) - CDI / SELIC | 4,125 | 753 | ||
Restricted cash - CDI | 64 | |||
CVA and in tariffs (Note 14) - SELIC | 4,058 | |||
Assets | 54,083 | 50,526 | [1] | R$ 59855 |
LIABILITIES | ||||
Loans, financing and debentures (Note 22) - CDI | (2,310) | (14,777) | ||
Sector financial liabilities (note 14) | (9,690) | (7,913) | [1] | R$ 23394 |
Total liabilities | (36,605) | 34,423 | [1] | |
Net assets (liabilities) exposed | 3,295 | (2,779) | ||
Domestic currency [member] | ||||
ASSETS | ||||
Cash equivalents - Cash investments (Note 6) - CDI | 1,587 | 326 | ||
Marketable securities (Note 7) - CDI / SELIC | 4,125 | 753 | ||
Restricted cash - CDI | 64 | 12 | ||
CVA and in tariffs (Note 14) - SELIC | 133 | 882 | ||
Assets | 5,909 | 1,973 | ||
LIABILITIES | ||||
Loans, financing and debentures (Note 22) - CDI | (2,310) | (3,773) | ||
Loans, financing and debentures (Note 22) - TJLP | (73) | (244) | ||
Sector financial liabilities (note 14) | (231) | |||
Total liabilities | (2,614) | (4,017) | ||
Net assets (liabilities) exposed | R$ 3295 | R$ 2044 | ||
[1] | See note 2.8. |
31. FINANCIAL INSTRUMENTS AN_11
31. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 8) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
ASSETS | ||||
Cash equivalents (Note 6) | R$ 1587 | |||
Marketable securities (Note 7) | 4,125 | R$ 753 | ||
Restricted cash | 64 | |||
CVA and Other financial components - SELIC | 4,058 | |||
Assets | 54,083 | 50,526 | [1] | R$ 59855 |
LIABILITIES | ||||
Loans and financing (Note 22) - CDI | (2,310) | (14,777) | ||
Loans and financing (Note 24) - TJLP | (9,690) | (7,913) | [1] | R$ 23394 |
Sector financial liabilities (note 14) | (231) | |||
Liabilities | (36,605) | 34,423 | [1] | |
Net assets (liabilities) exposed | 3,295 | R$ 2779 | ||
Probable scenario [member] | TJLP [member] | ||||
ASSETS | ||||
Cash equivalents (Note 6) | 1,674 | |||
Marketable securities (Note 7) | 4,352 | |||
Restricted cash | 68 | |||
CVA and Other financial components - SELIC | 140 | |||
Assets | 6,234 | |||
LIABILITIES | ||||
Loans and financing (Note 22) - CDI | (2,437) | |||
Loans and financing (Note 24) - TJLP | (77) | |||
Sector financial liabilities (note 14) | (244) | |||
Liabilities | (2,758) | |||
Net assets (liabilities) exposed | 3,476 | |||
Net effect of fluctuation in interest rates | 181 | |||
Probable scenario [member] | Selic 4.13% TJLP 3.65% [member] | ||||
ASSETS | ||||
Cash equivalents (Note 6) | 1,653 | |||
Marketable securities (Note 7) | 4,295 | |||
Restricted cash | 67 | |||
CVA and Other financial components - SELIC | 138 | |||
Assets | 6,153 | |||
LIABILITIES | ||||
Loans and financing (Note 22) - CDI | (2,405) | |||
Loans and financing (Note 24) - TJLP | (76) | |||
Sector financial liabilities (note 14) | (241) | |||
Liabilities | (2,722) | |||
Net assets (liabilities) exposed | 3,431 | |||
Net effect of fluctuation in interest rates | 136 | |||
Remote Scenario [member] | Selic 2.75% TJLP 2.44% [member] | ||||
ASSETS | ||||
Cash equivalents (Note 6) | 1,631 | |||
Marketable securities (Note 7) | 4,238 | |||
Restricted cash | 66 | |||
CVA and Other financial components - SELIC | 137 | |||
Assets | 6,072 | |||
LIABILITIES | ||||
Loans and financing (Note 22) - CDI | (2,374) | |||
Loans and financing (Note 24) - TJLP | (75) | |||
Sector financial liabilities (note 14) | (237) | |||
Liabilities | (2,686) | |||
Net assets (liabilities) exposed | 3,386 | |||
Net effect of fluctuation in interest rates | R$ 91 | |||
[1] | See note 2.8. |
31. FINANCIAL INSTRUMENTS AN_12
31. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 9) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
ASSETS | |||||
Concession financial assets related to Distribution infrastructure - IPCA | R$ 559 | [1] | R$ 484 | [2] | |
Receivable from Minas Gerais state government (AFAC) - IGPM | 12 | 115 | |||
Concession Grant Fee - IPCA | 2,549 | 2,468 | |||
Assets | 54,083 | 50,526 | [3] | R$ 59855 | |
LIABILITIES | |||||
Loans, financing and debentures - IPCA and IGP-DI | (4,863) | (4,730) | |||
Debt with pension fund (Forluz) - IPCA | (473) | (566) | |||
Deficit of pension plan (Forluz) - IPCA | (540) | (550) | |||
Liabilities | (36,605) | 34,423 | [3] | ||
Net assets (liabilities) exposed | R$ 3295 | R$ 2779 | |||
[1] | Portion of the concession financial assets relating to the Regulatory Remuneration Base of Assets ratified by the grantor (Aneel) after the 4rd tariff review cycle. | ||||
[2] | 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. | ||||
[3] | See note 2.8. |
31. FINANCIAL INSTRUMENTS AN_13
31. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 10) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
ASSETS | ||||||
Concession financial assets related to Distribution infrastructure - IPCA | R$ 559 | [1] | R$ 484 | [2] | ||
Accounts receivable from Minas Gerais state government (AFAC) - IGPM index | 12 | |||||
Concession Grant Fee - IPCA | 2,549 | 2,468 | ||||
Assets | 54,083 | 50,526 | [3] | R$ 59855 | ||
LIABILITIES | ||||||
Loans, financing and debentures - IPCA and IGP-DI | (4,863) | (4,730) | ||||
Debt agreed with pension fund (Forluz) - IPCA | (473) | |||||
Deficit of pension plan (Forluz) | (540) | (550) | ||||
Liabilities | (36,605) | R$ 34423 | [3] | |||
Net liability exposed | (5,876) | |||||
Net effect of fluctuation in IPCA and IGP-M indices | (2,756) | |||||
Probable scenario [member] | IPCA [member] | ||||||
ASSETS | ||||||
Concession financial assets related to Distribution infrastructure - IPCA | [2] | 584 | ||||
Accounts receivable from Minas Gerais state government (AFAC) - IGPM index | 13 | |||||
Concession Grant Fee - IPCA | 2,664 | |||||
Assets | 3,261 | |||||
LIABILITIES | ||||||
Loans, financing and debentures - IPCA and IGP-DI | (5,083) | |||||
Debt agreed with pension fund (Forluz) - IPCA | (494) | |||||
Deficit of pension plan (Forluz) | (564) | |||||
Liabilities | (6,141) | |||||
Net liability exposed | (2,880) | |||||
Net effect of fluctuation in IPCA and IGP-M indices | (124) | |||||
Probable scenario (25%) [member] | IPCA [member] | ||||||
ASSETS | ||||||
Concession financial assets related to Distribution infrastructure - IPCA | [2] | 591 | ||||
Accounts receivable from Minas Gerais state government (AFAC) - IGPM index | 14 | |||||
Concession Grant Fee - IPCA | 2,693 | |||||
Assets | 3,298 | |||||
LIABILITIES | ||||||
Loans, financing and debentures - IPCA and IGP-DI | (5,138) | |||||
Debt agreed with pension fund (Forluz) - IPCA | (500) | |||||
Deficit of pension plan (Forluz) | (571) | |||||
Liabilities | (6,209) | |||||
Net liability exposed | (2,911) | |||||
Net effect of fluctuation in IPCA and IGP-M indices | (155) | |||||
Remote scenario -50% [member] | IPCA [member] | ||||||
ASSETS | ||||||
Concession financial assets related to Distribution infrastructure - IPCA | [2] | 597 | ||||
Accounts receivable from Minas Gerais state government (AFAC) - IGPM index | 14 | |||||
Concession Grant Fee - IPCA | 2,722 | |||||
Assets | 3,333 | |||||
LIABILITIES | ||||||
Loans, financing and debentures - IPCA and IGP-DI | (5,194) | |||||
Debt agreed with pension fund (Forluz) - IPCA | (505) | |||||
Deficit of pension plan (Forluz) | (577) | |||||
Liabilities | (6,276) | |||||
Net liability exposed | (2,943) | |||||
Net effect of fluctuation in IPCA and IGP-M indices | R$ 187 | |||||
[1] | Portion of the concession financial assets relating to the Regulatory Remuneration Base of Assets ratified by the grantor (Aneel) after the 4rd tariff review cycle. | |||||
[2] | 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. | |||||
[3] | See note 2.8. |
31. FINANCIAL INSTRUMENTS AN_14
31. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 11) R$ in Millions | Dec. 31, 2020BRL (R$) |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | R$ 21525 |
Floating interest rate [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 19,167 |
Floating interest rate [member] | Deficit of the pension plan [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 885 |
Floating interest rate [member] | Debt with pension plan (forluz) [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 559 |
Floating interest rate [member] | Onerous concessions [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 28 |
Floating interest rate [member] | Loans, financings and debentures [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 17,695 |
Fixed interest rate [member] | Suppliers [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 2,358 |
Up to 1 month [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 2,236 |
Up to 1 month [member] | Floating interest rate [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 98 |
Up to 1 month [member] | Floating interest rate [member] | Deficit of the pension plan [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 6 |
Up to 1 month [member] | Floating interest rate [member] | Debt with pension plan (forluz) [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 13 |
Up to 1 month [member] | Floating interest rate [member] | Loans, financings and debentures [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 79 |
Up to 1 month [member] | Fixed interest rate [member] | Suppliers [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 2,138 |
1 to 3 months [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 1,546 |
1 to 3 months [member] | Floating interest rate [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 1,328 |
1 to 3 months [member] | Floating interest rate [member] | Deficit of the pension plan [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 11 |
1 to 3 months [member] | Floating interest rate [member] | Debt with pension plan (forluz) [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 25 |
1 to 3 months [member] | Floating interest rate [member] | Onerous concessions [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 1 |
1 to 3 months [member] | Floating interest rate [member] | Loans, financings and debentures [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 1,291 |
1 to 3 months [member] | Fixed interest rate [member] | Suppliers [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 218 |
3 months to 1 year [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 1,808 |
3 months to 1 year [member] | Floating interest rate [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 1,806 |
3 months to 1 year [member] | Floating interest rate [member] | Deficit of the pension plan [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 51 |
3 months to 1 year [member] | Floating interest rate [member] | Debt with pension plan (forluz) [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 115 |
3 months to 1 year [member] | Floating interest rate [member] | Onerous concessions [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 2 |
3 months to 1 year [member] | Floating interest rate [member] | Loans, financings and debentures [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 1,638 |
3 months to 1 year [member] | Fixed interest rate [member] | Suppliers [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 2 |
1 to 5 years [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 13,557 |
1 to 5 years [member] | Floating interest rate [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 13,557 |
1 to 5 years [member] | Floating interest rate [member] | Deficit of the pension plan [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 295 |
1 to 5 years [member] | Floating interest rate [member] | Debt with pension plan (forluz) [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 406 |
1 to 5 years [member] | Floating interest rate [member] | Onerous concessions [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 11 |
1 to 5 years [member] | Floating interest rate [member] | Loans, financings and debentures [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 12,845 |
After 2026 [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 2,378 |
After 2026 [member] | Floating interest rate [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 2,378 |
After 2026 [member] | Floating interest rate [member] | Deficit of the pension plan [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 522 |
After 2026 [member] | Floating interest rate [member] | Debt with pension plan (forluz) [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | |
After 2026 [member] | Floating interest rate [member] | Onerous concessions [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | 14 |
After 2026 [member] | Floating interest rate [member] | Loans, financings and debentures [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Financial assets held for managing liquidity risk | R$ 1842 |
31. FINANCIAL INSTRUMENTS AN_15
31. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 12) - Federal risk [member] | 12 Months Ended | |
Dec. 31, 2020 | ||
A1 rating [member] | ||
Disclosure of credit risk exposure [line items] | ||
Equity | Over R$ 3.5 billion | |
Percentage of limit per bank entity | Between 6% and 9% | [1] |
A2 Rating [member] | ||
Disclosure of credit risk exposure [line items] | ||
Equity | R$ 1.0 billion to R$ 3.5 billion | |
Percentage of limit per bank entity | Between 5% and 8% | [1] |
A3 rating [member] | ||
Disclosure of credit risk exposure [line items] | ||
Equity | R$ 400 to R$ 1.0 billion | |
Percentage of limit per bank entity | Between 0% and 7% | [1] |
[1] | The percentage assigned to each bank depends on individual assessment of indicators, e.g. liquidity, and quality of the credit portfolio. |
31. FINANCIAL INSTRUMENTS AN_16
31. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 14) - BRL (R$) R$ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 02, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Disclosure of financial liabilities [line items] | |||||||||
Total liabilities | R$ 36605 | R$ 34423 | [1] | ||||||
Cash and cash equivalents | (1,680) | (536) | R$ 891 | ||||||
Net liabilities | (3,295) | 2,779 | |||||||
Total equity | 17,478 | 15,891 | [1],[2] | 15,939 | [3] | ||||
Restated [member] | |||||||||
Disclosure of financial liabilities [line items] | |||||||||
Total liabilities | [2] | 34,423 | R$ 44255 | ||||||
Cash and cash equivalents | [2] | (536) | (891) | ||||||
Total equity | 16,103 | [2] | R$ 16084 | [2] | 16,084 | [3] | R$ 14296 | ||
Capital management [member] | |||||||||
Disclosure of financial liabilities [line items] | |||||||||
Total liabilities | 36,605 | ||||||||
Cash and cash equivalents | (1,680) | (891) | |||||||
Restricted cash | (64) | ||||||||
Net liabilities | 34,861 | ||||||||
Total equity | R$ 17478 | R$ 15939 | |||||||
Net liabilities / equity | 1.99% | ||||||||
Capital management [member] | Restated [member] | |||||||||
Disclosure of financial liabilities [line items] | |||||||||
Total liabilities | 34,423 | ||||||||
Cash and cash equivalents | (536) | ||||||||
Restricted cash | (12) | ||||||||
Net liabilities | 33,875 | ||||||||
Total equity | R$ 16103 | ||||||||
Net liabilities / equity | 2.10% | ||||||||
[1] | See note 2.8. | ||||||||
[2] | For further details of restatement of comparative balances, see Note 2.8 | ||||||||
[3] | 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. On August 27, 2020, Aneel published the Dispatch 2,508/2020-SRM-SGT, which set new amounts for distributors' over contracting for the years 2016 and 2017, based on a new valuation criterion established by Aneel Technical Note 97/2020-SRM-SGT - not contained in the regulatory rules which were currently in force. As a result, Cemig D filed an appeal with the Council of Aneel, for the amounts of distribution agents' over contracting to be reset in accordance with the calculation criteria based on maximum effort contained in Aneel Normative Resolution 453/2011. The Company's position on this case is reinforced by the fact that the Brazilian Energy Distributors' Association (Abradee) filed a similar appeal, supported by the opinion of contracted legal advisersadvisors. The Company has no expectation of loss in relation to realization of these amounts. The Company recognizes this receivable asset, in the amount of R$222 on December 31, 2020, as Other financial components' to be ratified. At the reporting date for this financial statements, this matter was still pending analysis by Aneel. |
31. FINANCIAL INSTRUMENTS AN_17
31. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details Narrative) - BRL (R$) R$ in Millions | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [line items] | ||||
Description of fair value of other financial liabilities | Fair value of its loans, financing and debentures were determined using 133.82% of the CDI rate – based on its most recent funding. For the loans, financing, debentures and debt renegotiated with Forluz, with annual rates between IPCA + 4.10% to 8.07% and CDI + 0.16% to 0.97%, Company believes that their carrying amount is approximated to their fair value. | |||
Description of eurobond issued | (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$; and (2) a swap was contracted for the interest, resulting in a coupon of 9.25% p.a., with an average rate equivalent to 125.52% of the CDI rate The upper limit for the exchange rate in the hedge instrument contracted by the Company for the principal of the Eurobonds is R$ 5.00/US$. The instrument matures in December 2024. If the USD/BRL exchange rate is still over R$ 5.00 in December 2024, the company will disburse, on that date, the difference between the upper limit of the protection range and the spot dollar on that date. The Company is monitoring the possible risks and impacts associated with the dollar being valued above R$ 5.00, and assessing various strategies for mitigating the foreign exchange risk up to the maturity date of the transaction. The hedge instrument fully protects the payment of six-monthly interest, independently of the USD/BRL exchange rate. | |||
Description of cemigs obligation | 125.52% of the CDI rate | Further to these points, Cemig also sets two concentration limits: 1. No bank may have more than 30% of the Group’s portfolio. 2. “Federal Risk” and “A1” banks may have more than 50% of the portfolio of any individual company. | 150.49% of the CDI | |
Carrying value bond | R$ 2310 | R$ 14777 | ||
Description of 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$5.20. The Company has prepared a sensitivity analysis of the effects on the Company’s net income arising from depreciation of the Real exchange rate by 25%, and by 50%, in relation to this ‘probable’ scenario. | |||
Allowance for doubtful accounts | R$ 179 | R$ 340 | ||
Put option - SAAG [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Liability | 536 | 482,841 | ||
Swaps [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Non cash positive (negative) adjustment from derivative transaction | 1,753 | 998 | ||
Cemig geracao tres marias s.a. [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial assets, fair value | 2,949 | 1,691 | ||
Carrying value bond | R$ 2360 | 922 | ||
foreign currencies [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Description of 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 2021 will be an appreciation of the dollar by 7.63% to R$4.80. The Company has prepared a sensitivity analysis of the effects on the Company's net income arising from variation in the Real exchange rate considering the increase of 25%, and 50%, in relation to this 'probable' scenario. | |||
Selic and TJLP rates [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Description of sensitivity analysis | Selic and TJLP rates will be 5.50% and 4.87%, respectively. The Company has made a sensitivity analysis of the effects on its net income arising from increases in rates of 25% and 50% in relation to the ‘probable’ scenario. | |||
TJLP [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Description of sensitivity analysis | Company estimates that, in a probable scenario, at December 31, 2020 Selic and TJLP rates will be 1.50% and 4.95%, respectively. | |||
Probable scenario [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Description of sensitivity analysis | The Company estimates that, in a probable scenario, at December 31, 2021 the IPCA inflation index will be 4.53% and the IGPM inflation index will be 11.65%. The Company has prepared a sensitivity analysis of the effects on its net income arising from an increase in inflation of 25% and 50% in relation to the ‘probable’ scenario | |||
Credit risk [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Allowance for doubtful accounts | R$ 712 | R$ 810 |
32. ASSETS AS HELD FOR SALE A_3
32. ASSETS AS HELD FOR SALE AND DISCONTINUED OPERATIONS (Details) - Continuing and discontinued operations [member] - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated and Parent company - Statements of financial position | ||
Assets held for sale - investment in an affiliate | R$ 1258 | R$ 1258 |
Consolidated and Parent company - Statements of income | ||
Loss for write-down of non-current assets held for sale arising from continuing operations, before taxes | 73 | |
Net income after taxes - continuing operations | 73 | |
Profit for write-down of non-current assets held for sale arising from continuing operations, before taxes | 309 | |
Deferred taxes arising from non-current assets held for sale, recognized in continuing operations | (85) | |
Net income after taxes - discontinued operations | R$ 224 |
32. ASSETS AS HELD FOR SALE A_4
32. ASSETS AS HELD FOR SALE AND DISCONTINUED OPERATIONS (Details 1) - Sale of retained investiment in light [member] - Light [member] R$ in Millions | 12 Months Ended | |
Dec. 31, 2020BRL (R$) | ||
Disclosure of assets and liabilities classified as held for sale [line items] | ||
Cemig's shares | R$ 68621263 | |
Sale price of the shares | 20 | |
Total | 1,372 | |
Estimated cost to sell | (5) | [1] |
Fair value, less cost to sell | 1,367 | |
Non-current asset held for sale carrying amount | (1,258) | |
Gains | 109 | |
IRPJ and CSLL | (37) | [2] |
Gain after taxes | R$ 72 | |
[1] | The estimated cost to sell includes financing, accounting and legal advices services. | |
[2] | The adjustment in the tax calculation resulted in a positive effect of R$113. |
32. ASSETS AS HELD FOR SALE A_5
32. ASSETS AS HELD FOR SALE AND DISCONTINUED OPERATIONS (Details Narrative) - BRL (R$) R$ / shares in Units, R$ in Millions | Jan. 30, 2021 | Jan. 22, 2021 | Jan. 07, 2021 | Jul. 17, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 31, 2020 |
Disclosure of assets and liabilities classified as held for sale [line items] | ||||||||
Number of shares sold (in shares) | 1,518,752,601 | 1,458,752,601 | 1,458,752,601 | 60,000,000 | ||||
Share price | R$ 5.00 | |||||||
Gain on disposal of assets | R$ 1753 | R$ 998 | R$ 893 | |||||
Estimated costs for the sale | R$ 29 | |||||||
Dividends declared | R$ 364 | |||||||
Light [member] | Events after reporting period [member] | ||||||||
Disclosure of assets and liabilities classified as held for sale [line items] | ||||||||
Description of sale of common shares | The Company Board of Directors approved the sale of its 68,621,264 common shares in Light, comprising the Company’s entire holding, in a public offering for distribution of a total of 137,242,528 common shares in Light. This offering comprises: (a) primary distribution of 68,621,264 new common shares in Light (“the Primary Offering”); and (b) a secondary distribution, of the Company shares, with restricted placement efforts. The Board of Directors also approved the non-exercise of the Company’s right of first refusal in the Primary Offering, and, consequently waiver, by the Company, of that right of priority in subscription of shares in the Primary Offering. | |||||||
Total | R$ 1372 | |||||||
Share price | R$ 20 | |||||||
Gain after taxes | R$ 109 | |||||||
Adjustment in the tax calculation resulted in a positive effect | R$ 113 | |||||||
Bottom Of Range [member] | ||||||||
Disclosure of assets and liabilities classified as held for sale [line items] | ||||||||
Number of shares sold (in shares) | 68,621,263 | |||||||
Voting rights percentage | 22.58% | |||||||
Top of Range [member] | ||||||||
Disclosure of assets and liabilities classified as held for sale [line items] | ||||||||
Number of shares sold (in shares) | 303,934,060 | |||||||
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 |
33. INSURANCE (Details)
33. INSURANCE (Details) - 12 months ended Dec. 31, 2020 R$ in Millions, $ in Millions | USD ($) | BRL (R$) | BRL (R$) | |
Companhia energetica de minas gerais [member] | Facilities in buildings [member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Coverage | Fire | Fire | ||
Coverage period | Jan. 8, 2021 to Jan. 8, 2022 | Jan. 8, 2021 to Jan. 8, 2022 | ||
Amount insured | [1] | R$ 8661 | ||
Annual premium | [1] | R$ 2 | ||
Cemig Geracao E Transmissao [member] | Air transport / Aircraft [member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Coverage | Fuselage Third party | Fuselage Third party | ||
Coverage period | April 29, 2020 to April 29, 2021 | April 29, 2020 to April 29, 2021 | ||
Amount insured | $ | [1] | $ 1,140 | ||
Annual premium | $ | [1] | $ 24 | ||
Cemig Geracao E Transmissao [member] | Air transport / Aircraft [member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Coverage | Fuselage Third party | Fuselage Third party | ||
Coverage period | April 29, 2020 to April 29, 2021 | April 29, 2020 to April 29, 2021 | ||
Amount insured | $ | [1] | $ 4,000 | ||
Annual premium | $ | [1] | $ 24 | ||
Cemig Geracao E Transmissao [member] | Warehouse stores [member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Coverage | Fire | Fire | ||
Coverage period | Nov. 2, 2020 to Nov. 2, 2021 | Nov. 2, 2020 to Nov. 2, 2021 | ||
Amount insured | [1] | 18,981 | ||
Annual premium | [1] | R$ 17 | ||
Cemig Geracao E Transmissao [member] | Buildings [member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Coverage | Fire | Fire | ||
Coverage period | Jan. 8, 2021 to Jan. 8, 2022 | Jan. 8, 2021 to Jan. 8, 2022 | ||
Amount insured | [1] | 240,527 | ||
Annual premium | [1] | R$ 70 | ||
Cemig Geracao E Transmissao [member] | Telecoms equipment [member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Coverage | [2] | Fire | Fire | |
Coverage period | [2] | Jan. 8, 2020 to Jan. 8, 2021 | Jan. 8, 2020 to Jan. 8, 2021 | |
Amount insured | [1],[2] | 2,650 | ||
Annual premium | [1],[2] | R$ 2 | ||
Cemig Geracao E Transmissao [member] | Operational risk [member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Coverage | [3] | |||
Coverage period | Dec. 7, 2020 to Dec. 7, 2021 | Dec. 7, 2020 to Dec. 7, 2021 | ||
Amount insured | [1] | 75,118 | ||
Annual premium | [1] | R$ 941 | ||
Cemig distribuicao [member] | Warehouse stores [member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Coverage | Fire | Fire | ||
Coverage period | Nov. 2, 2020 to Nov. 2, 2021 | Nov. 2, 2020 to Nov. 2, 2021 | ||
Amount insured | [1] | 74,575 | ||
Annual premium | [1] | R$ 68 | ||
Cemig distribuicao [member] | Buildings [member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Coverage | Fire | Fire | ||
Coverage period | Jan. 8, 2021 to Jan. 8, 2022 | Jan. 8, 2021 to Jan. 8, 2022 | ||
Amount insured | [1] | 616,157 | ||
Annual premium | [1] | R$ 179 | ||
Cemig distribuicao [member] | Telecoms equipment [member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Coverage | [2] | Fire | Fire | |
Coverage period | [2] | Jul. 8, 2020 to Jul. 8, 2021 | Jul. 8, 2020 to Jul. 8, 2021 | |
Amount insured | [1],[2] | 31,082 | ||
Annual premium | [1],[2] | R$ 28 | ||
Cemig distribuicao [member] | Operational risk [member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Coverage | Total | Total | ||
Coverage period | Dec. 7, 2020 to Dec. 7, 2021 | Dec. 7, 2020 to Dec. 7, 2021 | ||
Amount insured | [1] | 545,062 | ||
Annual premium | [1] | R$ 717 | ||
Cemig distribuicao [member] | Air transport / Aircraft / Guimbal equipment [member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Coverage | Fuselage Third party | Fuselage Third party | ||
Coverage period | April 29, 2020 to April 29, 2021 | April 29, 2020 to April 29, 2021 | ||
Amount insured | $ | [1] | $ 3,370 | ||
Annual premium | $ | [1] | $ 51 | ||
Cemig distribuicao [member] | Air transport / Aircraft / Guimbal equipment [member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Coverage | Fuselage Third party | Fuselage Third party | ||
Coverage period | April 29, 2020 to April 29, 2021 | April 29, 2020 to April 29, 2021 | ||
Amount insured | $ | [1] | $ 14,000 | ||
Annual premium | $ | [1] | $ 51 | ||
Gasmig [member] | Gas distribution network third party [member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Coverage | Third party | Third party | ||
Coverage period | Dec. 15, 2020 to Dec. 15, 2021 | Dec. 15, 2020 to Dec. 15, 2021 | ||
Amount insured | [1] | 60,000 | ||
Annual premium | [1] | R$ 378 | ||
Gasmig [member] | Own vehicle fleet (operation) [member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Coverage | Damage to third parties only | Damage to third parties only | ||
Coverage period | Jul. 7, 2020 to Jul. 7, 2021 | Jul. 7, 2020 to Jul. 7, 2021 | ||
Amount insured | [1] | 500 | ||
Annual premium | [1] | R$ 3 | ||
Gasmig [member] | Own vehicle fleet (Directors) [member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Coverage | Full cover | Full cover | ||
Coverage period | Oct. 25, 2020 to Oct. 25, 2021 | Oct. 25, 2020 to Oct. 25, 2021 | ||
Amount insured | [1] | 100 | ||
Annual premium | [1] | R$ 2 | ||
Gasmig [member] | Facilities multirisk [member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Coverage | Robbery, theft and fire | Robbery, theft and fire | ||
Coverage period | Dec. 31, 2020 to Dec. 31, 2021 | Dec. 31, 2020 to Dec. 31, 2021 | ||
Amount insured | [1] | R$ 32667 | ||
Annual premium | [1] | R$ 39 | ||
[1] | Amounts expressed in R$ '000 or US$'000. | |||
[2] | Contracting of a new policy is in progress | |||
[3] | Maximum indemnity limit: R$231. |
33. INSURANCE (Details Narrativ
33. INSURANCE (Details Narrative) R$ in Millions | 12 Months Ended | |
Dec. 31, 2020BRL (R$) | ||
Cemig distribuicao [member] | ||
Disclosure of types of insurance contracts [line items] | ||
Maximum indemnity limit | R$ 231 | |
Cemig distribuicao [member] | Operational risk [member] | ||
Disclosure of types of insurance contracts [line items] | ||
Expense arising from other energy distribution equipment | 1,000 | [1] |
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 | |
[1] | Maximum indemnity limit: R$231. |
34. COMMITMENTS (Details)
34. COMMITMENTS (Details) R$ in Millions | Dec. 31, 2020BRL (R$) |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | R$ 187418 |
Physical quota guarantees [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 21,103 |
Other energy purchase contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 49,360 |
Transport of energy from itaipu [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 1,524 |
Quotas of angra 1 and angra 2 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 7,819 |
Purchase of energy bilateral contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 1,365 |
Purchase of energy auctions [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 64,900 |
Purchase of energy from itaipu [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 41,347 |
2021 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 11,002 |
2021 [member] | Physical quota guarantees [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 812 |
2021 [member] | Other energy purchase contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 4,450 |
2021 [member] | Transport of energy from itaipu [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 189 |
2021 [member] | Quotas of angra 1 and angra 2 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 288 |
2021 [member] | Purchase of energy bilateral contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 332 |
2021 [member] | Purchase of energy auctions [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 3,416 |
2021 [member] | Purchase of energy from itaipu [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 1,515 |
2022 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 11,308 |
2022 [member] | Physical quota guarantees [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 812 |
2022 [member] | Other energy purchase contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 4,723 |
2022 [member] | Transport of energy from itaipu [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 215 |
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] | Purchase of energy bilateral contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 332 |
2022 [member] | Purchase of energy auctions [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 3,387 |
2022 [member] | Purchase of energy from itaipu [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 1,548 |
2023 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 11,256 |
2023 [member] | Other energy purchase contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 4,622 |
2023 [member] | Transport of energy from itaipu [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 218 |
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] | Purchase of energy bilateral contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 332 |
2023 [member] | Purchase of energy auctions [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 3,378 |
2023 [member] | Purchase of energy from itaipu [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 1,595 |
2024 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 10,166 |
2024 [member] | Other energy purchase contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 3,478 |
2024 [member] | Transport of energy from itaipu [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 222 |
2024 [member] | Quotas of angra 1 and angra 2 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 301 |
2024 [member] | Purchase of energy bilateral contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 222 |
2024 [member] | Purchase of energy auctions [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 3,536 |
2024 [member] | Purchase of energy from itaipu [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 1,595 |
2025 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 9,571 |
2025 [member] | Physical quota guarantees [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 812 |
2025 [member] | Other energy purchase contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 3,310 |
2025 [member] | Transport of energy from itaipu [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 159 |
2025 [member] | Quotas of angra 1 and angra 2 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 300 |
2025 [member] | Purchase of energy bilateral contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 67 |
2025 [member] | Purchase of energy auctions [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 3,328 |
2025 [member] | Purchase of energy from itaipu [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 1,595 |
After 2026 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 134,115 |
After 2026 [member] | Physical quota guarantees [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 17,043 |
After 2026 [member] | Other energy purchase contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 28,777 |
After 2026 [member] | Transport of energy from itaipu [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 521 |
After 2026 [member] | Quotas of angra 1 and angra 2 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 6,340 |
After 2026 [member] | Purchase of energy bilateral contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 80 |
After 2026 [member] | Purchase of energy auctions [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | 47,855 |
After 2026 [member] | Purchase of energy from itaipu [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total contractual obligations and commitments | R$ 33499 |
35. NON-CASH TRANSACTIONS (Deta
35. NON-CASH TRANSACTIONS (Details Narrative) - BRL (R$) R$ in Millions | Jul. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Non Cash Activities [line items] | ||||
Capitalized financial costs | R$ 33 | R$ 23 | R$ 30 | |
Addition lease amount | 6 | R$ 31 | ||
Amount of capital increase | R$ 300 | |||
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 | |||
Companhia de transmissao centroeste de minas [member] | ||||
Disclosure Of Non Cash Activities [line items] | ||||
Cash arising from the business combination | 27 | |||
Payment made for acquisition | R$ 45 |
36. SUBSEQUENT EVENTS (Details
36. SUBSEQUENT EVENTS (Details Narrative) | Jan. 26, 2021 |
The covid account [member] | Events after reporting period [member] | Cemig Distribuicao SA [member] | |
Disclosure of non-adjusting events after reporting period [line items] | |
Description of monthly charges payable | The monthly charge payable by Cemig D is approximately R$ 41 per month, to be paid to the CCE as from the ordinary tariff adjustment process of 2021, with payment until the 10th day of the subsequent month. Under Aneel Technical Note 05/2021-SGT, this amount will be included in tariffs for 48 months (2021 to 2025), and Aneel will revisit, annually, the parameters for the definition of the charge; any residual balance will be returned to customers at the end of the period. To guarantee an equilibrium between tariff coverage, payment and collection, the Covid Account CDE Charge will be subject to calculation of CVA and Neutrality. |