NOTES TO THE INTERIM FINANCIAL STATEMENTS
AT MARCH 31, 2020
(Amounts in thousands of Brazilian reais – R$, unless otherwise stated)
CPFL Energia S.A. (“CPFL Energia” or “Company”) is a publicly-held corporation incorporated for the principal purpose of operating as a holding company, with equity interests in other companies primarily engaged in electric energy distribution, generation and commercialization activities in Brazil.
The Company’s registered office is located at Rua Jorge Figueiredo Corrêa, nº 1.632, Jardim Professora Tarcília, CEP 13087-397 – Campinas - SP - Brazil.
The Company has direct and indirect interests in the following subsidiaries and joint ventures:
|
Energy distribution
|
|
Company type
|
|
Equity interest
|
|
Location (state)
|
|
Number of municipalities
|
|
Approximate number of consumers (in thousands)
|
|
Concession period
|
|
End of the concession
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Companhia Paulista de Força e Luz ("CPFL Paulista")
|
|
Publicly-held corporation
|
|
Direct
100%
|
|
Interior of São Paulo
|
|
234
|
|
4,605
|
|
30 years
|
|
November 2027
|
|
Companhia Piratininga de Força e Luz ("CPFL Piratininga")
|
|
Publicly-held corporation
|
|
Direct
100%
|
|
Interior and coast of São Paulo
|
|
27
|
|
1,797
|
|
30 years
|
|
October 2028
|
|
RGE Sul Distribuidora de Energia S.A. ("RGE")
|
|
Publicly-held corporation
|
|
Direct and Indirect
100%
|
|
Interior of Rio Grande do Sul
|
|
381
|
|
2,932
|
|
30 years
|
|
November 2027
|
|
Companhia Jaguari de Energia ("CPFL Santa Cruz")
|
|
Privately-held corporation
|
|
Direct
100%
|
|
Interior of São Paulo, Paraná and Minas Gerais
|
|
45
|
|
468
|
|
30 years
|
|
July 2045
|
|
|
|
|
|
|
|
|
|
|
|
Installed power (MW)
|
|
Energy generation (conventional and renewable sources) and Energy transmission
|
|
Company type
|
|
Equity interest
|
|
Location (state)
|
|
Number of plants / type of energy
|
|
Total
|
|
CPFL share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CPFL Geração de Energia S.A.
("CPFL Geração")
|
|
Publicly-held corporation
|
|
Direct
100%
|
|
São Paulo e Goiás
|
|
3 Hydropower (a)
|
|
1295
|
|
678
|
|
CERAN - Companhia Energética Rio das Antas
("CERAN")
|
|
Privately-held corporation
|
|
Indirect
65%
|
|
Rio Grande do Sul
|
|
3 Hydropower
|
|
360
|
|
234
|
|
Foz do Chapecó Energia S.A.
("Foz do Chapecó")
|
|
Privately-held corporation
|
|
Indirect
51% (d)
|
|
Santa Catarina e
Rio Grande do Sul
|
|
1 Hydropower
|
|
855
|
|
436
|
|
Campos Novos Energia S.A.
("ENERCAN")
|
|
Privately-held corporation
|
|
Indirect
48.72%
|
|
Santa Catarina
|
|
1 Hydropower
|
|
880
|
|
429
|
|
BAESA - Energética Barra Grande S.A.
("BAESA")
|
|
Publicly-held corporation
|
|
Indirect
25.01%
|
|
Santa Catarina e
Rio Grande do Sul
|
|
1 Hydropower
|
|
690
|
|
173
|
|
Centrais Elétricas da Paraíba S.A.
("EPASA")
|
|
Privately-held corporation
|
|
Indirect
53.34%
|
|
Paraíba
|
|
2 Thermal
|
|
342
|
|
182
|
|
Paulista Lajeado Energia S.A.
("Paulista Lajeado")
|
|
Privately-held corporation
|
|
Indirect
59.93% (b)
|
|
Tocantins
|
|
1 Hydropower
|
|
903
|
|
38
|
|
CPFL Energias Renováveis S.A.
("CPFL Renováveis")
|
|
Publicly-held corporation
|
|
Direct and Indirect
99.94%
|
|
(c)
|
|
(c)
|
|
(c)
|
|
(c)
|
|
CPFL Centrais Geradoras Ltda ("CPFL Centrais Geradoras")
|
|
Limited liability company
|
|
Direct
100%
|
|
São Paulo e Minas Gerais
|
|
6 SHPs
|
|
4
|
|
4
|
|
CPFL Transmissão Piracicaba S.A ("CPFL Transmissão Piracicaba")
|
|
Privately-held corporation
|
|
Indirect
100%
|
|
São Paulo
|
|
n/a
|
|
n/a
|
|
n/a
|
|
CPFL Transmissão Morro Agudo S.A ("CPFL Transmissão Morro Agudo")
|
|
Privately-held corporation
|
|
Indirect
100%
|
|
São Paulo
|
|
n/a
|
|
n/a
|
|
n/a
|
|
CPFL Transmissão Maracanaú S.A. (“CPFL Maracanaú”) (e)
|
|
Privately-held corporation
|
|
Indirect
100%
|
|
Ceará
|
|
n/a
|
|
n/a
|
|
n/a
|
|
CPFL Transmissão Sul I S.A. (“CPFL Sul I”)
|
|
Privately-held corporation
|
|
Indirect
100%
|
|
Santa Catarina
|
|
n/a
|
|
n/a
|
|
n/a
|
|
CPFL Transmissão Sul II S.A. (“CPFL Sul II”)
|
|
Privately-held corporation
|
|
Indirect
100%
|
|
Rio Grande do Sul
|
|
n/a
|
|
n/a
|
|
n/a
|
|
Transmissoras
|
|
Privately-held corporation
|
|
Indirect
100%
|
|
São Paulo, Santa Catarina e Rio Grande do Sul
|
|
n/a
|
|
n/a
|
|
n/a
|
|
Energy commercialization
|
|
Company type
|
|
Core activity
|
|
Equity interest
|
|
CPFL Comercialização Brasil S.A. ("CPFL Brasil")
|
|
Privately-held corporation
|
|
Energy commercialization
|
|
Direct
100%
|
|
Clion Assessoria e Comercialização de Energia Elétrica Ltda ("CPFL Meridional")
|
|
Limited liability company
|
|
Commercialization and provision of energy services
|
|
Indirect
100%
|
|
CPFL Comercialização de Energia Cone Sul Ltda ("CPFL Cone Sul")
|
|
Limited liability company
|
|
Energy commercialization
|
|
Indirect
100%
|
|
CPFL Planalto Ltda ("CPFL Planalto")
|
|
Limited liability company
|
|
Energy commercialization
|
|
Direct
100%
|
|
CPFL Brasil Varejista de Energia Ltda ("CPFL Brasil Varejista")
|
|
Limited liability company
|
|
Energy commercialization
|
|
Indirect
100%
|
35
|
Provision of services
|
|
Company type
|
|
Core activity
|
|
Equity interest
|
|
CPFL Serviços, Equipamentos, Industria e Comércio S.A.
("CPFL Serviços")
|
|
Privately-held corporation
|
|
Manufacturing, commercialization, rental and maintenance of electro-mechanical equipment and service provision
|
|
Direct
100%
|
|
Nect Serviços Administrativos de Infraestrutura Ltda ("CPFL Infra")
|
|
Limited liability company
|
|
Provision of infrastructure and fleet services
|
|
Direct
100%
|
|
Nect Servicos Administrativos de Recursos Humanos Ltda ("CPFL Pessoas")
|
|
Limited liability company
|
|
Provision of human resources services
|
|
Direct
100%
|
|
Nect Servicos Administrativos Financeiros Ltda ("CPFL Finanças")
|
|
Limited liability company
|
|
Provision of financial services
|
|
Direct
100%
|
|
Nect Servicos Adm de Suprimentos E Logistica Ltda ("CPFL Supre")
|
|
Limited liability company
|
|
Supply and logistics services
|
|
Direct
100%
|
|
CPFL Atende Centro de Contatos e Atendimento Ltda ("CPFL Atende")
|
|
Limited liability company
|
|
Provision of call center services
|
|
Direct
100%
|
|
CPFL Total Serviços Administrativos Ltda ("CPFL Total")
|
|
Limited liability company
|
|
Collection services
|
|
Direct
100%
|
|
CPFL Eficiência Energética Ltda ("CPFL Eficiência")
|
|
Limited liability company
|
|
Energy efficiency management
|
|
Direct
100%
|
|
TI Nect Serviços de Informática Ltda ("Authi")
|
|
Limited liability company
|
|
Provision of IT services
|
|
Direct
100%
|
|
CPFL Geração Distribuída de Energia Ltda ("CPFL GD")
|
|
Limited liability company
|
|
Provision of maintenance services for energy generation companies
|
|
Indirect
100%
|
a) CPFL Geração has 51.54% of the assured energy and power of the Serra da Mesa hydropower plant, which concession is owned by Furnas.
b) Paulista Lajeado holds a 7% interest in the installed power of Investco S.A. (5.94% interest in total capital).
c) CPFL Renováveis has operations in the states of São Paulo, Minas Gerais, Mato Grosso, Santa Catarina, Ceará, Rio Grande do Norte, Paraná and Rio Grande do Sul and its main activities are: (i) holding investments in companies of the renewable energy segment; (ii) identification, development, and exploration of generation potentials; and (iii) sale of electric energy. At March 31, 2020, CPFL Renováveis had a portfolio of 107 enterprises with 2,446,3 MW of installed capacity (2,132.7 MW in operation):
· Hydropower generation: 41 SHP’s (481.1 MW) with 40 SHPs in operation (453,1 MW) and 1 SHPs under construction/development (28 MW);
· Wind power generation: 57 enterprise (1,594.1 MW) with 45 in operation (1,308.5 MW) and 12 under construction/development (285.6 MW);
· Biomass power generation: 8 plants in operation (370 MW);
· Solar power generation: 1 solar plant in operation (1.1 MW).
d) The joint venture Chapecoense has as its direct subsidiary Foz do Chapecó and fully consolidates its financial statements.
1.1 - New York Stock Exchange delisting
On December 18, 2018, the Company's Board of Directors Meeting approved the Company’s intention to: (i) terminate the Second Amended and Restated Deposit Agreement (“Deposit Agreement”) with Citibank N.A. (“Citibank”) with respect to its American Depositary Receipts (“ADRs”); (ii) delist its American Depositary Shares (“ADSs”) from the New York Stock Exchange (“NYSE”); and (iii) once the Company complies with the applicable requirements, cancel its registration with the U.S. Securities and Exchange Commission (“SEC”).
The Company believes that the economic rationale for maintaining a listing on the NYSE has decreased partly due to: (i) increases in the volume of Brazilian shares traded on B3 S.A. – Bolsa, Brasil, Balcão (“B3”) in Brazil by foreign investors due to the internationalization of the Brazilian financial and capital markets, as well as the narrowing of the differences between the Brazilian and the US international financial reporting standards; and (ii) a downward trend in recent years in the trading volume of the Company's ADSs on the NYSE.
36
On February 10, 2020, the Company, through a Notice to the Market, informed that the delisting of its NYSE ADSs, mentioned in item (ii) above, will be effective as of this date.
1.2 - Impacts of COVID-19
On March 11, 2020, the World Health Organization (WHO) declared the coronavirus (COVID-19) to be a pandemic. The outbreak triggered significant decisions from governments and private sector entities that added to the potential impact of the outbreak, increased the degree of uncertainty for economic agents and may impact financial statements. The world’s main economies and the main economic blocs are assessing significant stimulus packages to overcome the potential economic recession that the measures to mitigate the spread of COVID-19 may cause.
In Brazil, the executive and legislative branches of the government edited various acts to prevent and contain the pandemic, as well as to mitigate the respective economic impacts, particularly Legislative Decree No. 6, edited on March 20, 2020, which declared a state of public calamity. The state and municipal governments also edited various acts seeking to restrict the free movement of people and commercial and service activities, in addition to making emergency investments in the healthcare sector available.
Management has constantly assessed the impact of the outbreak on the operations and the equity and financial position of the Company and its subsidiaries, in order to implement the appropriate measures to mitigate the impact to operations. Up until the authorization date for the issuance of this interim financial information, the following measures have been taken and the primary matters that are constantly being monitored are listed below:
|
·
|
Implementing temporary measures for employees, such as home office plans, adapting collective spaces to avoid agglomerations of people, and other applicable measures relating to health;
|
|
·
|
Negotiating with suppliers of equipment to evaluate delivery deadlines in light of the new scenario, being that so far there have not been any indications of significant risks of delay that could impact operations;
|
|
·
|
Evaluating contractual terms with financial institutions relating to loans and financing as well as supplier payments to mitigate any potential liquidity risks;
|
|
·
|
Monitoring the variations of market indexes that may affect loans, financing and debentures;
|
|
·
|
Evaluating potential renegotiations with customers, due to a possible macroeconomic downturn and a consequent reduction in energy consumption. Management’s initial expectation is that such renegotiations will be mostly directed towards temporary shifts in contracted quantities, and there is no expectation that there will be material losses in the respective total revenues and, consequently, in the recoverability of assets;
|
|
·
|
Monitoring possible over-contracting of the Group’s distributors due to load reductions and consequent energy surpluses exceeding the 5% provided for in the regulatory requirements;
|
|
·
|
Monitoring the default of the Group’s distributors, especially in light of the 90-day suspension beginning March 25, 2020 of the service interruption due to delinquency for certain consumers (residential and essential services, in accordance with the specific rules established by ANEEL). Management’s expectation is that most of this impact will be temporary, until the service interruption due to delinquency policies are reestablished and/or new possible actions to offset these impacts through regulatory mechanism may be implemented.
|
Due to the relevance and complexity of these matters from a regulatory perspective, many of these issues are being discussed with the regulatory agency, ANEEL.
Taking into consideration all the analyzes carried out on matters relating to the possible impacts of COVID-19 on its business and that of its subsidiaries, the Company concluded that for the quarter ended March 31, 2020, there are no material effects on its interim accounting information.
37
The financial and economic effect on the Company and its subsidiaries during the course of the 2020 financial year will depend on the outcome of this crisis and its macroeconomic impacts, especially with respect to reductions in economic activity, as well as the extent of social isolation.
( 2 ) PRESENTATION OF THE INTERIM FINANCIAL STATEMENTS
2.1 Basis of preparation
This interim individual (Parent Company) and consolidated financial statement has been prepared and is being presented in accordance with the International Accounting Standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standard Board – IASB, and also based on standards issued by the Brazilian Securities and Exchange Commission (CVM), applicable to the preparation of Quarterly Financial Information (ITR), in accordance with Technical Pronouncement CPC 21 (R1) - Interim Financial Reporting.
The Company and its subsidiaries (“Group”) also follows the guidelines of the Accounting Manual of the Brazilian Electricity Sector and the standards laid down by the Brazilian Electricity Regulatory Agency (Agência Nacional de Energia Elétrica – ANEEL), when these do not conflict with the accounting practices adopted in Brazil and/or International Financial Reporting Standards.
The accounting practices and criteria adopted in preparing these individual and consolidated interim financial statements are consistent with those adopted in preparing the financial statements at December 31, 2019, and therefore should be read together.
Management states that all material information of the interim financial statements is disclosed and corresponds to what is used in the Group's management.
The interim financial statements were authorized for issue by Management and on May 11, 2020.
2.2 Basis of measurement
The interim financial statements has been prepared on the historical cost basis except for the following items recorded in the statements of financial position: i) derivative financial instruments measured at fair value and ii) non derivative financial instruments measured at fair value through profit or loss. The classification of the fair value measurement in the level 1, 2 or 3 categories (depending on the degree of observance of the variables used) is presented in note 34 – Financial Instruments.
2.3 Use of estimates and judgments
The preparation of the interim financial statements requires the Group’s management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
By definition, the accounting estimates are rarely the same as the actual results. Accordingly, the Group’s management review the estimates and assumptions on an ongoing basis, based on previous experience and other relevant factors. Adjustments resulting from revisions to accounting estimates are recognized in the period in which the estimates are revised and applied on a prospective basis.
The main accounts that require the adoption of estimates and assumptions, which are subject to a greater degree of uncertainty and may result in a material adjustment if these estimates and assumptions suffer significant changes in subsequent periods, are:
· Note 7 – Consumers, concessionaires and licensees (Allowance for doubtful accounts: key assumptions regarding to the expected credit loss – ECL and premises for measuring the supply and Tariff for use of the distribution system (“TUSD”) not invoiced);
· Note 9 – Sector financial asset and liability (Regulatory discretion and judgement over certain items);
38
· Note 10 – Deferred tax assets and liabilities (recognition of assets: availability of future taxable profit against which the tax losses can be utilized);
· Note 11 – Concession financial asset (assumptions for fair value measurement, based on significant unobservable inputs, see note 34);
· Note 12 – Other assets (allowance for doubtful accounts: key assumptions regarding to the expected credit loss - ECL);
· Note 14 – Property, plant and equipment (definition of useful lives and key assumptions regarding recoverable amounts);
· Note 15 – Intangible assets (key assumptions regarding recoverable amounts);
· Note 18 – Borrowings (key assumptions used in the fair value measurement);
· Note 19 – Debentures (key assumptions used in the fair value measurement);
· Note 16 – Contract Asset (key assumptions regarding recoverable amounts);
· Note 20 – Private pension plan (key actuarial assumptions used in the measurement of defined benefit obligations);
· Note 23 – Provision for tax, civil and labor risks and escrow deposits (recognition and measurement: key assumptions on the probability and magnitude of outflow of resources); and
· Note 34 - Financial instruments – derivatives (key assumptions used in the fair value measurement).
2.4 Functional currency and presentation currency
The Group’s functional currency is the Brazilian Real, and the individual and consolidated interim financial statements is being presented in thousands of reais. Figures are rounded only after sum-up of the amounts. Consequently, when summed up, the amounts stated in thousands of reais may not tally with the rounded totals.
2.5 Segment information
An operating segment is a component of the Company (i) that engages in operating activities from which it earns revenues and incurs expenses, (ii) whose operating results are regularly reviewed by Management to make decisions about resources to be allocated and assess the segment's performance, and (iii) for which individual financial information is available.
The Group’s officers use reports to make strategic decisions, segmenting the business into: (i) electric energy distribution activities (“Distribution”); (ii) electric energy generation and transmission from conventional sources activities (“Generation”); (iii) electric energy generation activities from renewable sources (“Renewables”); (iv) energy commercialization activities (“Commercialization”); (v) service activities (“Services”); and (vi) other activities not listed in the previous items.
2.6 Information on equity interests
The Company's equity interests in direct and indirect subsidiaries and joint ventures are described in note 1. Except for (i) the companies ENERCAN, BAESA, Chapecoense and EPASA, which use the equity method of accounting, and (ii) the non-controlling interest in the investment stated at cost by the subsidiary Paulista Lajeado in Investco S.A., all other entities are fully consolidated.
At March 31, 2020 and December 31, 2019 and for the quarters and three months periods ended March 31, 2020 and 2019 the noncontrolling interests in the consolidated balances refer to interests held by third parties in subsidiaries CERAN, Paulista Lajeado and CPFL Renováveis.
2.7 Statement of value added
The Company has prepared the individual and consolidated statements of value added (“DVA”) in conformity with technical pronouncement CPC 09 - Statement of Value Added, which are presented as an integral part of the interim financial statements in accordance with accounting practices adopted in Brazil and as supplementary information to the interim financial statements in accordance with IFRS, as this statement is neither provided for nor required by IFRS.
39
( 3 ) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Except for the changes noted bellow these interim financial information of the Group was prepared based on the same accounting policies described in notes 3.1 to 3.17 disclosed in the financial statements for the year ended December 31, 2019. Effects of the changes in accounting policies on the group's consolidated financial statements for the year ended December 31, 2020 are also expected.
Nature and effect of changes: financial instruments – financial liabilities measured at fair value through profit or loss
Financial liabilities are initially recognized on the date in which they are originated or on the trade date in which the Company or its subsidiaries become a party to the contractual provisions of the instrument and may be measured at fair value through profit or loss or at amortized cost. As of the first quarter of 2020, the Company recognized the changes in fair values related to borrowings in foreign currency designated at fair value exclusively through profit or loss, since there were no material changes attributable to your credit risk in the components that make up the fair value. See note 18.
( 4 ) FAIR VALUE MEASUREMENT
A number of the Group’s accounting policies and disclosures require the fair value measurement, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and / or disclosure purposes based on the following methods. When applicable, additional information on the assumptions made in the fair value measurement is disclosed in the notes specific to that asset or liability.
The Group measures fair value as the value at which an asset can be traded, or a liability settled, between interested parties, knowledgeable of the business and independent from each other, with the absence of factors that put pressure on the settlement of the transaction or that characterize a compulsory transaction.
- Property, plant and equipment, intangible assets and contract asset
The fair value of items of property, plant and equipment, intangible and contract asset is based on the market approach and cost approaches using quoted market prices for similar items when available and replacement cost when appropriate.
- Financial instruments
Financial instruments measured at fair value are valued based on quoted prices in an active market, or, if such prices are not available, they are assessed using pricing models, applied individually to each transaction, taking into consideration future cash flows, based on the contractual conditions, discounted to present value at rates obtained from market interest curves, having as a basis, whenever available, information obtained from the websites of B3 S.A. and “Associação Brasileira das Entidades dos Mercados Financeiro e de Capitais – ANBIMA” (note 34) and also includes the debtor's credit risk rate.
The right to compensation, to be paid by the Federal Government when the distribution concessionaires’ assets are handed over at the end of the concession period are classified as measured at fair value through profit or loss. The methodology adopted for valuing these assets is based on the tariff review process for distributors. This process, conducted every four or five years according to each concessionaire, involves assessing the replacement price of the distribution infrastructure, in accordance with criteria established by the granting authority (“ANEEL”). This valuation basis is also used for establishing the distribution tariff, which is adjusted annually up to the next tariff review, based on main inflation indices.
Accordingly, at the time of the tariff review, each distribution concessionaire adjusts the position of the financial asset base for compensation at the amounts ratified by the granting authority and uses the Extended Consumer Price Index (“IPCA”) as the best estimates for adjusting the original value until the next tariff review process.
40
( 5 ) CASH AND CASH EQUIVALENTS
|
|
Parent Company
|
|
Consolidated
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2020
|
|
December 31, 2019
|
|
Bank balances
|
1,095
|
|
2,195
|
|
159,933
|
|
450,622
|
|
Short-term financial investments
|
85,153
|
|
31,714
|
|
5,409,572
|
|
1,486,541
|
|
Private credit notes (a)
|
85,153
|
|
31,714
|
|
4,560,375
|
|
1,279,740
|
|
Investment funds (b)
|
-
|
|
-
|
|
849,197
|
|
206,801
|
|
Total
|
86,248
|
|
33,909
|
|
5,569,505
|
|
1,937,163
|
a) Short-term investments in: (i) Bank Certificates of Deposit (CDB) amounting to R$ 4,289,846 (R$ 994,521 in December 31, 2019, (ii) secured debentures amounting to R$ 270,169 (R$ 284,863 in December 31, 2019 and (iii) leasing notes amounting to 360 (R$ 352 in December 31, 2019). All with major financial institutions that operate in the Brazilian financial market, with daily liquidity, short term maturity, low credit risk and interest equivalent, on average, to 100.34% of the CDI.
b) Investments funds, with high liquidity and interest equivalent, on average, to 96.5% of the CDI, subject to floating rates tied to the CDI linked to federal government bonds, CDBs, financial bills and secured debentures of major financial institutions, with low credit risk and short term maturity.
( 6 ) MARKETABLE SECURITIES
|
|
Consolidated
|
|
Marketable securities
|
March 31, 2020
|
|
December 31, 2019
|
|
Through investment funds (a)
|
10
|
|
449,786
|
|
Direct investment (b)
|
936
|
|
401,218
|
|
Total
|
946
|
|
851,004
|
In March 31, 2020, it represents mostly capitalization bonds with equal participation in savings accounts. In December 31, 2019, this refers to amounts invested in government securities (a) Financial Bills ("LF") and Financial Treasury Bills ("LFT"), through investment fund quotas, yielding on average 99.87% of the CDI and (b) LFT, yielding on average 100% of the CDI.
41
( 7 ) CONSUMERS, CONCESSIONAIRES AND LICENSEES
The consolidated balance includes mainly activities from the supply of electric energy, broken down as follows at March 31, 2020 and December 31, 2019:
|
|
|
Consolidated
|
|
|
|
Amounts
not due
|
|
Past due
|
|
Total
|
|
|
|
|
until 90 days
|
|
> 90 days
|
|
March 31, 2020
|
|
December 31, 2019
|
|
Current
|
|
|
|
|
|
|
|
|
|
|
|
Consumer classes
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
843,056
|
|
654,200
|
|
83,900
|
|
1,581,156
|
|
1,560,630
|
|
Industrial
|
|
284,915
|
|
98,337
|
|
90,303
|
|
473,556
|
|
504,078
|
|
Commercial
|
|
311,283
|
|
114,762
|
|
34,786
|
|
460,831
|
|
498,499
|
|
Rural
|
|
103,912
|
|
37,012
|
|
10,686
|
|
151,610
|
|
149,864
|
|
Public administration
|
|
85,414
|
|
22,090
|
|
8,261
|
|
115,765
|
|
119,389
|
|
Public lighting
|
|
62,954
|
|
5,782
|
|
5,810
|
|
74,546
|
|
79,373
|
|
Public utilities
|
|
99,185
|
|
14,600
|
|
7,143
|
|
120,928
|
|
124,655
|
|
Billed
|
|
1,790,719
|
|
946,783
|
|
240,889
|
|
2,978,392
|
|
3,036,488
|
|
Unbilled
|
|
1,311,237
|
|
-
|
|
-
|
|
1,311,237
|
|
1,230,883
|
|
Financing of consumers' debts
|
|
169,787
|
|
39,065
|
|
36,492
|
|
245,344
|
|
247,431
|
|
CCEE transactions
|
|
178,241
|
|
2,740
|
|
31,626
|
|
212,607
|
|
350,354
|
|
Concessionaires and licensees
|
|
330,758
|
|
1,551
|
|
11,708
|
|
344,017
|
|
403,628
|
|
Others
|
|
52,578
|
|
-
|
|
-
|
|
52,578
|
|
50,191
|
|
|
|
3,833,320
|
|
990,139
|
|
320,715
|
|
5,144,175
|
|
5,318,975
|
|
Allowance for doubtful accounts
|
|
|
|
|
|
|
|
(338,585)
|
|
(333,396)
|
|
Total
|
|
|
|
|
|
|
|
4,805,590
|
|
4,985,578
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncurrent
|
|
|
|
|
|
|
|
|
|
|
|
Financing of consumers' debts
|
|
167,574
|
|
-
|
|
-
|
|
167,574
|
|
179,045
|
|
Energia livre
|
|
6,808
|
|
-
|
|
-
|
|
6,808
|
|
6,739
|
|
CCEE transactions
|
|
242,684
|
|
339,651
|
|
-
|
|
582,335
|
|
527,284
|
|
Total
|
|
417,066
|
|
339,651
|
|
-
|
|
756,717
|
|
713,068
|
Allowance for doubtful accounts
The allowance for doubtful debts is set up based on the expected credit loss (ECL), adopting the simplified method of recognizing, based on the history and future probability of default. The allowance methodology is detailed in note 34.f.
Movements in the allowance for doubtful accounts are shown below:
|
|
Consumers, concessionaires and licensees
|
|
Other assets (note 12)
|
|
Total
|
|
At December 31, 2019
|
(333,396)
|
|
(29,019)
|
|
(362,415)
|
|
Allowance - reversal (recognition)
|
(105,322)
|
|
96
|
|
(105,226)
|
|
Recovery of revenue
|
47,367
|
|
15
|
|
47,382
|
|
Write-off of accrued receivables
|
52,766
|
|
(15)
|
|
52,751
|
|
At March 31, 2020
|
(338,585)
|
|
(28,923)
|
|
(367,508)
|
The effects and disclosures in these interim financial statements, resulting from the pandemic caused by Covid-19, are described in note 1.2.
42
|
|
Parent Company
|
|
Consolidated
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2020
|
|
December 31, 2019
|
|
Current
|
|
|
|
|
|
|
|
|
Prepayments of social contribution – CSLL
|
-
|
|
-
|
|
20,285
|
|
5,088
|
|
Prepayments of income tax - IRPJ
|
-
|
|
-
|
|
55,503
|
|
12,522
|
|
Income tax and social contribution to be offset
|
78
|
|
78
|
|
85,326
|
|
70,088
|
|
Income tax and social contribution to be offset
|
78
|
|
78
|
|
161,115
|
|
87,698
|
|
|
|
|
|
|
|
|
|
|
Withholding income tax - IRRF on interest on capital
|
8,958
|
|
40,099
|
|
8,958
|
|
40,432
|
|
Withholding income tax - IRRF
|
19,774
|
|
18,847
|
|
79,772
|
|
80,499
|
|
State VAT - ICMS to be offset
|
-
|
|
-
|
|
148,103
|
|
144,415
|
|
Social Integration Program - PIS
|
-
|
|
-
|
|
10,763
|
|
10,958
|
|
Contribution for Social Security Funding - COFINS
|
-
|
|
-
|
|
50,256
|
|
51,084
|
|
Others
|
-
|
|
-
|
|
4,647
|
|
4,039
|
|
Other taxes to be offset
|
28,732
|
|
58,947
|
|
302,499
|
|
331,428
|
|
|
|
|
|
|
|
|
|
|
Total current
|
28,810
|
|
59,025
|
|
463,614
|
|
419,126
|
|
|
|
|
|
|
|
|
|
|
Noncurrent
|
|
|
|
|
|
|
|
|
Social contribution to be offset - CSLL
|
-
|
|
-
|
|
692
|
|
65,589
|
|
Income tax to be offset - IRPJ
|
-
|
|
-
|
|
35,952
|
|
35,939
|
|
Income tax and social contribution to be offset
|
-
|
|
-
|
|
36,644
|
|
101,528
|
|
|
|
|
|
|
|
|
|
|
State VAT - ICMS to be offset
|
-
|
|
-
|
|
193,351
|
|
191,523
|
|
Social Integration Program - PIS
|
-
|
|
-
|
|
31,189
|
|
30,987
|
|
Contribution for Social Security Funding - COFINS
|
-
|
|
-
|
|
143,709
|
|
142,779
|
|
Others
|
-
|
|
-
|
|
4,837
|
|
5,306
|
|
Other taxes to be offset
|
-
|
|
-
|
|
373,086
|
|
370,595
|
|
|
|
|
|
|
|
|
|
|
Total noncurrent
|
-
|
|
-
|
|
409,730
|
|
472,123
|
Exclusion of ICMS from the PIS and COFINS tax base
A number of subsidiaries of the Group are parties to several pending legal proceedings involving the Brazilian federal government that address the exclusion of ICMS amounts from the PIS and COFINS tax base, and right to receive refunds of other amounts previously paid. In 2019, CPFL Santa Cruz (related to the original lawsuit presented by four merged companies - CPFL Leste Paulista, CPFL Sul Paulista, CPFL Jaguari and CPFL Mococa) received a favorable final judicial decision on these matters, which is not subject to further appeal. As a result, CPFL Santa Cruz recognized a tax credit of R$ 166,870 using the calculation method in accordance with the “Federal Revenue Orientation 13/2018”. On 2019, CPFL Santa Cruz recognized a liability related to tax credits that need to be refunded to the relevant consumers for the maximum period of 10 years.
43
( 9 ) SECTOR FINANCIAL ASSET AND LIABILITY
The breakdown of the balances of sector financial asset and liability and the movement for the period are as follows:
|
|
Consolidated
|
|
|
At December 31, 2019
|
|
Operating income (note 27)
|
|
Financial income or expenses (note 30)
|
|
At March 31, 2020
|
|
|
Deferred
|
|
Approved
|
|
Total
|
|
Constitution
|
|
Through billing
|
|
Monetary adjustment
|
|
Deferred
|
|
Approved
|
|
Total
|
|
Parcel ''A''
|
891,247
|
|
497,977
|
|
1,389,225
|
|
(96,500)
|
|
(318,660)
|
|
11,178
|
|
757,029
|
|
228,216
|
|
985,244
|
|
CVA (*)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CDE (**)
|
1,277
|
|
118,083
|
|
119,360
|
|
145,023
|
|
(69,645)
|
|
1,450
|
|
137,394
|
|
58,794
|
|
196,188
|
|
Electric energy cost
|
294,291
|
|
180,446
|
|
474,737
|
|
(511,555)
|
|
(117,985)
|
|
4,696
|
|
(196,618)
|
|
46,512
|
|
(150,107)
|
|
ESS and EER (***)
|
(341,381)
|
|
(301,275)
|
|
(642,656)
|
|
(118,480)
|
|
179,370
|
|
(6,030)
|
|
(441,422)
|
|
(146,374)
|
|
(587,796)
|
|
Proinfa
|
881
|
|
23,361
|
|
24,242
|
|
(26,575)
|
|
(10,686)
|
|
(21)
|
|
(25,074)
|
|
12,034
|
|
(13,040)
|
|
Basic network charges
|
180,686
|
|
7,967
|
|
188,654
|
|
79,032
|
|
(9,312)
|
|
1,132
|
|
240,204
|
|
19,302
|
|
259,506
|
|
Pass-through from Itaipu
|
848,587
|
|
542,747
|
|
1,391,334
|
|
361,323
|
|
(320,921)
|
|
12,731
|
|
1,155,707
|
|
288,760
|
|
1,444,467
|
|
Transmission from Itaipu
|
29,275
|
|
18,763
|
|
48,038
|
|
9,231
|
|
(10,749)
|
|
445
|
|
36,982
|
|
9,983
|
|
46,965
|
|
Neutrality of sector charges
|
9,636
|
|
(34,324)
|
|
(24,688)
|
|
(24,512)
|
|
24,634
|
|
(9)
|
|
(11,820)
|
|
(12,755)
|
|
(24,575)
|
|
Overcontracting
|
(132,005)
|
|
(57,791)
|
|
(189,796)
|
|
(9,987)
|
|
16,634
|
|
(3,216)
|
|
(138,324)
|
|
(48,040)
|
|
(186,364)
|
|
Other financial components
|
(285,566)
|
|
(109,885)
|
|
(395,451)
|
|
(44,792)
|
|
(3,391)
|
|
(3,583)
|
|
(323,344)
|
|
(123,873)
|
|
(447,217)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
605,681
|
|
388,092
|
|
993,775
|
|
(141,292)
|
|
(322,051)
|
|
7,595
|
|
433,685
|
|
104,343
|
|
538,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
1,093,588
|
|
|
|
|
|
|
|
|
|
|
|
899,766
|
|
Noncurrent assets
|
|
|
|
|
2,748
|
|
|
|
|
|
|
|
|
|
|
|
5,441
|
|
Noncurrent liabilities
|
|
|
|
|
(102,561)
|
|
|
|
|
|
|
|
|
|
|
|
(367,181)
|
(*) Deferred tariff costs and gains variations from Parcel “A” items
(**) Energy Development Account – CDE
(***) System Service Charge (ESS) and Reserve Energy Charge (EER)
The details of the nature of each sector financial asset and liability are provided in Note 9 to the financial statements at December 31, 2019.
The effects and disclosures in these interim financial statements, resulting from the pandemic caused by Covid-19, are described in note 1.2.
(10) DEFERRED TAX ASSETS AND LIABILITIES
10.1 Breakdown of tax assets and liabilities
|
|
Parent Company
|
|
Consolidated
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2020
|
|
December 31, 2019
|
|
Social contribution credit/(debit)
|
|
|
|
|
|
|
|
|
Tax losses carryforwards
|
23,344
|
|
22,174
|
|
197,749
|
|
124,852
|
|
Tax benefit of merged intangible
|
-
|
|
-
|
|
87,566
|
|
89,511
|
|
Temporarily nondeductible/taxable differences
|
52
|
|
553
|
|
(441,661)
|
|
(218,616)
|
|
Subtotal
|
23,396
|
|
22,727
|
|
(156,346)
|
|
(4,254)
|
|
|
|
|
|
|
|
|
|
|
Income tax credit / (debit)
|
|
|
|
|
|
|
|
|
Tax losses carryforwards
|
62,854
|
|
61,209
|
|
546,943
|
|
345,462
|
|
Tax benefit of merged intangible
|
-
|
|
-
|
|
282,146
|
|
288,754
|
|
Temporarily nondeductible/taxable differences
|
144
|
|
1,537
|
|
(1,220,017)
|
|
(602,934)
|
|
Subtotal
|
62,998
|
|
62,747
|
|
(390,930)
|
|
31,282
|
|
|
|
|
|
|
|
|
|
|
PIS and COFINS credit/(debit)
|
|
|
|
|
|
|
|
|
Temporarily nondeductible/taxable differences
|
-
|
|
-
|
|
(11,158)
|
|
(10,380)
|
|
|
|
|
|
|
|
|
|
|
Total
|
86,394
|
|
85,474
|
|
(558,434)
|
|
16,647
|
|
|
|
|
|
|
|
|
|
|
Total tax credit
|
86,394
|
|
85,474
|
|
562,406
|
|
1,064,716
|
|
Total tax debit
|
-
|
|
-
|
|
(1,120,840)
|
|
(1,048,069)
|
44
The expected recovery of the deferred tax assets arising from nondeductible temporary differences, tax benefit of merged intangible and income tax and social contribution losses, is based on the projections of future profits, approved by the Board of Directors and reviewed by the Fiscal Council.
10.2 Tax benefit of merged intangible asset
Refers to the tax benefit calculated on the intangible assets derived from the acquisition of subsidiaries, as shown in the following table, which were merged and are recognized in accordance with the concepts of CVM Instructions No. 319/1999 and No. 349/2001 and ICPC 09 (R2) - Individual Financial Statements, Separate Financial Statements, Consolidated financial statements and Application of the Equity Method. The benefit is being realized in proportion to the tax amortization of the merged intangible assets that originated them as per CPC 27 and CPC 04 (R1) - Clarification of acceptable methods of depreciation and amortization, over the remaining concession period, as shown in note 15.
|
|
Consolidated
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
Social Contribution
|
|
Income tax
|
|
Social Contribution
|
|
Income tax
|
|
CPFL Paulista
|
35,464
|
|
98,510
|
|
36,620
|
|
101,723
|
|
CPFL Piratininga
|
8,886
|
|
30,496
|
|
9,145
|
|
31,385
|
|
RGE
|
43,216
|
|
142,693
|
|
43,746
|
|
144,878
|
|
CPFL Geração
|
-
|
|
10,446
|
|
-
|
|
10,769
|
|
Total
|
87,566
|
|
282,146
|
|
89,511
|
|
288,754
|
10.3 Accumulated balances on nondeductible temporary / taxable differences
|
|
Consolidated
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
Social Contribution
|
|
Income tax
|
|
PIS/COFINS
|
|
Social Contribution
|
|
Income tax
|
|
PIS/COFINS
|
|
Temporarily nondeductible/ taxable differences
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for tax, civil and labor risks
|
37,355
|
|
103,765
|
|
-
|
|
41,817
|
|
116,158
|
|
-
|
|
Private pension fund
|
4,643
|
|
12,897
|
|
-
|
|
4,006
|
|
11,127
|
|
-
|
|
Allowance for doubtful accounts
|
33,727
|
|
93,686
|
|
-
|
|
33,288
|
|
92,466
|
|
-
|
|
Free energy supply
|
9,716
|
|
26,988
|
|
-
|
|
9,632
|
|
26,756
|
|
-
|
|
Research and development and energy efficiency programs
|
32,720
|
|
90,890
|
|
-
|
|
33,289
|
|
92,468
|
|
-
|
|
Personnel-related provisions
|
7,830
|
|
21,750
|
|
-
|
|
6,225
|
|
17,293
|
|
-
|
|
Depreciation rate difference
|
3,914
|
|
10,871
|
|
-
|
|
4,097
|
|
11,380
|
|
-
|
|
Derivatives
|
(195,473)
|
|
(542,980)
|
|
-
|
|
(46,344)
|
|
(128,733)
|
|
-
|
|
Recognition of concession - adjustment of intangible asset
|
(5,167)
|
|
(14,354)
|
|
-
|
|
(5,352)
|
|
(14,867)
|
|
-
|
|
Recognition of concession - adjustment of financial asset
|
(184,071)
|
|
(511,306)
|
|
-
|
|
(171,599)
|
|
(476,664)
|
|
-
|
|
Actuarial losses
|
25,594
|
|
71,095
|
|
-
|
|
25,567
|
|
71,020
|
|
-
|
|
Fair value measurement - Derivatives
|
(20,958)
|
|
(58,216)
|
|
-
|
|
(8,670)
|
|
(24,082)
|
|
-
|
|
Fair value measurement - Debts
|
(244)
|
|
(676)
|
|
-
|
|
9,440
|
|
26,222
|
|
-
|
|
Other
|
(31,347)
|
|
(85,204)
|
|
(11,158)
|
|
(28,477)
|
|
(77,238)
|
|
(10,380)
|
|
Temporarily nondeductible differences - accumulated comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment - adjustment of deemed cost
|
(44,760)
|
|
(124,333)
|
|
-
|
|
(45,568)
|
|
(126,578)
|
|
-
|
|
Actuarial losses
|
111,492
|
|
309,699
|
|
-
|
|
137,853
|
|
382,925
|
|
-
|
|
Fair value measurement - Derivatives
|
(4,004)
|
|
(11,120)
|
|
-
|
|
(318)
|
|
(883)
|
|
-
|
|
Fair value measurement - Debts
|
(17,665)
|
|
(49,069)
|
|
-
|
|
(6,638)
|
|
(18,439)
|
|
-
|
|
Temporarily nondeductible differences - business combination
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred taxes - asset:
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for tax, civil and labor risks
|
10,696
|
|
29,712
|
|
-
|
|
10,748
|
|
29,855
|
|
-
|
|
Fair value of property, plant and equipment (negative value added of assets)
|
17,975
|
|
49,931
|
|
-
|
|
18,344
|
|
50,955
|
|
-
|
|
Deferred taxes - liability:
|
|
|
|
|
|
|
|
|
|
|
|
|
Value added derived from determination of deemed cost
|
(18,907)
|
|
(52,520)
|
|
-
|
|
(19,177)
|
|
(53,270)
|
|
-
|
|
Intangible asset - exploration right/authorization
|
(209,870)
|
|
(582,973)
|
|
-
|
|
(216,651)
|
|
(601,809)
|
|
-
|
|
Other temporary differences
|
(4,858)
|
|
(8,552)
|
|
-
|
|
(4,128)
|
|
(8,995)
|
|
-
|
|
Total
|
(441,661)
|
|
(1,220,017)
|
|
(11,158)
|
|
(218,616)
|
|
(602,934)
|
|
(10,380)
|
45
10.4 Reconciliation of the income tax and social contribution amounts recognized in the statements of profit or loss for the quarters and three-month period ended by March 31, 2020 and 2019:
|
|
Parent Company
|
|
|
1st quarter 2020
|
|
1st quarter 2019
|
|
|
Social Contribution
|
|
Income tax
|
|
Social Contribution
|
|
Income tax
|
|
Income before taxes
|
889,221
|
|
889,221
|
|
603,394
|
|
603,394
|
|
Adjustments to reflect effective rate:
|
|
|
|
|
|
|
|
|
Equity in subsidiaries, associates and joint ventures
|
(899,415)
|
|
(899,415)
|
|
(611,777)
|
|
(611,777)
|
|
Amortization of intangible asset acquired
|
(3,382)
|
|
-
|
|
(3,382)
|
|
-
|
|
Other permanent additions (exclusions), net
|
6,150
|
|
9,589
|
|
4,154
|
|
10,898
|
|
Tax base
|
(7,426)
|
|
(605)
|
|
(7,611)
|
|
2,515
|
|
Statutory rate
|
9%
|
|
25%
|
|
9%
|
|
25%
|
|
Tax credit/(debit)
|
668
|
|
151
|
|
685
|
|
(629)
|
|
Recorded (unrecognized) tax credit, net
|
-
|
|
-
|
|
-
|
|
-
|
|
Total
|
668
|
|
151
|
|
685
|
|
(629)
|
|
|
|
|
|
|
|
|
|
|
Current
|
-
|
|
(100)
|
|
(1)
|
|
(420)
|
|
Deferred
|
668
|
|
251
|
|
686
|
|
(209)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
1st quarter 2020
|
|
1st quarter 2019
|
|
|
Social Contribution
|
|
Income tax
|
|
Social Contribution
|
|
Income tax
|
|
Profit before taxes
|
1,390,248
|
|
1,390,248
|
|
906,472
|
|
906,472
|
|
Reconciliation to reflect effective rate:
|
|
|
|
|
|
|
|
|
Equity in subsidiaries
|
(85,160)
|
|
(85,160)
|
|
(85,775)
|
|
(85,775)
|
|
Amortization of intangible asset acquired
|
12,162
|
|
15,689
|
|
12,162
|
|
15,689
|
|
Effect of presumed profit system
|
(78,281)
|
|
(95,070)
|
|
(45,296)
|
|
(52,646)
|
|
Adjustment of revenue from excess demand and excess reactive power
|
43,383
|
|
43,383
|
|
45,387
|
|
45,387
|
|
Other permanent additions (exclusions), net
|
71,892
|
|
76,754
|
|
17,549
|
|
12,512
|
|
Tax base
|
1,354,244
|
|
1,345,844
|
|
850,499
|
|
841,639
|
|
Statutory rate
|
9%
|
|
25%
|
|
9%
|
|
25%
|
|
Tax credit/(debit)
|
(121,882)
|
|
(336,461)
|
|
(76,545)
|
|
(210,410)
|
|
Recorded (unrecognizad) Tax credit,net
|
(8,000)
|
|
(19,581)
|
|
(13,506)
|
|
(35,654)
|
|
Provision for tax risks
|
(26)
|
|
(172)
|
|
-
|
|
-
|
|
Total
|
(129,908)
|
|
(356,214)
|
|
(90,050)
|
|
(246,064)
|
|
|
|
|
|
|
|
|
|
|
Current
|
(15,687)
|
|
(39,201)
|
|
(86,720)
|
|
(233,626)
|
|
Deferred
|
(114,221)
|
|
(317,013)
|
|
(3,330)
|
|
(12,439)
|
The effects and disclosures in these interim financial statements, resulting from the pandemic caused by Covid-19, are described in note 1.2.
( 11 ) CONCESSION FINANCIAL ASSET
|
|
Consolidated
|
|
At December 31, 2019
|
8,779,717
|
|
Noncurrent
|
8,779,717
|
|
Transfer - contract asset
|
250,330
|
|
Transfer - intangible asset
|
18
|
|
Fair value adjustment
|
142,244
|
|
Disposals
|
(9,752)
|
|
At March 31, 2020
|
9,162,557
|
|
Noncurrent
|
9,162,557
|
46
The amount refers to the financial asset corresponding to the right established in the concession agreements of the energy distributors to receive cash by compensation upon the return of the assets to the granting authority at the end of the concession, measured at fair value.
According to the current tariff model, the remuneration for this asset is recognized in profit or loss upon billing to consumers and the realization occurs upon receipt of the electric energy bills. Moreover, the difference to adjust the balance at fair value (new replacement value) is recognized as a balancing item to the operating income account (note 27) in the statement of profit or loss for the period.
In the three-month period of 2020, the balance of write-offs of R$ 9,752 (R$ 6,316 in the three-month of 2019) refers to the write-off of the adjustment related to the asset in the amount of R$ 3,672 (R$ 2,773 in the three-month of 2019) and the write-off of the asset of R$ 6,080 (R$ 3,543 in the three-month of 2019).
|
|
|
Consolidated
|
|
|
|
Current
|
|
Noncurrent
|
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2020
|
|
December 31, 2019
|
|
Advances - Fundação CESP
|
|
8,406
|
|
13,562
|
|
6,797
|
|
6,797
|
|
Advances to suppliers
|
|
55,807
|
|
43,587
|
|
-
|
|
-
|
|
Pledges, funds and restricted deposits
|
|
895
|
|
1,431
|
|
596,223
|
|
569,733
|
|
Orders in progress
|
|
151,041
|
|
130,954
|
|
9,756
|
|
9,448
|
|
Services rendered to third parties
|
|
19,793
|
|
23,388
|
|
-
|
|
-
|
|
Energy pre-purchase agreements
|
|
-
|
|
-
|
|
10,657
|
|
10,432
|
|
Prepaid expenses
|
|
84,257
|
|
76,756
|
|
4,054
|
|
4,608
|
|
GSF renegotiation
|
|
3,239
|
|
6,488
|
|
-
|
|
-
|
|
Receivables - CDE
|
|
139,836
|
|
147,470
|
|
-
|
|
-
|
|
Advances to employees
|
|
40,384
|
|
20,640
|
|
-
|
|
-
|
|
Others
|
|
214,764
|
|
212,904
|
|
134,340
|
|
135,000
|
|
(-) Allowance for doubtful debts (note 07)
|
|
(28,923)
|
|
(29,019)
|
|
-
|
|
-
|
|
Total
|
|
689,497
|
|
648,161
|
|
761,827
|
|
736,019
|
Receivables – CDE: refer to: (i) low-income subsidies amounting to R$ 20,091 (R$ 16,944 at December 31, 2019), (ii) other tariff discounts granted to consumers amounting to R$ 119,737 (R$ 130,516 at December 31, 2019), and (iii) tariff discounts – court injunctions amounting and tariff flag reimbursement to R$ 8 (R$ 9 at December 31, 2019)
|
|
Parent company
|
|
Consolidated
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
December 31, 2019
|
|
March 31, 2020
|
|
Equity method
|
|
|
|
|
|
|
|
|
By equity method of the subsidiary and joint venture
|
13,017,118
|
|
11,741,300
|
|
1,051,566
|
|
988,516
|
|
Advances for future capital increases
|
44,160
|
|
14,160
|
|
-
|
|
-
|
|
Subtotal
|
13,061,278
|
|
11,755,460
|
|
1,051,566
|
|
988,516
|
|
Fair value of assets, net
|
546,218
|
|
565,617
|
|
9,336
|
|
9,481
|
|
Goodwill
|
6,054
|
|
6,054
|
|
-
|
|
-
|
|
Total
|
13,613,552
|
|
12,327,132
|
|
1,060,902
|
|
997,997
|
47
13.1 Equity interests – equity method
The main information on investments in direct equity interests is as follows:
|
|
|
March 31, 2020
|
|
March 31, 2020
|
|
December 31, 2019
|
|
1st quarter 2020
|
|
1st quarter 2019
|
|
Investment
|
|
Total assets
|
|
Issued capital
|
|
Equity
|
|
Profit or loss for the period
|
|
Share of equity of investees
|
Share of profit (loss) of investees
|
|
CPFL Paulista
|
|
12,334,659
|
|
1,308,373
|
|
2,029,405
|
|
308,659
|
|
2,029,405
|
|
1,522,421
|
|
308,659
|
|
187,465
|
|
CPFL Piratininga
|
|
4,502,220
|
|
249,321
|
|
794,669
|
|
131,154
|
|
794,669
|
|
564,024
|
|
131,154
|
|
67,491
|
|
CPFL Santa Cruz
|
|
1,644,583
|
|
170,413
|
|
500,396
|
|
31,152
|
|
500,396
|
|
465,625
|
|
31,152
|
|
41,823
|
|
RGE
|
|
11,626,731
|
|
2,809,820
|
|
4,304,878
|
|
257,339
|
|
3,765,031
|
|
3,489,745
|
|
233,388
|
|
152,206
|
|
CPFL Geração
|
|
5,643,530
|
|
1,043,922
|
|
3,252,204
|
|
176,326
|
|
3,252,204
|
|
3,068,752
|
|
176,326
|
|
121,904
|
|
CPFL Renováveis
|
|
8,809,271
|
|
3,698,060
|
|
4,512,900
|
|
(31,532)
|
|
2,110,278
|
|
2,125,023
|
|
(14,745)
|
|
-
|
|
CPFL Jaguari Geração
|
|
71,127
|
|
40,108
|
|
60,911
|
|
2,600
|
|
60,911
|
|
58,310
|
|
2,600
|
|
2,310
|
|
CPFL Brasil
|
|
1,549,740
|
|
3,000
|
|
125,510
|
|
32,312
|
|
125,510
|
|
86,651
|
|
32,312
|
|
32,023
|
|
CPFL Planalto
|
|
7,911
|
|
630
|
|
7,580
|
|
1,114
|
|
7,580
|
|
6,466
|
|
1,114
|
|
946
|
|
CPFL Serviços
|
|
263,370
|
|
120,929
|
|
161,296
|
|
115
|
|
161,296
|
|
131,181
|
|
115
|
|
(143)
|
|
CPFL Atende
|
|
33,806
|
|
13,991
|
|
27,000
|
|
2,704
|
|
27,000
|
|
24,296
|
|
2,704
|
|
3,584
|
|
CPFL Infra
|
|
20,883
|
|
38
|
|
13,923
|
|
(102)
|
|
13,923
|
|
14,025
|
|
(102)
|
|
6,045
|
|
CPFL Pessoas
|
|
10,146
|
|
811
|
|
6,985
|
|
2,468
|
|
6,985
|
|
4,517
|
|
2,468
|
|
-
|
|
CPFL Finanças
|
|
12,648
|
|
385
|
|
8,632
|
|
3,066
|
|
8,632
|
|
5,566
|
|
3,066
|
|
-
|
|
CPFL Supre
|
|
6,417
|
|
826
|
|
4,031
|
|
764
|
|
4,031
|
|
3,267
|
|
764
|
|
-
|
|
CPFL Total
|
|
46,319
|
|
9,005
|
|
42,531
|
|
7,183
|
|
42,531
|
|
35,348
|
|
7,183
|
|
6,425
|
|
CPFL Telecom
|
|
4,397
|
|
1,928
|
|
4,199
|
|
11
|
|
4,199
|
|
4,188
|
|
11
|
|
24
|
|
CPFL Centrais Geradoras
|
|
19,611
|
|
16,128
|
|
16,178
|
|
158
|
|
16,178
|
|
16,020
|
|
158
|
|
224
|
|
CPFL Eficiência
|
|
139,105
|
|
76,073
|
|
118,598
|
|
408
|
|
118,598
|
|
118,189
|
|
408
|
|
(378)
|
|
AUTHI
|
|
23,358
|
|
10
|
|
11,923
|
|
77
|
|
11,923
|
|
11,846
|
|
77
|
|
7,570
|
|
Subtotal - by subsidiary's equity
|
|
|
|
|
|
|
|
|
|
13,061,278
|
|
11,755,460
|
|
918,812
|
|
629,519
|
|
Amortization of fair value adjustment of assets
|
|
|
|
|
|
|
|
|
|
-
|
|
-
|
|
(19,399)
|
|
(17,740)
|
|
Total
|
|
|
|
|
|
|
|
|
|
13,061,278
|
|
11,755,460
|
|
899,415
|
|
611,777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
|
|
|
|
|
|
|
|
|
|
13,017,118
|
|
11,741,300
|
|
|
|
|
|
Advances for future capital increases
|
|
|
|
|
|
|
|
|
|
44,160
|
|
14,160
|
|
|
|
|
Asset surplus (value added) of net assets acquired in business combinations are classified in the parent’s statement of profit or loss in the group of Investments. In the parent company’s statement of profit or loss, the amortization of the asset surplus (value added) of net assets of R$ 19,399 (R$ 17,740 in the three-month period of 2019) is classified in line item “share of profit (loss) of investees”, in conformity with ICPC 09 (R2).
The movements, in the parent company, of the balances of investments in subsidiaries for the period are as follows:
|
Investment
|
|
Investment at December 31, 2019
|
|
Share of profit (loss) of investees
|
|
Other comprehensive income
|
|
Advances for future capital increases
|
|
Investment at March 31, 2020
|
|
CPFL Paulista
|
|
1,522,421
|
|
308,659
|
|
198,325
|
|
-
|
|
2,029,405
|
|
CPFL Piratininga
|
|
564,024
|
|
131,154
|
|
99,491
|
|
-
|
|
794,669
|
|
CPFL Santa Cruz
|
|
465,625
|
|
31,152
|
|
3,618
|
|
-
|
|
500,396
|
|
RGE
|
|
3,489,745
|
|
233,388
|
|
41,898
|
|
-
|
|
3,765,031
|
|
CPFL Geração
|
|
3,068,752
|
|
176,326
|
|
7,125
|
|
-
|
|
3,252,204
|
|
CPFL Renováveis
|
|
2,125,023
|
|
(14,745)
|
|
-
|
|
-
|
|
2,110,278
|
|
CPFL Jaguari Geração
|
|
58,310
|
|
2,600
|
|
-
|
|
-
|
|
60,911
|
|
CPFL Brasil
|
|
86,651
|
|
32,312
|
|
6,547
|
|
-
|
|
125,510
|
|
CPFL Planalto
|
|
6,466
|
|
1,114
|
|
-
|
|
-
|
|
7,580
|
|
CPFL Serviços
|
|
131,181
|
|
115
|
|
-
|
|
30,000
|
|
161,296
|
|
CPFL Atende
|
|
24,296
|
|
2,704
|
|
-
|
|
-
|
|
27,000
|
|
CPFL Infra
|
|
14,025
|
|
(102)
|
|
-
|
|
-
|
|
13,923
|
|
CPFL Pessoas
|
|
4,517
|
|
2,468
|
|
-
|
|
-
|
|
6,985
|
|
CPFL Finanças
|
|
5,566
|
|
3,066
|
|
-
|
|
-
|
|
8,632
|
|
CPFL Supre
|
|
3,267
|
|
764
|
|
-
|
|
-
|
|
4,031
|
|
CPFL Total
|
|
35,348
|
|
7,183
|
|
-
|
|
-
|
|
42,531
|
|
CPFL Telecom
|
|
4,188
|
|
11
|
|
-
|
|
-
|
|
4,199
|
|
CPFL Centrais Geradoras
|
|
16,020
|
|
158
|
|
-
|
|
-
|
|
16,178
|
|
CPFL Eficiência
|
|
118,189
|
|
408
|
|
-
|
|
-
|
|
118,597
|
|
AUTHI
|
|
11,846
|
|
77
|
|
-
|
|
-
|
|
11,923
|
|
|
|
11,755,460
|
|
918,812
|
|
357,004
|
|
30,000
|
|
13,061,278
|
48
In the consolidated, the investment balances refer to interests in joint ventures accounted for using the equity method:
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
1st quarter 2020
|
|
1st quarter 2019
|
|
Investments in joint ventures
|
|
Share of equity
|
|
Share of profit (loss)
|
|
|
|
|
|
|
|
|
|
|
|
Baesa
|
|
133,622
|
|
156,185
|
|
(307)
|
|
3,467
|
|
Enercan
|
|
242,439
|
|
207,868
|
|
34,571
|
|
30,483
|
|
Chapecoense
|
|
414,415
|
|
381,219
|
|
33,195
|
|
30,000
|
|
EPASA
|
|
261,089
|
|
243,244
|
|
17,845
|
|
21,971
|
|
Fair value adjustments of assets, net
|
|
9,336
|
|
9,481
|
|
(145)
|
|
(145)
|
|
|
|
1,060,902
|
|
997,997
|
|
85,160
|
|
85,775
|
13.2 Fair value adjustments and goodwill
Fair value adjustments refer basically to the right to the concession acquired through business combinations. The goodwill refers basically to acquisitions of investments and is based on projections of future profits.
In the interim financial statements, these amounts are classified as Intangible Assets (note 15).
13.3 Dividends and interest on capital receivable
At March 31, 2020 and December 31, 2019, the Company has the following amounts receivable from the subsidiaries below, relating to dividends and interest on capital:
|
|
Parent Company
|
|
|
Dividend
|
|
Interest on capital
|
|
Total
|
|
Subsidiary
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2020
|
|
December 31, 2019
|
|
CPFL Paulista
|
374,789
|
|
504,789
|
|
115,928
|
|
115,928
|
|
490,717
|
|
620,717
|
|
CPFL Piratininga
|
32,172
|
|
32,172
|
|
35,254
|
|
35,254
|
|
67,426
|
|
67,426
|
|
CPFL Santa Cruz
|
3,473
|
|
3,473
|
|
39,728
|
|
39,728
|
|
43,201
|
|
43,201
|
|
CPFL Geração
|
-
|
|
-
|
|
53,937
|
|
53,937
|
|
53,937
|
|
53,937
|
|
CPFL Centrais Geradoras
|
815
|
|
815
|
|
-
|
|
-
|
|
815
|
|
815
|
|
CPFL Jaguari Geração
|
10,194
|
|
10,194
|
|
-
|
|
-
|
|
10,194
|
|
10,194
|
|
CPFL Brasil
|
-
|
|
-
|
|
-
|
|
1,200
|
|
-
|
|
1,200
|
|
CPFL Serviços
|
3,193
|
|
3,193
|
|
-
|
|
-
|
|
3,193
|
|
3,193
|
|
CPFL Atende
|
-
|
|
-
|
|
-
|
|
343
|
|
-
|
|
343
|
|
CPFL Eficiência
|
2,629
|
|
2,630
|
|
2,550
|
|
2,550
|
|
5,179
|
|
5,179
|
|
AUTHI
|
10,000
|
|
10,000
|
|
-
|
|
-
|
|
10,000
|
|
10,000
|
|
|
437,265
|
|
567,266
|
|
247,397
|
|
248,940
|
|
684,663
|
|
816,205
|
The consolidated balance includes dividends and interest on capital receivable amounting to R$ 122,552 at March 31, 2020 and R$ 100,297 at December 31, 2019 related basically to joint ventures.
13.4 Noncontrolling interests and joint ventures
The disclosure of interests in subsidiaries, in accordance with IFRS 12 and CPC 45, is as follows:
49
13.4.1 Movements in noncontrolling interests
|
|
|
CERAN
|
|
CPFL Renováveis
|
|
Paulista Lajeado
|
|
Total
|
|
At December 31, 2019
|
|
104,134
|
|
104,532
|
|
80,191
|
|
288,857
|
|
Equity interest and voting capital
|
|
35.00%
|
|
0.06%
|
|
40.07%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable to noncontrolling interests
|
|
10,020
|
|
2,032
|
|
2,032
|
|
14,085
|
|
Dividends
|
|
-
|
|
(4,200)
|
|
-
|
|
(4,200)
|
|
Other movements
|
|
-
|
|
-
|
|
(20)
|
|
(20)
|
|
At March 31, 2020
|
|
114,154
|
|
102,364
|
|
82,203
|
|
298,721
|
|
Equity interest and voting capital
|
|
35.00%
|
|
0.06%
|
|
40.07%
|
|
|
13.4.2 Summarized financial information on subsidiaries that have noncontrolling interests
The summarized financial information on subsidiaries that have noncontrolling interests at March 31, 2020 and December 31, 2019 and the three-month period ended at March 31, 2020 and 2019, is as follows:
BALANCE SHEET
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
|
|
CERAN
|
|
CPFL Renováveis
|
|
Paulista Lajeado
|
|
CERAN
|
|
CPFL Renováveis
|
|
Paulista Lajeado
|
|
Current assets
|
|
97,103
|
|
1,392,291
|
|
18,243
|
|
78,836
|
|
1,312,372
|
|
19,734
|
|
Cash and cash equivalents
|
|
59,755
|
|
949,663
|
|
11,487
|
|
33,140
|
|
412,579
|
|
9,564
|
|
Noncurrent assets
|
|
739,905
|
|
10,428,058
|
|
146,036
|
|
751,546
|
|
10,496,351
|
|
141,185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
188,492
|
|
1,589,064
|
|
34,165
|
|
215,198
|
|
1,545,741
|
|
35,374
|
|
Borrowings and debentures
|
|
109,613
|
|
611,144
|
|
-
|
|
106,128
|
|
617,030
|
|
-
|
|
Other financial liabilities
|
|
12,383
|
|
430,201
|
|
424
|
|
13,256
|
|
430,257
|
|
250
|
|
Noncurrent liabilities
|
|
322,365
|
|
5,618,546
|
|
786
|
|
317,660
|
|
5,616,562
|
|
782
|
|
Borrowings and debentures
|
|
211,168
|
|
4,396,400
|
|
-
|
|
211,051
|
|
4,387,676
|
|
-
|
|
Other financial liabilities
|
|
93,084
|
|
-
|
|
-
|
|
91,181
|
|
-
|
|
-
|
|
Equity
|
|
326,151
|
|
4,612,739
|
|
129,328
|
|
297,523
|
|
4,646,421
|
|
124,763
|
|
Equity attributable to owners of the Company
|
|
326,151
|
|
4,512,902
|
|
129,328
|
|
297,523
|
|
4,544,434
|
|
124,763
|
|
Equity attributable to noncontrolling interests
|
|
-
|
|
99,837
|
|
-
|
|
-
|
|
101,987
|
|
-
|
PROFIT OR LOSS
|
|
|
1st quarter 2020
|
|
1st quarter 2019
|
|
|
|
CERAN
|
|
CPFL Renováveis
|
|
Paulista Lajeado
|
|
CERAN
|
|
CPFL Renováveis
|
|
Paulista Lajeado
|
|
Net operating revenue
|
|
81,379
|
|
384,542
|
|
10,682
|
|
73,896
|
|
334,189
|
|
11,654
|
|
Operacional costs and expenses
|
|
(19,442)
|
|
(161,845)
|
|
(5,752)
|
|
(17,093)
|
|
(142,149)
|
|
(6,758)
|
|
Depreciation and amortization
|
|
(10,937)
|
|
(162,656)
|
|
(1)
|
|
(10,889)
|
|
(160,580)
|
|
(1)
|
|
Interest income
|
|
403
|
|
12,650
|
|
101
|
|
635
|
|
20,156
|
|
119
|
|
Interest expense
|
|
(8,331)
|
|
(78,014)
|
|
-
|
|
(8,861)
|
|
(115,360)
|
|
-
|
|
Income tax expense
|
|
(14,629)
|
|
(16,813)
|
|
(631)
|
|
(12,744)
|
|
(12,777)
|
|
(451)
|
|
Profit (loss) for the year
|
|
28,628
|
|
(29,482)
|
|
5,072
|
|
24,769
|
|
(93,023)
|
|
4,584
|
|
Attributable to owners of the Company
|
|
28,628
|
|
(31,532)
|
|
5,072
|
|
24,769
|
|
(95,864)
|
|
4,584
|
|
Attributable to noncontrolling interests
|
|
-
|
|
2,050
|
|
-
|
|
-
|
|
2,841
|
|
-
|
13.4.3 Joint ventures
The summarized financial information on joint ventures at March 31, 2020 and December 31, 2019 and the three-month periods ended at March 31, 2020 and 2019, is as follows:
50
BALANCE SHEET
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
|
|
Enercan
|
|
Baesa
|
|
Chapecoense
|
|
Epasa
|
|
Enercan
|
|
Baesa
|
|
Chapecoense
|
|
Epasa
|
|
Current assets
|
|
235,553
|
|
77,480
|
|
374,304
|
|
328,919
|
|
219,117
|
|
66,863
|
|
379,359
|
|
294,877
|
|
Cash and cash equivalents
|
|
103,004
|
|
48,796
|
|
241,441
|
|
140,802
|
|
77,290
|
|
18,315
|
|
240,645
|
|
96,130
|
|
Noncurrent assets
|
|
963,401
|
|
899,928
|
|
2,447,659
|
|
462,746
|
|
982,032
|
|
915,379
|
|
2,472,085
|
|
470,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
312,120
|
|
150,940
|
|
377,944
|
|
91,240
|
|
390,817
|
|
72,383
|
|
451,803
|
|
93,512
|
|
Borrowings and debentures
|
|
128,359
|
|
-
|
|
138,459
|
|
37,219
|
|
133,548
|
|
-
|
|
138,759
|
|
35,660
|
|
Other financial liabilities
|
|
4,728
|
|
33,287
|
|
72,585
|
|
1,141
|
|
7,131
|
|
35,944
|
|
75,668
|
|
1,416
|
|
Noncurrent liabilities
|
|
389,248
|
|
292,103
|
|
1,631,441
|
|
210,976
|
|
383,699
|
|
285,269
|
|
1,652,152
|
|
216,233
|
|
Borrowings and debentures
|
|
255,791
|
|
-
|
|
879,482
|
|
105,481
|
|
255,756
|
|
-
|
|
913,308
|
|
115,842
|
|
Other financial liabilities
|
|
26,088
|
|
277,635
|
|
739,395
|
|
-
|
|
25,513
|
|
271,267
|
|
731,113
|
|
-
|
|
Equity
|
|
497,587
|
|
534,364
|
|
812,578
|
|
489,449
|
|
426,632
|
|
624,591
|
|
747,489
|
|
455,996
|
PROFIT OR LOSS
|
|
|
1st quarter 2020
|
|
1st quarter 2019
|
|
|
|
Enercan
|
|
Baesa
|
|
Chapecoense
|
|
Epasa
|
|
Enercan
|
|
Baesa
|
|
Chapecoense
|
|
Epasa
|
|
Net operating revenue
|
|
161,225
|
|
56,202
|
|
229,913
|
|
71,055
|
|
138,673
|
|
57,803
|
|
212,543
|
|
196,535
|
|
Operacional costs and expenses
|
|
(36,232)
|
|
(30,547)
|
|
(57,434)
|
|
(18,781)
|
|
(23,655)
|
|
(24,192)
|
|
(56,092)
|
|
(133,809)
|
|
Depreciation and amortization
|
|
(12,422)
|
|
(12,675)
|
|
(31,294)
|
|
(8,701)
|
|
(12,421)
|
|
(12,759)
|
|
(30,905)
|
|
(8,714)
|
|
Interest income
|
|
814
|
|
373
|
|
2,686
|
|
1,319
|
|
1,179
|
|
581
|
|
3,725
|
|
827
|
|
Interest expense
|
|
(5,599)
|
|
(14,400)
|
|
(45,463)
|
|
(2,859)
|
|
(8,504)
|
|
(625)
|
|
(38,239)
|
|
(3,895)
|
|
Income tax expense
|
|
(36,471)
|
|
(226)
|
|
(33,506)
|
|
(8,434)
|
|
(32,227)
|
|
(6,802)
|
|
(29,546)
|
|
(9,878)
|
|
Profit (loss) for the year
|
|
70,955
|
|
(1,227)
|
|
65,089
|
|
33,453
|
|
62,564
|
|
13,863
|
|
58,824
|
|
41,187
|
|
Equity Interests and voting capital
|
|
48.72%
|
|
25.01%
|
|
51.00%
|
|
53.34%
|
|
48.72%
|
|
25.01%
|
|
51.00%
|
|
53.34%
|
Even holding more than 50% of the equity interest in Epasa and Chapecoense, the subsidiary CPFL Geração jointly controls these investments with other shareholders. The analysis of the classification of the type of investment is based on the Shareholders' Agreement of each joint venture.
The borrowings from BNDES obtained by the joint venture Chapecoense establish restrictions on the payment of dividend to subsidiary CPFL Geração above the minimum mandatory dividend of 25% without the prior consent of BNDES.
13.4.4 Joint ventures operation
Through its wholly-owned subsidiary CPFL Geração, the Company holds part of the assets of the Serra da Mesa hydropower plant, located on the Tocantins River, in Goias State. The concession and the right to operate the hydropower plant are held by Furnas Centrais Elétricas S.A. In order to maintain these assets operating jointly with Furnas (jointly operation), CPFL Geração was assured 51.54% of the installed power of 1,275 MW (657 MW) and the assured energy of mean 637.5 MW (mean 328.57 MW) until 2028.
51
( 14 ) PROPERTY, PLANT AND EQUIPMENT
|
|
Consolidated
|
|
|
Land
|
|
Reservoirs, dams and water mains
|
|
Buildings, construction and improvements
|
|
Machinery and equipment
|
|
Vehicles
|
|
Furniture and fittings
|
|
In progress
|
|
Total
|
|
At December 31, 2019
|
167,228
|
|
1,314,749
|
|
940,779
|
|
6,281,123
|
|
46,136
|
|
7,070
|
|
326,625
|
|
9,083,710
|
|
Historical cost
|
224,053
|
|
2,226,232
|
|
1,599,104
|
|
9,999,155
|
|
105,863
|
|
23,447
|
|
326,625
|
|
14,504,478
|
|
Accumulated depreciation
|
(56,825)
|
|
(911,483)
|
|
(658,325)
|
|
(3,718,031)
|
|
(59,727)
|
|
(16,377)
|
|
-
|
|
(5,420,768)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
48,822
|
|
48,822
|
|
Disposals
|
-
|
|
-
|
|
-
|
|
-
|
|
(15)
|
|
-
|
|
(1,513)
|
|
(1,528)
|
|
Transfers
|
852
|
|
193
|
|
68,513
|
|
18,905
|
|
6,305
|
|
166
|
|
(94,933)
|
|
-
|
|
Transfers from/to other assets - cost
|
-
|
|
-
|
|
(23)
|
|
5
|
|
-
|
|
-
|
|
18
|
|
-
|
|
Depreciation
|
(2,230)
|
|
(21,095)
|
|
(16,044)
|
|
(112,499)
|
|
(3,690)
|
|
(212)
|
|
-
|
|
(155,770)
|
|
Write-off of depreciation
|
-
|
|
-
|
|
-
|
|
-
|
|
10
|
|
-
|
|
-
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At March 31, 2020
|
165,849
|
|
1,293,848
|
|
993,225
|
|
6,187,534
|
|
48,747
|
|
7,023
|
|
279,018
|
|
8,975,244
|
|
Historical cost
|
224,905
|
|
2,226,426
|
|
1,667,592
|
|
10,021,507
|
|
112,153
|
|
23,612
|
|
279,018
|
|
14,555,214
|
|
Accumulated depreciation
|
(59,056)
|
|
(932,577)
|
|
(674,368)
|
|
(3,833,973)
|
|
(63,406)
|
|
(16,589)
|
|
-
|
|
(5,579,970)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average depreciation rate
|
3.86%
|
|
3.88%
|
|
3.93%
|
|
4.57%
|
|
13.67%
|
|
5.72%
|
|
|
|
|
The effects and disclosures in these interim financial statements, resulting from the pandemic caused by Covid-19, are described in note 1.2.
52
|
|
Consolidated
|
|
|
Goodwill
|
|
Concession right
|
|
Total
|
|
|
|
Acquired in business combinations
|
|
Distribution infrastructure - operational
|
|
Public utilities
|
|
Other intangible assets
|
|
|
At December 31, 2019
|
6,115
|
|
3,483,750
|
|
5,728,040
|
|
23,065
|
|
79,981
|
|
9,320,953
|
|
Historical cost
|
6,152
|
|
7,495,458
|
|
12,814,937
|
|
35,840
|
|
238,352
|
|
20,590,739
|
|
Accumulated amortization
|
(37)
|
|
(4,011,708)
|
|
(7,086,896)
|
|
(12,774)
|
|
(158,372)
|
|
(11,269,787)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions
|
-
|
|
-
|
|
-
|
|
-
|
|
9,661
|
|
9,661
|
|
Amortization
|
-
|
|
(72,109)
|
|
(197,395)
|
|
(355)
|
|
(3,139)
|
|
(272,998)
|
|
Transfer - contract assets
|
-
|
|
-
|
|
186,022
|
|
-
|
|
-
|
|
186,022
|
|
Transfer - financial asset
|
-
|
|
-
|
|
(18)
|
|
-
|
|
-
|
|
(18)
|
|
Disposal and transfer - other assets
|
-
|
|
-
|
|
(11,826)
|
|
-
|
|
(9,500)
|
|
(21,326)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At March 31, 2020
|
6,115
|
|
3,411,641
|
|
5,704,823
|
|
22,711
|
|
77,002
|
|
9,222,291
|
|
Historical cost
|
6,152
|
|
7,495,458
|
|
12,989,114
|
|
35,840
|
|
238,513
|
|
20,765,076
|
|
Accumulated amortization
|
(37)
|
|
(4,083,818)
|
|
(7,284,291)
|
|
(13,129)
|
|
(161,511)
|
|
(11,542,786)
|
In the consolidated financial statements the amortization of intangible assets is recognized in the income statement as follows: (i) “depreciation and amortization” for amortization of distribution infrastructure intangible assets, use of public asset and other intangible assets; and (ii) “amortization of concession intangible asset” for amortization of the intangible asset acquired in business combination.
15.1 Intangible asset acquired in business combinations
The breakdown of the intangible asset related to the right to operate the concessions acquired in business combinations is as follows:
|
|
Consolidated
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
Annual amortization rate
|
|
|
Historic cost
|
|
Accumulated amortization
|
|
Net value
|
|
Net value
|
|
2020
|
|
2019
|
|
Intangible asset - acquired in business combinations
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset acquired and not merged
|
|
|
|
|
|
|
|
|
|
|
|
|
CPFL Paulista
|
304,861
|
|
(229,470)
|
|
75,391
|
|
77,888
|
|
3.28%
|
|
3.28%
|
|
CPFL Piratininga
|
39,065
|
|
(27,953)
|
|
11,112
|
|
11,435
|
|
3.31%
|
|
3.31%
|
|
RGE
|
3,768
|
|
(2,413)
|
|
1,355
|
|
1,399
|
|
4.67%
|
|
4.68%
|
|
CPFL Geração
|
54,555
|
|
(39,640)
|
|
14,915
|
|
15,376
|
|
3.38%
|
|
3.38%
|
|
Jaguari Geração
|
7,896
|
|
(4,458)
|
|
3,438
|
|
3,505
|
|
3.41%
|
|
3.41%
|
|
CPFL Renováveis
|
3,653,906
|
|
(1,250,315)
|
|
2,403,591
|
|
2,443,397
|
|
4.36%
|
|
4.36%
|
|
Subtotal
|
4,064,052
|
|
(1,554,249)
|
|
2,509,802
|
|
2,553,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset acquired and merged
|
|
|
|
|
|
|
|
|
|
|
|
|
RGE
|
1,433,007
|
|
(1,036,282)
|
|
396,725
|
|
409,739
|
|
3.63%
|
|
3.63%
|
|
CPFL Geração
|
426,450
|
|
(345,888)
|
|
80,562
|
|
83,053
|
|
2.34%
|
|
2.34%
|
|
Subtotal
|
1,859,457
|
|
(1,382,171)
|
|
477,286
|
|
492,792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset acquired and merged – reassembled
|
|
|
|
|
|
|
|
|
|
|
|
|
CPFL Paulista
|
1,074,026
|
|
(827,126)
|
|
246,901
|
|
254,952
|
|
3.00%
|
|
3.00%
|
|
CPFL Piratininga
|
115,762
|
|
(82,834)
|
|
32,928
|
|
33,887
|
|
3.31%
|
|
3.31%
|
|
Jaguari Geração
|
15,275
|
|
(9,411)
|
|
5,863
|
|
5,978
|
|
3.01%
|
|
3.01%
|
|
RGE
|
366,887
|
|
(228,025)
|
|
138,862
|
|
143,141
|
|
4.67%
|
|
4.67%
|
|
Subtotal
|
1,571,949
|
|
(1,147,398)
|
|
424,552
|
|
437,958
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
7,495,458
|
|
(4,083,818)
|
|
3,411,641
|
|
3,483,750
|
|
|
|
|
The effects and disclosures in these interim financial statements, resulting from the pandemic caused by Covid-19, are described in note 1.2.
53
|
|
Distribution
|
|
Transmission
|
|
Consolidated
|
|
At December 31, 2019
|
1,068,207
|
|
279,003
|
|
1,347,210
|
|
Current
|
-
|
|
24,387
|
|
24,387
|
|
Noncurrent
|
1,068,207
|
|
254,616
|
|
1,322,822
|
|
|
|
|
|
|
|
|
Additions
|
460,768
|
|
7,825
|
|
468,593
|
|
Transfer - intangible assets in service
|
(186,022)
|
|
-
|
|
(186,022)
|
|
Transfer - financial assets
|
(250,330)
|
|
-
|
|
(250,330)
|
|
Monetary adjustment
|
-
|
|
8,632
|
|
8,632
|
|
Cash inputs - RAP
|
-
|
|
(5,984)
|
|
(5,984)
|
|
|
|
|
|
|
|
|
At March 31, 2020
|
1,092,623
|
|
289,476
|
|
1,382,098
|
|
Current
|
-
|
|
24,657
|
|
24,657
|
|
Noncurrent
|
1,092,623
|
|
264,818
|
|
1,357,441
|
Contractual asset of distribution companies: Refers to concession infrastructure assets of the distribution companies during the construction period.
Contract asset of transmission companies: refers to the right to receive the “Permitted Annual Revenue – RAP” over the concession period as well as an indemnity at the end of the concession of the transmission subsidiaries.
The effects and disclosures in these interim financial statements, resulting from the pandemic caused by Covid-19, are described in note 1.2.
|
|
Consolidated
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
Current
|
|
|
|
|
System service charges
|
19,349
|
|
2,707
|
|
Energy purchased
|
1,904,230
|
|
2,288,441
|
|
Electricity network usage charges
|
255,830
|
|
250,600
|
|
Materials and services
|
398,683
|
|
554,940
|
|
Free market energy
|
165,147
|
|
163,492
|
|
Total
|
2,743,239
|
|
3,260,180
|
|
|
|
|
|
|
Noncurrent
|
|
|
|
|
Energy purchased
|
364,051
|
|
359,944
|
54
The movement in borrowings are as follows:
|
|
|
Consolidated
|
|
Category
|
|
At December 31, 2019
|
|
Raised
|
|
Repayment
|
|
Interest, monetary adjustment and fair value measurement
|
|
Exchange rates variation
|
|
Interest paid
|
|
At March 31, 2020
|
|
Measured at cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre fixed
|
|
711,398
|
|
-
|
|
(38,016)
|
|
10,924
|
|
-
|
|
(10,822)
|
|
673,484
|
|
Post fixed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
TJLP
|
|
2,744,331
|
|
3,000
|
|
(137,616)
|
|
47,361
|
|
-
|
|
(48,453)
|
|
2,608,623
|
|
IPCA
|
|
1,609,038
|
|
-
|
|
-
|
|
47,720
|
|
-
|
|
(19,212)
|
|
1,637,546
|
|
Selic
|
|
83,073
|
|
-
|
|
(9,597)
|
|
1,307
|
|
-
|
|
(512)
|
|
74,271
|
|
CDI
|
|
180,012
|
|
-
|
|
(23,299)
|
|
1,796
|
|
-
|
|
(2,807)
|
|
155,702
|
|
IGP-M
|
|
42,605
|
|
-
|
|
(2,902)
|
|
1,972
|
|
-
|
|
(881)
|
|
40,794
|
|
UMBNDES
|
|
1,694
|
|
-
|
|
(1,796)
|
|
121
|
|
-
|
|
(19)
|
|
-
|
|
Others
|
|
39,777
|
|
-
|
|
(2,409)
|
|
73
|
|
-
|
|
(110)
|
|
37,331
|
|
Total at cost
|
|
5,411,928
|
|
3,000
|
|
(215,635)
|
|
111,273
|
|
-
|
|
(82,816)
|
|
5,227,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowing costs (*)
|
|
(57,684)
|
|
-
|
|
-
|
|
1,964
|
|
-
|
|
-
|
|
(55,718)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollar
|
|
4,178,417
|
|
1,909,349
|
|
(348,645)
|
|
44,373
|
|
1,436,538
|
|
(37,879)
|
|
7,182,152
|
|
Euro
|
|
846,692
|
|
954,640
|
|
-
|
|
2,152
|
|
344,672
|
|
(1,880)
|
|
2,146,278
|
|
Fair value measurement
|
|
(16,056)
|
|
-
|
|
-
|
|
(184,779)
|
|
-
|
|
-
|
|
(200,835)
|
|
Total at fair value
|
|
5,009,052
|
|
2,863,989
|
|
(348,645)
|
|
(138,254)
|
|
1,781,210
|
|
(39,759)
|
|
9,127,593
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
10,363,296
|
|
2,866,989
|
|
(564,280)
|
|
(25,013)
|
|
1,781,210
|
|
(122,575)
|
|
14,299,627
|
|
Current
|
|
2,776,193
|
|
|
|
|
|
|
|
|
|
|
|
3,082,710
|
|
Noncurrent
|
|
7,587,102
|
|
|
|
|
|
|
|
|
|
|
|
11,216,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) In accordance with IFRS 9/CPC 48, this refers to borrowing costs directly attributable to the issuance of the respective debts, measured at cost.
|
|
|
|
|
55
The detail on borrowings are as follows:
|
|
|
|
|
Consolidated
|
|
|
|
|
|
Category
|
|
Annual interest
|
|
March 31, 2020
|
|
December 31, 2019
|
|
Maturity range
|
|
Collateral
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at cost - Local Currency
|
|
|
|
|
|
|
|
|
|
|
|
Pre fixed
|
|
|
|
|
|
|
|
|
|
|
|
FINEM
|
|
Fixed rate from 2.5% to 8%
|
(a)
|
241,234
|
|
264,093
|
|
2011 to 2024
|
|
(i) Liens on equipment; (ii) Pledge and liens on credit rights; (iii) Reserve, centralizing and receivables accounts; (iv) Pledge of emergent rights of the authorizations; (v) Pledge of shares; (vi) CPFL Renováveis, CPFL Energia e State Grid
|
|
FINAME
|
|
Fixed rate from 2.5% to 10%
|
(a)
|
45,453
|
|
54,328
|
|
2012 to 2025
|
|
(i) Liens on equipment; (ii) Pledge and liens on credit rights; (iii) Reserve, centralizing and receivables accounts; (iv) CPFL Renováveis, CPFL Energia e State Grid Brazil Power guarantee
|
|
FINEP
|
|
Fixed rate from 3.5% to 5%
|
|
378
|
|
944
|
|
2013 to 2021
|
|
Bank guarantee
|
|
BNB
|
|
Fixed rate from 9.5% to 10.14%
|
|
386,419
|
|
392,033
|
|
2027 to 2037
|
|
(i) Liens on equipment; (ii) Pledge of revenue; (iii) Pledge of shares; (iv)Pledge of emergents rights authorized; (v) Reserve account; (vi) Bank guarantee; (vii) CPFL Renováveis guarantee
|
|
|
|
|
|
673,484
|
|
711,398
|
|
|
|
|
|
Post Fixed
|
|
|
|
|
|
|
|
|
|
|
|
TJLP
|
|
|
|
|
|
|
|
|
|
|
|
FINEM
|
|
TJLP and TJLP + from 1.72% to 5.5%
|
(b)
|
2,595,298
|
|
2,721,358
|
|
2009 to 2033
|
|
(i) Pledge and liens on equipment; (ii) Pledge and liens on credit rights (iii) Reserve, centralizing and receivables accounts; (iv) Pledge of shares (v) Pledge of emergents rights authorized by ANEEL; (vi) Pledge of beneficiary shares; (vii) CPFL Renováveis, CPFL Energia and State Grid Brazil Power guarantee; (viii) Bank guarantee
|
|
FINAME
|
|
TJLP + 2.2% to 4.2%
|
(b)
|
9,583
|
|
14,853
|
|
2017 to 2027
|
|
CPFL Energia guarantee and Liens on equipment and receivables
|
|
FINEP
|
|
TJLP e TJLP + 5%
|
|
3,741
|
|
4,284
|
|
2016 to 2024
|
|
Bank guarantee
|
|
Bank loans
|
|
TJLP + 2.99% to 3.1%
|
|
-
|
|
3,837
|
|
2005 to 2023
|
|
CPFL Energia guarantee
|
|
|
|
|
|
2,608,623
|
|
2,744,331
|
|
|
|
|
|
IPCA
|
|
|
|
|
|
|
|
|
|
|
|
FINEM
|
|
IPCA + 4.74% to 4.80%
|
|
1,637,546
|
|
1,609,038
|
|
2020 to 2028
|
|
CPFL Energia guarantee and receivables
|
|
SELIC
|
|
|
|
|
|
|
|
|
|
|
|
FINEM
|
|
SELIC + 2.19% to 2.66%
|
(c)
|
70,811
|
|
79,131
|
|
2015 to 2022
|
|
State Grid Brazil Power and CPFL Energia guarantee and Receivables
|
|
FINAME
|
|
SELIC + 2.70% to 3.90%
|
|
3,460
|
|
3,943
|
|
2016 to 2022
|
|
CPFL Energia guarantee and Liens on equipment
|
|
|
|
|
|
74,271
|
|
83,073
|
|
|
|
|
|
CDI
|
|
|
|
|
|
|
|
|
|
|
|
Bank loans
|
|
(i) 105% of CDI
(ii) CDI from - 1.25% to + 1.90%
|
(c)
|
155,702
|
|
180,012
|
|
2012 to 2023
|
|
(i) CPFL Energia guarantee; (ii) Structure of redeemable preferred shares and (iii) CPFL Renováveis CPFL Energia guarantee
|
|
|
|
|
|
155,702
|
|
180,012
|
|
|
|
|
|
UMBNDES
|
|
|
|
|
|
|
|
|
|
|
|
Bank loans
|
|
UMBNDES + from 1.99% to 5%
|
|
-
|
|
1,694
|
|
2006 to 2023
|
|
CPFL Energia guarantee
|
|
IGPM
|
|
|
|
|
|
|
|
|
|
|
|
Bank loans
|
|
IGPM + 8.63%
|
|
40,794
|
|
42,605
|
|
2023
|
|
(i) Liens on equipment and receivables (ii) Pledge of shares of SPE and rights authorized by ANEEL and receivables of operation contracts
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
RGR
|
|
37,331
|
|
39,777
|
|
2007 to 2023
|
|
Receivables, Promissory notes and Bank guarantee
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total - Local currency
|
|
|
|
5,227,750
|
|
5,411,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowing costs (*)
|
|
|
|
(55,718)
|
|
(57,684)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at fair value - Foreign Currency
|
|
|
|
|
|
|
|
|
|
Dollar
|
|
|
|
|
|
|
|
|
|
|
|
Bank loans (Law 4.131)
|
|
US$ + Libor 3 months + from 0.8% to 1.55%
|
|
1,343,752
|
|
975,333
|
|
2017 to 2025
|
|
CPFL Energia guarantee and Promissory notes
|
|
Bank loans (Law 4.131)
|
|
US$ + from 1.96% to 4.32%
|
|
5,838,399
|
|
3,203,083
|
|
2017 to 2025
|
|
CPFL Energia guarantee and Promissory notes
|
|
|
|
|
|
7,182,152
|
|
4,178,416
|
|
|
|
|
|
Euro
|
|
|
|
|
|
|
|
|
|
|
|
Bank loans (Law 4.131)
|
|
Euro + from 0.42% to 0.96%
|
|
2,146,278
|
|
846,692
|
|
2019 to 2025
|
|
CPFL Energia guarantee and Promissory notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value measurement
|
|
|
|
(200,835)
|
|
(16,056)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total in foreign currency
|
|
|
|
9,127,595
|
|
5,009,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
14,299,627
|
|
10,363,296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) In accordance with CPC 48/IFRS 9, this refers to borrowing costs directly attributable to the issuance of the respective debts, measured at cost.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The subsidiaries hold swaps converting the operating cost of currency variation to interest tax variation in reais. For further information about the considered rates, see note 32.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective rate:
|
|
|
|
|
|
|
|
|
|
|
|
(a) 30% to 70% of CDI
|
|
(b) 60% to 110% of CDI
|
|
(c) 100% to 130% of CDI
|
|
|
|
|
As segregated in the tables above, in conformity with CPC 48 and IFRS 9, the Group classified their debts as (i) financial liabilities measured at amortized cost, and (ii) financial liabilities measured at fair value through profit or loss.
The objective of the classification as financial liabilities of borrowings measured at fair value is to reduce the effects of the recognition of gains and losses derived from fair valuing debt-related derivatives in order to obtain more relevant and consistent accounting information, reducing the accounting mismatch.
Changes in the fair values of these borrowings are recognized in the finance income / expense of the Group, except for the changes in fair value due to credit risk, for the borrowings made before January 1, 2020, which is recorded in other comprehensive income. For the borrowings raised after January 1, 2020, all changes in the fair value of these financial liabilities is recorded in the income statement for the period, since it is attributed to reasons unrelated to your credit risk. At March 31, 2020, the unrealized accumulated gains obtained from the fair value measurement of these debts were R$ 200,835 (accumulated gains of R$ 16,056 at December 31, 2019) plus the unrealized gains obtained from the fair value measurement of derivative financial instruments of R$ 193,167 (gains of R$ 24,178 at December 31, 2019), contracted as a hedge against exchange rate variation (Note 34.b), generated total net unrealized gain of R$ 394,002 (R$ 40,234 at December 31, 2019).
56
The maturities of the principal of borrowings recorded in noncurrent liabilities are scheduled as follows:
|
Maturity
|
|
Consolidated
|
|
From April 1st, 2021
|
|
2,884,296
|
|
2022
|
|
1,743,783
|
|
2023
|
|
2,128,349
|
|
2024
|
|
1,086,373
|
|
2025
|
|
1,938,239
|
|
2026 to 2030
|
|
1,327,152
|
|
2031 to 2035
|
|
229,465
|
|
2036 to 2040
|
|
66,760
|
|
Subtotal
|
|
11,404,417
|
|
Fair value measurement
|
|
(187,500)
|
|
Total
|
|
11,216,917
|
Main borrowings raised in the period:
|
|
|
Released (R$ thousand)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Category
Subsidiary
|
|
Total approved
|
|
Released in 2020
|
|
Net of fundraising costs
|
|
Interest
|
|
Repayment
|
|
Utilization
|
|
Annual rate
|
|
Effective annual rate
|
|
Effective rate with derivatives
|
|
Local currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TJLP - BNDES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boa Vista 2
|
|
144,500
|
|
3,000
|
|
3,000
|
|
Monthly
|
|
Monthly from December 2019
|
|
Subsidiary´s investment plan
|
|
TJLP + 2.52%
|
|
TJLP + 3.27%
|
|
not applicable
|
|
Foreign Currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Law 4.131
|
|
|
|
|
|
|
|
|
|
Bullet in
February 2023
|
|
|
|
|
|
|
|
|
|
CPFL Brasil
|
|
107,000
|
|
107,000
|
|
107,000
|
|
Semiannually
|
|
Bullet in
February 2023
|
|
Working capital
|
|
USD + 1.83%
|
|
USD + 1.83%
|
|
CDI + 0.61%
|
|
CPFL Santa Cruz
|
|
108,000
|
|
108,000
|
|
108,000
|
|
Semiannually
|
|
Anually from February 2023
|
|
Working capital
|
|
USD + 2.07%
|
|
USD + 2.07%
|
|
CDI + 0.80%
|
|
CPFL Paulista
|
|
196,567
|
|
196,567
|
|
196,567
|
|
Quarterly
|
|
Bullet in
February 2025
|
|
Working capital
|
|
USD + 2.40%
|
|
USD + 2.40%
|
|
CDI + 0.89%
|
|
CPFL Paulista
|
|
174,960
|
|
174,960
|
|
174,960
|
|
Quarterly
|
|
Anually from February 2023
|
|
Working capital
|
|
USD + 2.39%
|
|
USD + 2.39%
|
|
CDI + 0.85%
|
|
CPFL Paulista
|
|
274,046
|
|
274,046
|
|
274,046
|
|
Quarterly
|
|
Anually from February 2023
|
|
Working capital
|
|
USD + Libor 3M + 0.99%
|
|
USD + Libor 3M + 0.99%
|
|
CDI + 0.80%
|
|
CPFL Paulista
|
|
534,880
|
|
534,880
|
|
534,880
|
|
Quarterly
|
|
Bullet in
February 2023
|
|
Working capital
|
|
EUR + 0.43%
|
|
EUR + 0.43%
|
|
CDI + 0.58%
|
|
RGE
|
|
100,000
|
|
100,000
|
|
100,000
|
|
Semiannually
|
|
Bullet in
January 2025
|
|
Working capital
|
|
USD + 2.64%
|
|
USD + 2.64%
|
|
CDI + 0.90%
|
|
RGE
|
|
418,280
|
|
418,280
|
|
418,280
|
|
Semiannually
|
|
Anually from February 2023
|
|
Working capital
|
|
USD + 2.07%
|
|
USD + 2.07%
|
|
CDI + 0.80%
|
|
RGE
|
|
185,000
|
|
185,000
|
|
185,000
|
|
Quarterly
|
|
Anually from February 2023
|
|
Working capital
|
|
USD + Libor 3M + 0.87%
|
|
USD + Libor 3M + 0.87%
|
|
CDI + 0.83%
|
|
RGE
|
|
225,497
|
|
225,497
|
|
225,497
|
|
Quarterly
|
|
Anually from February 2023
|
|
Working capital
|
|
USD + 1.84%
(1.94% em 03/2021)
|
|
USD + 1.84%
(1.94% em 03/2021)
|
|
CDI + 0.85%
|
|
CPFL Piratininga
|
|
419,760
|
|
419,760
|
|
419,760
|
|
Quarterly
|
|
Bullet in
March 2025
|
|
Working capital
|
|
EURO + 0.70%
|
|
EURO + 0.70%
|
|
CDI + 0.83%
|
|
CPFL Renováveis
|
|
120,000
|
|
120,000
|
|
120,000
|
|
Semiannually
|
|
Anually from February 2023
|
|
Working capital
|
|
USD + 2.07%
|
|
USD + 2.07%
|
|
CDI + 0.80%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,008,489
|
|
2,866,989
|
|
2,866,989
|
|
|
|
|
|
|
|
|
|
|
|
|
Covenants
Borrowings raised by Group companies require the compliance with certain restrictive financial clauses, under penalty of restriction in the distribution of dividends and/or advance maturity of the related debts. Furthermore, failure to comply with the obligations or restrictions mentioned may result in default in relation to other contractual obligations (cross default), depending on each borrowing agreement.
For borrowings raised or with funds released in 2020, certain have restrictive clauses related to financial ratios, as follows:
Ratios required for the consolidated financial statements of CPFL Energia
· Debt indebtedness divided by EBITDA smaller than or equal of 3.75
· EBITDA divided by the finance income/expense results greater than or equal of 2.25
Ratios required in the individual financial statements of the subsidiary of CPFL Renováveis, holder of the contract
· Debt Service Coverage Ratio (DSCR) greater than or equal to 1.2.
· Company Capitalization Ratio greater than or equal to 30%.
For other borrowings, the details of the covenants are presented in note 18 to the financial statements as of December 31, 2019.
The Group’s management monitors these ratios on a systematic and constant basis, so that all conditions are met. At March 31, 2020, all covenants, financial and non-financial clauses are properly complied, in the opinion of the Group´s Management.
The effects and disclosures in these interim financial statements, resulting from the pandemic caused by Covid-19, are described in note 1.2.
57
The movement in debentures are as follows:
|
Category
|
|
At December 31, 2019
|
|
Repayment
|
|
Interest, monetary adjustment and fair value measurement
|
|
Interest paid
|
|
At March 31, 2020
|
|
Post fixed
|
|
|
|
|
|
|
|
|
|
|
|
TJLP
|
|
438,990
|
|
-
|
|
6,664
|
|
-
|
|
445,655
|
|
CDI
|
|
6,336,467
|
|
(144,415)
|
|
67,909
|
|
(29,870)
|
|
6,230,092
|
|
IPCA
|
|
1,320,909
|
|
-
|
|
31,072
|
|
(31,056)
|
|
1,320,924
|
|
Total at cost
|
|
8,096,368
|
|
(144,415)
|
|
105,645
|
|
(60,926)
|
|
7,996,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowing costs (*)
|
|
(42,215)
|
|
-
|
|
2,344
|
|
-
|
|
(39,871)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at fair value - Post fixed
|
|
|
|
|
|
|
|
|
|
|
|
IPCA
|
|
444,939
|
|
-
|
|
11,256
|
|
(12,859)
|
|
443,336
|
|
Fair value measurement
|
|
47,186
|
|
-
|
|
(53,754)
|
|
-
|
|
(6,568)
|
|
Total at fair value
|
|
492,125
|
|
|
|
(42,498)
|
|
(12,859)
|
|
436,768
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
8,546,278
|
|
(144,415)
|
|
65,489
|
|
(73,785)
|
|
8,393,568
|
|
Current
|
|
682,582
|
|
|
|
|
|
|
|
843,880
|
|
Noncurrent
|
|
7,863,696
|
|
|
|
|
|
|
|
7,549,688
|
|
(*) In accordance with IFRS 9/CPC 48, this refers to borrowing costs directly attributable to the issuance of the respective debts, measured at cost.
|
The detail on debentures are as follows :
|
|
|
|
|
Consolidated
|
|
|
|
|
|
Category
|
|
Annual Interest
|
|
March 31, 2020
|
|
December 31, 2019
|
|
Maturity range
|
|
Collateral
|
|
Measured at cost - Post fixed
|
|
|
|
|
|
|
|
|
|
TJLP
|
|
TJLP + 1%
|
(c)
|
445,655
|
|
438,990
|
|
2009 to 2029
|
|
Liens
|
|
CDI
|
|
(i) From 103.6% to 109.75% of CDI
(ii) CDI + 0.75% to 0.83%
|
(a)
|
5,222,697
|
|
5,339,824
|
|
2018 to 2025
|
|
CPFL Energia guarantee
|
|
|
From 104.75% to 110% of CDI
|
(a)
|
1,007,395
|
|
996,644
|
|
2015 to 2022
|
|
No guarantee
|
|
IPCA
|
|
IPCA + from 4.42% to 5.8%
|
(b)
|
1,320,924
|
|
1,320,909
|
|
2021 to 2027
|
|
CPFL Energia guarantee
|
|
|
|
|
|
7,996,672
|
|
8,096,368
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowing costs (*)
|
|
(39,871)
|
|
(42,215)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at fair value - Post fixed
|
|
|
|
|
|
|
|
|
|
IPCA
|
|
IPCA + 5.80%
|
(b)
|
443,336
|
|
444,939
|
|
2024 to 2026
|
|
CPFL Energia guarantee
|
|
|
|
Fair value measurement
|
|
(6,568)
|
|
47,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
8,393,568
|
|
8,546,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain debentures have swap exchanging the variation based on IPCA for variation based on CDI.
|
|
For further information on the rates considered, see note 34.
|
|
Effective rate
|
|
(a) 104.68% to 110.77% of the CDI | CDI + 0.76% to 0.89%
|
|
(b) IPCA + 4.84% to 6.31%
|
|
(c) TJLP + 3.48%
|
(*) In accordance with CPC 48/IFRS 9 this refers to borrowing costs directly attributable to the issuance of the respective debts.
As shown in the table above, the Group classifies its debentures as (i) financial liabilities measured at amortized cost; and (ii) financial liabilities measured at fair value through profit or loss.
58
The classification of debentures measured at fair value as financial liabilities is aimed at reducing the accounting mismatching of the effects of the recognition of gains and losses derived from the fair value measurement of hedging derivatives linked to such debentures, in order to obtain a more relevant and consistent accounting information.
The changes in the fair values of these debentures are recognized in the Group finance income (expense), except for the fair value changes in credit risk, which is recognized in other comprehensive income. At March 31, 2020, the unrealized accumulated gains obtained from the fair value measurement of such debentures amounted to R$ 6,568 (losses of R$ 47,136 at December 31, 2019) which, added to the unrealized gains obtained from the fair value measurement of the derivative instruments of R$ 54,240 (R$ 70.517 at December 31, 2019), undertaken to hedge the interest rate changes (note 34), generated a total net unrealized gain of R$ 60,808 (R$ 23,331 at December 31, 2019).
The maturities of the principal of debentures recognized in noncurrent liabilities are as follows:
|
Maturity
|
|
Consolidated
|
|
From April 1st, 2021
|
|
909,027
|
|
2022
|
|
1,733,229
|
|
2023
|
|
2,315,176
|
|
2024
|
|
1,938,351
|
|
2025
|
|
421,890
|
|
2026 to 2030
|
|
238,583
|
|
Subtotal
|
|
7,556,256
|
|
Fair value measurement
|
|
(6,568)
|
|
Total
|
|
7,549,688
|
RESTRICTIVE COVENANTS
The debenture agreements are subject to certain restrictive covenants, including covenants that require the Company and its subsidiaries to maintain certain financial ratios within pre-established parameters.
The details of the restrictive conditions for other debentures are presented in note 19 to the Financial Statements of December 31, 2019.
The Group’s management monitors these ratios on a systematic and constant basis, so that all conditions are met. All covenants, financial and non-financial clauses are properly complied, in the opinion of the Group´s Management.
The effects and disclosures in these interim financial statements, resulting from the pandemic caused by Covid-19, are described in note 1.2.
( 20 ) PRIVATE PENSION PLAN
The subsidiaries sponsor supplementary retirement and pension plans for their employees, the characteristics of which are described in note 20 to the financial statements for the year ended December 31, 2019.
Movements in the defined benefit plans
The movements in net liability occurred in the period are as follows:
|
|
CPFL
Paulista
|
|
CPFL Piratininga
|
|
CPFL Geração
|
|
RGE
|
|
Total
|
|
|
|
|
|
Plan 1
|
|
Plan 2
|
|
|
Net actuarial liability at December 31, 2019
|
1,721,619
|
|
420,041
|
|
46,340
|
|
-
|
|
177,506
|
|
2,365,506
|
|
Expenses (income) recognized in the statement of profit or loss
|
31,237
|
|
9,694
|
|
868
|
|
(151)
|
|
3,791
|
|
45,439
|
|
Sponsors' contributions transferred during the year/period
|
(32,788)
|
|
(10,845)
|
|
(616)
|
|
(1,841)
|
|
(1,507)
|
|
(47,597)
|
|
Actuarial loss (gain): effect of changes in financial assumptions
|
(469,316)
|
|
(175,080)
|
|
(12,525)
|
|
(42,872)
|
|
(70,055)
|
|
(769,848)
|
|
Actuarial loss (gain): return on plan assets
|
216,341
|
|
72,672
|
|
(748)
|
|
47,658
|
|
47,724
|
|
383,647
|
|
Effect of asset ceiling
|
16,123
|
|
-
|
|
-
|
|
(2,093)
|
|
-
|
|
14,030
|
|
Net actuarial liability at March 31,2020
|
1,483,216
|
|
316,480
|
|
33,319
|
|
701
|
|
157,458
|
|
1,991,175
|
|
Other contributions
|
|
|
|
|
|
|
|
|
|
|
9,840
|
|
Total liability
|
|
|
|
|
|
|
|
|
|
|
2,001,015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
|
|
|
|
|
136,441
|
|
Noncurrent
|
|
|
|
|
|
|
|
|
|
|
1,864,574
|
59
This quarter, owing to the change occurred in the macroeconomic scenario prevailing in Brazil when compared to that as of December 31, 2019, especially related to the impacts of social isolation due to the new coronavirus (see note 1.2), the actuarial reports were updated to the reporting date March 31, 2020 and the corresponding liability and other comprehensive income balances were adjusted reflecting a reduction in the amount of R$ 372,171.
The income and expenses recognized as cost of the operation are shown below:
|
|
1st quarter 2020 - Actual
|
|
|
CPFL
Paulista
|
|
CPFL Piratininga
|
|
CPFL Geração
|
|
RGE
|
|
Total
|
|
|
|
|
|
Plan 1
|
|
Plan 2
|
|
|
Service cost
|
383
|
|
2,284
|
|
31
|
|
(77)
|
|
561
|
|
3,182
|
|
Interest on actuarial obligations
|
110,446
|
|
32,007
|
|
2,729
|
|
8,359
|
|
12,298
|
|
165,838
|
|
Expected return on plan assets
|
(80,982)
|
|
(24,597)
|
|
(1,891)
|
|
(8,471)
|
|
(9,068)
|
|
(125,009)
|
|
Effect of asset ceiling
|
1,390
|
|
-
|
|
-
|
|
38
|
|
-
|
|
1,428
|
|
Total expense (income)
|
31,237
|
|
9,694
|
|
868
|
|
(151)
|
|
3,791
|
|
45,439
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st quarter 2019 - Actual
|
|
|
CPFL
Paulista
|
|
CPFL Piratininga
|
|
CPFL Geração
|
|
RGE
|
|
Total
|
|
|
|
|
|
Plan 1
|
|
Plan 2
|
|
|
Service cost
|
231
|
|
1,362
|
|
21
|
|
46
|
|
588
|
|
2,248
|
|
Interest on actuarial obligations
|
112,293
|
|
31,265
|
|
2,627
|
|
8,586
|
|
12,199
|
|
166,970
|
|
Expected return on plan assets
|
(93,030)
|
|
(26,949)
|
|
(2,175)
|
|
(9,375)
|
|
(10,237)
|
|
(141,766)
|
|
Effect of asset ceiling
|
-
|
|
-
|
|
-
|
|
699
|
|
-
|
|
699
|
|
Total expense (income)
|
19,494
|
|
5,678
|
|
473
|
|
(44)
|
|
2,550
|
|
28,150
|
As a result of the change in the macroeconomic scenario, the effect estimate for the 2020 result was also changed (see note 1.2). The new actuarial estimate for expenses and / or revenues to be recognized in the remainder of the year 2020, is presented below:
|
|
From April 1st, 2020 to December 31, 2020 - Estimated
|
|
|
CPFL
Paulista
|
|
CPFL Piratininga
|
|
CPFL Geração
|
|
RGE
|
|
Total
|
|
|
|
|
|
Plan 1
|
|
Plan 2
|
|
|
Service cost
|
961
|
|
5,281
|
|
77
|
|
53
|
|
1,312
|
|
7,684
|
|
Interest on actuarial obligations
|
347,395
|
|
98,841
|
|
8,545
|
|
25,930
|
|
37,837
|
|
518,548
|
|
Expected return on plan assets
|
(262,887)
|
|
(80,078)
|
|
(6,508)
|
|
(26,127)
|
|
(28,061)
|
|
(403,661)
|
|
Effect of asset ceiling
|
5,867
|
|
-
|
|
-
|
|
-
|
|
-
|
|
5,867
|
|
Total expense (income)
|
91,336
|
|
24,044
|
|
2,114
|
|
(144)
|
|
11,088
|
|
128,438
|
Actuarial assumptions
The main assumptions considered in the actuarial calculations as of the balance sheet date were:
|
|
|
CPFL Paulista, CPFL Geração and CPFL Piratininga
|
|
RGE (Plans 1 and 2)
|
|
|
|
|
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
December 31, 2018
|
|
March 31, 2020
|
|
December 31, 2019
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nominal discount rate for actuarial liabilities:
|
|
8.47% p.a.
|
|
7.43% p.a.
|
|
9.10% p.a.
|
|
8.47% p.a.
|
|
7.43% p.a.
|
|
9.10% p.a.(*)
|
|
Nominal return rate on plan assets:
|
|
8.47% p.a.
|
|
7.43% p.a.
|
|
9.10% p.a.
|
|
8.47% p.a.
|
|
7.43% p.a.
|
|
9.10% p.a.(*)
|
|
Estimated rate of nominal salary increase:
|
|
5.56% p.a.(**)
|
|
5.56% p.a.(**)
|
|
5.56% p.a.(**)
|
|
5.97% p.a.(***)
|
|
5.97% p.a.(***)
|
|
5.97% p.a.(***)
|
|
Estimated rate of nominal benefits increase:
|
|
4.00% p.a.
|
|
4.00% p.a.
|
|
4.00% p.a.
|
|
4.00% p.a.
|
|
4.00% p.a.
|
|
4.00% p.a.
|
|
Estimated long-term inflation rate (basis for the nominal rates above)
|
|
4.00% p.a.
|
|
4.00% p.a.
|
|
4.00% p.a.
|
|
4.00% p.a.
|
|
4.00% p.a.
|
|
4.00% p.a.
|
|
General biometric mortality table:
|
|
AT-2000 (-10)
|
|
AT-2000 (-10)
|
|
AT-2000 (-10)
|
|
BR-EMS sb v.2015
|
|
BR-EMS sb v.2015
|
|
BR-EMS sb v.2015
|
|
Biometric table for the onset of disability:
|
|
Low Light (-30)
|
|
Low Light (-30)
|
|
Low Light
|
|
Medium Light
|
|
Medium Light
|
|
Medium Light
|
|
Expected turnover rate:
|
|
ExpR_2012
|
|
ExpR_2012
|
|
ExpR_2012
|
|
Null
|
|
Null
|
|
Null
|
|
Likelihood of reaching retirement age:
|
|
After 15 years of filiation and 35 years of service time for men and 30 years of service time for women
|
|
After 15 years of filiation and 35 years of service time for men and 30 years of service time for women
|
|
After 15 years of filiation and 35 years of service time for men and 30 years of service time for women
|
|
100% when a beneficiary first becomes eligible for a full benefit
|
|
100% when a beneficiary first becomes eligible for a full benefit
|
|
100% when a beneficiary first becomes eligible for a full benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) The nominal discount rate for actuarial liabilities and the nominal return rate on plan assets was 9.30% for RGE (Plan 1) at December 31, 2018
|
|
(**) The estimated rate of nominal salary increase for CPFL Piratininga was 6.39% at March 31, 2020, and at December 31, 2019 and 2018
|
|
(***) The estimated rate of nominal salary increase for RGE (Plan 1) was 5.15% at March 31, 2020, and at December 31, 2019 and 2018
|
The effects and disclosures in these interim financial statements, resulting from the pandemic caused by Covid-19, are described in note 1.2.
60
( 21 ) REGULATORY LIABILITIES
|
|
Consolidated
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
Financial compensation for the use of water resources - CFURH
|
634
|
|
1,265
|
|
Global reversal reserve - RGR
|
17,348
|
|
17,260
|
|
ANEEL inspection fee - TFSEE
|
7,379
|
|
7,375
|
|
Tariff flags and others
|
26
|
|
206,352
|
|
Total
|
25,387
|
|
232,251
|
( 22 ) TAXES, FEES AND CONTRIBUTIONS
|
|
Consolidated
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
Current
|
|
|
|
|
IRPJ (corporate income tax)
|
34,621
|
|
156,240
|
|
CSLL (social contribution on net income)
|
13,551
|
|
62,721
|
|
Income tax and social contribution
|
48,173
|
|
218,961
|
|
|
|
|
|
|
ICMS (State VAT)
|
464,867
|
|
435,155
|
|
PIS (tax on revenue)
|
29,959
|
|
36,657
|
|
COFINS (tax on revenue)
|
137,124
|
|
168,195
|
|
PIS/COFINS payment
|
6,573
|
|
9,323
|
|
Income tax withholding on interest on capital
|
-
|
|
40,099
|
|
Other taxes
|
48,282
|
|
52,105
|
|
Other taxes
|
686,804
|
|
741,536
|
|
|
|
|
|
|
Total current
|
734,977
|
|
960,497
|
|
|
|
|
|
|
Noncurrent
|
|
|
|
|
Prepayments of income tax - IRPJ
|
156,963
|
|
156,198
|
|
|
|
|
|
|
ICMS (State VAT)
|
807
|
|
805
|
|
|
|
|
|
|
Total noncurrent
|
157,770
|
|
157,003
|
Corporate Income tax – IRPJ: in noncurrent, due to the initial application of IFRIC 23 / ICPC 22 - Uncertainty Over Income Tax Treatments, this refers to the reclassification of provision for tax risks related to income tax payable. The case refers to the Writ of Mandamus filed by the subsidiary CPFL Piratininga, which discussed the possibility of excluding the Social Contribution on Profit (CSLL) from its own calculation base, as well as from the calculation base of the Corporate Income Tax (IRPJ); for such case, it is more probable that the Tax Authorities will not accept the procedure.
The Group has some uncertain income tax treatments for which Management concluded that it is more probable than not that they will be accepted by the tax authority and for which the effect of potential contingencies is disclosed in note 23 – Provisions for tax, civil and labor risks and escrow deposits.
61
( 23 ) PROVISION FOR TAX, CIVIL AND LABOR RISKS AND ESCROW DEPOSITS
|
|
Consolidated
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
|
Provision for tax, civil ad labor risks
|
|
Escrow deposits
|
|
Provision for tax, civil ad labor risks
|
|
Escrow deposits
|
|
|
|
|
|
|
|
|
|
|
Labor
|
194,588
|
|
102,609
|
|
235,085
|
|
96,094
|
|
|
|
|
|
|
|
|
|
|
Civil
|
249,683
|
|
67,177
|
|
245,464
|
|
66,243
|
|
|
|
|
|
|
|
|
|
|
Tax
|
|
|
|
|
|
|
|
|
Income Tax and tax contribution
|
6,948
|
|
420,584
|
|
7,571
|
|
417,664
|
|
Others
|
46,426
|
|
179,288
|
|
46,255
|
|
177,369
|
|
|
53,375
|
|
599,872
|
|
53,825
|
|
595,033
|
|
|
|
|
|
|
|
|
|
|
Others
|
56,451
|
|
36
|
|
66,401
|
|
1
|
|
|
|
|
|
|
|
|
|
|
Total
|
554,096
|
|
769,694
|
|
600,775
|
|
757,370
|
The movements in the provision for tax, civil, labor and other risks are shown below:
|
|
Consolidated
|
|
|
At December 31, 2019
|
|
Additions
|
|
Reversals
|
|
Payments
|
|
Monetary adjustment
|
|
At March 31, 2020
|
|
Labor
|
235,085
|
|
17,521
|
|
(12,830)
|
|
(51,774)
|
|
6,584
|
|
194,588
|
|
Civil
|
245,464
|
|
21,675
|
|
(3,689)
|
|
(20,298)
|
|
6,532
|
|
249,683
|
|
Tax
|
53,825
|
|
1,859
|
|
(1,573)
|
|
(1,687)
|
|
950
|
|
53,375
|
|
Others
|
66,401
|
|
-
|
|
-
|
|
(10,034)
|
|
83
|
|
56,451
|
|
Total
|
600,775
|
|
41,057
|
|
(18,093)
|
|
(83,793)
|
|
14,150
|
|
554,096
|
The provision for tax, civil, labor and other risks was based on the assessment of the risks of losing the lawsuits to which the Group is part, where the likelihood of loss is probable in the opinion of the outside legal counselors and the Management of the Group.
In September 2019, with the revocation of the injunction suspending enforceability of PIS and COFINS levy on finance income, the subsidiaries till then benefitted by it, paid PIS/COFINS amounting to R$164,526 within the term of 30 days after being communicated of such revocation.
The details of the nature of the provision for tax, civil, labor and other risks and escrow deposits are presented in the note 23 of the financial statements at December 31, 2019.
Possible losses
The Group is part to other lawsuits in which Management, supported by its external legal counselors, believes that the chances of a successful outcome are possible due to a solid defensive position in these cases, therefore no provision was recognized. It is not yet possible to predict the outcome of the courts’ decisions or any other decisions in similar proceedings considered probable or remote.
62
The claims relating to possible losses at March 31, 2020 and December 31, 2019 were as follows:
|
|
Consolidated
|
|
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
Labor
|
661,522
|
|
583,348
|
|
Work accidents, risk premium for dangerousness at workplace and overtime
|
|
Civil
|
2,033,213
|
|
1,815,143
|
|
Personal injury and overfed tariffs
|
|
Tax
|
4,761,333
|
|
4,350,740
|
|
Income tax and social contribution (note 23)
|
|
Fiscais - outros
|
2,378,090
|
|
2,654,331
|
|
INSS, ICMS, FINSOCIAL, PIS e COFINS
|
|
Regulatory
|
76,340
|
|
76,404
|
|
Technical, commercial and economic-financial supervisions
|
|
Total
|
9,910,498
|
|
9,479,966
|
|
|
Tax – One of the main cases refers to litigation about deductibility for income tax purposes of expenses recognized in 1997 relating to novation of debt in connection with the pension plan of employees of subsidiary CPFL Paulista to Fundação CESP (“FUNCESP”) in the estimated amount of 1,484,327, with escrow deposits in the amount of R$ 22,488 and financial guarantees (insurance and letters of guarantee), under the terms required by the relevant procedural law. In addition, the litigation includes interest that was levied on the escrow deposit withdrawn by the Company, in the amount of R$ 250,876 and that is deposited in court. On May 23, June 6 and September 17, 2019, unfavorable rulings on the special appeal filed by the Company were rendered by the Second Panel of Judges of the Higher Court of Justice (STJ). These rulings have not yet been fully published, and the subsidiary, when it has access to the decision, may evaluate the applicable appeals still at the level of the STJ. Additionally, the subsidiary has an extraordinary appeal in the initial stage at the Federal Supreme Court (STF). Consequently, based on the current stage of the appeal, both at the STJ and at the STF, and based on the opinion of its legal advisors, the subsidiary remains confident in the legal grounds consubstantiating the appeal and will continue to defend its arguments before the judiciary branch, assessing the chances of loss as not probable, there is a new opportunity for the analysis of the case at the Federal Supreme Court (STF), with a constitutional approach with sound bases, indicating possible success in the extraordinary appeals, and will continue to try to avoid possible cash outflows should it be required to replace existing judicial guarantees with cash deposits
With respect to labor contingencies, the Group informs that, as described in note 23 to the financial statements as of December 31, 2019, there is a discussion regarding the possibility of changing the adjustment index adopted by the Labor Court, and the discussion status has not changed since then the rate currently used remains valid.
Based on the opinion of their outside legal counselors, the Group’s management believes that the amounts provided for reflect the current best estimate.
|
|
|
Consolidated
|
|
|
|
Current
|
|
Noncurrent
|
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2020
|
|
December 31, 2019
|
|
Consumers and concessionaires
|
|
114,553
|
|
114,610
|
|
185,739
|
|
183,938
|
|
Energy efficiency program - PEE
|
|
285,249
|
|
230,451
|
|
45,090
|
|
89,522
|
|
Research & Development - P&D
|
|
194,717
|
|
93,658
|
|
35,787
|
|
125,111
|
|
EPE / FNDCT / PROCEL (*)
|
|
55,103
|
|
49,275
|
|
-
|
|
-
|
|
Reversion fund
|
|
1,712
|
|
1,712
|
|
12,187
|
|
12,615
|
|
Advances
|
|
337,597
|
|
234,556
|
|
43,244
|
|
43,263
|
|
Tariff discounts - CDE
|
|
51,684
|
|
76,632
|
|
-
|
|
-
|
|
Provision for socio environmental costs
|
|
25,091
|
|
24,485
|
|
206,933
|
|
203,844
|
|
Payroll
|
|
14,166
|
|
18,004
|
|
-
|
|
-
|
|
Profit sharing
|
|
117,780
|
|
98,713
|
|
26,899
|
|
29,631
|
|
Collection agreements
|
|
89,079
|
|
93,740
|
|
-
|
|
-
|
|
Business combination
|
|
8,101
|
|
7,901
|
|
-
|
|
-
|
|
Others
|
|
47,062
|
|
50,533
|
|
71,460
|
|
71,406
|
|
Total
|
|
1,341,894
|
|
1,094,269
|
|
627,339
|
|
759,331
|
(*) EPE - Energy Research Company, FNDCT - National Fund for Scientific and Technology Development, PROCEL - National Electric Energy Conservation Program
63
Advances: refer mainly to advances from customers in relation to advance billing by the subsidiary CPFL Renováveis, before the energy or service has actually been provided or delivered.
Provision for socio environmental costs and asset retirement: Refer mainly to provisions recognized by the subsidiary CPFL Renováveis in relation to socio environmental licenses as a result of events that have already occurred and asset retirement obligations arising from contractual and legal requirements relating to lease of land on which the wind farms are located. These costs are accrued against property, plant and equipment and will be depreciated over the remaining useful life of the asset. These provisions are made based on estimates and assumptions related to discount rates and the expected cost for decommissioning and removal at the end of the authorization period for these plants. These costs may differ from those that may be incurred by the Company. The real discount rate used to calculate the present value was 3.22%, based on government bond rates with a maturity similar to that at the end of the authorizations.
The shareholders’ interest in the Company’s equity at March 31, 2020 and December 31, 2019 is shown below:
|
|
|
Number of shares
|
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
Shareholders
|
|
Common shares
|
|
Interest %
|
|
Common shares
|
|
Interest %
|
|
State Grid Brazil Power Participações S.A.
|
|
730,435,698
|
|
63.39%
|
|
730,435,698
|
|
63.39%
|
|
ESC Energia S.A.
|
|
234,086,204
|
|
20.32%
|
|
234,086,204
|
|
20.32%
|
|
Members of the Executive Board
|
|
189
|
|
0.00%
|
|
189
|
|
0.00%
|
|
Other shareholders
|
|
187,732,349
|
|
16.29%
|
|
187,732,349
|
|
16.29%
|
|
Total
|
|
1,152,254,440
|
|
100.00%
|
|
1,152,254,440
|
|
100.00%
|
The details of the items included in equity are described in the financial statements for the year ended December 31, 2019.
25.1 Public Offering of Shares – CPFL Renováveis
On December 19, 2019, the Company’s Board of Directors and the Executive Board of CPFL Geração approved the holding of a public tender offer of the common shares issued by CPFL Energias Renováveis, outstanding in the market, for the purpose of converting its registration as a publicly-held company category “A” into category “B” (“OPA Conversion of Registration”) and/or exit from the New Market (“OPA Exit from the New Market”, and, together with the OPA Conversion of Registration, “OPA”), to be carried out by CPFL Geração, direct controlling shareholder of CPFL Renováveis. The holding of the OPA is subject to its registration by the CVM and its authorization by B3 and will be intended for the acquisition of up to 291,550 common shares issued by CPFL Renováveis outstanding in the market, which represent, on that date, 0.056% equity interest in CPFL Renováveis (“Outstanding Shares”).
On April 27, 2020, the Company received approval from the CVM related to the OPA Conversion of Registry request as well as to the OPA Exit from the New Market. The Public Offering Notice, containing all the terms and conditions of the OPA, was released by CPFL Geração on May 6, 2020. The OPA auction will be held at B3 S.A. on June 10, 2020.
( 26 ) EARNINGS PER SHARE
Earnings per share – basic and diluted
The calculation of the basic and diluted earnings per share for the quarters and three months periods ended at March 31, 2020 and 2019 was based on the profit of the period attributable to controlling shareholder and the weighted average number of common shares outstanding in the period:
64
|
|
|
1st quarter 2020
|
|
1st quarter 2019
|
|
Numerator
|
|
|
|
|
|
Profit attributable to controlling shareholders
|
|
890,041
|
|
603,450
|
|
Denominator
|
|
|
|
|
|
Weighted average number of shares held by shareholders
|
|
1,152,254,440
|
|
1,017,914,746
|
|
|
|
|
|
|
|
Earnings per share - basic and diluted
|
|
0.77
|
|
0.59
|
For the periods ended March 31, 2020 and 2019, the calculation of earnings per share was not impacted by the effects of debentures convertible into shares of the subsidiary of CPFL Renováveis, due to the fact that they presented antidilutive effects.
( 27 ) NET OPERATING REVENUE
|
|
|
Consolidated
|
|
|
|
Number of consumers
|
|
GWh
|
|
R$ thousand
|
|
Revenue from Eletric Energy Operations
|
|
1st quarter 2020
|
|
1st quarter 2019
|
|
1st quarter 2020
|
|
1st quarter 2019
|
|
1st quarter 2020
|
|
1st quarter 2019
|
|
Consumer class
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
8,766,720
|
|
8,588,317
|
|
5,444
|
|
5,604
|
|
4,042,130
|
|
4,005,340
|
|
Industrial
|
|
56,564
|
|
57,890
|
|
3,027
|
|
3,145
|
|
1,170,674
|
|
1,214,385
|
|
Commercial
|
|
528,841
|
|
530,821
|
|
2,837
|
|
2,875
|
|
1,718,790
|
|
1,709,173
|
|
Rural
|
|
364,626
|
|
362,264
|
|
960
|
|
948
|
|
422,016
|
|
368,957
|
|
Public administration
|
|
62,144
|
|
60,743
|
|
362
|
|
383
|
|
231,646
|
|
227,799
|
|
Public lighting
|
|
11,892
|
|
11,709
|
|
506
|
|
500
|
|
202,597
|
|
187,844
|
|
Public services
|
|
10,589
|
|
10,250
|
|
568
|
|
589
|
|
302,041
|
|
288,850
|
|
Billed
|
|
9,801,376
|
|
9,621,994
|
|
13,705
|
|
14,044
|
|
8,089,894
|
|
8,002,349
|
|
Own comsuption
|
|
-
|
|
-
|
|
10
|
|
10
|
|
-
|
|
-
|
|
Unbilled (net)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
60,580
|
|
7,545
|
|
(-) Reclassificacion to Network Usage Charge - TUSD - Captive Consumers
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(3,505,637)
|
|
(3,173,236)
|
|
Electricity sales to final consumers
|
|
9,801,376
|
|
9,621,994
|
|
13,714
|
|
14,054
|
|
4,644,837
|
|
4,836,658
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Furnas Centrais Elétricas S.A.
|
|
|
|
|
|
717
|
|
709
|
|
147,008
|
|
134,348
|
|
Other concessionaires and licensees
|
|
|
|
|
|
2,731
|
|
3,883
|
|
684,034
|
|
888,002
|
|
(-) Reclassificacion to Network Usage Charge - TUSD - Captive Consumers
|
|
|
|
|
|
-
|
|
-
|
|
(33,310)
|
|
(35,408)
|
|
Spot market energy
|
|
|
|
|
|
1,761
|
|
1,253
|
|
296,454
|
|
330,141
|
|
Electricity sales to wholesalers
|
|
|
|
|
|
5,209
|
|
5,846
|
|
1,094,186
|
|
1,317,083
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue due to Network Usage Charge - TUSD - Captive Consumers
|
|
|
|
|
|
|
|
|
|
3,538,948
|
|
3,208,644
|
|
Revenue due to Network Usage Charge - TUSD - Free Consumers
|
|
|
|
|
|
|
|
|
|
928,151
|
|
741,450
|
|
(-) Compensation paid for failure to comply with the limits of continuity
|
|
|
|
|
|
|
|
|
|
(32,301)
|
|
(31,559)
|
|
Revenue from construction of concession infrastructure
|
|
|
|
|
|
|
|
|
|
495,804
|
|
415,213
|
|
Sector financial asset and liability (Note 9)
|
|
|
|
|
|
|
|
|
|
(463,343)
|
|
(323,880)
|
|
Concession financial asset - fair value adjustment (Note 11)
|
|
|
|
|
|
|
|
|
|
138,572
|
|
64,491
|
|
Energy development account - CDE - Low-income, Tariff discounts - judicial injunctions ,and other tariff discounts
|
|
|
|
|
|
375,501
|
|
428,683
|
|
Other revenues and income
|
|
|
|
|
|
|
|
|
|
158,374
|
|
130,973
|
|
Other operating revenues
|
|
|
|
|
|
|
|
|
|
5,139,706
|
|
4,634,015
|
|
Total gross operating revenue
|
|
|
|
|
|
|
|
|
|
10,878,728
|
|
10,787,756
|
|
Deductions from operating revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ICMS
|
|
|
|
|
|
|
|
|
|
(1,807,580)
|
|
(1,766,589)
|
|
PIS
|
|
|
|
|
|
|
|
|
|
(165,391)
|
|
(161,842)
|
|
COFINS
|
|
|
|
|
|
|
|
|
|
(761,828)
|
|
(744,952)
|
|
ISS
|
|
|
|
|
|
|
|
|
|
(5,052)
|
|
(4,527)
|
|
Energy development account - CDE
|
|
|
|
|
|
|
|
|
|
(940,748)
|
|
(997,711)
|
|
Research and development and energy efficiency programs
|
|
|
|
|
|
|
|
|
|
(56,085)
|
|
(56,347)
|
|
PROINFA
|
|
|
|
|
|
|
|
|
|
(47,027)
|
|
(38,825)
|
|
Tariff flags and others
|
|
|
|
|
|
|
|
|
|
198,046
|
|
122,343
|
|
Financial compensation for the use of water resources - CFURH
|
|
|
|
|
|
|
|
|
|
(1,336)
|
|
(2,397)
|
|
Other
|
|
|
|
|
|
|
|
|
|
(9,461)
|
|
(9,463)
|
|
|
|
|
|
|
|
|
|
|
|
(3,596,461)
|
|
(3,660,309)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating revenue
|
|
|
|
|
|
|
|
|
|
7,282,267
|
|
7,127,446
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27.1 Adjustment of revenues from excess demand and excess reactive power
The information related to accounting and historical are described in note 27.1 of financial statements of December 31, 2019.
65
27.2 Periodic tariff review (“RTP”) and Annual tariff adjustment (“RTA”)
|
|
|
|
|
|
2020
|
|
2019
|
|
Distributor
|
|
Month
|
|
|
RTA / RTP
|
|
Effect perceived by consumers (a)
|
|
RTA / RTP
|
|
Effect perceived by consumers (a)
|
|
CPFL Paulista
|
|
April (b)
|
|
|
14.90%
|
|
6.05%
|
|
12.02%
|
|
8.66%
|
|
CPFL Piratininga
|
|
October
|
|
|
(c)
|
|
(c)
|
|
1.88%
|
|
-7.80%
|
|
RGE
|
|
June
|
|
|
(c)
|
|
(c)
|
|
10.05%
|
|
8.63%
|
|
RGE Sul (RGE)
|
|
June
|
|
|
(c)
|
|
(c)
|
|
10.05%
|
|
1.72%
|
|
CPFL Santa Cruz
|
|
March
|
|
|
10.71%
|
|
0.20%
|
|
13.70%
|
|
13.31%
|
(a) Represents the average effect perceived by the consumer, as a result of the elimination from the tariff base of financial components that had been added in the prior tariff adjustment.
(b) As described in note 36.1 in April 2020, there was the RTA to control CPFL Paulista
(c) The adjustments for 2020 have not yet occurred
27.3 Energy Development Account (CDE) – Low income, other tariff subsidies and tariff discounts - injunctions
The details on the CDE contribution are disclosed in notes 27.3 to the financial statements as of December 31, 2019.
In the three months period of 2020, revenue of R$ 375,501 was recognized (R$ 428,683 in the three months period of 2019), considering (i) R$ 30,245 for low-income subsidy (R$ 17,832 in the three months period of 2019), (ii) R$ 317,236 for other tariff discounts (R$ 350,272 in the three months period of 2019), and (iii) R$ 28,021 for tariff discounts – CCRBT injunctions and subsidy (R$ 60,579 in the three months period of 2019). These items were recognized against other assets in the line item Receivables – CDE (note 11) and other payables in line item Tariff discounts – CDE (note 24)
27.4 Energy development account (“CDE”)
Details on the CDE are disclosed in note 27.4 to the financial statements of December 31, 2019.
ANEEL, through the Homologatory Resolution (“REH”) No. 2,664, of December 17, 2019, established the definitive annual quotas of CDE - USAGE current for the year 2020.
66
( 28 ) COST OF ELECTRIC ENERGY
|
|
|
Consolidated
|
|
|
|
GWh
|
|
R$ thousand
|
|
Electricity Purchased for Resale
|
|
1st quarter 2020
|
|
1st quarter 2019
|
|
1st quarter 2020
|
|
1st quarter 2019
|
|
Itaipu Binacional
|
|
2,721
|
|
2,720
|
|
910,022
|
|
657,298
|
|
PROINFA
|
|
252
|
|
257
|
|
69,102
|
|
104,815
|
|
Energy purchased through auction in the regulated market,bilateral contracts and spot market
|
|
16,446
|
|
16,915
|
|
3,082,591
|
|
3,572,208
|
|
PIS and COFINS credit
|
|
-
|
|
-
|
|
(357,763)
|
|
(381,780)
|
|
Subtotal
|
|
19,419
|
|
19,892
|
|
3,703,952
|
|
3,952,543
|
|
|
|
|
|
|
|
|
|
|
|
Electricity network usage charge
|
|
|
|
|
|
|
|
|
|
Basic network charges
|
|
|
|
|
|
562,660
|
|
498,287
|
|
Transmission from Itaipu
|
|
|
|
|
|
69,775
|
|
66,554
|
|
Connection charges
|
|
|
|
|
|
40,421
|
|
47,424
|
|
Charges for use of the distribution system
|
|
|
|
|
|
10,656
|
|
12,965
|
|
System service charges - ESS net of CONER pass through (*)
|
|
|
|
|
|
17,608
|
|
(41,079)
|
|
PIS and COFINS credit
|
|
|
|
|
|
(63,654)
|
|
(52,930)
|
|
Subtotal
|
|
|
|
|
|
637,466
|
|
531,221
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
4,341,419
|
|
4,483,763
|
(*) Energy reserve account.
67
( 29 ) OTHER OPERATING COSTS AND EXPENSES
|
|
Consolidated
|
|
|
|
|
|
|
Cost of Services Rendered to Third Parties
|
|
Operating expenses
|
|
|
|
|
|
|
Cost of operation
|
|
|
Selling expenses
|
|
General and administrative expenses
|
|
Other operating expenses
|
|
Total
|
|
|
1st quarter 2020
|
|
1st quarter 2019
|
|
1st quarter 2020
|
|
1st quarter 2019
|
|
1st quarter 2020
|
|
1st quarter 2019
|
|
1st quarter 2020
|
|
1st quarter 2019
|
|
1st quarter 2020
|
|
1st quarter 2019
|
|
1st quarter 2020
|
|
1st quarter 2019
|
|
Personnel
|
227,138
|
|
225,973
|
|
-
|
|
-
|
|
41,617
|
|
42,516
|
|
85,379
|
|
79,530
|
|
-
|
|
-
|
|
354,134
|
|
348,019
|
|
Private Pension Plans
|
45,440
|
|
28,150
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
45,440
|
|
28,150
|
|
Materials
|
62,949
|
|
63,541
|
|
265
|
|
174
|
|
3,468
|
|
2,538
|
|
7,426
|
|
604
|
|
-
|
|
-
|
|
74,108
|
|
66,857
|
|
Third party services
|
62,435
|
|
48,785
|
|
821
|
|
511
|
|
44,665
|
|
42,158
|
|
62,865
|
|
73,556
|
|
-
|
|
-
|
|
170,786
|
|
165,010
|
|
Costs of infrastructure construction
|
-
|
|
-
|
|
495,091
|
|
415,211
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
495,091
|
|
415,211
|
|
Others
|
19,450
|
|
14,048
|
|
(1)
|
|
(1)
|
|
24,875
|
|
24,076
|
|
50,807
|
|
45,183
|
|
37,405
|
|
23,339
|
|
132,536
|
|
106,645
|
|
Collection fees
|
-
|
|
-
|
|
-
|
|
-
|
|
24,486
|
|
24,817
|
|
-
|
|
-
|
|
-
|
|
-
|
|
24,486
|
|
24,817
|
|
Leases and rentals
|
12,696
|
|
12,563
|
|
-
|
|
-
|
|
-
|
|
-
|
|
5,787
|
|
5,280
|
|
-
|
|
-
|
|
18,483
|
|
17,843
|
|
Publicity and advertising
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,328
|
|
3,891
|
|
-
|
|
-
|
|
3,328
|
|
3,892
|
|
Legal, judicial and indemnities
|
-
|
|
26
|
|
-
|
|
-
|
|
-
|
|
9
|
|
37,510
|
|
32,003
|
|
-
|
|
-
|
|
37,510
|
|
32,038
|
|
Donations, contributions and subsidies
|
39
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
994
|
|
931
|
|
-
|
|
-
|
|
1,033
|
|
931
|
|
Gain (loss) on disposal, retirement and other noncurrent assets
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
35,034
|
|
21,165
|
|
35,034
|
|
21,165
|
|
Others
|
6,715
|
|
1,458
|
|
(1)
|
|
(1)
|
|
389
|
|
(750)
|
|
3,188
|
|
3,078
|
|
2,371
|
|
2,174
|
|
12,662
|
|
5,959
|
|
Total
|
417,411
|
|
380,498
|
|
496,177
|
|
415,895
|
|
114,626
|
|
111,287
|
|
206,478
|
|
198,872
|
|
37,405
|
|
23,339
|
|
1,272,097
|
|
1,129,891
|
68
( 30 ) FINANCIAL INCOME (COSTS)
|
|
|
Consolidated
|
|
|
|
2020
|
2019
|
|
|
|
1st quarter
|
|
1st quarter
|
|
Financial income
|
|
|
|
|
|
Income from financial investments
|
|
36,042
|
|
48,570
|
|
Late payment interest and fines
|
|
80,579
|
|
75,313
|
|
Adjustment for inflation of tax credits
|
|
4,217
|
|
1,227
|
|
Adjustment for inflation of escrow deposits
|
|
5,617
|
|
8,899
|
|
Adjustment for inflation and exchange rate changes
|
|
275,169
|
|
8,245
|
|
Discount on purchase of ICMS credit
|
|
3,563
|
|
6,871
|
|
Adjustments to the sector financial asset (note 9)
|
|
7,737
|
|
27,534
|
|
PIS and COFINS on other financial income
|
|
(9,168)
|
|
(10,377)
|
|
Other
|
|
34,536
|
|
40,312
|
|
Total
|
|
438,292
|
|
206,595
|
|
|
|
|
|
|
|
Financial expenses
|
|
|
|
|
|
Interest on debts
|
|
(229,526)
|
|
(295,284)
|
|
Adjustment for inflation and exchange rate changes
|
|
(52,281)
|
|
(85,370)
|
|
(-) Capitalized interest
|
|
5,862
|
|
5,589
|
|
Adjustments to the sector financial liability (note 9)
|
|
(141)
|
|
-
|
|
Use of public asset
|
|
(4,845)
|
|
(1,928)
|
|
Other
|
|
(36,353)
|
|
(49,641)
|
|
Total
|
|
(317,285)
|
|
(426,635)
|
|
|
|
|
|
|
|
Financial income (expenses), net
|
|
121,007
|
|
(220,040)
|
In line item of monetary adjustment and exchange rate changes, the expense includes the net effects of gains of R$ 1,934,102 in the three-month period of 2020 (R$ 96,434 in the three months period of 2019) on derivative instruments (note 34).
( 31 ) SEGMENT INFORMATION
|
|
Distribution
|
|
Generation (conventional source)
|
|
Generation (renewable source)
|
|
Commercialization
|
|
Services
|
|
Subtotal
|
|
Other (*)
|
|
Elimination
|
|
Total
|
|
1st quarter 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating revenue
|
6,099,983
|
|
175,172
|
|
259,845
|
|
717,621
|
|
33,628
|
|
7,286,249
|
|
(3,983)
|
|
-
|
|
7,282,267
|
|
(-) Intersegment revenues
|
2,519
|
|
124,773
|
|
124,697
|
|
197
|
|
118,456
|
|
370,642
|
|
-
|
|
(370,642)
|
|
-
|
|
Cost of electric energy
|
(3,788,024)
|
|
(29,211)
|
|
(72,093)
|
|
(706,866)
|
|
-
|
|
(4,596,195)
|
|
-
|
|
254,776
|
|
(4,341,419)
|
|
Operating costs and expenses
|
(1,177,675)
|
|
(32,971)
|
|
(89,751)
|
|
(10,529)
|
|
(123,701)
|
|
(1,434,628)
|
|
(11,180)
|
|
115,866
|
|
(1,329,941)
|
|
Depreciation and amortization
|
(210,886)
|
|
(29,764)
|
|
(162,656)
|
|
(895)
|
|
(6,850)
|
|
(411,051)
|
|
(15,776)
|
|
-
|
|
(426,826)
|
|
Income from electric energy service
|
925,917
|
|
207,999
|
|
60,041
|
|
(472)
|
|
21,533
|
|
1,215,017
|
|
(30,936)
|
|
-
|
|
1,184,081
|
|
Equity interests in subsidiaries, associates and joint ventures
|
-
|
|
85,160
|
|
-
|
|
-
|
|
-
|
|
85,160
|
|
-
|
|
-
|
|
85,160
|
|
Financial income
|
387,632
|
|
11,459
|
|
27,793
|
|
9,654
|
|
1,287
|
|
437,825
|
|
5,093
|
|
(4,626)
|
|
438,292
|
|
Financial expenses
|
(181,629)
|
|
(38,588)
|
|
(100,502)
|
|
(578)
|
|
(599)
|
|
(321,895)
|
|
(15)
|
|
4,626
|
|
(317,285)
|
|
Profit (loss) before taxes
|
1,131,920
|
|
266,029
|
|
(12,668)
|
|
8,605
|
|
22,221
|
|
1,416,107
|
|
(25,860)
|
|
-
|
|
1,390,248
|
|
Income tax and social contribution
|
(403,616)
|
|
(58,122)
|
|
(16,813)
|
|
(2,850)
|
|
(5,539)
|
|
(486,940)
|
|
817
|
|
-
|
|
(486,123)
|
|
Profit (loss) for the period
|
728,305
|
|
207,907
|
|
(29,482)
|
|
5,755
|
|
16,682
|
|
929,167
|
|
(25,042)
|
|
-
|
|
904,126
|
|
Purchases of PP&E and intangible assets
|
453,978
|
|
8,711
|
|
29,678
|
|
6,343
|
|
17,329
|
|
516,039
|
|
247
|
|
-
|
|
516,287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st quarter 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating revenue
|
5,919,870
|
|
150,791
|
|
275,219
|
|
759,156
|
|
22,410
|
|
7,127,446
|
|
-
|
|
-
|
|
7,127,446
|
|
(-) Intersegment revenues
|
16,356
|
|
118,669
|
|
58,970
|
|
1,113
|
|
123,227
|
|
318,335
|
|
-
|
|
(318,335)
|
|
-
|
|
Cost of electric energy
|
(3,877,202)
|
|
(29,200)
|
|
(53,271)
|
|
(718,769)
|
|
-
|
|
(4,678,441)
|
|
-
|
|
194,678
|
|
(4,483,763)
|
|
Operating costs and expenses
|
(1,079,440)
|
|
(22,290)
|
|
(88,878)
|
|
(10,838)
|
|
(109,874)
|
|
(1,311,319)
|
|
(10,844)
|
|
123,656
|
|
(1,198,506)
|
|
Depreciation and amortization
|
(192,004)
|
|
(29,703)
|
|
(160,580)
|
|
(520)
|
|
(5,899)
|
|
(388,707)
|
|
(15,734)
|
|
-
|
|
(404,440)
|
|
Income from electric energy service
|
787,581
|
|
188,267
|
|
31,460
|
|
30,143
|
|
29,863
|
|
1,067,314
|
|
(26,577)
|
|
-
|
|
1,040,736
|
|
Equity interests in subsidiaries, associates and joint ventures
|
-
|
|
85,775
|
|
-
|
|
-
|
|
-
|
|
85,775
|
|
-
|
|
-
|
|
85,775
|
|
Financial income
|
145,176
|
|
10,087
|
|
48,590
|
|
6,558
|
|
1,453
|
|
211,863
|
|
2,552
|
|
(7,820)
|
|
206,595
|
|
Financial expenses
|
(204,707)
|
|
(54,127)
|
|
(160,296)
|
|
(14,283)
|
|
(1,033)
|
|
(434,445)
|
|
(10)
|
|
7,820
|
|
(426,635)
|
|
Profit (loss) before taxes
|
728,049
|
|
230,003
|
|
(80,246)
|
|
22,418
|
|
30,284
|
|
930,508
|
|
(24,036)
|
|
-
|
|
906,472
|
|
Income tax and social contribution
|
(262,968)
|
|
(45,634)
|
|
(12,777)
|
|
(7,608)
|
|
(7,182)
|
|
(336,169)
|
|
55
|
|
-
|
|
(336,114)
|
|
Profit (loss) for the period
|
465,081
|
|
184,369
|
|
(93,023)
|
|
14,810
|
|
23,101
|
|
594,338
|
|
(23,980)
|
|
-
|
|
570,358
|
|
Purchases of PP&E and intangible assets
|
403,520
|
|
1,312
|
|
32,505
|
|
601
|
|
7,455
|
|
445,393
|
|
-
|
|
-
|
|
445,393
|
(*) Other – refer basically to assets and transactions which are not related to any of the identified segments.
69
( 32 ) RELATED PARTY TRANSACTIONS
The Company’s controlling shareholders, related party information and main transactions are disclosed in note 32 of the financial statements of December 31, 2019
The total compensation for key management personnel in the three-month period of 2020, in accordance with CVM Decision 560/2008, was R$ 20,793 (R$ 19,862 in the three-month period of 2019). This amount comprises R$ 20,210 related to short-term benefits (R$ 19,378 in the three months period of 2019) and R$ 583 (R$ 484 in the three months period of 2019) of post-employment benefits
The intercompany loan balance in the parent company, in the amount of R$ 422,392, mainly refers to the intercompany loan with subsidiary CPFL Renováveis, maturing up to July 2020 and bearing 107% of CDI interest.
Transactions with entities under common control basically refers to transmission system charge paid by the Company’s subsidiaries to the direct or indirect subsidiaries of State Grid Corporation of China.
Transactions involving controlling shareholders, entities under common control or significant influence and joint ventures:
|
|
Consolidated
|
|
|
ASSETS
|
|
LIABILITIES
|
|
INCOME
|
EXPENSES
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2020
|
|
December 31, 2019
|
|
1st quarter 2020
|
|
1st quarter 2019
|
|
1st quarter 2020
|
|
1st quarter 2019
|
|
Energy purchase and sales, and charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entities under common control (State Grid Corporation of China subsidiaries)
|
-
|
|
-
|
|
-
|
|
2,998
|
|
-
|
|
-
|
|
67,836
|
|
42,493
|
|
BAESA – Energética Barra Grande S.A.
|
-
|
|
3,082
|
|
5,820
|
|
6,544
|
|
4
|
|
3
|
|
15,910
|
|
4,799
|
|
Foz do Chapecó Energia S.A.
|
1,745
|
|
1,773
|
|
43,777
|
|
45,009
|
|
5,129
|
|
5
|
|
127,594
|
|
118,106
|
|
ENERCAN - Campos Novos Energia S.A.
|
1,063
|
|
1,017
|
|
61,308
|
|
62,330
|
|
3,119
|
|
2,741
|
|
92,984
|
|
85,518
|
|
EPASA - Centrais Elétricas da Paraiba
|
-
|
|
-
|
|
6,216
|
|
6,737
|
|
1
|
|
1
|
|
14,308
|
|
18,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible assets, property, plant and equipment, materials and service rendered
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BAESA – Energética Barra Grande S.A.
|
167
|
|
198
|
|
-
|
|
-
|
|
632
|
|
540
|
|
-
|
|
-
|
|
Foz do Chapecó Energia S.A.
|
9
|
|
11
|
|
-
|
|
-
|
|
553
|
|
534
|
|
-
|
|
-
|
|
ENERCAN - Campos Novos Energia S.A.
|
3
|
|
2
|
|
9
|
|
-
|
|
501
|
|
484
|
|
-
|
|
-
|
|
EPASA - Centrais Elétricas da Paraíba S.A.
|
-
|
|
-
|
|
-
|
|
-
|
|
46
|
|
79
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends and interest on capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BAESA – Energética Barra Grande S.A.
|
25,759
|
|
3,504
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Chapecoense Geração S.A.
|
37,090
|
|
37,090
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
ENERCAN - Campos Novos Energia S.A.
|
59,289
|
|
59,289
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instituto CPFL
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
994
|
|
928
|
Except for the changes disclosed below, the information about the risk management structure and the main risk factors that affect the Group’s business are disclosed in note 33 to the financial statements for the year ended December 31, 2019.
The Group follows operating and financial policies and strategies in order to ensure liquidity, security and profitability of its assets. These include procedures for controlling and monitoring transactions and balances of financial instruments, so as to monitor risks and interest rates compared to those observable in the market. Such potential impact, stemming from volatility of risk factors and their effects, is periodically assessed to provide support for the decision-making process in connection with the risk management strategy, which may include financial instruments and derivatives.
The financial instruments portfolio is monitored monthly, thus allowing finance results to be monitored together with their impact on cash flow.
The Group is also exposed to market risks from construction contracts of power transmission subsidiaries entered into in 2019, due to the volatility of prices of commodities and inputs, such as aluminum used in the construction phase. Pursuant to its risk management policy, risk mitigation strategies may be used to reduce such oscillations in cash flow. These risk mitigation strategies may include derivative instruments, mainly forward contracts, futures contracts and options.
The effects and disclosures in these interim financial statements, resulting from the pandemic caused by Covid-19, are described in note 1.2.
70
( 34 ) FINANCIAL INSTRUMENTS
The main financial instruments at fair value and/or the carrying amount is significantly different of the respective fair value, classified in accordance with the group´s accounting practices are:
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
March 31, 2020
|
|
|
Note
|
|
Category / Measurement
|
|
Level (*)
|
|
Carrying amount
|
|
Fair value
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalent
|
5
|
|
(a)
|
|
Level 2
|
|
5,569,505
|
|
5,569,505
|
|
Securities
|
6
|
|
(a)
|
|
Level 1
|
|
946
|
|
946
|
|
Derivatives
|
34
|
|
(a)
|
|
Level 2
|
|
2,444,708
|
|
2,444,708
|
|
Derivatives - Zero-cost collar
|
34
|
|
(a)
|
|
Level 3
|
|
421
|
|
421
|
|
Concession financial asset - distribution
|
11
|
|
(a)
|
|
Level 3
|
|
9,162,557
|
|
9,162,557
|
|
Total
|
|
|
|
|
|
|
17,178,137
|
|
17,178,137
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Borrowings - principal and interest
|
18
|
|
(b)
|
|
Level 2 (***)
|
|
5,172,032
|
|
5,166,640
|
|
Borrowings - principal and interest (**)
|
18
|
|
(a)
|
|
Level 2
|
|
9,127,595
|
|
9,127,594
|
|
Debentures - Principal and interest
|
19
|
|
(b)
|
|
Level 2 (***)
|
|
7,956,800
|
|
7,615,179
|
|
Debentures - Principal and interest (**)
|
19
|
|
(a)
|
|
Level 2
|
|
436,768
|
|
436,768
|
|
Derivatives
|
34
|
|
(a)
|
|
Level 2
|
|
3,545
|
|
3,545
|
|
Total
|
|
|
|
|
|
|
22,696,740
|
|
22,349,726
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Refers to the hierarchy for fair value measurement
|
|
(**) As result of initial designation of this financial liability, the consolidated balances reported a gain of R$ 238,534 in three months period of 2020 (a loss of de R$ 11,072 in three months period of 2019).
|
|
(***) Only for disclosure purposes, in accordance with CPC 40 (R1) / IFRS 7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key
|
|
|
|
|
|
|
|
|
|
|
Category / Measurement:
|
|
|
|
|
|
|
|
|
(a) - Measured at amortized cost
|
|
|
|
|
|
|
|
|
(b) - Mensured at fair value
|
|
|
|
|
|
|
|
The classification of financial instruments in “amortized cost” or “fair value through profit or loss” is based on the portfolio business model and in the characteristics of expected cash flow for each instrument.
The financial instruments for which the carrying amounts approximate the fair values, due to their nature, at the end of the reporting year are:
· Financial assets: (i) consumers, concessionaires and licensees, (ii) leases, (iii) intercompany loans between associates, subsidiaries and parent company, (iv) receivables – CDE, (v) pledges, funds and restricted deposits, (vi) services rendered to third parties, (vii) collection agreements and (viii) sector financial asset;
· Financial liabilities: (i) trade payables, (ii) regulatory charges, (iii) use of public asset, (iv) consumers and concessionaires, (v) FNDCT/EPE/PROCEL, (vi) collection agreement, (vii) reversal fund, (viii) payables for business combination, (ix) tariff discounts – CDE and (x) sector financial liability.
In addition, in the three months period of 2020 there were no transfers between the fair value hierarchy levels.
a) Measurement of financial instruments
As mentioned in note 4, the fair value of a security corresponds to its maturity value (redemption value) adjusted to present value by the discount factor (relating to the maturity date of the security) obtained from the market interest curve, in Brazilian reais.
The three levels of the fair value hierarchy are:
Level 1: Quoted prices in an active market for identical instruments;
71
Level 2: Observable inputs other than quoted prices in an active market that are observable for the asset or liability, directly (i.e. as prices) or indirectly (i.e. derived from prices);
Level 3: Instruments whose relevant factors are not observable market inputs.
Pricing of forward and futures contracts is on the basis of future curves of the underlying assets. Said curves are usually provided by the stock exchanges on which these assets are traded, or other market price providers. When price is not available for the intended maturity, it is obtained on the basis of interpolation between available maturities.
As the distribution concessionaries classified the respective concession financial assets as fair value through profit or loss, the relevant factors for fair value measurement are not publicly observable. Therefore, the fair value hierarchy classification is level 3. The movements and respective gains (losses) in profit for or loss for the three months period of 2020 are R$ 142,244 (R$ 67,264 in the three months period of 2019) and the main assumptions are described in note 11 and 27.
Additionally, the main assumptions used in the fair value measurement of the zero-cost collar derivative, the fair value hierarchy of which is Level 3, are disclosed in note 34 b.1.
The Company recognizes in “Investments in equity instruments” in the financial statements the 5.94% interest held by the indirect subsidiary Paulista Lajeado Energia S.A. in the total capital of Investco S.A. (“Investco”), in the form of 28,154,140 common shares and 18,593,070 preferred shares. As Investco’s main objective of its operations is to generate electric energy for commercialization by the shareholders holding the concession, the Company opted to recognize the investment at fair value, that is the best estimate of their cost, since there are no available recent information for the fair value calculation, according to CPC 48/IFRS 9.
b) Derivatives
The Group has the policy of using derivatives to hedge against the risks of fluctuations in exchange and interest rates, without any speculative purposes. The Group has currency hedges in a volume compatible with the net exchange exposure, including all assets and liabilities tied to exchange rate changes.
The hedging instruments entered into by the Group are currency or interest rate swaps with no leverage component, margin call requirements or daily or periodic adjustments. Furthermore, in 2015 the subsidiary CPFL Geração contracted a zero-cost collar derivative (see item b.1 below) derivative contract involving forward aluminum purchase with no physical delivery.
As a large part of the derivatives entered into by the subsidiaries have their terms fully aligned with the hedged debts, and in order to obtain more relevant and consistent accounting information through the recognition of income and expenses, these debts were designated for the accounting recognition at fair value (notes 18 and 19). Other debts that have terms different from the derivatives contracted as a hedge continue to be recognized at amortized cost. Furthermore, the Group did not adopt hedge accounting for transactions with derivative instruments.
On September 30, 2019, in order to provide hedge for purchases of inputs used in the construction of new power transmission projects, subsidiary CPFL Geração entered into derivative contracts involving forward aluminum purchases for future financial settlement in order to mitigate the risk arising from oscillation in prices during the period when (pure) aluminum purchases are made.
At March 31, 2020, the Group had the following swap transactions, all traded on the over-the-counter market:
72
|
|
|
Fair values (carrying amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategy
|
|
Assets
|
|
Liabilities
|
|
Fair value, net
|
|
Values at cost, net (1)
|
|
Gain (loss) on fair value measurement
|
|
Currency / debt index
|
|
Currency / swap index
|
|
Maturity range
|
|
Nocional
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives to hedge debts designated at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange rate hedge
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank Loans - Law 4.131
|
|
2,009,652
|
|
-
|
|
2,009,652
|
|
1,812,140
|
|
197,513
|
|
US$ + (Libor 3 months + 0.87% to 1.41%) or (1.83% to 3.66%)
|
|
99.80% to 116% of CDI or CDI + 0.12% to 0,90%
|
|
September/18 to March/25
|
|
5,345,659
|
|
Bank Loans - Law 4.131
|
|
349,106
|
|
-
|
|
349,106
|
|
353,452
|
|
(4,345)
|
|
Euro + 0.43% to 0.96%
|
|
103.5% to 105.8% of CDI or CDI +0.58% to 0.83%
|
|
May/21 to March/25
|
|
1,789,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,358,759
|
|
-
|
|
2,358,759
|
|
2,165,591
|
|
193,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedge variation price index
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debentures
|
|
78,715
|
|
-
|
|
78,715
|
|
24,475
|
|
54,240
|
|
IPCA + 5.8%
|
|
104.3% of CDI
|
|
August/24 to August/25
|
|
416,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal debt hedge
|
|
2,437,473
|
|
-
|
|
2,437,473
|
|
2,190,066
|
|
247,407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (2)
|
|
|
|
|
|
|
|
|
|
|
|
Currency / debt index
|
|
Maturity range
|
|
Notional in US$
|
|
|
|
Zero cost collar
|
|
424
|
|
(3)
|
|
421
|
|
-
|
|
421
|
|
US$
|
|
July/18 a september/20
|
|
22,174
|
|
|
|
Commodity forward contract (aluminum)
|
|
-
|
|
(3,542)
|
|
(3,542)
|
|
-
|
|
(3,542)
|
|
aluminum (US$/ton)
|
|
July/20
|
|
3,889
|
|
|
|
NDF - Aluminum
|
|
7,232
|
|
-
|
|
7,232
|
|
7,042
|
|
190
|
|
US$
|
|
July/20
|
|
6,296
|
|
|
|
Subtotal other
|
|
7,656
|
|
(3,545)
|
|
4,111
|
|
7,042
|
|
(2,931)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
2,445,129
|
|
(3,545)
|
|
2,441,584
|
|
2,197,109
|
|
244,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
696,721
|
|
(3,545)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncurrent
|
|
1,748,408
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For further details on terms and information on debts and debentures, see notes 18 and 19
(1)The value at cost are the derivative amount without the respective fair value measurement, while the notional refers to the balance of the debt and is reduced according to the respective amortization;
(2) Due to the characteristics of this derivativesthe notional amount is presented in U.S. dollar.
Changes in derivatives are stated below:
|
|
|
Consolidated - CPFL Energia
|
|
|
|
At December 31, 2019
|
|
Exchange rate and monetary adjustments, and fair value measurement
|
|
Settlement
|
|
At March 31, 2020
|
|
Derivatives
|
|
|
|
|
|
|
|
|
|
Debts designed at fair value
|
|
515,591
|
|
1,787,902
|
|
(113,427)
|
|
2,190,066
|
|
Other
|
|
52
|
|
6,990
|
|
-
|
|
7,042
|
|
Fair value measurement (*)
|
|
99,893
|
|
144,583
|
|
-
|
|
244,475
|
|
Total
|
|
615,536
|
|
1,939,476
|
|
(113,427)
|
|
2,441,584
|
(*)The effects on the profit or loss and comprehensive income of 2020 related to the fair value adjustments (MTM) of the derivatives are: (i) gains of R$ 152,709 for the debts designated at fair value and (ii) losses of R$ 8,127 for other derivatives.
As mentioned above, certain subsidiaries elected to fair value measurement debts for which they have fully debt-related derivatives instruments (note 18 and 19).
The Group has recognized gains and losses on their derivatives. However, as these derivatives are used as a hedging instrument, these gains and losses minimized the impacts of fluctuations in exchange and interest rates on the hedged debts. For the nine months period ended at September 30, 2019 and 2018, the derivatives generated the following impacts on the consolidated profit or loss, recognized in the line item of Finance costs on monetary adjustment and exchange rate changes and in the consolidated comprehensive income in the credit risk in the fair value measurement related to debts at fair value:
73
|
|
|
Gain (Loss)
|
|
Gain (Loss) in Comprehensive Income
|
|
Hedged risk / transaction
|
|
2020
|
|
2019
|
|
2020
|
|
|
1st quarter
|
|
1st quarter
|
|
1st quarter
|
|
Interest rate variation
|
|
6,800
|
|
4,823
|
|
-
|
|
Fair Value Measurement
|
|
(21,877)
|
|
8,884
|
|
5,599
|
|
Exchange variation
|
|
1,788,093
|
|
77,269
|
|
-
|
|
Fair Value Measurement
|
|
161,086
|
|
5,456
|
|
(226)
|
|
Total
|
|
1,934,102
|
|
96,434
|
|
5,373
|
b.1) Zero-cost collar derivative transactions entered into by CPFL Geração
In 2015, the subsidiary CPFL Geração entered into a transaction involving put options and call options in US$, both having the same institution as counterpart, and that combined are featured as a transaction usually known as zero-cost collar. Entering into this transaction does not have any speculative purpose, in as much as it is aimed at minimizing any negative impacts on future revenue of the joint venture ENERCAN, which has electric energy sale agreements with annual adjustment of part of the tariff based on the dollar variation. In addition, according to Management’s view, the scenario in 2015 was favorable to enter into this type of financial instrument, considering the high volatility implicit in dollar options and the fact that there is no initial cost for this type of transaction.
The total amount contracted was US$ 111,817 thousand, with due dates between October 1, 2015 and September 30, 2020. At March 31, 2020, the total amount contracted was US$ 22,174, thousand, considering the options already settled until this date. The strike prices of the dollar options vary from R$ 4.20 to R$ 4.40 for put options and from R$ 5.40 to R$ 7.50 for call options.
These options were measured at fair value in a recurring manner, as required by IFRS 9 /CPC 48. The fair value of the options that are part of this transaction was calculated based on the following assumptions:
|
Valuation technique(s) and key information
|
We used the Black Scholes Option Pricing Model, which aims to obtain the fair price of the options involving the following variables: value of the asset, strike price of the option, interest rate, term and volatility.
|
|
Significant unobservable inputs
|
Volatility determined based on the average market pricing calculations, future dollar and other variables applicable to this specific transaction, with average variation of 16.85%.
|
|
Relationship between unobservable inputs and fair value (sensitivity)
|
A slight rise in long-term volatility, analyzed separately, would result in an insignificant increase in fair value. If the volatility were 10% higher and all the other variables remained constant, the net carrying amount (asset) would increase by R$ 64, resulting in a net asset of R$ 485.
|
The following table reconciles the opening and closing balances of the call and put options for the nine months period ended March 31, 2020, as required by IFRS 13/CPC 46:
|
|
|
Consolidated
|
|
|
|
Asset
|
|
Liability
|
|
Net
|
|
At December 31, 2019
|
|
5,419
|
|
-
|
|
5,419
|
|
Measurement at fair value
|
|
(4,995)
|
|
(3)
|
|
(4,998)
|
|
Net cash received from settlement of flows
|
|
|
|
-
|
|
-
|
|
At March 31, 2020
|
|
424
|
|
(3)
|
|
421
|
74
The fair value measurement of these financial instruments was recognized as finance income (expense) of the period, and no effects were recognized in other comprehensive income.
c) Concession financial assets - distribution
As the distribution subsidiaries have classified the respective financial assets of the concession as measured at fair value through profit or loss, the relevant factors to measure the fair value are not publicly observable and there is no active market. Therefore, the classification of the fair value hierarchy is level 3.
d) Market risk
Market risk is the risk that changes in market prices – e.g. foreign exchange rates and interest rates – will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. The Group uses derivatives to manage market risks.
e) Sensitivity analysis
The Group performed sensitivity analyses of the main risks to which their financial instruments (including derivatives) are exposed, mainly comprising changes in exchange and interest rates.
When the risk exposure is considered asset, the risk to be taken into account is a reduction in the pegged indexes, due to a consequent negative impact on the Group’s profit or loss. Similarly, if the risk exposure is considered liability, the risk is of an increase in the pegged indexes and the consequent negative effect on the profit or loss. The Group therefore quantify the risks in terms of the net exposure of the variables (dollar, euro, CDI, IGP-M, IPCA, TJLP and SELIC), as shown below:
e.1) Exchange rates variation
Considering that the net exchange rate exposure at March 31, 2020 is maintained, the simulation of the effects by type of financial instrument for three different scenarios would be:
|
|
|
Consolidated
|
|
|
|
|
|
|
|
Income (expense)
|
|
Instruments
|
|
Exposure (a)
|
|
Risk
|
|
Currency depreciation (b)
|
|
Currency appreciation of 25%(c)
|
|
Currency appreciation of 50%(c)
|
|
Financial liability instruments
|
|
(7,100,099)
|
|
|
|
(232,996)
|
|
1,600,278
|
|
3,433,551
|
|
Derivatives - Plain Vanilla Swap
|
|
7,448,263
|
|
|
|
244,421
|
|
(1,678,750)
|
|
(3,601,921)
|
|
|
|
348,164
|
|
drop in the dolar
|
|
11,425
|
|
(78,472)
|
|
(168,370)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liability instruments
|
|
(2,027,498)
|
|
|
|
(73,574)
|
|
451,694
|
|
976,962
|
|
Derivatives - Plain Vanilla Swap
|
|
2,167,690
|
|
|
|
78,661
|
|
(482,927)
|
|
(1,044,514)
|
|
|
|
140,192
|
|
drop in the euro
|
|
5,087
|
|
(31,233)
|
|
(67,552)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
488,356
|
|
|
|
16,512
|
|
(109,705)
|
|
(235,922)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effects in the accumulated comprehensive income
|
|
|
4,701
|
|
(31,396)
|
|
(67,493)
|
|
Effects in the income of the period
|
|
|
11,811
|
|
(78,309)
|
|
(168,429)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (expense) on result
|
|
Instruments
|
|
Exposure (a)
US$ thousand
|
|
Risk
|
|
Currency depreciation (b)
|
|
Currency depreciation of 25% (c)
|
|
Currency depreciation of 50% (c)
|
|
Derivatives - zero-cost collar
|
|
22,174
|
(d)
|
raise of dollarr
|
|
(155)
|
|
(1,377)
|
|
(2,598)
|
|
Commodity forward contract (aluminum)
|
|
3,889
|
(d)
|
drop in aluminum
(US$/ton)
|
|
(56)
|
|
(2,337)
|
|
(2,511)
|
|
NDF Dollar
|
|
6,296
|
(d)
|
drop in the dolar
|
|
-
|
|
(8,246)
|
|
(16,493)
|
(a) The exchange rate considered at 03/31/2020 was R$ 5.20 per US$ 1.00 and R$ 5.73 per €$ 1.00.
(b) As per the exchange rate curves obtained from information made available by B3 S.A., with the exchange rate being considered at R$ 5.37 and 5.93, and the currency depreciation at 3.28% and 3.63% for US$ and €$, respectively at 03/31/2020.
(c) As required by CVM Instruction No. 475/2008, the percentage increases in the ratios applied refer to the information made available by the B3 S.A..
(d) Owing to the characteristics of these derivatives, the notional amount is presented in US$.
75
Except for zero-cost collar derivative and commodity forward contract, as the net exchange exposure of the dollar and the euro for the other derivative instruments is an asset, the risk is a drop in the dollar, and the euro, therefore, the exchange rate is appreciated by 25% and 50% in relation to the probable exchange rate.
76
e.2) Interest rates variation
Assuming that the scenario of net exposure of the financial instruments indexed to floating interest rates at March 31, 2020 is maintained, the net finance cost for the next 12 months for each of the three scenarios defined, would be:
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
Income (expense)
|
|
|
|
|
|
Instruments
|
|
Exposure
R$ thousand
|
|
Risk
|
|
Rate in the period
|
|
Likely scenario rate (a)
|
|
Likely scenario
|
|
Raising/Drop index by 25% (b)
|
|
Raising/Drop index by 50% (b)
|
|
Financial asset instruments
|
|
6,019,221
|
|
|
|
|
|
|
|
199,236
|
|
249,045
|
|
298,854
|
|
Financial liability instruments
|
|
(6,385,794)
|
|
|
|
|
|
|
|
(211,370)
|
|
(264,212)
|
|
(317,055)
|
|
Derivatives - Plain Vanilla Swap
|
|
(7,671,842)
|
|
|
|
|
|
|
|
(253,938)
|
|
(317,422)
|
|
(380,907)
|
|
|
|
(8,038,415)
|
|
CDI apprec.
|
|
5.42%
|
|
3.31%
|
|
(266,072)
|
|
(332,589)
|
|
(399,108)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liability instruments
|
|
(145,650)
|
|
|
|
|
|
|
|
(5,039)
|
|
(6,299)
|
|
(7,559)
|
|
|
|
(145,650)
|
|
IGP-M apprec.
|
|
6.81%
|
|
3.46%
|
|
(5,039)
|
|
(6,299)
|
|
(7,559)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liability instruments
|
|
(3,054,278)
|
|
|
|
|
|
|
|
(150,881)
|
|
(188,602)
|
|
(226,322)
|
|
|
|
(3,054,278)
|
|
TJLP apprec.
|
|
5.72%
|
|
4.94%
|
|
(150,881)
|
|
(188,602)
|
|
(226,322)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liability instruments
|
|
(3,395,238)
|
|
|
|
|
|
|
|
(41,082)
|
|
(30,812)
|
|
(20,541)
|
|
Derivatives - Plain Vanilla Swap
|
|
493,362
|
|
|
|
|
|
|
|
5,970
|
|
4,477
|
|
2,985
|
|
Concession financial asset
|
|
9,162,557
|
|
|
|
|
|
|
|
110,867
|
|
83,150
|
|
55,433
|
|
|
|
6,260,681
|
|
drop in the IPCA
|
|
3.30%
|
|
1.21%
|
|
75,755
|
|
56,815
|
|
37,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Setorial financial assets and liabilities
|
|
538,026
|
|
|
|
|
|
|
|
17,809
|
|
13,356
|
|
8,904
|
|
Financial instruments - liabilities
|
|
(74,271)
|
|
|
|
|
|
|
|
(2,458)
|
|
(1,844)
|
|
(1,229)
|
|
|
|
463,755
|
|
drop in the SELIC
|
|
5.42%
|
|
3.31%
|
|
15,351
|
|
11,512
|
|
7,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
(4,513,907)
|
|
|
|
|
|
|
|
(330,886)
|
|
(459,163)
|
|
(587,437)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effects on the comprehensive income
|
|
|
|
|
|
|
|
|
|
980
|
|
882
|
|
784
|
|
Effects on the net profit
|
|
|
|
|
|
|
|
|
|
(331,866)
|
|
(460,045)
|
|
(588,221)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The indexes were obtained from information available in the market.
|
|
(b) As required by CVM Instruction number 475/2008, the percentages of increase were applied to the indexes in the probable scenario.
|
Additionally, the debts exposed to pre-fixed indexes would generate an expense of R$ 47,750.
f) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group’s receivables from Consumers, Concessionaires and Licensees and financial instruments. Monthly, the risk is monitored and classified according to the current exposure, considering the limit approved by Management.
Impairment losses on financial assets recognized in profit or loss are presented in note 7 – Consumers, Concessionaires and Licensees.
Consumers, Concessionaries and Licensees
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, Management also considers the factors that may influence the credit risk.
The Group uses a provision matrix to measure the expected credit losses of trade receivables according to the consumer class (Residential, Commercial, Rural, Public Power, Public Lighting, Public Services), Other Revenues and Unbilled Revenue, comprising mostly a large number of dispersed balances.
Loss rates are based on actual credit loss experience over the past.
These rates reflect differences between economic conditions during the period over which the historical data have been collected, current conditions and the Group’s view of future economic conditions over the expected lives of the receivables. Accordingly, an “adjusted” revenue was calculated, reflecting the Group perception on expected loss. Such “adjusted” revenue was allocated by consumption class (matrix) according to the interval currently used in the allowance guided by the regulatory parameters as follows:
77
|
Class
|
|
Days
|
|
Period
|
|
Residential
|
|
90
|
|
Revenue of 3 months prior to the current month
|
|
Commercial and other revenues
|
|
180
|
|
Revenue of 6 months prior to the current month
|
|
Industrial, rural, public power in general
|
|
360
|
|
Revenue of 12 months prior to the current month
|
|
Unbilled
|
|
-
|
|
Uses revenue of the same month
|
Therefore, based on the assumptions above, an “Adjusted” ratio of the expected credit losses (“ECL”) allowance for the month is calculated, which was determined dividing the “Actual ECL” allowance by the “Adjusted Revenue” for each month. Then, the ECL allowance is estimated monthly, considering the respective moving average for the months of the "Adjusted” monthly ratios and calculated to the actual revenue for the current month.
Based on this criterion, the ECL allowance percentage to be applied is changed monthly to the extent that the moving average is calculated.
The methodology used by Management includes a percentage that is compliant with the IFRS rule described as expected credit losses, including in a single percentage the probability of loss, weighted by the expected loss and possible outcomes, that is, including Probability of default (“PD”), Exposure at default (“EAD”) and Loss Given Default (“LGD”).
Macroeconomic factors
After studies developed by the Company to assess which variables present a correlation ratio with the actual amount of Expected Credit Losses Allowance, no ratios or macroeconomic factors that would have material impacts or that had direct correlation with the default level were identified, due to the electric sector characteristic of having instruments that mitigate the risk of losses, such as cutting energy supply to default customers.
Cash and cash equivalents and Marketable securities
The Group limits its exposure to credit risk by investing only in liquid debt securities and only with counterparties that have a credit rating of at least AA-.
The Group considers that its cash and cash equivalents have low credit risk based on the external credit ratings of the counterparties. Management did not identify for the quarter ended March 31, 2020 and the year ended December 31, 2019 that the securities had a significantly change in credit risk.
Derivatives
The Group adopts a policy of using derivatives with the purpose of hedge (economic hedge) against the risks of fluctuations in exchange rates and interest rates, mostly comprising currency and interest rate swaps. The derivative transactions are entered into with first-tier banks and financial institutions with a rating of at least AA-, based on the main credit rating agencies in the market (note 34). Management has not identified for the period of 2019 and the year 2018 that the derivative financial assets had a significant impairment using the criterion of expected losses.
The Group adopts a policy of providing financial guarantees for the obligations of its subsidiaries and joint ventures. At March 31, 2020 and December 31, 2019, the Company had provided guarantees to certain financial institutions with respect to the credit lines granted to its subsidiaries and joint ventures, as presented in notes 18 and 19.
The effects and disclosures in these interim financial statements, resulting from the pandemic caused by Covid-19, are described in note 1.2.
78
( 35 ) NON-CASH TRANSACTIONS
|
|
Consolidated
|
|
|
March 31, 2020
|
|
March 31, 2019
|
|
Transactions resulting from business combinations
|
|
|
|
|
Capital increase in investees with advance for future capital increase
|
-
|
|
43
|
|
Interest capitalized
|
5,862
|
|
5,589
|
|
Provision of socio environmental costs capitalized in property, plant and equipment
|
-
|
|
15,906
|
|
Transfer between fixed assets and others assets
|
-
|
|
167
|
( 36 ) EVENTS AFTER THE REPORTING PERIOD
36.1 Annual Tariff Adjustment ("RTA") - subsidiary CPFL Paulista
On April 8, 2020, ANEEL published Homologatory Resolution (“REH”) No. 2,670/2020, relating to the annual tariff adjustment - RTA, which set the average adjustment of the subsidiary's tariffs at 14.90%, of which 6.09% related to the economic tariff adjustment and 8.80% related to financial components. The total average effect for consumers is 6.05%.
As the tariff adjustment was suspended until June 30, 2020, in the context of the public health emergency of international importance due to the coronavirus pandemic (COVID-19), the current tariffs published by REH No. 2,526/2019 continue being applied in the meantime.
ANEEL recognized the subsidiary's right to an amount referring to the non-collection of additional tariff revenue in the period, authorizing the subsidiary to make, in 3 (three) equal installments, a deduction proportional to the period of suspension from the payment of the monthly CDE quotas to CCEE for the months of April, May and June 2020.
The financial recomposition of the sectorial fund by the subsidiary will occur in 6 (six) equal and monthly installments as from July 2020, adjusted by SELIC interest.
36.2 Borrowings raised
In April 2020 the subsidiary CPFL Paulista raised borrowings amounting to R$ 566,000, with payment of the interest on a quarterly basis and of the principal in a lump sum in April 2023. The financial charges and effective interest correspond to Euro + 0.76% p.a., with the effective rate equivalent to CDI (interbank deposit certificate) derivative + 1.1% p.a. The proceeds will be used for working capital.
In April 2020 the subsidiaries CPFL Paulista, CPFL Piratininga, CPFL Jaguari and RGE Sul, contracted new borrowings with Banco Nacional de Desenvolvimento Econômico e Social (BNDES) amounting R$ 3,470,000 wich will be raised until June 2023. The annual interest is IPCA + 4.27%, with payment of interest on a quarterly basis until June 2023 and monthly with the principal until April 2040.
79
BOARD OF DIRECTORS
Bo Wen
Chairman
Shirong Lyu
Vice Chairman
|
Yan Qu
|
Marcelo Amaral Moraes
|
|
Yumeng Zhao
|
Anselmo Henrique Seto Leal
|
|
Gustavo Estrella
|
Hong Li
|
|
Antonio Kandir
|
|
Directors
GUSTAVO ESTRELLA
Chief Executive Officer
|
SHIRONG LYU
|
GUSTAVO PINTO GACHINEIRO
|
|
Senior Executive Vice President, holding also the
|
Legal and Institutional Relations Vice President
|
|
function of
|
|
|
Strategy, Innovation and Business Excellence
|
FLÁVIO HENRIQUE RIBEIRO
|
|
Vice President
|
Business Management Vice President
|
|
|
|
|
YUMENG ZHAO
|
LUIS HENRIQUE FERREIRA PINTO
|
|
Executive Vice President
|
Regulated Operations Vice President
|
|
|
|
|
YUEHUI PAN
|
KARIN REGINA LUCHESI
|
|
Chief Financial Executive Officer and Investor
|
Market Operations Vice President
|
|
Relations Officer
|
|
|
|
VITOR FAGALI
|
|
|
Business Development Vice President
|
SERGIO LUIS FELICE
Accounting Director
CT CRC 1SP192767/O-6
80
OTHER RELEVANT INFORMATION
|
Shareholders of CPFL Energia S/A holding more than 5% of the shares of the same type and class, at March 31, 2020:
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
|
Common shares
|
|
Interest - %
|
|
|
|
|
|
State Grid Brazil Power Participações S.A.
|
|
730,435,698
|
|
63.39
|
|
|
|
|
|
ESC Energia S.A.
|
|
234,086,204
|
|
20.32
|
|
|
|
|
|
Other shareholders
|
|
187,732,538
|
|
16.29
|
|
|
|
|
|
Total
|
|
1,152,254,440
|
|
100.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity and characteristic of secutiries held by directly or indirectly Controlling Shareholders, Executive Officers, Board of Directors, Fiscal Council and Free Float, at March 31, 2020 and December 31, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2020
|
|
December 31, 2018
|
|
Shareholders
|
|
Common shares
|
|
Interest - %
|
|
Common shares
|
|
Interest - %
|
|
Controlling shareholders
|
|
964,521,902
|
|
83.71
|
|
964,521,902
|
|
83.71
|
|
Administrator
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Members of the Executive Officers
|
|
189
|
|
0.00
|
|
189
|
|
0.00
|
|
Members of the Board of Directors
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Fiscal Council Members
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Other shareholders
|
|
187,732,349
|
|
16.29
|
|
187,732,349
|
|
16.29
|
|
Total
|
|
1,152,254,440
|
|
100.00
|
|
1,152,254,440
|
|
100.00
|
|
Outstanding shares - free float
|
|
187,732,349
|
|
16.29
|
|
187,732,349
|
|
16.29
|
|
|
|
|
|
|
|
|
|
|
The Company is bound to arbitration by the Market Arbitration Chamber, according to the Commitment Clause in Article 44 of the Company's Bylaws.
81
|
SHAREHOLDING STRUCTURE
|
3rd quarter of 2019
|
|
|
CPFL ENERGIA S/A
|
Per units shares
|
Date of last change
|
|
#
|
1 - SHAREHOLDERS OF THE COMPANY
|
CNPJ or CPF
|
Quotes/common shares
|
%
|
% Total
|
Preferred shares
|
%
|
% Total
|
TOTAL
|
% Total
|
|
|
|
Controlling shareholders
|
|
964,521,902
|
83.71%
|
100.00%
|
-
|
0.00%
|
0.00%
|
964,521,902
|
83.71%
|
|
|
1.1
|
Esc Energia S.A.
|
15.146.011/0001-51
|
234,086,204
|
20.32%
|
100.00%
|
-
|
0.00%
|
0.00%
|
234,086,204
|
20.32%
|
June 27, 2019
|
|
1.2
|
State Grid Brazil Power Participações S.A.
|
26.002.119/0001-97
|
730,435,698
|
63.39%
|
100.00%
|
-
|
0.00%
|
0.00%
|
730,435,698
|
63.39%
|
June 27, 2019
|
|
|
Noncontrolling shareholders
|
|
187,732,538
|
16.29%
|
100.00%
|
-
|
0.00%
|
0.00%
|
187,732,538
|
16.29%
|
|
|
1.3
|
Board of Directors members
|
07.341.926/001-90
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
June 27, 2019
|
|
1.4
|
Executive Office members
|
|
189
|
0.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
189
|
0.00%
|
June 27, 2019
|
|
1.5
|
Other shareholders
|
|
187,732,349
|
16.29%
|
100.00%
|
-
|
0.00%
|
0.00%
|
187,732,349
|
16.29%
|
|
|
|
Total
|
|
1,152,254,440
|
100.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
1,152,254,440
|
100.00%
|
|
|
|
2 - Entity: 1.1 Esc Energia S.A.
|
CNPJ or CPF
|
Quotes/common shares
|
%
|
% Total
|
Preferred shares
|
%
|
% Total
|
TOTAL
|
% Total
|
|
|
|
Controlling shareholders
|
|
1,042,392,615
|
100.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
1,042,392,615
|
100.00%
|
|
|
1.1.1
|
State Grid Brazil Power Participações S.A.
|
26.002.119/0001-97
|
1,042,392,615
|
100.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
1,042,392,615
|
100.00%
|
January 23, 2017
|
|
|
Noncontrolling shareholders
|
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
|
|
1.1.2
|
Other shareholders
|
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
|
|
|
Total
|
|
1,042,392,615
|
100.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
1,042,392,615
|
100.00%
|
|
|
|
3 - Entity: 1.2 State Grid Brazil Power Participações S.A.
|
CNPJ or CPF
|
Quotes/common shares
|
%
|
% Total
|
Preferred shares
|
%
|
% Total
|
TOTAL
|
% Total
|
|
|
|
Controlling shareholders
|
|
29,165,194,229
|
100.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
29,165,194,229
|
100.00%
|
|
|
1.2.1
|
International Grid Holdings Limited
|
|
29,165,194,229
|
100.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
29,165,194,229
|
100.00%
|
August 14, 2018
|
|
|
Noncontrolling shareholders
|
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
|
|
1.2.2
|
Top View Grid Investment Limited
|
|
1
|
0.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
1
|
0.00%
|
March 28, 2017
|
|
1.2.3
|
Other shareholders
|
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
|
|
|
Total
|
|
29,165,194,229
|
100.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
29,165,194,229
|
100.00%
|
|
|
|
4 - Entity: 1.2.1 International Grid Holdings Limited
|
CNPJ or CPF
|
Quotes/common shares
|
%
|
% Total
|
Preferred shares
|
%
|
% Total
|
TOTAL
|
% Total
|
|
|
|
Controlling shareholders
|
|
1
|
100.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
1
|
100.00%
|
|
|
1.2.1.1
|
State Grid International Development Limited
|
|
1
|
100.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
1
|
100.00%
|
July 31, 2017
|
|
|
Noncontrolling shareholders
|
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
|
|
1.2.1.2
|
Other shareholders
|
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
|
|
|
Total
|
|
1
|
100.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
1
|
100.00%
|
|
|
|
5 - Entity: 1.2.2 Top View Grid Investment Limited
|
CNPJ or CPF
|
Quotes/common shares
|
%
|
% Total
|
Preferred shares
|
%
|
% Total
|
TOTAL
|
% Total
|
|
|
|
Controlling shareholders
|
|
1
|
100.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
1
|
100.00%
|
|
|
1.2.2.1
|
State Grid International Development Limited
|
|
1
|
100.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
1
|
100.00%
|
July 31, 2017
|
|
|
Noncontrolling shareholders
|
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
|
|
1.2.2.2
|
Other shareholders
|
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
|
|
|
Total
|
|
1
|
100.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
1
|
100.00%
|
|
|
|
6 - Entity: 1.2.1.1 State Grid International Development Limited
|
CNPJ or CPF
|
Quotes/common shares
|
%
|
% Total
|
Preferred shares
|
%
|
% Total
|
TOTAL
|
% Total
|
|
|
|
Controlling shareholders
|
|
21,429,327,845
|
100.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
21,429,327,845
|
21.32%
|
|
|
1.2.1.1.1
|
State Grid International Development Co., Ltd
|
|
21,429,327,845
|
100.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
21,429,327,845
|
21.32%
|
July 31, 2017
|
|
|
Noncontrolling shareholders
|
|
-
|
0.00%
|
0.00%
|
79,091,019,116
|
100.00%
|
100.00%
|
79,091,019,116
|
78.68%
|
|
|
1.2.1.1.2
|
State Grid Overseas Investment Ltd
|
|
-
|
0.00%
|
0.00%
|
79,091,019,116
|
100.00%
|
100.00%
|
79,091,019,116
|
78.68%
|
July 31, 2017
|
|
1.2.1.1.3
|
Other shareholders
|
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
|
|
|
Total
|
|
21,429,327,845
|
100.00%
|
21.32%
|
79,091,019,116
|
100.00%
|
78.68%
|
100,520,346,961
|
100.00%
|
|
|
|
7 - Entity: 1.2.1.1.1 State Grid International Development Co., Ltd
|
CNPJ or CPF
|
Quotes/common shares
|
%
|
% Total
|
Preferred shares
|
%
|
% Total
|
TOTAL
|
% Total
|
|
|
|
Controlling shareholders
|
|
7,131,288,000
|
100.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
7,131,288,000
|
100.00%
|
|
|
1.2.1.1.1.1
|
State Grid Corporation of China
|
|
7,131,288,000
|
100.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
7,131,288,000
|
100.00%
|
July 31, 2017
|
|
|
Noncontrolling shareholders
|
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
|
|
1.2.1.1.1.2
|
Other shareholders
|
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
|
|
|
Total
|
|
7,131,288,000
|
100.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
7,131,288,000
|
100.00%
|
|
|
|
8 - Entity: 1.2.1.1.2 State Grid Overseas Investment Ltd
|
CNPJ or CPF
|
Quotes/common shares
|
%
|
% Total
|
Preferred shares
|
%
|
% Total
|
TOTAL
|
% Total
|
|
|
|
Controlling shareholders
|
|
100
|
100.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
100
|
100.00%
|
|
|
1.2.1.1.2.1
|
State Grid Corporation of China
|
|
100
|
100.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
100
|
100.00%
|
July 31, 2017
|
|
|
Noncontrolling shareholders
|
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
|
|
1.2.1.1.2.2
|
Other shareholders
|
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
0.00%
|
-
|
0.00%
|
|
|
|
Total
|
|
100
|
100.00%
|
100.00%
|
-
|
0.00%
|
0.00%
|
100
|
100.00%
|
|
82