Selected image from the photo contest
“Eletrobras Employees at the Olympic Sports”
Employee
Edson Gomes Moreira Filho,
Eletrobras CGTEE
(Photo: Edson Gomes Moreira Filho)
Mission, Vision, and Values
GRI G4-56
Mission
Operate in the energy markets in an integrated, profitable and
sustainable manner.
Vision
Be one of the three largest clean energy global companies, and one of
the ten largest electric energy companies in the world, with profitability
comparable to that of the best in the industry, and recognized by all
stakeholders.
Values
{ Focus on results
{ Ethics and Transparency
{ Entrepreneurism and innovation
{ Valorization of people and their commitment
{ Sustainability
2015 Highlights
{ 2015-2019 Business and Management Master Plan (PDNG): sets the
targets and projects for the goals of the 2015-2030 Strategic Plan to
be met.
{ Ongoing independent investigation and contracting of an
Investigation Management Independent Committee: The Hogan
Lovells office has been contracted to verify the existence of any
violation to the FCPA Law, to Law No. 12,846/2013, and to the Code of
Ethics.
{ Approval of the Existing System’s Basic Network (RBSE)
compensation: Aneel has already approved, up to 2015, the amount of
R$ 1,007 million referring to the RBSE of companies Eletrobras Furnas
and Eletrosul; the total amount claimed by all subsidiaries is R$20,313
million.
{ Approval of the sale of Celg-D: at the 164th Extraordinary General
Meeting, Eletrobras’s shareholders approved the sale of the
controlling stock of Celg-D.
{ Renegotiation of the hydrological risk (Generation Scaling Factor
- GSF): generation subsidiaries have signed an agreement to mitigate
the GSF risk under Law 13,203/2015 and Aneel Normative Resolution
684/205.
{ Operating performance: increase of R$32,589 million in the
consolidated Net Operating Revenue.
{ Economic-financial highlight: Adjusted EBITDA of R$2,853 million.
{ Regulation of the conditions for extending distribution concessions:
Decree 8,461/2015 determines the criteria for extending distribution
concessions for an additional 30 years.
{ De-verticalization of Eletrobras Amazonas Energia: the 162nd EGM
approved the segregation of Amazonas Energia’s generation and
transmission assets.
Message from Management
GRI G4-1, G4-15
The year 2015 was heavily impacted by an unusual hydrological crisis, which
had already been causing difficulties in our country in recent years. It greatly
affected the production of hydroelectric power in Brazil and made it necessary
to operate thermal plants as a backup power supply, which produce fuel at more
expensive costs, therefore increasing the price paid by consumers.
However, citizens were not the only ones affected by this downturn. Power
generation companies also felt the effects caused by the adverse hydrological
conditions, which resulted in the proposal of an important agreement for the
electricity sector, by which the generation subsidiaries of Eletrobras could explore
their options in order to limit financial exposure, given the low reservoir levels.
At the same time, the Eletrobras companies started to be mentioned in
the inquiries of the so-called ‘Operação Lava Jato’, an operation conducted by
the Brazilian Federal Police and the Public Ministry, in denunciations of alleged
irregularities in their undertakings, particularly the construction of the Angra
3 nuclear plant, which nearly put a halt in its implementation. It should also
be noted that when some of Eletrobras’ projects began to undergo scrutiny,
the ‘Anti-Corruption Policy of the Eletrobras Companies’ was already being
established. This document lays out a set of actions which aim to identify, correct
and prevent, on a regular basis, fraud and corruption, ensuring the adoption
of increasingly accurate and reliable governance and compliance standards,
minimizing the risk of exposure to illegal acts.
Over 2015, as a result of denunciations in the public investigation process,
and in line with the compliance actions that were implemented, Eletrobras’
Management hired the US law firm Hogan Lovells. The firm is in charge of
investigating the possible existence of irregularities that violate the Foreign
Corrupt Practices Act (FCPA) of 1977, the Brazilian Anti-Corruption Law and the
Code of Ethics of the Eletrobras Companies in ventures in which the holding and
its subsidiaries participate corporately or through Specific Purpose Companies
(SPCs). The extension of this process throughout the year prevented the timely
filing of the 2014 financial reports (Form 20-F) in the New York Stock Exchange
(NYSE). The investigations are still in progress, and are being monitored by an
external committee formed by people of great legal and technical expertise. This
shows Eletrobras’ firm commitment to transparency; the progress of these works
is one of the company’s main objectives in 2016.
This whole scenario, combined with a bulky provision to cover legal
proceedings related to compulsory loans contracted with the electricity
consumers in the 1960s, led to a loss of R$ 14.4 billion in the 2015 fiscal year.
Despite a year of difficulties, Eletrobras remained in the lead regarding
national electricity generation and transmission, thus contributing to the
country’s progress and the welfare of its citizens.
The Eletrobras companies and their partners have implemented in 2015 2,975
MW – about 43% of the growth of the country’s generation installed capacity
– totaling 1,603 MW produced by hydro, wind and solar units. Individually and
through SPCs, the company has projects that are either under construction, yet to
be started or in a testing phase, which will incorporate 16,800 MW to the Brazilian
energy matrix by 2019, mostly coming from clean and renewable energy sources.
Of this total, Eletrobras is responsible for 10,500 MW, of which 2,300 MW are in
corporate projects, while 8,200 MW correspond to the proportional share of the
company’s participation in SPCs.
In transmission, Eletrobras’ ventures added 1,126 km to the National
Interconnected System (NIS); from this total, 503 km are proportional to the
company’s participation in the projects. The distributors, in turn, obtained an
increase of 200,845 new customers.
In total investments, with the implementation of projects and actions
provided for in the Business and Management Plan of 2015-2019, Eletrobras held
in 2015 R$ 10.4 billion, of which R$ 5.675 billion in generation, R$ 3.414 billion
in transmission, R$ 1.0 billion in distribution, in addition to R$ 301.33 million in
research, infrastructure and environmental quality.
The company’s operational results, such as generation availability and, in
transmission lines, shutdown and robustness indexes, were consolidated at levels
higher than those of its competitors in the generation and transmission markets.
Eletrobras remains determined to improve its operational performance,
reducing costs, maximizing earnings, increasing the synergy between companies,
motivating employees and respecting the environment and the public affected
by its projects.
After some years of financial losses, we are rebuilding the solid foundations of
Eletrobras, so that we can return to a consistent scenario of profit and sustainable
development. In its 54 year history, Eletrobras has always been able to overcome
challenges and to meet the expectations of Brazilians. It is, therefore, a source
of pride for the thousands of employees who work daily towards the country’s
growth and development. The company will remain in the leadership of the
Brazilian market, reinforcing its commitment to the principles of the UN Global
Compact, so that its energy matrix continues to be one of the cleanest in the
world, and seeking to become a global reference in the electricity sector.
Enjoy your Reading,
José da Costa Carvalho Neto,
Eletrobras CEO,
and
Wagner Bittencourt de Oliveira,
Eletrobras Board of Directors President.
Contents
11
About this report .......................................................................... 13
Corporate profile .......................................................................... 19
Business Strategy ......................................................................... 29
Corporate governance and Management .............................. 41
Business performance GRI G4-8 ..................................................... 65
Economic and financial performance GRI G4-9 ........................101
Social performance ....................................................................113
Environmental Performance ....................................................151
Summary of GRI G4 Disclosures ..............................................167
Assurance Report .......................................................................181
Corporate Information ..............................................................187
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Selected image from the photo contest
“Eletrobras Employees at the Olympic Sports”
GRI G4-17, G4-18, G4-28, G4-32, G4-48
In line with its commitment to transparency, ethics and sustainability,
Eletrobras publishes its new Annual and Sustainability Report, under the
guidelines of the Global Reporting Initiative (GRI)—for the first time in its
latest version, G4—the Global Compact Principles and the social accounting
model of the Brazilian Institute of Social and Economic Analyses (Ibase).
This report covers the principles, management and performance of
economic, social and environmental aspects, between January 1 and
December December 31, 2015, of the company and its subsidiaries, except
for Celg Distribuição (Celg-D)—even though it was acquired in January 2015,
we expected the shareholders to resolve for its privatization. The sale was
approved by Eletrobras’s shareholders in December 2015. Because of this
perspective, most of the GRI indicators were not monitored in an appropriate
manner, reason why they will be not consolidated in this report.
Eletrobras chose the essential application level of the GRI Guidelines. The
report was assured by KPMG Brasil.
Materiality
In order to make a publication of consistent information, aligned with
the expectations of our stakeholders, Eletrobras has analyzed the demands
received through different communication channels, and made an online
survey with the stakeholders identified in the strategic planning. The survey
involved all our companies, with the primary goal of identifying the topics of
greater interest that should consequently be detailed in this report.
The survey was made between November 9 and December 7, 2015,
in Portuguese, English, and Spanish. 1,440 people responded to the
questionnaire, broken down as follows:
GRI G4-18, G4-21, G4-24
Employee
Hamilton Carlos da Luz,
Eletrobras Eletrosul
(Photo: Lucas Lafraia)
2015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES 16
11%
11%
E m p l o y e es
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tors /Regulatory
Socie t y
m u n iti e
pinion le a
Com
arket an aly
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Investors / S
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Partners / Sponsored P
The survey was based on the 17 issues resulting from the 2014 survey, as
follows:
1º energy supply
2º water
3º curruption and management
of ethics
4º financial reults
5º health and safety
6º employees and employment
7º compliance
8º risk and crisis management
9º climate change
10º stakeholder satisfaction
11º communities
12º institutional relations
13º suppliers
14º biodiversity
15º human rights
16º innovation, diversification, and R&D
17º waste
69%
2%
2%
1%
1%
1%
2%
17
Five priority issues for the stakeholders were revealed in this survey:
corruption and ethics management, power supply, health and safety,
financial results, and water.
In the last stage of the survey, the 17 issues mentioned above were taken
to the Sustainability Committee of the Eletrobras Companies, in charge
of, among other things, coordinating the production of the Annual and
Sustainability Report.
The Committee chose eight material themes, four of which coincided
with the aspects found in the stakeholders’ survey. By the end of the process,
nine material themes were chosen to be the key drivers of this report:
GRI G4-19, G4-20, G4-21, G4-24, G4-25, G4-26, G4-27
Material aspects for Eletrobras in 2015
Corruption
and Ethics
Management
Energy Supply
Financial
Results
Water
Stakeholders consultation + Sustainbility Committee
Innovation,
Diversification,
and R&D
Employees and
Employment
Climate
Change
Risk and Crisis
Management
Sustainability Committee
Health and
Safety
stakeholders consultation
The process to identify, select and engage Eletrobras’s stakeholders
is based on the company’s strategic planning. Likewise, it considers the
group’s commitment to sustainable development, favoring the dialogue with
and engagement of stakeholders, according to the Eletrobras Companies
Stakeholder Engagement and Communication Policy. In addition to the
survey mentioned above, Eletrobras uses other mechanisms to identify
the perception of stakeholder groups relative to its operation, including a
climate survey, Ombudsman channels, the Eletrobras website, a direct survey
with suppliers and investors, in addition to interactive channels like Twitter
and Facebook.
Corruption and Ethics Management, Energy Supply, Financial Results,
Water, Climate Change, Innovation, Diversification and R&D, Risk and Crisis
Management and Health and Safety aspects were identified as materials
within and outside the organization. The Employees and Employment aspect
was identified as material only within the organization.
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES
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Selected image from the photo contest
“Eletrobras Employees at the Olympic
Sports”
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About Eletrobras
GRI G4-4, G4-7
Centrais Elétricas Brasileiras S.A. is a mixed capital publicly held
corporation controlled by the Brazilian government, with operations in
electric power generation, transmission, distribution, and trading. With its
stock listed in the São Paulo, New York (United States), and Madrid (Spain)
stock exchanges, and focusing on profitability, competitiveness, integration,
and sustainability, Eletrobras is made of 18 companies:
Holding, CGTEE, Chesf, Eletronorte, Eletronuclear,
Eletrosul, Furnas, Amazonas Energia, Amazonas Geração
e Transmissão, Distribuição Acre, Distribuição Alagoas,
Distribuição Piauí, Distribuição Rondônia, Distribuição
Roraima, Celg Distribuição (Celg-D), and it owns half of
Itaipu Binacional. Moreover, the holding controls the Electric
Energy Research Center (Eletrobras Cepel), and Eletropar
Participações S.A. (Eletrobras Eletropar).
With 54 years of operations, the company is listed on BM&FBovespa’s
Corporate Sustainability Index (ISE Bovespa), which gathers the companies
that have the best practices in terms of corporate citizenship, and on the
Dow Jones Sustainability Emerging Market index.
Employee
Sabrina Tenenbaum, Eletrobras
(Photo: Mariana Sousa dos Santos)
2015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES 22
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Eletrobras in numbers
Eletrobras’s total installed capacity, including half of Itaipu’s capacity
owned by the Brazilian government, is of 45,391 MW, which makes it the
largest power utility in Brazil, with a share of 32% of the country’s installed
capacity.
Of the company’s total installed capacity, 73% are projects wholly owned
by Eletrobras, 10% derive from the interest held by Eletrobras companies in
projects developed through Special Purpose Entities (SPEs), and 17% refer to
jointly owned projects, including half of Itaipu Binacional’s capacity (7,000
MW)—or 15% of the total—and ownership interest held in consortiums.
Eletrobras’s generation assets consist of 47 hydroelectric power plants, 121
thermal power plants, two nuclear power plants, 60 wind farms and one solar
power plant, including the company’s own projects and those in partnerships,
distributed throughout the whole Brazilian territory.
Megawatt Solar Plant, located in the headquarters of Eletrobras Eletrosul in Florianópolis (SC)
On December 31, 2015, the company’s transmission lines totaled
approximately 68,085 km. Of that mount, 5,238 km are wholly owned by
Eletrobras, 56,811 km refer to Operation and Maintenance concessions, and
6,036 km correspond to its ownership interest in projects developed by Eletrobras
companies in partnerships with third parties and through SPEs.
Considering only the basic network of the National Interconnected System
(SIN), that is, voltages of 750, ±600, 525/500, 345, and 230 kV, the company is
responsible for 60,997 km of transmission lines, or 47.1% of all transmission
lines in Brazil in said voltages. On the same date, the company wholly owned
53 substations with transformation capacity of 38,385 MVA, in addition to 230
renovated substations under Law No. 12,783/2013, totaling 228,723 MVA in
transformation capacity.
Eletrobras’s electric power distribution companies—including Celg-D,
acquired in 2015 but consolidated for accounting purposes since September
2014—operate in two states in the Northeast, four in the North and in the
State of Goiás, benefiting over 6.9 million consumers, equivalent to 8.5% of all
customers in the Brazilian territory. On December 31, 2015, these companies
used a low-, medium-, and high-voltage distribution network, extending for
471,485 km and a total of 555 substations, spanning across 700 municipalities.
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Shareholding structure
Eletrobras’s stock is traded in three markets:
{ The São Paulo Stock Exchange (ELET3 and ELET6), where it is listed on
the Corporate Governance Level 1 index.
{ The Madrid Stock Exchange (XELTO and XELTB), through the Latibex
Program.
{ The New York Stock Exchange (NYSE EBR and EBR-B), where it trades in
American Depositary Receipts (ADR).
On December 31, 2015, Eletrobras had 1,352,634,100 shares; 81% held by
residents in Brazil, and 19%, by non-residents. Its capital stock totaled R$ 31.30
billion on the same date. No change was recorded in Eletrobras’s capital stock
structure, and by the end of the year the company’s market cap was R$ 8.9 billion.
Total Shares (Common + Preferred)
e r a l G
Fe d
Govern m e n t F
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Common
SHARES
(80.40%)
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Govern m e n t F
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SHARES
(80.40%)
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B
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DSPAR / BNDS
51.00%
4.29%
24.81%
19.90%
3.30%
82.78%
13.92%
51.00%
4.29%
24.81%
19.90%
G o v e r n m e
F u n ds
n t
O t her
DS
N
B
/
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P
S
D
N
B
Preferred
SHARES
(19.60%)
G o v e r n m e
F u n ds
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O t her
DS
N
B
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A
P
S
D
N
B
Preferred
SHARES
(19.60%)
3.30%
82.78%
13.92%
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES
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Organizational
structure
GRI G4-6
25
Generation and Transmission
Generation
Binational Generation
(100.00%)
Distribution
Shareholdings
(99.91%)
(50.00%)
(99.99%)
Eletrobras Companies
Business
Segment
Generation
SPEs*
138
Transmission
Total
*The number of SPEs was adjusted, since there are
Special Purpose Entities that participate in more than
one Eletrobras company.
41
179
(99.47%)
(99.58%)
(99.56%)
(99.88%)
G
T
G
T
G
T
SPEs
7
11
18
SPEs
47
08
55
SPEs
57
19
76
G
T
SPEs
32
10
42
Amazonas GT
(100.00%)
(96.71%)
(100.00%)
(100.00%)
(100.00%)
(100.00%)
(50.93%)
(100.00%)
(83.71%)
No Brasil
Generation
Distribution
NORTE ENERGIA S.A. (15.00%)
MANGUE SECO 2 S.A. (49.00%)
PAULISTA LAJEADO (40.07%)
CEB LAJEADO (40.07%)
LAJEADO ENERGIA (40.07%)
EMAE (39.02%)
CEEE - GT (32.59%)
AES TIETÊ (7.94%)
CESP (2.05%)
CGEEP (0.47%)
CDSA (0.13%)
CELESC (10.75%)
Transmission
CTEEP (35.37%)
ENERGISA MT (27.52%)
ENERGISA TO (0.000026%)
CELPA (1.15%)
CEMAR (33.55%)
CEEE - D (32.59%)
COELCE (7.06%)
CEB (3.29%)
ENERGISA (2.98%)
CELPE (1.56%)
COPEL (0.56%)
CELGPAR (0.07%)
CER (0.00189%)
EEB (0.1%)
CEA (0.02512%)
SPEs abroad
Centrales Hidroeléctricas de Nicaragua - CHN
(50.00%)
Inambari Geração de Energia S.A. - IGESA
(29.40%)
Rouar S.A. – Parque Eólico Artilleros
(50.00%)
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES 26
Awards and recognition
27
{ Dow Jones Sustainability Emerging Markets Index – Eletrobras:
listed for the fourth consecutive time in the Dow Jones sustainability
index of companies in emerging markets (Dow Jones and
RobecoSAM).
{ Corporate Sustainability Index (ISE) – Eletrobras: listed among the
companies that make up the 2015 portfolio of the São Paulo Stock
Exchange (BM&FBovespa) sustainability index.
{ Companies that Best Communicate with Journalists – Eletrobras:
winner in the “Electric Power” category, by Negócios da Comunicação
magazine.
{ Época Negócios 360º – Eletrobras: it ranks 15th among the 500
largest companies in Brazil in terms of net revenue, and 62nd
among the 250 best companies in the country in six management
dimensions (financial performance, corporate governance, human
resources practices, innovation capacity, vision of the future, and
social-environmental responsibility), in the ranking by Época
Negócios magazine and the Dom Cabral Foundation.
{ Best and Largest – Eletrobras: third-largest company in terms of
shareholders’ equity, according to Exame magazine.
{ The Sustainability Yearbook – Eletrobras: listed among the most
sustainable companies in the global power sector, by RobecoSAM.
{ Valor 1000 – Eletrobras: largest company in the Brazilian electric
power sector in net revenue, and third-largest in shareholders’ equity,
in the ranking by Valor Econômico newspaper, Serasa Experian, and
the Getulio Vargas Foundation.
{ Valor Large Groups – Eletrobras: it ranks 4th among the 20 largest
companies in the services sector, first in terms of shareholders’ equity,
12th in revenue growth, and 22nd among the 200 largest corporate
groups in Brazil, in the ranking by Valor Econômico newspaper.
{ National Quality Award – Eletrobras Eletronorte: through the
company’s Hydropower Generation Superintendence, it was awarded with
a Magna Cum Laude mention—granted to the organizations that have
maintained or raised their management excellence level compared to the
2014 cycle—by the National Quality Foundation (FNQ).
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{ Cier Quality Award - Customer Satisfaction – Eletrobras Distribuição
Roraima: honorable mention for the “Best Performance in the Quality
and Customer Satisfaction Index,” by the Regional Energy Integration
Committee (CIER).
{ Citizen Company Award – Eletrobras Eletrosul: winner in the
“Community Participation” category for its Community Vegetable
Garden, by the Sales and Marketing Executives Association of Santa
Catarina (ADVB/SC).
{ Aneel Consumer Satisfaction Index Award (IASC) – Eletrobras
Distribuição Alagoas and Eletrobras Distribuição Rondônia: The
Alagoas distribution company won the 2014/2015 largest growth
award, and the Rondônia company was the best distributor of the
North, by the Brazilian Electricity Regulatory Agency (ANEEL).
{ Chico Mendes - Eletrobras Social-environmental Award – Eletrobras
Distribuição Amazonas: awarded for its Project of a Mini-station for
Collection, Treatment, and Reuse of Lubricant Oils in Thermal Power
Plants in the Interior of Amazonas, chosen among several projects of
companies throughout the country—this project was evaluated as
“very good” or “good” in all indicators.
{ Water for Life Award – Itaipu Binacional: winner in the “Best Water
Management Practices” category, with its Cultivating Good Water
(Cultivando Água Boa) program, of this award granted by the United
Nations (UN).
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{ Life Certification – Itaipu Binacional: certification obtained after the
assessment of the efficiency of the company’s environmental management
system and actions for biodiversity conservation.
{ Pro-Gender and Race Equality Seal – 14 Eletrobras companies:
recognition for the company’s commitment to promoting gender and race
equality in the work place, by the Policies for Women Secretariat of the
Brazilian Ministry of Women, Racial Equality and Human Rights, UN Women,
and the International Labor Organization.
{ Transparency Trophy – Eletrobras Distribuição Amazonas: recognition
for the quality and clarity of the information in its financial statements, by
ANEFAC, FIPECAFI, and Serasa Experian.
{ 2015 Transparency Trophy – Furnas and Eletrosul received the 2015
Transparency Trophy in the “Privately-held companies” category, and
Eletronuclear received the Citizen Company Certificate from the Regional
Accounting Board of the State of Rio de Janeiro (CRC-RJ).
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“Eletrobras Employees at the Olympic
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Given the challenges posed by
the current scenario in the Brazilian
electric power industry, during 2015
Eletrobras focused on reducing
even further its costs in relation
to its expenses, on restructuring
business processes, and on optimizing
the efforts among the Eletrobras
companies, based on the Eletrobras
Companies’ 2015-2030 Strategic
Plan, which guides the operations
of the companies through the five
strategic guidelines described below:
Eletrobras’s 2015-2019 Business
and Management Plan estimates
investments of R$50.3 billion. Less
amounts referring to maintenance,
research and other, the company
intends to invest R$35 billion
in generation and transmission
expansion in the period. In 2015, the
company invested R$8.3 billion, that
is, 23.7% of the total estimated.
Guideline
Top Economic and
Financial Performance
Sustainable Expansion
Operating Efficiency
Excellence in People
Management
and Culture of Excellence
Adapting the Business,
Governance,
and Management Model
Description
Improving the technical and economic-financial management
of the projects, and adapting the financial structure to the new
corporate management model of the Eletrobras System.
Maintaining the leading position of the Eletrobras System
in the Brazilian electric power sector, and promoting
a more expressive operation overseas, in addition to
developing a portfolio of experiments in order to sustain its
competitiveness.
Developing plans to revitalize assets and make them more
efficient to meet regulatory requirements, and adopting the
best practices.
Improving the Eletrobras System’s People Management model.
Changes in the Eletrobras System in the face of the new
regulatory context of the Brazilian electric power sector. The
changes include topics such as the revision of the corporate
logic, strengthening of bylaws, adapting the organizational
structure of the holding and of the Eletrobras companies,
readapting processes and systems, and the sustainable
management of financial resources.
This plan has 14 strategic goals. Each goal is related to one of the five
strategic guidelines, according to the image below:
Superior
Economic and
Financial
Performance
Sustainable
Expansion
Excellence in
People and
Culture of
Excellence
Ensure adequate return on investment and activities
Ensure the financial sustainability of the Eletrobras
System
Expand the
electricity
business WG in
a competitive
and profitable
manner
Selectively
expand
international
action in WG,
in line with
the company’s
business
Intensify IDP
integrated
operations and
measure their
contribution
to Eletrobras
System results
Operational
Efficiency
Improve
electricity GTD
business in a
competitive
and profitable
manner
Minimize internal
and external
institutional
ties to ensure
operations in
competitive
conditions
Attract, develop and retain talent for the Eletrobras
System
Adapt people management processes to the new
business and organizational management model of
Eletrobras System
Redesign of the
Governance and
Management
business model
Implement a new
business and
organizational
management model
that ensures an
integrated, profitable
and competitive
performance
Improve corporate
governance based
on best market
practices
Enhance business
management,
investments and
partnerships
Ensure that
the projects
are sustainable
development vectors
for their surrounding
areas
Boost reputation,
credibility and
confidence of
the Eletrobras
System towards
its employees, the
market and society
Employee
Antonio Jose Setubal dos Santos,
Eletrobras Eletronorte
(Photo: Airton Vale)
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Eletrobras leaders present PDNG for employees
The Eletrobras Companies’ 2015-2019 Business and Management Master
Plan (PDNG), approved by the Board of Directors on July 31, 2015, is the
first development of the Eletrobras Companies 2015-2030 Strategic Plan,
including targets and projects to meet these strategic goals, in line with
Eletrobras’s corporate identity – Mission, 2030 Vision, and Values.
It is an evolution of the previous PDNG (2014-2018), because it considers
a scenario that is more aligned with the current scenario in the electric
power sector, with the maintenance of investments for projects already
contracted, addition of new projects respecting the investment capacity
and the indebtedness level of each Eletrobras company, in addition to
adjustments to adapt expenses. Regarding the actions included in the PDNG,
the following stood out in 2015:
{ The expansion of Eletrobras’s electric power generation and
transmission businesses. The company and its partners implemented
2,975 MW of generation installed capacity, equivalent to 42.84% of the
Brazilian growth in the year. They have also added nearly 1,126 km of
transmission lines (503 km corresponding to its interest), representing
16.4% of the estimated expansion of the country’s lines. With this
physical growth, Eletrobras’s market share has reached 32% in
generation installed capacity, and 47.1% of all transmission lines that
make up Brazil’s basic network.
{ The proposal presented to Eletrobras’s Executive Board and Board
of Directors of a new business, governance, and management model
for the Eletrobras companies, including readapting its corporate
and organizational structures. Regarding the restructuring of the
electric power distribution business, on December 28, 2015, the 164th
Extraordinary General Meeting approved the sale of Eletrobras’s
interest at Celg-D (Centrais Elétricas de Goiás – Distribuição).
{ Cumulative reduction of 15.7% in Personnel, Materials, Outsourced
Services and Others (PMSO) between the third quarter of 2014
and the third quarter of 2015. This reduction was largely due to
the implementation of an Incentive Program for Termination of
Employment (PID) at the Eletrobras companies. In 2015 they were
dismissed 276 employees in Eletrobras Eletronuclear and since
2013 there was a total of 5,060 employee terminations in Eletrobras
companies by PID;
33
{ The assessments made by the Eletrobras companies to identify the
additional compensation referring to assets whose concessions
were renewed under Law 12,783/13 were delivered to ANEEL.
Claims referring to generation projects were delivered by Eletrobras
Chesf and Eletronorte, and claims referring to transmission projects
were delivered by Eletrobras Chesf, Furnas, and Eletrosul. ANEEL
recognized the claims of Eletrosul and Furnas, in the amounts of
R$1.007 billion and R$9 billion respectively. The other claims are
pending analysis by ANEEL.
{ Restructuring of the Eletrobras System Investment Committee
(CISE), by replacing its participants and refining its work processes,
aiming to strengthen the management of investments in
generation, transmission, and distribution businesses, supporting
the decision-making of Eletrobras’s Executive Board and Board of
Directors.
{ Creating the Program for the Implementation of ERP Systems at the
Eletrobras companies (ProERP), in order to standardize its corporate
information systems to support the implementation of a new
corporate management model that ensures a uniform, integrated,
profitable and competitive operation for the Eletrobras System, and
contribute to improve the corporate governance based on the best
practices in the market;
{ Approving the SPE Handbook, which will help improve the
governance and management models of the Eletrobras
companies that hold an interest in SPEs, by proposing practices
that strengthen the development of new businesses and the
management of these interests.
Corporate performance
monitoring
Eletrobras monitors the projects in the company’s Business and
Management Master Plan (PDNG), pointing out how the activities
advance in the schedule, and the pending matters that are signs of risks
to the success of these projects. All ongoing projects are included in this
context, both corporate projects or those conducted in partnerships
through Special Purpose Entities (SPEs), relating to the expansion of the
generation, transmission, and distribution segments.
This performance is monitored by the Eletrobras Corporate
Projects Management Office (EGP Corporativo), which, in addition
to disseminating the project management culture in the Eletrobras
companies and supporting project leaders at the holding, prepare
monthly performance monitoring reports for the Eletrobras Board of
Executive Officers (DEE) and the Eletrobras Board of Directors (CAE).
Through EGP Corporativo, Eletrobras has developed a methodology
to measure the average delay in the projects portfolio of its companies in
order to monitor the performance of the expansion and improvements in
the generation, transmission, and distribution segments. Given its nature
and relevance, the average delay of the projects portfolio, measured
on a monthly basis, and the Internal Rate of Return (IRR), calculated
periodically, of the priority projects are monitored and presented in
monthly reports to the Board of Executive Officers and Board of Directors.
The Goals and Corporate Performance Agreement (CMDE), in
effect since 2010, covering five-year cycles and reviewed annually, is
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES
34
an agreement signed between Eletrobras and its subsidiaries, serving as
a planning and management tool. The indicators and annual goals that
make up the CMDE Scorecard are determined in a negotiation between the
companies and the holding, based on guidelines determined by the Board
of Executive Officers and the Board of Directors, in line with the results and
strategic goals to be met.
Eletrobras and its subsidiaries monitor the results, which are published
in monthly reports reviewed by the Executive Officers and the Boards of
Directors. By the end of each year, the weighted index of each goal (IPCM) is
determined for each company, demonstrating the level of global compliance
with the goals established for the period in question.
CMDE Scorecards
Economic–Financial
Dimension
Operational Dimension
Holding*, Generation, Transmission and Distribution
Generation & Transmission
Distribution
Net Income
Net Assets
EBITDA
Net operating income (NOI)
Net Debt
EBITDA
Investment Realized
Investment Approved
PMSO
NOI
ISE Bovespa Score
(Economic Dimension)
Relative Generation
Availability
(DISP-GR)
Variable Portion
Discounted on
Transmission (PV)
Availability of
Transmission Lines
(DISP-LT)
Duration of failures
(DEC)
Frequency of failures
(FEC)
Total losses
Service
Satisfaction
(IASC Aneel)
Average
service time
(TMAE)
Delinquency
(INAD)
Social and Environmental Dimension
Generation, Transmission and Distribution
Holding
Employee
Satisfaction
ISE Bovespa Score
(Social Dimension)
ISE Bovespa Score
(Environmental Dimension)
ISE Bovespa Score
(Climate Change)
Employee
Satisfaction
Dow Jones
Index Score
ISE Bovespa Score
(Overall and
Corporate Governance)
ISE Bovespa Score
(Nature of the Product)
• Eletrobras holding, in addition to its own indicators relies on the following consolidated indicators of the Eletrobras companies:
PMSO / NOI, Net Debt/ EBITDA and EBITD /NOI
The CMDE Scorecards and their monitoring and management process
have been recognized in the Dow Jones Sustainability Indices (DJSI) as a
global benchmark since 2013.
In 2015, no performance goals were contracted for the Celg-D
companies, whose controlling stock was acquired in December 2014, and for
Eletrobras Amazonas Energia e Transmissão de Energia, which started being
recognized separately in July 2015, after the de-verticalization of Eletrobras
Amazonas Energia.
In 2016, we expect to update the CMDE for 2016-2020 with a more
comprehensive scorecard than the current one, considering the 2016-2020
Business and Management Master Plan (PDNG 16-20).
The Corporate Management Portal, launched in 2014 in testing mode,
started offering in 2015, in an integrated and electronic manner, the
corporate information that is important for the top management. The
content of this website is a summary of the monthly publications sent to the
Board of Executive Officers and Board of Directors of the holding. Another
internal communication channel available to our employees is an intranet
area where we present information about the holding’s performance
regarding the CMDE.
35
In addition to these two internal channels, we have a Governance
Portal inside the Eletrobras website, where the Executive Report on
Eletrobras’s Performance for the Board of Directors is available for
restricted and controlled access. The Executive Report is a monthly
publication for the top management of the company, and contains
important information on the businesses of the Eletrobras companies,
covering the following matters:
{ Important news in the electric power sector;
{ Regulatory scenario;
{ Energy scenario;
{ Operating performance;
{ Expansion performance;
{ Maintenance performance;
{ Investment data;
{ CMDE result;
{ People management, sustainability, and sector programs.
De-verticalization of
Amazonas Energia
GRI G4-13
The process to de-verticalize Amazonas Energia started in 2015. The
company is still the holder of a concession for exploring electric power
distribution utility services, under Concession Agreement No. 20/2001,
executed on March 21, 2001, and electric power generation, under
Concession Agreement No. 001/2010, executed on July 22, 2010.
However, due to the interconnection of the Northern Region
Standalone System, operated by Amazonas Distribuidora, to the National
Interconnected System (SIN), Amazonas Distribuidora was submitted to
the restrictions under paragraph 5 of article 4 of Law No. 9,074, of July 7,
1995, according to which electric power distribution utility companies of
the SIN cannot operate in electric power generation or transmission or
hold direct or indirect interest in companies that operate in these areas.
Also, under paragraph seven of article 4 of Law No. 9,074, utilities
or companies authorized to operate in generation cannot be affiliates
or parents of companies that operate in electric power distribution in
the SIN.
Therefore, in order to segregate the electric power generation and
transmission operations of Amazonas Energia (GT Operations) from
the distribution operations in accordance with the legal requirements
mentioned above, a process was initiated with the ANEEL for the
de-verticalization of Amazonas Energia through the segregation of
the portion of its assets related to the GT operation, which would
be transferred and registered with a new company—Amazonas
Geração e Transmissão S.A.. This transaction was authorized through
Authorization Resolutions No. 4,244 of July 16, 2013, and No. 4,836,
of September 16, 2014.
On June 22, at the 162nd Extraordinary General Meeting, Eletrobras’s
shareholders approved the de-verticalization, according to the framework
provided by ANEEL; the process is currently ongoing.
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES 36
37
Sale of the controlling
stock of Celg Distribuição
S.A. (Celg-D)
In 2015, the Company deposited the common shares representing
Eletrobras’s interest in Celg-D’s capital stock in the National Destatization
Fund (FND), including this utility company in the National Destatization
Program (PND).
At the 164th Extraordinary General Meeting, Eletrobras’s shareholders
approved the extension of Celg-D’s concession (ANEEL 063/2000)
for another 30 years. The same meeting also approved the sale of the
controlling stock of Celg Distribuição S.A. (Celg-D) at destatization auction
to be promoted by BM&FBOVESPA, for the minimum price and under the
conditions provided in Resolution 11/2015 of the National Destatization
Board (CND).
The auction is being coordinated by the BNDES and is expected to be held
by BM&FBOVESPA in the first half of 2016, injecting nearly R$1.4 billion in
Eletrobras’s cash—since the company acquired its interest at Celg-D in 2014
for R$59,532,810.
Commitments and goals
Past commitments and goals
COMMITMENT/GOAL
PERFORMANCE
Justification
Implement 3,180 km of
transmission lines and an
additional 9,140 MVA in power
to the National Interconnected
System (SIN). Of this total,
15% of the lines and 54% of
the power will be operated by
the Eletrobras companies, and
the remainder through SPE
partnerships.
Develop a portfolio of projects
related to the sale of energy
efficiency services.
BUSINESS
Partially
attained
In progress
Implement a portfolio of
contracted generation projects,
equivalent to 22.6 GW.
Partially
attained
In 2015, Eletrobras and its
partners added 1,126 km of
transmission lines and 5,172 MVA in
transformation capacity. The goal
is expected to be fully met by the
end of 2016.
In 2015, the Energy Efficiency
Business Plan was updated for
2015-2019, including 10 SPEs,
a business plan for the retail
sector, service providing for the
International Copper Association
and the Brazilian Metrology Society.
In 2015, Eletrobras and its partners
implemented 2,975 MW of
installed power, nearly 42.8% of
the growth of the Brazilian power
grid in the same period. From
2016 to Dec/2019, Eletrobras and
its partners will add 18.4 GW of
installed capacity to the SIN. The
goal is expected to be fully met by
the end of 2019.
Implement a portfolio of
contracted transmission
projects, equivalent to 12,667
km of transmission lines.
Partially
attained
Prospect business opportunities
in generation – new businesses:
gas, biomass, solar.
Attained
ECONOMIC
Invest R$ 26 billion projects for
the generation of electric power
from clean sources.*(GRI G4-22)
Partially
attained
Obtain the remaining amount
for compensation in GT assets
arising from the renewal of
concessions, pursuant to Law
12,783/13.
Partially
attained
Implement the inter- and intra-
Eletrobras mobility plan.
SOCIAL
In progress
Implement the unified variable
pay model (Profit Sharing) of the
Eletrobras companies.
Attained
Eletrobras and its partners
implemented 1,126 km of
transmission lines, equivalent
to 30.0% of the growth of the
National Interconnected System
(SIN).
From 2016 to Dec/2019, Eletrobras
and its partners will add 12,100 km
of transmission lines to the SIN. The
goal is expected to be fully met by
the end of 2019.
The Eletrobras companies in the
generation segment developed in
2015 a comprehensive study for
prospecting projects in different
sources for the period ranging
from 2015 to 2019. Prospecting
occurred during the development
of the Business and Management
Master Plan (PDNG).
Eletrobras invested R$ 5.4 billion in
company and SPE projects for the
generation of electric power from
clean sources in 2015. The goal is
expected to be fully met by the end
of 2019.
The Eletrobras companies have
submitted appraisal reports
to ANEEL referring to this
compensation. The ANEEL has
authorized the amount of R$10
billion—R$1 billion referring to
Eletrobras Eletrosul and R$9 billion
referring to Eletrobras Furnas.
These companies are waiting for
the ANEEL to determine how this
compensation should be paid.
Eletrobras Chesf and Eletrobras
Eletronorte have submitted
appraisal reports for the amounts
of R$ 5.6 and R$ 2.9 billion,
respectively, and are waiting
for the ANEEL to resolve on the
recognition of these amounts. The
base date for these amounts is
December 2012.
The model containing the general
guidelines and assumptions was
approved in 2015, including the
definition of the qualitative-
quantitative workforce, expected to
be completed in 2016. Therefore, we
have reconsidered the completion of
this goal for May 2017.
An Instrument of Agreement was
executed between the Eletrobras
companies and labor unions for
2015 and 2016.
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES 38
ENVIRONMENTAL
In progress
Develop a study to assess the
impact of climate change on
the businesses of the Eletrobras
companies.
Progressively reduce the use of
fossil fuels in on-road mobile
sources.
In progress
Reduce mobile sources by
6.6% (Scope 1) and power
consumption by 3.6% (Scope 2).
Partially
attained
A Work Group was created in
2015, with members from the
Risk Management, Strategic
Planning, Water Resources,
Environmental, and Financial areas.
The environmental area prepared
Technical Note “State-of-the-
art in Risks, Vulnerabilities, and
Possibilities for Adapting to Climate
Change of the Electric Power
Generation in Brazil,” to inform the
work group. The goal is expected to
be fully met by the end of 2016.
In 2015, a reduction of 439,441
liters was observed, down 7.27%,
having as baseline the year of 2012,
which totaled 6,046,702 liters
of fossil fuels in on-road mobile
sources. The goal is expected to be
fully met by the end of 2019.
In the period, the consumption
of fossil fuels for ground vehicles
decreased 439,441 liters, 7.27%
less than in 2012. GHG emissions
from this portion have exceeded
the goal, reaching a decrease of
7.79%.
The goal concerning power
consumption of the public grid
was also successfully achieved;
the reduction of all companies
was 14,451,891 kWh, which
corresponds to 20.6% less than the
consumption in 2012.
Despite the reduction in the power
consumption (Scope 2) in the
2012-2015 period, the goal for
emission of GHG equivalent was not
met. This is explained by the higher
dispatch of thermoelectric plants
in the National Interconnected
System (SIN) in this period to
compensate for the reduced power
generation by hydroelectric plants
in the country, caused by the severe
drought, which greatly increased
the CO2 emission factor of the SIN
and consequently the calculation of
this portion.
*
In the 2014 report, the goal was mistakenly stated as “renewable energy”. The correct is from clean sources, since the generation of
Eletronuclear is clean, but not renewable.
(GRI G4-22)
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Principles
GRI G4-43
Implementing the best corporate governance practices represents
Eletrobras’s challenge of strengthening its credibility for shareholders
and investors, showing the reliability of internal controls, management
transparency, the importance of compliance, and attention to stakeholder
interests.
To face these challenges, Eletrobras’s corporate governance model is
based on five principles:
{ Ethics
{ Transparency
{ Equality
{ Accountability
{ Corporate responsibility
These principles reflect not only the company’s concern with meeting the
sustainability requirements necessary for its operations, but also that it is
always seeking the best practices in stakeholder relations.
Eletrobras develops and continually updates mechanisms to strengthen
its corporate governance; they are available on its website (Eletrobras>
Corporate Governance).
Furthermore, Eletrobras identifies, on a yearly basis, the training needs of
its corporate governance agents and implements actions focusing on their
qualification, getting them involved with sustainability and perpetuity issues.
In 2015, a Board Members Meeting was held to promote the improvement of
the members of the Board of Directors and Supervisory Board.
Governance structure
GRI G4-34, G4-35
Policies
Eletrobras’s corporate governance is aligned by the management
structure, which consists of practices and tools such as the Bylaws, policies,
Statutes of the Board of Directors and Supervisory Board, the internal
Selected image from the photo contest
“Eletrobras Employees at the Olympic Sports”
Employee
Galvani Cavalcante,
Eletrobras Furnas
(Photo: Christian Dinesen)
2015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES 44
The roles and competencies of the Board of Directors, Supervisory Board
and Board of Executive Officers of Eletrobras are determined in the Bylaws
and relative board statutes, and in compliance with the law.
45
committees that support the Board of Executive Officers and Board of
Directors, and the Guides for members of the Board of Directors and
Supervisory Board that represent Eletrobras in other companies.
Eletrobras publishes on its website the management tools and policies
that support its companies’ governance.
Governance bodies
Eletrobras’s corporate governance model includes the Shareholder’s Annual
Meeting, the Board of Directors, the Supervisory Board and Board of Executive
Officers. All these bodies are committed to the company’s perpetuity, in a
sustainable manner. The Audit Committee and the Board of Directors’ Supporting
Committees respond to the Board of Directors.
Internal
Audit
General
Assembly
Board of
Directors
Presidency
Audit
Committee
Sustainability
Committee
Remuneration
and People
Management
Committee
Audit and Risk
Committee
Generation
Department
Tranmission
Department
Distribution
Department
Regulation
Department
Department of
Finance and
Ivestor
Relations
Administration
Department
Shareholders Annual Meetings
In 2015, the Annual General Meeting approved the financial statements
for 2013; the allocation of income for the year and payment of dividends
and/or interest on equity relative to 2014; the election of the members
of the Board of Directors, including its chairman, and the members of the
Supervisory Board and deputies, with term of office to end on the date of
the first Annual General Meeting to be held in 2016; and the compensation
of the members of the Board of Directors, Supervisory Board, and Board of
Executive Officers.
The Annual General Meeting is held within the first four months following the
end of the fiscal year.
A Assembleia Geral Extraordinária se reunirá nos casos previstos em lei
e seThe Extraordinary General Meeting is convened as provided by law and
whenever deemed appropriate by the Board of Directors. In 2015, three
Extraordinary General Meetings were held to approve the following:
{ The exercise to of the right to request, in the de-verticalization of
Amazonas Distribuidora de Energia S.A., the mandatory redemption
of convertible and exchangeable debentures issued by Amazonas
Distribuidora de Energia S.A., through the exchange of said debentures
for all shares issued by Amazonas Geração e Transmissão de Energia
S.A..
{ Approval and election of new members of the Board of Directors,
Supervisory Board and deputies, with term of office ending on the date
of the 2016 Annual General Meeting.
{ Extension of the concession, sale of the controlling stock, and actions
to be taken for the capital increase in the distribution companies.
Board of Directors
GRI G4-38, G4-39, G4-40, G4-42, G4-49
Roles: it plays a core role in setting the company’s strategy, mission,
vision and values.
Routine: it holds ordinary meetings every month, and convenes
extraordinary meetings whenever necessary. The agenda of the meetings
and the documentation to inform their decision-making is prepared by the
General Secretariat and the chairman of the board, and forwarded to the
members before each meeting. The Board of Executive Officers participates
in these meetings as invited, represented by Eletrobras’s CEO, who is also a
member of the board.
Members: formed by up to ten members, seven of whom are appointed
by the majority shareholder; one, by minority shareholders holding
common shares; one, by minority shareholders holding preferred shares;
and one representing employees, which increases the possibility for
communicating critical issues to the board.
The board also has one independent member, as required by
BM&FBOVESPA and the Brazilian Corporate Governance Institute.
In 2015, Eletrobras’s Board of Directors had nine members, including
eight non-executive members (who are not executive officers at the
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES 46
company), and one executive member. The tenth chair, appointed by
the minority shareholder holding common shares, was not filled due to
noncompliance with the requirements in the Bylaws. The term of office
of the members of the Board of Directors is one year, and they can be
reelected; the member representing the can be reelected only once. The
chairman of the Board of Directors and the Chief Executive Officer are not
the same person.
All requirements and functions are determined in the company’s
Bylaws and in its statute, in addition to the law, and there is no gender
discrimination or other types of discrimination.
Eletrobras’s Board of Directors has one woman among the non-
executive members. The composition of the board is as follows:
Member
Position
Wagner Bittencourt de Oliveira
Chairman
Jailson José Medeiros Alves
Director representing the employees
João Antônio Lian
Independent director
José da Costa Carvalho Neto
Director and Chief Executive Officer (executive)
Luiz Eduardo Barata Ferreira
Director
Maurício Muniz Barretto de Carvalho
Director
Pricilla Maria Santana
Samuel Assayag Hanan
Walter Malieni Junior
Director
Director
Director
GRI G4-38
Pursuant to CVM Instruction No. 480 and the listing rules of the Dow
Jones Sustainability Indexes (DJSI), the directors fill out a statement
indicating all management positions they hold in other companies or
entities. The committees that support the Board of Directors are made up
solely of directors, avoiding any conflicts of interest. The director elected
by the employees is also member of the Sustainability Committee. The
Audit and Risks Committee has one position for the director representing
minority shareholders, who is currently chairing this committee. The
Compensation and People Management Committee has one independent
director among its members. Directors with an employee relation with the
company or executive directors cannot participate in the Compensation
and People Management Committee.
The CEO of Eletrobras cannot participate in the Audit and Risks
Committee, or in the Compensation and People Management Committee.
According to article 31, sole paragraph of the company’s Bylaws, the
CEO and the officers cannot hold any executive or consulting positions
in privately held companies, utilities companies, or private law firms
associated with the electric utilities sector, except in subsidiaries,
affiliates, Special Purpose Entities (SPE), and utility companies controlled
by state governments and in which Eletrobras holds ownership interest,
where they may hold positions in their boards of directors and supervisory
boards, under Law 9,292/1996, which provides on remuneration.
Supervisory Board
47
Roles: its major roles include oversight, by any of its members, of
management actions, ensuring compliance with their statutory and bylaw
duties.
Routine: it holds ordinary meetings monthly and convenes
extraordinary meetings whenever called by the Board of Directors, the CEO
of Eletrobras, or by any of member of the Supervisory Board.
Members: formed by up to five members and relative deputies, three
of whom are appointed by the majority shareholder; one, by minority
shareholders holding common shares; and one, by minority shareholders
holding preferred shares. They serve a term of office of one year and can
be reelected. In compliance with the Sarbanes-Oxley (SOX) requirements,
as the company is listed in the New York Stock Exchange, the Supervisory
Board has been adapted to include one financial specialist among its
members, in the function of Audit Committee.
Selection: the members of the highest governance body of Eletrobras
are chosen among executives with renowned knowledge of the electric
power sector, public administration, and the financial and capital markets,
and have a faultless reputation and good moral standing. The members
are elected at a General Meeting and the executive officers are chosen by
the Board of Directors. The minutes of the election of the members of the
Board of Directors and Board of Executive Officers of the company shall
contain the qualification of each one and their term of office.
Eletrobras has prepared a Board Skills Matrix where it analyzes the
gaps between the current combination and the desired combination of
competences in its Board of Directors (this is an internal document, not
publicly available for strategic reasons).
This board has one woman as sitting member and three women deputies,
including one independent member chosen by the minority shareholders
holding preferred shares. The composition of this board is as follows:
Member
Position
Eduardo Cesar Pisa
Bruno Nuns Sad
Agnes Maria de Aragon da Costa
Robert Junkman
Felipe Luckman Fibro
Chairman
Financial expert
Director
Director
Director
Internal Audit and the Board of Directors’ Supporting Committees
(Sustainability, Audit and Risks, and Compensation and People
Management) respond to the Board of Directors.
Internal Audit
This committee assesses the appropriateness, efficiency, and
effectiveness of internal control systems, compliance with laws and
internal and external normative acts, and the fulfillment of plans, goals,
objectives, and policies established by the company. Also, the Internal
Audit verifies, on a yearly basis, the effectiveness of the Eletrobras
Companies Compliance Program, as part of the Internal Audit Annual Work
Plan (PAINT).
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Board of Directors’ supporting committees
Member
Position
49
Formed exclusively by directors, the committees assist the board
in strategic issues, in order to ensure the decisions made by the top
management are technically informed. The members of the Board of
Directors’ Supporting Committees are chosen after the Annual General
Meeting, and the attributes of each committee, as determined by their
internal statutes and available on Eletrobras’s website are as follows:
{ Audit and Risks Committee: formed by four members, this committee
advises the board in issues regarding accounting principles, risks
and internal controls, legal claims, compliance, independent audit,
and proceedings with regulatory agencies (Office of the Comptroller
General, and the Federal Court of Accounts).
{ Compensation and People Management Committee: formed by
three members, it advises the board in decisions regarding policies
on remuneration, people management, and development of the
competences of the Eletrobras professionals.
{ Sustainability Committee: formed by three members, it advises the
board in establishing actions focused on corporate sustainability, and
on monitoring the performance through indicators that make up the
company’s sustainability platform.
GRI G4-36
After the Sustainability Committee was created to support the Board
of Directors, formed exclusively by directors, it formed the Executive
Sustainability Committee of the Eletrobras Companies, connected
to the company’s presidency and reporting to the Sustainability
Committee. This commission is responsible for implementing
internationally recognized sustainable management processes,
proceedings, and tools—and monitoring and assessing their
results—for preparing target and improvement plans for sustainable
development, among other activities. The Planning, Strategic
Management, and Sustainability superintendent is the general
coordinator of the Executive Sustainability Committee, responsible
for supporting and interacting with the Eletrobras Sustainability
Committee, disclosing the guidelines established by the Sustainability
Committee, structuring plans for improvement and proposing them to
the Sustainability Committee based on the results of the ISE/Bovespa,
DJSI, assurance process, and others, and also for proposing to the
Sustainability Committee the editorial model to be adopted for the
Annual and Sustainability Report of the Eletrobras Companies.
Board of Executive Officers
Roles: it is responsible for managing Eletrobras’s businesses, in
compliance with the guidelines determined by the Board of Directors.
Routine: The members of the Board of Executive Officers hold ordinary
meetings every week, and convene extraordinary meetings whenever
necessary.
Members: it is made up by six officers and one CEO, elected by the Board
of Directors, with a term of office of up to three years, reelection being
allowed. The composition of this board is as follows:
José da Costa Carvalho Neto
CEO
Renato Soars Sacramento
Chief Generation Officer (acting deputy)
José Antonio Muniz Lopes
Chief Transmission Officer
Marcos Aurelio Madeira da Silva
Chief Distribution Officer
Josias Matos de Araujo
Chief Regulatory Officer
Armando Cased de Araujo
Chief Financial and Investor Relations
Officer
Alexandre Valhi de Arura Anise
Chief Administrative Officer
Learn more about the members of the governance bodies on
Eletrobras’s website.
Business ethics
management
GRI G4-43, G4-45, G4-56, G4-57, G4-58, G4-SO4
Adherence
As a government-controlled corporation, Eletrobras seeks the highest
corporate governance standards, observing the law, being transparent in its
actions, and having an ethical conduct.
In order to promote this culture of ethics in business, the Eletrobras
companies have institutional and regulatory tools that establish guidelines
and standards that steer and formalize the actions and commitments
related to the institutional conduct of the companies and of its employees,
and interactions with their suppliers, business partners, clients, and other
stakeholders.
In addition to guidance, so that everyone acts in line with the values
and practices established for an ethical conduct, these tools also identify,
remedy, handle, and, in case of transgressions, penalize likely unethical
attitudes. In that regard, all areas of the company undergo internal audit to
verify whether internal proceedings and contracts with suppliers and clients
are regular and adequate.
You can find the Guide of the Employees Guidebook of the Eletrobras
Companies on our website.
In May 2014, the Board of Directors and Board of Executive Officers
approved the Program for Compliance with Anti-corruption Laws of the
Eletrobras Companies—that is, the Foreign Corrupt Practices Act (FCPA),
Brazilian Law 12,846/2013, and Decree 8,420/2015. The purpose of this
program is to ensure compliance with anti-corruption laws by the Eletrobras
companies and their employees, representatives, suppliers, business
partners, joint venture partners, and other affiliates.
In 2015, Eletrobras promoted the Compliance Program training for
directors, members of the supervisory board, and executive officers from
all companies in the group, and published the Compliance Handbook. The
Management and Supervisory Board Members Guide was also prepared
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for this group of executives. Compliance managers and assistants, and
representatives of the areas that are more exposed to risks of violating the
Compliance Program from all Eletrobras companies also participated in this
training.
Also, the “Employee Guidebook”—a summary of the Compliance
Handbook - Anti-corruption Program of the Eletrobras companies—was
prepared for this public, and launched in March 2015, simultaneously at all
companies of the group, also focusing on training.
The handbook of the Anti-corruption Program of the Eletrobras companies
provides for the implementation of Due Diligence proceedings in order to
supervise and get involved with the legal verification of several issues that pose
a risk to the company’s business.
Below are the key tools and bodies for the promotion of ethics,
compliance with the law, and anti-corruption of the Eletrobras companies.
Compliance
GRI G4-43, G4-45, G4-SO3, G4-SO4
In December 2015 we created the Compliance and Risk Management
Superintendence, which is responsible for implementing the Compliance
Program of the Eletrobras Companies, as approved by the Board of Directors
in May 2014, in compliance with the Brazilian Anti-corruption Act No.
12,846/2013, in effect since 1/29/2014, and the U.S. laws and regulations
applicable to companies listed on the NYSE, such as the Foreign Corrupt
Practices Act (FCPA).
GRI G4-50
Considering the alleged denunciations in depositions of the Car Wash
Operation, where some projects and executives of the Eletrobras companies
were mentioned, posing a risk of violation of the Compliance Program, it was
necessary to start an investigation. In July 2015, Eletrobras contracted U.S. law
office Hogan Lovells to conduct this investigation.
Eletrobras uses the five aspects below to implement the Compliance
Program. the goal is that in 2016 the program is fully implemented in
all Eletrobras companies, through formalized policies and proceedings,
communication, training, and monitoring (by the end of 2015, only three
companies had already created a formal compliance structure: Furnas,
Eletrosul, and Eletrobras itself).
1 – Management environment: This aspect helps sensitize the top
management to the risks and impacts of noncompliance with or
breaking anti-corruption laws. This is a core aspect and the origin
of the whole program; in 2014, the top management was largely
involved with the issue and contracted an international consulting
firm to support the development of the first version of the compliance
program.
2 – Formal policies and proceedings: To sustain the compliance program
and ensure everyone respects it, Eletrobras has been improving
all formal guidance tools to make sure everyone conforms to the
company’s guidelines. This aspect will reinforce the importance of
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documents such as the following: Code of Ethics; Handbook of the
Anti-corruption Program of the Eletrobras Companies; Antitrust Policy
(preventing unfair competition practices, such as cartel formation,
especially in auctions); SPE Management and Practices Handbook;
Policy on Appointing Representatives at SPEs (when people are chosen
as members of the Board of Directors, Supervisory Board, and Board
of Executive Officers of SPEs); Board Member Guidebook (Supervisory
Board and Board of Directors); Policy on Transactions with Related
Parties (to avoid facilitating businesses among the companies of ta
same group, with no accounting maneuvers among subsidiaries and
the holding, with fair business transactions); and Policy on Treating
Conflicts of Interest.
3 – Periodic risk analysis: This aspect ensures that all corporate decisions
are aligned with the company’s mission, vision and values, so that these
unfold into strategic guidance and become a detailed strategic plan for
the company to continue to map the risks that will be included in the
Corporative Risks Matrix, which will in turn support the execution of the
strategic plans.
Eletrobras does not have a methodology defined to identify which of
its operations are subject to corruption and, therefore, there is no risk
assessment on them.
4 – Communication and Training: strategy appropriate for each type
of audience. For governance bodies (councils and management) and
awareness and engagement strategy was supported in conducting
classroom training to 156 professionals, as well as periodic reports on
the progress of the implementation of the Compliance Program. For
the areas that are more sensitive to the corruption risk, 581 employees
received classroom training. For employees in general, other managers
and employees, institutional communication actions were taken by
e-mail (newsletter) as well as the delivery of key documents related to
the Compliance Program, in particular with regard to the Employees
Guide, covering over 17,000 ( about 74%) professionals. Finally, for
companies to which we do business, face meetings with suppliers were
held and also Compliance Program Manuals were delivered. For the year
2016, the Eletrobras companies intend to expand the communication
activities scope for over 80% of the professionals that make up the
total workforce of the companies.
5 – Compliance Program Monitoring: This aspect’s purpose is to detect
gaps in the execution of the program to check if it is being correctly
followed and observed. One of the bases of this monitoring will be
Internal Audit, which will test the internal controls provided for in the
program on a yearly basis, and the Ombudsman, which will centralize
all denunciation channels existing in the companies (e-mail, forms,
phone, and the denunciation channel on the Eletrobras companies’
websites).
In 2015, Eletrobras promoted the II Ethical Culture Week, which
addressed issues such as human rights in institutional relationships,
integrity program and anti-corruption laws, conflicts of interest,
information security and behavior in social media, compliance and
Access to Public Information Act, culture of secrecy, transparency,
document management and public information.
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Code of Ethics
The Company’s Code of Ethics is based on the best market practices and
complies with the Federal Constitution and the laws in effect. It is available
for all employees, contractors, interns, and young apprentices of the
Eletrobras companies.
Learn more about the Code of Ethics of the Eletrobras Companies on our
website.
The document sets forth, formalizes, and details the professional
ethical conduct to be adopted in the workplace, in business relations, and
in corporate decision-making, in order to protect its institutional assets
and image; reject all forms and attempts of corruption and influence
peddling; address conflicts of interest appropriately, and forbid the offering
or receiving of gifts, privileges, or benefits; and enforce respect for free
competition, rejecting anti-competitive, trust, and/or harmful practices.
Conflicts of interest
GRI G4-41
Eletrobras’s Bylaws provide for situations involving conflicts of interest,
in which directors must abstain from debating and voting whenever such
conflicts arise. Abstentions are recorded in the minutes of the respective
meetings, and the directors have guaranteed access to the minutes and
documents referring to the deliberations for up to 30 days.
Preventing conflicts of interest in the Board of Directors: directors
must abstain from debating and voting whenever conflicts of interest arise.
The director elected by the employees does not participate in debates and
deliberations on matters involving union relations, remuneration, benefits,
and advantages, including matters pertaining to supplementary pension
funds and assistance; these cases constitute conflicts of interest, under
paragraph 3 of Law 12,353/2010.
Directors are also responsible for monitoring and handling potential
conflicts of interest involving executives, board members and shareholders,
in order to prevent the misuse of company assets, especially abuse in
transactions with related parties.
Preventing conflicts of interest in the Board of Executive Officers:
In order to avoid potential conflicts and the use of confidential and
strategic information, the CEO and the officers cannot hold any executive
or consulting positions in privately held companies, utilities companies,
or private law firms associated with the electric utilities sector, except in
subsidiaries, affiliates, Special Purpose Entities (SPE), and utility companies
controlled by state governments and in which Eletrobras holds ownership
interest, where they may hold positions in their boards of directors and
supervisory boards, under Law 9,292/1996, which provides on remuneration.
Officers must also present a Confidential Information Statement (DCI)
to the Public Ethics Committee, listing the assets owned by the officers and
the CEO; disclosing situations or ownership interests that may constitute
conflicts of interest; and describing the measures taken by the officers
and the CEO to mitigate these situations. Law 12,813/2013 sets out a list
containing information that public officials are required to send to the Public
Ethics Committee; this provision is also applicable to officers on leave of
absence or away from their duties.
53
Preventing conflicts of interests involving employees: In general,
employees shall not disclose privileged, strategic and confidential
information they have access to at work, regardless of their rank; shall not
control or influence the management of companies in the same industry,
suppliers or clients; nor get involved with transactions between the
Eletrobras companies and companies where they hold an ownership interest,
or whose shareholders or executives are direct or indirect relatives of the
employee to the second degree.
In order to receive formal inquiries from employees with respect to
situations that may involve potential conflicts of interest, pursuant to Law
12,813/2013, the Office of the Comptroller General (CGU) has structured
an electronic inquiry system, called Electronic System to Prevent Conflicts
of Interest (SeCI), to be used by the entire public administration; it has been
implemented in Eletrobras and can be accessed by employees via intranet or
on the CGU website.
In December 2014, Eletrobras approved the Policy on Transactions with
Third Parties Related to the Eletrobras Companies in order to discipline the
transactions and monitor them.
Risk management
GRI G4-2, G4-46, G4-47
The main purpose of the Integrated Risk Management in the Eletrobras
companies is to reduce the occurrence of events that could have a negative
impact on its strategic goals, seeking to safeguard and create value and
provide transparent information to the market and shareholders.
At the Eletrobras companies, risk management is governed by a single
policy and coordinated by the holding, ensuring a systemic view of the results
and its standardization across all companies of the group. This process is
conducted by the risk and internal control management departments and
by the risk committees of each of the Eletrobras companies. Its general
guidelines are set out by the Risk Committee of the Eletrobras holding, and
the results are forwarded to the Board of Executive Officers and Board of
Directors of Eletrobras for their Audit and Risk Committee to analyze.
The integrated risk management model used by the Eletrobras companies
is based on the ISO 31000 standards, and the COSO 2013 (incorporated to
the internal controls structure in 2015) and COSO ERM frameworks. This
model identifies and consolidates, in a matrix, the strategic, operational,
financial, and compliance risks the companies are exposed to, for subsequent
analysis, treatment, and monitoring through specific proprietary processes.
Responsibilities
The risk management model adopted by the Eletrobras companies
determines that the Board of Directors resolves on strategic matters
referring to risk management, such as the company’s level of appetite
for risk, its tolerance ranges, the role of the Board of Executive Officers
in managing risks, and the policy that should govern the whole process.
For that matter, it is supported by the Audit and Risk Committee, formed
exclusively by directors, and whose duties include monitoring the company’s
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55
business risks and recommend mitigation actions to the Board of Directors,
analyzing the works and performance of the internal audit, and follow up on
proceedings and pending matters with external control bodies.
The Board of Executive Officers is responsible for allocating the necessary
resources to the process, and the appropriate infrastructure for the risk
management activities. The Risks Commission, formed to support and
sponsor the risks process, is responsible for monitoring and validating the
results of the risk assessments, prioritizing the risks with the largest impact
and vulnerability, and guide and engage the action in the other Eletrobras
companies. The risk management department supports and ensures the
risks are identified and monitored by the proprietary areas, which in turn are
responsible for managing and implementing the action plans that should
mitigate the risks to their relative processes.
Risk management processes
Risk is managed at the Eletrobras companies in five stages. The first is
identifying the risks the company is exposed to and describe them, including
their causes and impacts, and those liable for such risks. All people involved
in the company’s business, at all levels, participate in this stage, whose
result is the company’s corporate risk matrix. After the matrix is made, risks
are prioritized for analysis and treatment, and it is reviewed every year. All
companies of the group participate in this stage. Recommended by the Risk
Committee and forwarded to the Board of Executive Officers for approval,
the matrix is validated and recognized by all of the Eletrobras companies.
The second stage is assessing the risks identified in the first stage.
Qualitative and quantitative analyses are made to determine the impact
and vulnerability attributes to be used when prioritizing the risks to be
addressed. That includes listing and reviewing existing controls in order to
check for residual risks.
Risks are treated after the review. The company’s stand should a certain
risk materialize is also determined in this stage. Likely responses to risks
would be to:
{ prevent them
{ mitigate them according to action plans and internal controls
{ share them, or
{ accept them
This decision mostly relies on the company’s level of appetite for risk,
previously authorized by the Board of Directors.
The next stage is monitoring managerial indicators through managerial
activities or independent appraisals, supervising the implementation and
maintenance of action plans, and checking the scope of the goals set.
The communication stage occurs in parallel with the other stages, and
should reach all stakeholders in a clear and objective manner, respecting
the good governance practices demanded by the market.
In order to support the risk management process, the internal controls
area helps managers design the controls, and prepare and monitor the
inefficiency remediation plan. Because the company trades in American
Depositary Receipts (ADRs), and is consequently subject to regulation by
the U.S. Securities and Exchange Commission (SEC), its controls must be
SOX-certificated (Sarbanes-Oxley Act), which means the company has to
assess the existing internal controls and submit this analysis to appraisal
by its independent auditors. Therefore, the company files its 20-F Form
with the SEC on a yearly basis, containing the Management statement
on the internal controls of the group of Eletrobras companies deemed
material.
GRI G4-45
Every quarter and every year risk management reports are prepared based
on information gathered from the areas involved. The key readers of this
report are the members of Eletrobras’s Board of Executive Officers, responsible
for, according to the Risk Management Policy of the Eletrobras companies,
sponsoring the implementation of risk management in the company, allocating
the necessary resources to the process, and the appropriate infrastructure
for the risk management activities. The Board of Directors is responsible for
resolving on strategic matters referring to risk management, such as the
company’s level of appetite for risk (risk exposure level after which it should
be mitigated, accepted, transferred, or avoided), and its tolerance ranges.
Eletrobras’s top management uses this report to inform its decision making.
In addition to risk management reports, there are other ways the company
reports on the results of its analyses and how it treats the risks it is exposed
to, such as the 20-F Form, and the Reference Form of the Brazilian Securities
and Exchange Commission. Specifically regarding stakeholder-related risks,
there is the risk of institutional relation with stakeholders, which addresses the
absence of a corporate strategy and/or the existence of inappropriate practices
in stakeholder relations.
Precautionary Principle
GRI G4-14
Using the risk management process as reference, the Eletrobras
companies apply the precautionary principle through the analysis and
treatment of risks such as climate change, greenhouse gas emissions,
impacts on biodiversity and the environment, and environmental accidents
that are included in the matrix and have been prioritized for analysis given
their relevance and the corporate interest they involve. By analyzing and
treating these risks, and implementing specific projects—such as the
programs that monitor the fauna and flora in the projects’ surrounding
area, the quality of the water, and projects relating to operating issues in
effect—the companies of the group strive for facing the potential impacts
and the threats of severe or irreversible environmental damage relating
to the development of its core activities (generation, transmission, and
distribution).
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Engaging in and disseminating a
risk management culture
In order to engage in and disseminate a risk management culture in
the Eletrobras System, the companies adhere to the risk management
model adopted, and their managers, who fully understand the
importance of this management aspect, have an active participation.
The Audit and Risk Committee supports the company’s Management
in its commitment to the risk and internal controls activities. This is one
of the three Board of Directors’ supporting committees, and is in charge
of analyzing and monitoring the issues regarding internal controls, audit,
and risk management.
Relevance
Eletrobras permanently monitors its business environment, managing
to reflect its concerns, and those of its investors and the market, on
its risk management process. Therefore, the risks recognized as the
most relevant in the scope of the Eletrobras companies are prioritized
and treated through action plans prepared based on the technical
recommendations made by the risk management and internal controls
managers together with the business managers, taking into account the
exposure level validated by Management.
Below are the key risks being treated and monitored:
Risk factors
Compliance risk
The actions taken by Eletrobras to address issues relating to fraud,
corruption, and unethical conduct are strongly sustained by its Compliance
Program, which encompasses all Eletrobras companies, and count on the
involvement of the holding company’s Board of Executive Officers and Board
of Directors.
In compliance with the group’s policies, all employees, representatives of
the companies, and partners should fully observe the anti-corruption laws
and regulations they are subject to, whether in Brazil or abroad. In order to
achieve this, the Eletrobras Board of Executive Officers approved in December
2014 the “Anti-corruption Policy Compliance Handbook”. The guidelines in
this document are currently being implemented.
For that purpose, compliance structures were created in 2015 in all
companies of the group, and systematic actions were designed for the
program and handbook to be extensively disseminated, including the
creation of channels for reporting, solving doubts, and making suggestions
about this issue, and also training classes.
With regard to managing operating issues connected not only to
compliance, but also to risk management and internal controls, the holding
created the Compliance and Risk Management Superintendence in December
2015. Later, in February 2016, the Board of Directors of Eletrobras authorized
the creation of the Governance, Risks and Compliance Executive Office,
strengthening the company’s commitment to the fraud and corruption issue.
57
Management risk of the Special
Purpose Entities (SPEs) and
consortiums
Currently, most of the Eletrobras companies’ expansion is structured
through SPEs. However, the companies of the group had not structured
a uniform process for monitoring and managing these partnerships so
far, especially for the holding to manage their consolidated information
about financial, technical, and corporate issues, both in pre-operating and
operating stages.
This is now addressed in the “Eletrobras Companies’ SPE Handbook,”
approved in April 2015 by Eletrobras’s Board of Directors, and which is
currently being fully implemented. Based on the guidelines in the document,
specific structures were created to treat and monitor these issues in the
group’s companies and the holding, including the Investment Committee
of the Eletrobras System (CISE), responsible for analyzing the companies’
investment proposals.
The Corporate Interest Information Department and the Businesses and
Ownership Interests General Consulting Department, both in the holding—
the latter being responsible for coordinating the CISE—have been unfolding
the guidelines contained in the handbook. The following actions are
currently ongoing:
{ Formalizing the CISE as the main decision-maker about new projects in
the Eletrobras System.
{ Determining the best governance practices for SPEs.
{ Designing an integrated management model for SPEs.
{ Preparing a policy for representatives.
{ Developing and improving managerial tools for monitoring project
performance.
Eletrobras understand the current revision of the management of
SPEs addresses important issues regarding the control of its investments
(in corporate, operating, and financial aspects), and the transparency of
its practices. The measures being implemented are also aligned with the
Compliance Program, regarding the determination and presentation of
clear rules for selecting business partners, suppliers and contractors (due
diligence).
Budget and cash flow risk
By adhering to the provisions in Law 12,783/13, the companies are now
responsible only for the operation and maintenance of the generation assets
in its concession, which has substantially reduced their revenue. To offset
this loss, as provided for by the law, and in order to be compensated for the
investments made in such assets, the companies have requested to ANEEL
that these amounts be refunded.
Even though some companies have obtained favorable decisions on
the claimed amounts, payment will not be made immediately (at least for
transmission assets). Therefore, in order to expand, the companies now
solely rely on the result of their ownership interest in SPEs, and on the
significant reduction in their operating costs. These measures demand time
and resources to be implemented.
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In an attempt to reduce the exposure to cash flow risk for the companies
that have difficulties to generate resources by themselves, the Business
and Management Master Plan (PDNG) brings several actions to improve the
finances of these companies in the short-term, including the sale of non-
strategic assets, owned by the company or in partnerships, and reducing the
PMSO.
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Lawsuits and lawsuit
management risk
Eletrobras and subsidiaries are involved in several lawsuits, mostly labor
and civil suits, currently in different stages.
Management classifies the lawsuits where it is the defendant taking into
account the risk of loss and the occurrence of a present liability due to a past
event, based on the opinion of its legal advisers. In order to cover occasional
losses, provisions for contingencies are formed in amounts deemed sufficient
by Management, many times based on the opinion of legal advisers, to cover
occasional losses in lawsuits.
Especially in suits regarding the credits of the compulsory loan, Eletrobras
has revised the methodology to calculate and classify their risk. Following
a recent decision by the Superior Court of Justice, the corresponding
provisioned amounts have been adjusted to make the provisions more
aligned with the status of the lawsuits. The company is now more
conservative when provisioning the amounts involved in these suits to better
reflect its actual risk exposure. Even though these adjustments have a strong
impact in the financial statements at first, we expect our exposure to be
reduced in the future, since the involved amounts will be accounted for more
appropriately, reducing the volatility in that account.
Moreover, regarding the correction of inconsistencies in the booking
of deposits with court, and the identification of likely noncompliance in
the lawsuits database, both issues considered material weaknesses in the
2014/2015 SOX testing, new projects have been created with the goal
of reviewing and readapting lawsuit management proceedings. These
actions will be taken throughout 2016 at all the relevant companies for SOX
Certification, and will contribute to reducing the company’s exposure to the
lawsuits and lawsuit management risk.
Hydrological risk
As hydropower generators, the Eletrobras companies are subject to
uncertainties when it comes to the country’s hydrological conditions. Due
to the impacts of these conditions and the large reduction in the generation
scaling factor (GSF) of the Energy Reallocation Mechanism, and in order to
mitigate or at least transfer part of this risk, Eletrobras asked its companies
to file for preliminary injunctions to protect themselves from paying unfair
settlement amounts and from the apportionment of the Mechanism due
to the exclusion of third parties already protected by these kind of actions.
This occurred after the significant rise in delinquency among generators in
the market, and the results of their individual actions in trading the electric
power of some subsidiaries.
With the enactment of Decree 8,401/15, considered the Energy Reallocation
Mechanism, the hydrological risk associated with generation at Itaipu
(currently managed by Eletrobras), should be taken by the distribution utilities
when setting time-of-use rates, which will no longer be passed through in the
following year, as it used to be done so far. Therefore, since 2015, the holding
no longer incurs the costs relative to Itaipu’s hydrological risk.
Law 13,203/15, regulated by Resolution ANEEL 684/2015, allowed for
companies to renegotiate the hydrological risk at more appropriate levels for
the profile of their assets and sale agreements in the Regulated Contracting
Market (ACR). None of the Eletrobras companies, however, renegotiated in
the Free Contracting Market (ACL), given the high value of this business;
instead, they chose to use traditional hedging mechanisms already used by
their trading areas, in order to mitigate their exposure. In particular, Chesf
has not renegotiated in either market, given the specifics of its electric power
trading agreements in energy-intensive segments. Regarding SPEs, each
company has made their own decisions based on the specific characteristics
of each of their plants in this business regime.
The GSF, Generation Scaling Factor, is a factor used to adjust the guaranteed
power output and represents the ratio between the total power produced
by the hydroelectric plants of the SIN that integrate the Energy Reallocation
Mechanism (MRE) and their guaranteed power outputs. This represents, on
average, the amount of energy committed to energy generation contracts.
With insufficient rain in the system, the GSF equals to less than 1 and the
hydroelectric generators that contracted their guaranteed power outputs will
have to incur additional costs to acquire energy in the spot market in order to
fulfill their obligations.
Furthermore, Eletrobras has concessions that have not been renewed
and, under Law 12,783/2013, are exposed not exposed to this risk yet (the
Law mandates that renewed concessions no longer incur this risk, since they
are only responsible for the operation and maintenance of the power plants
under their concession).
Therefore, under adverse hydrological conditions, Eletrobras’s operating
results and its financial conditions may be affected, and may incur higher
costs in the distribution segment, due to the need to acquire electric power
for resale, which may impact the cash flows of the Eletrobras distribution
companies.
With regard to the specific aspect of exposure to the hydrological risk,
the renegotiation will reduce the negative effects for the companies in
periods of low rainfall (such as 2014/2015), by transferring part of the risk
to consumers through the payment of the premium corresponding to each
protection range.
The tables below summarize the renegotiation made by the Eletrobras
companies, and the renegotiation by plant (company assets).
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Company
ACR* Renegotiation
ACL Renegotiation
Furnas
Eletrosul (1)
Eletronorte
Chesf
Amazonas GT
YES
YES
YES
NO
YES
NO
NO
NO
NO
NO
* Regulated Contracting Market (ACR)
(1) HPPs Passo São João, São Domingos, and SHPPs Barra do Rio Chapéu and João Borges (SHPPs do not adhere to the ACR and ACL).
Eletrobras Chesf did not adhere to the renegotiation due to the specific
characteristics of allocation and transfer of most of the hydrological risk of the
Sobradinho HPP to energy-intensive consumers, under Law 13,182/2015.
Company
Plant
Amount to be
renegotiated
(Average
MW)
Renegotiation
product
Unit risk
premium
(R$/MWh)
Amount to
be refunded
for the
effects of the
renegotiation
in 2015 (R$/
MWh)
Premium
payment
postponement
as of January
2016 for refund
relative to 2015
Furnas
Eletrosul
Serra da
Mesa HPP
Mascarenhas
de Moraes
HPP
Itumbiara
HPP
Manso HPP
Simplício
HPP
Batalha HPP
Passo São
João HPP
São
Domingos
HPP
644
SP100
269
SP100
230
SP100
90
SP100
187
SP100
47
37
36
SP100
SP92
SP92
9.5
9.5
9.5
9.5
9.5
9.5
2.5
2.5
33.55
4 years and 6
months
33.55
4 years and 6
months
33.55
4 years and 6
months
33.55 4 years and 6
months
33.55
4 years and 6
months
33.55 4 years and 6
months
18.26 13 years and 3
months
18.26 13 years and
3 months
Eletronorte
Tucuruí HPP*
1063
(2016)
280 (2017-
2019)
SP100
9.5
33.55
4 years and 6
months
Amazonas
GT
Balbina HPP
132
SP100
9.5
33.55 4 years and 6
months
*Contracting in the ACR will be discontinued starting in 2017.
Regarding Eletrobras’s operations as the trader of the electric power
generated by the Itaipu plant, under Decree 8,401/15, the hydrological risk
associated with the plant’s are now taken by the distribution utilities in the
proportion of the amount of electric power allocated to each one, and the
projection of this result for ear year should be considered by ANEEL when
setting the rates of the plant.
Measures to prevent and
reduce damages
GRI G4-DMA (antigo EU21)
Each business unit has its own contingency plan, which specifically
approaches their social concerns, environmental impacts, natural disasters,
IT-related matters, strikes, image-related crisis, and fire hazards that could
affect the internal and external audiences, considering the communities and
the zones of influence.
So that all employees and contractors know and have the means to
implement these plans in case of emergency, the Eletrobras companies
invest in capacity-building activities and training courses. Specifically for
employees, these actions are conducted through annual drills involving
the employees affected in a given emergency situation, lectures, and
plans posted on the intranet, which are accessible to all employees. For
contractors, integration lectures on safety are offered when the provision of
services starts.
The Emergency Action Plans of the Eletrobras companies are supported
by management groups responsible for preparing and updating the action
plans for specific contingencies, for coordinating test simulations, and
training procedures for these plans. The plans are regularly tested. These
events test the theoretical and practical knowledge of the members of
emergency brigades and of all employees of risk areas in general.
At the generation companies, those that operate with hydroelectric
plants have handbooks on the Control of Floods in the Drainage Basins
where they operate their main reservoirs. These handbooks contain
instructions about the operation during flood events and the steps required
when they occur. Every year, the Annual Flood Prevention Plan is revised and
updated, which is a document approved by (ANA) the National Water Agency
and by (ANEEL) the National Electric Power Agency for the generation,
transmission and distribution of electricity.
Specifically for nuclear power plants, the Almirante Álvaro Alberto Nuclear
Center (CNAAA) has an integrated emergency plan that was prepared by
a number of defense organizations, such as the Civil Defense, the Police
Force, and the Fire Department. This plan is tested periodically, through
drills overseen by the National Committee on Nuclear Energy (CNEN) and by
international organizations, such as the International Atomic Energy Agency
(IAEA), which ensure the suitability of the plan, whose goal is to safeguard
the neighboring population and its employees. In order to maintain the
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES
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External Emergency Plan (PEE) under appropriate deployment conditions,
the Partial Emergency Drills are conducted on even-numbered years, when
all actions reviewed in the Plan are put into practice, including the drill to
evacuate the population in the vicinity of the Nuclear Plant.
It is important to point out the Emergency Response Plan in Transmission
Lines, which ensures continuity of services in cases of accidents involving
transmission towers. This plan is implemented after analysis of the location
where the failure occurred: topography, access conditions, number of
damaged towers, and other factors that can be used as input to quantify
human resources and material required to respond in the least possible
amount of time. Generally, emergencies involving these types of lines occur
in inhospitable places, with heavy workloads and greater risks than those
of regular maintenance activities. The contingency plans for transmission
lines establish guidelines for the repair of the transmission lines affected and
define the safety procedures of the team.
In case of blackouts, restoration of services follows an order of load
priority (those who should receive energy first), of reenergizing the lines of
transmission and distribution, by sector, and of synchronization of power
plants. Generally, power plants do not shut down; instead, they are simply
disconnected and operate without generating any power. As soon as the
transmission lines are available (reenergized), the plants resume power
generation. The rationale behind the restoration and the load priorities are
governed by a complex set of operating rules established at various levels,
from the operation of the interconnected system to the local operation of
each power plant, substation, and energy distribution company.
Pursuant to the universal rules for the activities developed by Eletrobras,
all workers involved are required to wear personal and collective protective
equipment. All these activities comply with the requirements of the Ministry
of Labor and Employment (MTE), of agencies such as the Fire Department
and Civil Defense, and of environmental agencies.
In addition, various awareness campaigns are conducted to draw
attention to the dangers involving live equipment. Alerts on the risk posed
by sky lanterns to transmission lines, power plants, and substations,
clarification on activities that should not be conducted within the right of
ways of transmission lines and signage in the areas of the reservoir where
fishing is prohibited are examples of these actions. These activities are
conducted with the consent of or in partnership with public authorities.
For security reasons the contingency plans of Eletrobras companies
are not publicly available on their respective websites, except in the
case of Eletronuclear, whose emergency plan is available at http://www.
eletronuclear.gov.br/Saibamais/PlanodeEmerg%C3%AAncia.aspx
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 2015 8
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4
G
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e
c
n
a
m
r
o
f
r
e
p
s
s
e
n
i
s
u
B
Selected image from the photo contest
“Eletrobras Employees at the Olympic
Sports”
Operations overview
67
Industry overview
The slower economic activity and the increase in rates caused a reduction
in demand for electric power in Brazil. According to the Brazilian Energy
Research Agency (EPE), the total consumption of electric power reached
464,683 GWh in 2015 in Brazil, down 2.1% year-over-year, according to
the table below. This decrease was mainly caused by the industrial and
residential sectors.
Electric Power Consumption in the Network (GWh)
Class
2015
2014
(%)
Brazil
Residential
Industrial
Commercial
Other
464,683
131,315
169,574
90,383
73,411
474,823
132,302
179,106
89,840
73,575
-2.14%
-0.75%
-5.32%
0.60%
-0.22%
Source: Permanent Commission for Electric Power Market Analysis and Monitoring – COPAM/EPE.
The sharpest drop was recorded in the industrial sector—5.3% year-over-
year. Throughout 2015, this sector’s consumption recorded monthly drops,
which became more intense in the second half of the year (falling 7.7% in the
fourth quarter, the sharpest decrease in the year).
The residential sector recorded a decrease of 0.7% compared to 2014.
This was due to a combination of factors, such as the adverse economic
scenario and the increase in the average electricity rate paid by the
consumer. Furthermore, in 2015, the increase in the number of residential
consumer units (2.5% compared to 2014), was not as high as the historical
average recorded since 2004 (nearly 3.5%).
Commerce and services recorded an increase of 0.6% versus 2014, far
below the expansion of the past five years (higher than 6%, on average).
The scenario of slow economic activity and uncertainties in the short term,
the slowdown in the commercial activity, and the decrease in this sector’s
investments may have had a significant impact on the consumption of
electricity by the commercial segment.
The economic slowdown and the GDP fall, according to official data
informed above, affected our operating and financial conditions that will be
reported herein.
Regulatory outlook
In 2015, important developments occurred in the regulatory scenario in
Brazil, affecting the generation, transmission and distribution concessions of
the Eletrobras companies, including the following:
Employee
Clovis Nicoleit,
Eletrobras Eletrosul
(Photo: Divulgation)
2015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES 68
69
Time-of-use rates system
In 2015, users started being charged time-of-use rates. Each month,
the operating conditions of the system are revalued by the Brazilian Electric
System Operator (ONS), which determines the best electric power generation
strategy to meet the demand and which thermal power plants should go
online. Depending on the variable cost of the most expensive thermal power
plant, the time-of-use rate is determined, to be used in the following month.
Green, yellow, and red flags indicate whether the rate costs more or less,
given the conditions for electric power generation. This system is used by all
utility companies connected to the National Interconnected System (SIN).
Further information can be found on ANEEL’s website.
Grren Flag
Favorable energy generation conditions.
The tariff does not have any extra charge.
Yellow Flag
Less favorable energy generation conditions.
Tariff increase of R$0,025 for each kilowatt-hour (kWh) consumed.
Red Flag
More expensive generation conditions.
Tariff increase of R$0,045 for each kilowatt-hour (kWh) consumed.
Extension of distribution concessions
Decree 8,461/2015 regulated the conditions for the extension of
distribution concessions for another 30 years, provided that the criteria be
observed for service quality efficiency—to be assessed using the Equivalent
Outage Duration per Consumer Unit (DEC), and Equivalent Outage Frequency
per Consumer Unit (FEC)—economic and financial efficiency (EBITDA and
indebtedness level), rate reasonableness, and transparency and governance.
At the 164th Extraordinary General Meeting of Eletrobras Shareholders,
held on December 28, 2015, the company’s Board of Directors proposed
that the renewal of Eletrobras distributors’ concessions, except for Celg-D,
be approved under two conditions: the capital injection necessary to meet
the requirements of the ANEEL should be made by directly by the Federal
Government into the distributors, and that immediate action should be
taken for the sale of these distributors by the end of 2016.
The Federal Government requested that the issues regarding the
extension of concessions be removed from the agenda for subsidiaries
Eletrobras Distribuição Piauí, Distribuição Alagoas, Distribuição Acre,
Distribuição Rondônia, Distribuição Roraima, and Amazonas Energia,
reason why these concessionaires requested, on December 28, 2015, for
an extension in the deadline for the execution of the addendum, under
Provisional Measure 706, of December 28, 2015, granting 210 days after that
date for the distributors to execute the addendum. In 210 days, Eletrobras’s
distributors will prepare new studies and submit them to a new Extraordinary
General Meeting.
For Celg-D, the extension of the distribution concession was approved for
another 30 years, as well as the sale of its controlling stock.
Generation Scaling Factor (GSF)
The Energy Reallocation Mechanism (MRE) is a financial arrangement that
seeks to share the hydrological risks affecting generators when targeting
a better use of the hydropower resources in the Interconnected System.
Reducing the generators’ contracting level over their guaranteed power
output generates less exposure in the short term. On the other hand, the
higher the generators’ hedge, the sharpest the revenue reduction. This is
taken into account by each generator when structuring their businesses.
GSF is the percentage of hydropower that all participants of the MRE are
generating in relation to the total guaranteed hydropower output in the
MRE. When the GSF is lower than 100%, it means the plants are generating
less power than their total guaranteed output.
After January 2014, generation in the MRE significantly reduced in
relation to the MRE total guaranteed output, reflecting the atypical
hydrology of the last few years. Because 2015 had a high GSF, the financial
effects were material for generators. The Eletrobras companies chose to
renegotiate the risk, considering the following aspects:
{ Plant’s trading profile in the Regulated Contracting Market (ACR) and
Free Contracting Market (ACL)
{ Hedge strategies
{ Expected contract discontinuation
{ Energy simulations, economic-financial feasibility studies (VPL by type
of product), accounting impact assessment
{ Duration of concession agreements, risk premium cost, legal
assessment, additional risks of contracting reserve electric power,
projections of Difference Settlement Price (PLD) and allocation of
secondary electric power, among others
For further details on renegotiation agreements, please refer to the Risk
Management chapter, Hydrological risk section.
Sobradinho HPP and Itumbiara HPP
e
v
i
h
c
r
A
s
a
n
r
u
F
s
a
r
b
o
r
t
e
E
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Itumbiara HPP: concession extended for 30 years
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71
In 2015, the concessions of the Sobradinho HPP and Itumbiara HPP,
owned by Chesf and Furnas, respectively, were extended for 30 years, under
Law 13,182/2015. With the extension of these power supply agreements
with industries and the consequent extension of the concessions, these
Eletrobras companies ensured an important source of financial resources for
investment. The law also created the Northeast Energy Fund (FEN) and the
Southeast and Midwest Energy Fund (FESC), which will provide resources for
electric power projects, and will be supplied by Chesf and Furnas with the
resources resulting from the difference between the revenue from consumer
contracts and the amount exceeding the rate calculated by ANEEL, under
Law 12,783/2013, less tax and charges.
Compensation referring to Law 12,783/2013
According to the table below, the total amount claimed by the Eletrobras
companies referring to the 2nd Tranche of the compensation relative to
Law 12,783/2013 exceeds R$26 billion (base date is December 2012). Up
to December 2015, ANEEL had authorized the compensation claimed by
Eletrosul and Furnas, corresponding to the portion of the electric power
transmission assets existing on May 31, 2000—Existing Basic Network
(RBSE) and Other Transmission System Facilities (RPC), not depreciated and
amortized yet. These assets amounted to R$10.007 billion.
2nd Tranche: Claimed amount R$26,427 million
Amount recognized
(R$ million)
Claimed amount (R$
million)
Authorized amount
(R$ million)(1)
Generation(2)
Transmission Generation Transmission Generation Transmission
-
697
996
-
1,733
1,589
4,530
514
-
4,802
2,926
5,627
1,312
10,699
-
1,061
1,693
8,366
6,114
20,313
-
-
-
-
-
-
-
9,000
1,007
10,007
Eletrobras
companies
Eletronorte
Chesf
Furnas
Eletrosul
Total
The base date for these amounts is December 2012.
(1) Authorized amounts will be recognized in profit or loss after the final amount is determined and the payment conditions are regulated by the Grantor.
(2) Thermal power generation assets have not been included in ANEEL Normative Resolution 596/2014. When these are recognized, there is an additional amount of R$557
million in Furnas and R$357 million in CGTEE.
On April 20, 2016, Ministry of Mines and Energy Ordinance No. 120
regulated the conditions for receiving the compensation. According to
the Ordinance, the amounts authorized by ANEEL will form the Regulatory
Remuneration Base of electric power transmission utilities, and the capital
cost will be added to the relative annual revenue allowed. The capital cost
will be composed of portions of remuneration and depreciation, plus taxes,
observing the corporate law, and will be recognized after the 2017 rate
process, and adjusted and reviewed according to the concession agreement.
The portions of remuneration and depreciation well be determined
considering the Periodic Rate Review of Existing Utilities’ Revenues, approved
by ANEEL, and the Regulatory Remuneration Base will be depreciated
considering the residual life of the assets and restated using the Extended
Consumer Price Index (IPCA).
Distributed generation expansion
Normative Resolution ANEEL 687/2015 created the Electric Power
Compensation System, allowing for consumers to install small generators—
photovoltaic solar panels, wind microturbines, and other—at their consumer
units and exchange electricity with the local distributor in order to reduce
their power bill. These improvements facilitate and encourage this type of
shared or group generation, enabling several people to install a micro- or
mini-distributed generation plant and use the generated power to reduce
their bills. On December 2015, the Ministry of Mines and Energy published
Ordinance 538/2015-MME, creating the Electric Power Distributed
Generation Development Program (ProGD Elétrica) and financing facilities
that relieved taxes on equipment imports and improves the financial return
of investments made in this type of generation.
Annual rate adjustments of
Eletrobras distributors
In 2015, the annual adjustment was made on the rates of Eletrobras
distributors, with the following base dates:
{ Alagoas and Piauí, August 28
{ Amazonas and Boa Vista, November 1st
{ Acre and Rondônia, November 30
{ Celg-D, September 12
The results were authorized by ANEEL, according to the table below:
% rate
adjustments -
IRT 2015
Average
effect captive
consumer
(Final)
Distribution
Acre
Alagoas
Energia
Piauí
Rondônia Roraima
Celg-D
9.49% 6.48%
40.54% 5.53%
13.41%
41.52% 6.89%
At Amazonas Energia, the annual rate adjustment was made under
Resolution ANEEL 1,980/2015, but the Prosecutor’s Office of the State
of Amazonas and other consumer protection agencies were granted, in
November 2015, a preliminary injunction in the public civil liability lawsuit
against Amazonas Distribuidora de Energia and the Brazilian Electricity
Regulatory Agency (ANEEL), for the rates not to be adjusted in 2015; this
preliminary injunction was suspended in January 2016. At Eletrobras
Distribuição Roraima, the authorized average rate adjustment was 41.52%,
applicable as of November 2015. This adjustment has not been applied on
the company’s rates yet, due to a preliminary injunction granted by the 1st
Region Federal Court of Appeals, prohibiting the adjustment in response to a
claim by the Procon of the Roraima State House of Representatives.
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73
Energy efficiency
GRI G4-EN6, G4-EN7
Eletrobras’s energy efficiency department was structured around two
major lines: energy efficiency as a public policy, and energy efficiency as
a corporate and business vision.
The line that deals with energy efficiency focused on public policies
refers to the National Program for Electricity Conservation (PROCEL).
You can learn more about this program on page 139.
In the corporate line, Eletrobras coordinates the Integrated
Eletrobras Energy Efficiency Committee (CIEESE), whose purpose is
to find technology solutions for the Eletrobras companies, technical
cooperation, and excellence in corporate energy efficiency.
Through CIEESE, the holding monitored the goals for reduction
in energy consumption in the Eletrobras companies in 2015, and
proceeded with the work to implement ISO 50001, Energy Management
System, in the Eletrobras Eletronorte facilities, at Tucuruí HPP
(Eletrobras Chesf), Messias Substation (Alagoas), and Itaipu (Executive
Center). The Tucuruí HPP received the first ISO 50001 certification visit
in December 2015, and was certificated in January 2016, becoming
the first Eletrobras company to obtain this certificate. In 2015, the
holding sponsored the creation of three Energy Management System
guidebooks—of Eletrobras Eletronorte, Eletrobras Chesf, and Itaipu—
encouraging the creation of internal competences at these companies
with the involvement of over 50 employees and training of 25 internal
auditors.
Another highlight was the publishing of the 2013-2014 Energy
Efficiency Book, reporting on 90 corporate actions executed by the
Eletrobras companies, attesting to its commitment to corporate
sustainability.
In 2015, the Internal Energy Conservation Committee (CICE)
included members from different areas of the Eletrobras holding, such
as back office, energy efficiency, communication, and the environment,
and had the collaboration of employees to implement different actions
to reduce electricity consumption in the company, including the
following:
{ Calling volunteers to be representatives at the CICE
{ Working together with the computing and maintenance area to
improve the energy performance of the datacenters
{ Disseminating the energy efficiency issue, using in-company
communication tools
{ Creating a video with a message from the CEO about the World
Energy Efficiency Day
The holding’s area of new businesses in energy efficiency performed
the following activities in 2015:
{ Updating the Energy Efficiency Business Plan for 2015-2019,
in order to align it with the 2010-2030 Strategic Plan and the
2015-2019 Business and Management Master Plan. The updating
included: (a) a revision of the market potential, strategic focus,
results indicators, cost of company capital and third party capital,
governance and management practices in compliance with the
SPE Handbook; (b) addition of a new chapter on project financing,
considering the funding agreement Eletrobras executed with the
International Bank for Reconstruction and Development (IBRD); and (c)
a revision of the projects for 2015-2019, planning the formation of 10
SPEs.
{ Business plan for the retail sector proposing a combination of energy
efficiency and distributed generation.
{ Providing services for the International Copper Association, for the
technical organization of four seminars to promote the Premium
Engine, an operational guide for Premium Engines, and the
implementation of ISO 50001 in small industries.
{ Providing qualification training on ISO 50001 for the Brazilian
Metrology Society.
{ Prospecting clients or partners for efficiency services in Public Lighting
and commercial sector.
{ Including energy efficiency clauses in the contract of the Eletrobras
Distribution Companies with the World Bank, in the scope of the
Energia+ Project.
Red-LAC-EE is a public-private environment that fosters and facilitates
permanent integration between Latin American and Caribbean countries
in issues concerning Energy Efficiency. In 2015, the Executive Committee of
the Network held eleven virtual meetings and its website had nearly 38,000
new page views, an increase of 58% over the previous year. The network has
a web-based discussion group with 800 members, and is active on social
media channels such as Twitter, Facebook, Google+ and LinkedIn. Eletrobras
is a diamond sponsor of the Network and has been playing a key role in this
initiative since its inception, as a member of its Executive Committee.
Eletrobras distribution companies’ energy efficiency projects comply
with Law 9,991/2000, which determines that power utilities or licensed
distribution companies must apply a minimum percentage of 0.5% of the net
operating revenue in Energy Efficiency Programs, according to regulation by
the Brazilian Electricity Regulatory Agency (ANEEL).
Some of the energy efficiency initiatives in 2015 included educational
projects like “Itinerant Energy Efficiency” of Distribuição Rondônia, “Multiply
III” of Distribuição Piauí, and “Luz do Saber” of Distribuição Alagoas. These
projects basically qualify educators and sensitize students in primary and
secondary schools to concepts of efficient and safe energy use.
The figures of these projects in 2015 are as follows:
{ 368 schools in 69 municipalities served
{ 3,377 educators qualified
{ 87,578 students sensitized.
The reduction in electricity consumption after these and other projects
developed by the distributors can be estimated at more than 100 GWh,
which would, proportionately, be enough to supply nearly 50,000 homes for
one year.
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Case
CIEESE promotes ISO 50001 at the Eletrobras
companies
With the consolidation of the implementation of ISO 50001 at the
Tucuruí HPP, the first internal audit of the Standard in the CIEESE, and the
dissemination of the Standard in the company, in order to establish new
systems and processes necessary for energy performance improvement,
Eletrobras Eletronorte reduced its electricity consumption by 238,033
kWh in 2015, or 3.01% compared to 2014.
Itaipu Binacional used equipment modernization and optimization
as the key strategy to reduce its internal consumption of electric power.
Some of the actions in 2015 include the modernization of access roads’
public lighting on the Brazilian margin, and the lighting systems of the
administrative offices on the right margin, in addition to the optimization
of the internal lighting system, electric infrastructure, and air conditioning
system on the left margin. The ETA II treated water pumping system was
also retrofitted. These actions resulted in a reduction of 477.814 MWh or
1,720.13 GJ in electricity consumption in 2015 compared to 2014.
Every year, Eletrobras Chesf promotes the Energy Efficiency week at its
regional units, in an action to facilitate and raise awareness to the rational
use of electricity inside the company, and disseminate the good practices
to the residences of employees. This action resulted in a reduction of
1,413.96 MWh in electricity consumption in the company’s facilities in
2015 compared to 2014.
In 2015, Eletrobras Furnas replaced nearly 600 fluorescent light bulbs
for LED in the main garage. This and other actions resulted in a reduction
of 783.94 MWh or 5% in electricity consumption in 2015 compared to
2014.
Eletrobras Alagoas’s Conscientious Consumption project aims to raise
awareness of and sensitize employees to the importance of using energy
efficiently, seeking to minimize the environmental and financial impacts
caused by irrational consumption. This project resulted in a reduction of
3,169.61 MWh in electricity consumption in 2015 compared to 2014.
Eletrobras Distribuição Acre has promoted the Conscientious
Consumption since 2011, in order to raise awareness of the internal
audience about the rational consumption of energy, non-potable water,
disposable cups, and reams of paper. To strengthen the campaign in the
energy aspect, in 2015 the company created the “Energy Blitz,” which
inspects the offices at the headquarters by the end of the working day to
check whether lights and equipment are unnecessarily on. The goal of the
blitz is to fight energy waste and create new habits among employees. This
and other actions resulted in a reduction of 211,643 kWh, or 17.85%, in
electricity consumption in 2015 compared to 2014.
Eletrobras Piauí has also developed the Conscientious Consumption
project since 2011, resulting in a reduction of 22,200 kWh, or 7.24%, in
electricity consumption in 2015 compared to 2014.
)
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Installed capacity of the company includes half of Itaipu Binacional capacity
Generation
GRI G4-EU1
In 2015, Eletrobras reached an installed capacity of 45,391.2 MW in
generation projects, an increase of 1,235.6 MW year-over-year. Of the
company’s total installed capacity, 73% are projects wholly owned by
Eletrobras, 10% derive from the interest held by Eletrobras companies in
projects developed through Special Purpose Entities (SPEs), and 17% refer to
jointly owned projects, including half of Itaipu Binacional’s capacity (7,000
MW)—or 15% of the total—and ownership interest held in consortiums.
Mangue Seco 2
Rei dos Ventos 1
Rei dos Ventos 3
Miassaba 3
---
-
Compl. Eólico
Serra das Vacas
-
Araras
#
Compl. Eólico
VamCruz
-
Curemas
#
Luiz Gonzaga
(Itaparica)
#
##
#
Xingó
Complexo
Paulo Afonso
e Moxotó
Camaçari
"
Pedra
#
#
Funil
"
Senador
Arnon Afonso
Farias de Mello
(Floresta)
Balbina
#
Cidade Nova
São José
Flores
""
"
"""
""
Mauá
Aparecida
Electron (TG)
Distrito
Iranduba
#
"
"
Coaracy Nunes
Serra do Navio
Santana
Santarém
"
#
Curuá-Una
Tucuruí
##
Santo Antônio
#
Rio Madeira
#
#
"
Samuel
Rio Branco I
Rio Branco II
"""
Rio Acre
Jirau
Key
Wind Farm
SPE’s Wind Farm
Thermal Power Plant
SPE´s Thermal Plant
Hydroelectric Power Plant
SPE’s Hydroelectric Power Plant
Shared Hydroelectric Power Plant
Nuclear Power Plant
Solar Power Plant
-
-
"
"
#
#
#
!`
P!
Boa Esperança
#
Compl. Eólico
Chapada do Piauí I
-
#Teles Pires
Dardanelos
#
Peixe Angical
#
#
Serra da Mesa
Compl. Eólico
Sento Sé II
-
Sobradinho
#
---
Pedra Branca
Sete Gameleiras
São Pedro do Lago
Manso
#
São Domingos
#
#
Itaipu
Corumbá I
#
#
Itumbiara
#
#
Batalha
Serra do Facão
Retiro Baixo
#
Baguari
#
Porto Colômbia
Luiz Carlos Barreto de Carvalho (Estreito)
Mascarenha de Moraes (Peixoto)
Marimbondo
#
#
##
#
#
Três Irmãos
Mauá
#
"
Campos
Furnas
Funil
#
Simplício
#
Santa Cruz
"
Angra I
Angra II
Foz do Chapecó
#
#
Passo São João
João Borges
# #
Megawatt Solar
P!
Barra do Rio Chapéu
---
---
Complexo Eólico
Livramento
"
"
Candiota III
Presidente Médici
--
Complexo Eólico
Geribatu
Complexo Eólico
Hermenegildo
Complexo Eólico
Chuí
Cerro Chato I
Cerro Chato II
Cerro Chato III
Capão do Inglês
Galpões
Coxilha Seca
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES
76
Installed capacity by source
Company-owned plants
77
Source
TOTAL
Eletrobras
2015*
TOTAL
Eletrobras
2014
TOTAL
Eletrobras
2013
Addition
2014-2015
Hydro
Solar
Wind
Natural Gas
Oil
Nuclear
Coal
38,722.2
37,756.6
36,279.3
0.9
896.1
1,207.4
1,904.6
1,990.0
670.0
0.9
258.5
1,177.4
2,156.3
1,990.0
816.0
0.0
149.8
1,019.4
2,731.5
1,990.0
965.6
0.0
637.7
30.0
-251.7
0.0
816.0
-146.0
Total (MW)
45,391.2
44,155.7
42,986.0
1,235.6
* Includes the Brazilian half of Itaipu Binacional (7,000 MW). Includes the plants in O&M agreements. The amounts consider the proportionate
installed capacity of the corporate interest.
e
v
i
h
c
r
A
s
a
r
b
o
r
t
e
E
l
Net
generation
(%) 2013
84.80
8.50
3.00
1.90
1.50
0.30
-
Electric power net production
(wholly-owned, co-owned, including Itaipu Binacional)
Primary
source
Net generation
(MWh) - 2015
Net
generation
(%) 2015
Net generation
(MWh) - 2014
Net
generation
(%) 2014
Net generation
(MWh) - 2013
Hydro
126,128,986.1
83.11 148,042,000.00
84.00 157,958,000.00
Uranium
14,808,265.6
9.76
15,433,000.00
8.80
15,829,000.00
Oil
Coal
4,137,746.0
2,211,975.9
Natural Gas
4,170,044.5
299,293.3
278.6
Wind
Solar
Total
2.73
1.46
2.75
0.20
0.00
6,039,000.00
3.40
5,524,000.00
2,910,000.00
1.70
3,468,000.00
2,463,000.00
1.40
2,836,000.00
788,000.00
500.00
0.40
0.00
477,000.00
-
151,756,589.9
100.00 175,706,000.00
100.00 186,093,000.00
100.00
Note:
includes the generation of the plants wholly owned or co-owned by Eletrobras, proportionately to Eletrobras’s interest in these co-owned
companies; includes 50% of the Itaipu HPP generation, 48.45% of the Serra da Mesa HPP generation, and 70% of the Manso HPP generation.
Special Purpose Entities (SPEs)
Electric power net production
(Special Purpose Entities - SPEs)
Primary source
Net generation (MWh)
Net generation (%)
Hydro
Wind
Oil
Total
13,175,871.8
1,175,690.7
116.4
14,351,678.9
91.81
8.19
0.00
100
Expansion of wind complex is highlighted by 2015
Note: Considers the generation of the plants where Eletrobras participates through SPEs, proportionately to its interest.
In 2015, the highlights include the expansion of the Livramento Wind
Farm, the deployment of the Hermenegildo, VamCruz, Santo Sé II, Chapada
do Piauí I, Geribatu, Chuí, and Serra das Vacas Wind Farms, and the
deployment of Santo Antônio HPP’s and Jirau HPP’s generating units. On the
other hand, commercial operations were suspended at the thermal power
plants of Presidente Medici (Stage A), São Jerônimo, Nutepa, Electron, Cidade
Nova, and Distrito, which together account for a reduction of 372 MW.
Therefore, 1,236 MW were added to the system in 2015.
Electric power net production
GRI G4-EU2
The plants owned by Eletrobras generated 151,756,589.9 MWh of electric
power in 2015. Adding the SPEs, generation totaled 166,108,268.8 MWh.
The most used sources, except for hydro, are uranium, natural gas, and
oil. The tables below show the electric power generation of the Eletrobras
companies by source.
All plants (wholly-owned and SPEs)
Amount of net energy generated by source (all plants)
Primary source
Net generation (MWh)
Net generation (%)
Hydro
Uranium
Oil
Coal
Natural Gas
Wind
Solar
Total
139,304,857.9
14,808,265.6
4,137,862.4
2,211,975.9
4,170,044.5
1,474,983.9
278.6
166,108,268.8
83.86
8.91
2.49
1.33
2.51
0.89
0.00
100
Note 1: includes the generation of the plants wholly owned or co-owned by Eletrobras, proportionately to Eletrobras’s interest
in these co-owned companies; includes 50% of the Itaipu HPP generation, 48.45% of the Serra da Mesa HPP generation,
and 70% of the Manso HPP generation.
Note 2: Considers the generation of the plants where Eletrobras participates through SPEs, proportionately to its interest.
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES
78
79
Average availability by plant
GRI G4-EU30
The three tables below show the availability factor of the Eletrobras
companies by source. The first two segregate the factor into wholly-owned
and SPE projects, and the third is the factor for all the plants.
Company-owned plants
Plant’s average availability factor (%) – wholly-owned and co-owned
plants, and Itaipu Binacional
Primary source
2015
2014
Wind
Hydro
Natural Gas
Oil
Coal
Uranium
98.70
88.44
85.90
90.61
50.43
84.61
Special Purpose Entities (SPEs)
Special Purpose Entities – SPEs (%)
Primary source
2015
2014
Wind
Hydro
97.99
61.33
All plants (wholly-owned and SPEs)
Plants’ average availability factor (%)*
Primary source
2015
Wind
Natural Gas
Hydro
Oil
Coal
Uranium
-
89.60
71.97
91.73
60.14
88.84
92.85
98.64
92.24
85.90
89.05
90.61
50.43
84.61
* Eletronorte did not report on the availability of Serra do Navio and Santarém; Eletrosul did not report on the availability of Capão do Inglês,
Galpões, and Coxilha Seca; Furnas did not report on the availability of Santo Antônio. Reported different amounts on the availability factors of
Miassaba 3, Rei dos Ventos 1 e 3 than those reported by Eletronorte. We believe they have reported on unavailability instead of availability, which
is why the amounts have not been considered; Amazonas Energia did not report on the availability of Jacaré, Electron, AS São José, FO Flores, and
Iranduba. Reported a very low availability at the Mauá TPP.
Thermal power plants’ generation
efficiency
GRI G4-EU11
All plants (wholly-owned and SPEs)
Average annual generation efficiency
of all plants by source (%)
Primary source
2015
2014
Coal
Natural Gas
Oil
Uranium
28.34
37.27
40.73
35.80
29.60
37.50
30.90
35.40
Planned capacity vs. projected
demand
GRI G4-EU10
The current institutional model assigns the main roles in the expansion
of the electric system to the agents, responsible for the timely investments
required for the implementation of new projects. The ten-year plan prepared
by the Brazilian Energy Research Agency (EPE) seeks to provide guidelines
to and support the upcoming auctions for the purchase of energy from new
generation projects, in addition to steering the technical, economic, social,
and environmental feasibility studies of new generation plants.
Planning the expansion of the energy supply, pursuant to the availability
of new power plant projects, will guide the new energy auctions, based on
the projects necessary to meet the requirements of the market, in line with
the assumptions adopted in the Brazilian electric power industry.
Companies interested in developing new projects can enter the auctions
individually or as a consortium. However, even though they take part in
the studies conducted for new projects, in an auction, it is not possible to
anticipate which companies will be the winners and will be granted the
concessions for such projects. It is also important to consider that the
auctions target new projects that should enter into operation in five years,
while a long-term planning considers a period of at least 15 years.
Considering the installed capacity of the power plants of the Eletrobras
companies that are members of SIN, including those for which the grant/
authorization was issued or is pending authorization, whether wholly or
jointly owned, and comparing it with the evolution of the planned installed
capacity described in the 2024 Ten-Year Energy Expansion Plan (PDE 2024),
prepared by the EPE/MME, we have the following:
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES
80
81
Evolution of the installed capacity in the SIN
Capacity of the Eletrobras System vs. Total Planned Capacity (2024 PDE)
2015
2020
2024
SOURCE
N
I
S
-
l
i
z
a
r
B
m
e
t
s
y
S
s
a
r
b
o
r
t
e
l
E
e
r
a
h
S
N
I
S
-
l
i
z
a
r
B
m
e
t
s
y
S
s
a
r
b
o
r
t
e
l
E
e
r
a
h
S
N
I
S
-
l
i
z
a
r
B
m
e
t
s
y
S
s
a
r
b
o
r
t
e
l
E
e
r
a
h
S
(MW)
(MW)
(%)
(MW)
(MW)
(%)
(MW)
(MW)
(%)
COAL
OIL
3,064
670
4,855
1,367
22
28
3,404
4,325
670
273
20
6
3,404
4,325
670
273
20
6
NUCLEAR
1,990
1,990
100
3,395
3,395
100
3,395
3,395
100
NATURAL GAS
11,317
1,207
11
16,419
1,451
9
21,219
1,451
HYDRO
86,540
38,521
45 102,115
45,935
45 109,972
45,935
BIOMASS + WIND +
SHPP + SOLAR
24,840
1,098
PROCESS GAS
687
0
4
0
36,445
2,316
687
0
6
0
56,445
2,316
687
0
TOTAL
133,293
44,853
34 166,790
54,040
32 199,447
54,040
9
42
4
0
27
Notes:
The evolution of the installed capacity in Brazil, of the National Interconnected System (SIN), was provided by the 2024
Ten-Year Energy Expansion Plan (2024 PDE), of the Brazilian Energy Research Agency (EPE).
Includes the Brazilian half of Itaipu Binacional (7,000 MW).
For jointly owned plants, the installed capacity considered was proportional to the ownership interest held by the parties.
Considers the decommissioning of some thermal power plants run on oil in the state of Amazonas, according to the
Monthly Operation Program (PMO) of January 2016, prepared by the Brazilian Electric System Operator (ONS).
Eletrobras does not have plants running on biomass. However, the 2024 PDE aggregates the amounts of the biomass,
wind, solar, and SHPP sources.
Considering the installed capacity of the Eletrobras companies connected to the SIN plus those in Standalone Systems
(537 MW), the total generation installed capacity of the Eletrobras companies was 45,391 MW in 2015.
The planned reduction in the amount of oil between 2015 and 2020 is
due to the decommissioning of a portion of Amazonas Energia’s generation
park and only considers the park that will remain operational after the
interconnection between Manaus and SIN, pursuant to the Monthly
Operation Program (PMO) of January 2016, prepared by the Brazilian Electric
System Operator (ONS).
The increase in the installed capacity of gas is due to the deployment of
the Mauá 3 TPP, wholly-owned by Amazonas Energia. The nuclear capacity
increased due to the deployment of Angra 3.
i
)
a
g
r
e
n
E
e
t
r
o
N
(
a
m
i
L
e
d
o
d
a
v
s
O
l
Belo Monte hydroelectric power plant: increased capacity
Concerning the hydroelectric park, the growth of the installed capacity
planned for the coming years can be primarily explained by the deployment
of the last turbines of the Santo Antônio, Jirau, and Teles Pires Hydroelectric
Power Plants, which are operational, and of the Generating Units of the Belo
Monte, São Manoel, and Sinop Hydroelectric Power Plants.
The installed capacity of Eletrobras’s wind farms grew, mainly because
of its ownership interest in various parks, whether as a minority or majority
shareholder in SPE, through its subsidiaries, or as full owner of the complex.
All projects Eletrobras participates in will become operational by 2010,
which is why the amounts for 2020 and 2024 do not change.
Transmission
GRI G4-EU4, G4-9
Eletrobras’s transmission lines network totaled nearly 68,085 km in 2015.
Of that amount, 5,238 km are wholly owned by Eletrobras, 56,811 km refer
to corporate assets under O&M agreements, and 6,036 km correspond to its
ownership interest in projects developed by Eletrobras companies through
SPEs. Considering only the basic network of the National Interconnected
System (SIN), that is, voltages of 750, ±600, 525/500, 345, and 230 kV, the
company is responsible for 60,997 km of transmission lines, or 47.1% of all
transmission lines in Brazil in said voltages.
According to information on the websites of ANEEL and other
transmission utilities, the company ranking right below Eletrobras has
14,000 km of transmission lines, showing how important and significant
Eletrobras’s market share is in the country’s transmission sector.
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES
82
83
l
)
s
a
r
b
o
r
t
e
E
(
o
h
e
o
C
e
g
r
o
l
J
Transmission lines network totaled nearly 68,085 km
The credibility of the Eletrobras companies with regulatory agencies,
environmental authorities, shareholders, suppliers, partners, financial agents
and the society reflects the recognition for over 50 years of services provided
in Brazil, sustained by its workforce that knows the transmission business in
its planning, implementation, and operation stages.
Transmission lines 2015 (km)
Eletrobras
companies
d
e
n
w
o
-
y
l
l
o
h
W
s
t
e
s
s
a
M
&
O
-
l
a
t
o
T
)
a
(
y
n
a
p
m
o
C
%
s
E
P
S
)
b
(
s
a
r
b
o
r
t
e
l
E
-
l
a
t
o
T
s
a
r
b
o
r
t
e
l
E
)
b
+
a
(
)
c
(
E
P
S
l
a
t
o
T
-
l
a
t
o
T
d
e
g
a
r
e
v
e
L
)
c
+
a
(
Eletronorte
754
10,023
10,776
2,072
12,848
4,219
14,995
Chesf
Furnas
Eletrosul
1,281
18,604
19,885
1,509
21,394
3,077
22,962
1,148
18,758
19,906
1,368
21,274
3,059
22,966
1,294
9,426
10,720
1,087
11,807
1,740
12,459
Amazonas GT
Amazonas Energia
439
322
0
0
439
322
0
0
439
322
0
0
439
322
Total
5,238
56,811
62,049
6,036
68,085
12,094
74,143
(b) Considers the proportion of Eletrobras’s interest in SPEs.
(c) Considers the full extension of the SPEs transmission lines, regardless of ownership interest. In the SPEs where more than one Eletrobras
company holds an interest, it considers the proportional leveraged amounts.
Substations
Eletrobras wholly owned 53 substations in 2015, with transformation
capacity of 38,385 MVA, in addition to 230 renovated substations under
Law No. 12,783/2013. The overall transformation capacity, including
interest in SPEs, totaled 228,723 MVA. The table below illustrates the total
transformation capacity of substations Eletrobras invests in, considering the
total transformation capacity of wholly-owned assets and SPE assets, in order
to highlight the company’s contribution to leveraging these projects in Brazil.
Substations existing in 2015
(transformation capacity - MVA)
Eletrobras
companies
d
e
n
w
o
-
y
l
l
o
h
W
s
t
e
s
s
a
M
&
O
-
l
a
t
o
T
)
a
(
y
n
a
p
m
o
C
%
s
E
P
S
)
b
(
s
a
r
b
o
r
t
e
l
E
-
l
a
t
o
T
)
b
+
a
(
s
a
r
b
o
r
t
e
l
E
)
c
(
*
E
P
S
l
a
t
o
T
-
l
a
t
o
T
)
c
+
a
(
d
e
g
a
r
e
v
e
L
Eletronorte
11,169
20,159
31,328
1,151
32,479
2,332 33,660
Chesf
Furnas
Eletrosul
9,227
42,785
52,012
6,064
58,076
12,368 64,380
13,161
92,257 105,418
5,673 111,091
12,700 118,118
3,613
21,413
25,026
836
25,862
2,035 27,061
Amazonas GT
1215
0
1,215
0
1,215
0
1,215
Total
38,385 176,614 214,999
13,724 228,723
29,435 244,434
* In the SPEs where more than one Eletrobras company holds an interest, it considers the proportional amounts.
Transmission
service quality
GRI G4-DMA (antigo EU6)
The transmission lines availability rate is calculated based on Network
Proceedings. This rate considers all disconnections on Eletrobras companies’
transmission lines, including those that cannot be managed by the company,
such as in expansions, or random or force majeure cases.
The table below shows the Operational Availability rate of the Eletrobras
companies, which represents the percentage of hours in one year that the
lines remain available for the transmission system.
Availability rate of transmission lines (%)
Eletrobras companies
2015
2014
Eletronorte
Chesf
Furnas
Eletrosul
Amazonas GT
Total
99.91
99.82
99.84
99.78
n/a
99.84
99.93
99.88
99.10
99.59
n/a
99.62
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES
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85
Number of disturbances
The main causes for the rise in the number of disturbances were natural
phenomena (lightning strikes) and the environment (land fire), but this
increase does not significantly impact our revenues. The table below shows
the number of disturbances originating in the Eletrobras companies’ network
in 2014 and 2015, and power cuts relative to these disturbances.
120
100
80
60
40
20
0
7.3%
104
7.2%
94
Total disturbances (units)
1.454
2015
1.295
2014
3.0%
44
2.4%
31
Any outages
Outages > 100 MW
Outages > 500 MW
Outages > 1000 MW
0.3%
4
0.3%
4
0.0% 0.1%
0
1
2015
2014
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Soundness indicator
The soundness indicator aims to assess the basic network capacity to
accommodate contingencies without interrupting the supply of energy
to consumers. The Eletrobras companies have maintained the same
performance rate for disturbances originating in their transmission lines.
Eletrobras companies Soundness Indicator (%)
99.7
99.6
95.7
91.7
99.7
99.4
96.7
89.8
2010
2011
99.6
99.5
96.3
90.3
2012
100.0
100.0
97.1
93.0
99.9
99.7
97.6
92.7
100.0
99.7
97.0
92.8
2013
2014
2015
Any outages
Above 100 MW
Above 500 MW
Above 1000 MW
Transmission losses
GRI G4-EU12
Transmission losses are calculated based on the difference between the
sum of energy generated and imported and the sum of loads and energy
exported. Since 2010, Eletrobras has been using a unified methodology to
estimate energy losses in its companies’ transmission network, based on
electrical calculations using cases of power-flow. The table below shows the
rate for each transmission company owned by Eletrobras.
Transmission Technical Losses
Eletrobras companies
2015
2014
Eletronorte
Chesf
Furnas
Eletrosul
Amazonas GT
Total
1.35%
2.41%
2.19%
1.66%
n/a
1.98%
1.06%
2.10%
2.16%
1.43%
n/a*
1.82%
* Not available because the de-verticalization of Amazonas GT started in 2015.
Strategic expansion in
transmission
In a country of continental dimensions like Brazil, where the largest
hydropower generating parks—the major component of the country’s
electric power matrix—are located far from the large consumer centers,
transmission lines play a strategic role in the outflow and optimization
of these energy blocs, making sure the increasing demand is met. In this
scenario, Eletrobras, through its subsidiaries, is a key player in the National
Interconnected System (SIN).
Eletrobras has been expanding its operations at an average of 2,486 km
per year of transmission lines for the past five years, especially through SPEs,
showing the company is committed to its strategic guidance of being an
important player in the transmission sector, keeping its leading position.
Companies
2015
2014
2013
2012
2011
Wholly-owned (a)
62,049
62,142
60,570
59,056
52,243
SPE (b)
Total (a+b)
6,036
5,440
3,794
2,665
3,936
68,085
67,582
64,364
61,721
56,179
Physical addition
503
3,218
2,643
5,542
527
(b) Considers the proportion of Eletrobras’s interest in SPEs.
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES
86
87
System’s Physical Data – 2015
s
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19,218
42,043
47,806
87,929
57,647
3,553
213,289
471,485
15
40
24
84
60
3
329
555
245,344 1,045,270 898,365 1,172,997 589,332 106,236 2,801,309 6,858,853
22
102
62
224
52
1
237
700
Description
Distribution
Lines /
Networks
- km
# of
Substations
# of
Clients
# of
Cities
In 2015, in line with the strategic and corporate goals in the 2015-2019
Business and Management Master Plan, Eletrobras started restructuring the
electric power distribution business, and on December 28, 2015, the 164th
Extraordinary General Meeting approved the sale of Eletrobras’s interest at
Celg-D.
In terms of investments, the Eletrobras companies plan to energize nearly
10,548 km of transmission lines by 2018, in its own projects or through
partnerships, and adding 18,900 MVA of power in substations, considering
projects under construction or to be constructed. Investments in these
projects are estimated at nearly R$16 billion.
Below is a map illustrating the major transmission projects under
construction in Brazil.
STA ELENA
BOA VISTA
EQUADOR
BALBINA
2
2
SILVES
2
LECHUGA
MANAUS
2
2
2
JORGE TEIXEIRA
PARINTINS
MACAPÁ
2
2
2
ORIXIMINÁ
JURUPARI
2
TAPAJÓS
S.MARIA
2
BELÉM
V. CONDE
ENCRUZO NOVO
TOMÉ AÇU
JURUTI
ALTAMIRA
XINGU
2
RURÓPOLIS
2
TUCURUÍ
SÃO LUÍS
2
ACARAÚ
MIRANDA
CHAPADINHA
C.NETO
CRUZEIRO
DO SUL
FEIJÓ
SAMUEL
PORTO VELHO
3
2
2
2
ABUNÃ
RIO BRANCO
ARIQUEMES
DARDANELOS
JARU
PARANAÍTA
CARAJÁS
3
INTEGRADORA
XINGUARA
JI-PARANÁ
2
P.BUENO
2
2
JUÍNA
2
VILHENA
BRASNORTE
CLÁUDIA
SINOP
SORRISO
FORTALEZA
2
SOBRAL
4
2
2
MARABÁ
AÇAILANDIA
2
PERITORÓ
P.DUTRA
2
2
2
2
IMPERATRIZ
3
ITACAIÚNAS
P. FRANCO
2
PIRIPIRI
TERESINA
2
BANABUIÚ
TAUÁ
4
PARAUAPEBAS
ESTREITO
B.ESPERANÇA
PICOS
BALSAS
E.MARTINS
2
COLINAS
R.GONÇALVES
2
S.J.PIAUÍ
BOM JESUS
MIRACEMA
MILAGRES
2
4
SOBRADINHO
2
GILBUÉS
OUROLÂNDIA
2
GURUPI
BARREIRAS
G.OURO
M.CHAPÉU
S.BONFIM
ARACAJU
MOSSORÓ
AÇU
JOÃO CÂMARA
2
NATAL
2
2
J.PESSOA
RECIFE
2
3
2
5
ANGELIM
3
MACEIÓ
XINGÓ
COREMAS
C.GRANDE
6
5
2
2
2
2
2
3
SALVADOR
2
2
2
PARANATINGA
S.MESA
JUBA
N.MUTUM
2
JAURU
NOBRES
2
MANSO
BARRO ALTO
2
2
CUIABÁ
2
2
2
RIBEIRÃOZINHO
2
RIO VERDE
NORTE
BRASÍLIA
2
RONDONÓPOLIS
2
2
JATAÍ
RIO VERDE
CORUMBÁ
CHAPADÃO
2
3
2
INOCÊNCIA
C.GRANDE
3
1
2
3
2
GOIANIA
2
2
2
4
6
3
2
2
2
ARARAQUARA
2
4
DOURADOS
2
ASSIS
2
BAURU
4
4
GUAÍRA
LONDRINA
UMUARAMA
2
2
2
2
3
2
3
R.GRANDE II
B.J.LAPA
IGAPORÃ
IBICOARA
3
SAPEAÇU
R.DAS ÉGUAS
PINDAÍ
POÇÕES
FUNIL
BRUMADO
2
2
ITAPEBI
M.CLAROS
IRAPÉ
EUNÁPOLIS
PARACATU 4
2
PIRAPORA
T.FREITAS
T.MARIAS
2
2
2
4
2
4
3
LINHARES
MASCARENHAS
VITÓRIA
2
MESQUITA
2
2
3
3
2
BELO
HORIZONTE
J. FORA
CAMPOS
3
2
4
2
C.PAULISTA
RIO DE JANEIRO
CASCAVEL / CASCAVEL OESTE
ITAIPU
2
3
2
S.OSÓRIO/S.CAXIAS
S.SANTIAGO
2
GARABI
STO. ÂNGELO
MAÇAMBARÁ / S.BORJA
2
IVAIPORÃ
AREIA
2
C.NOVOS
2
2
2
ITÁ
2
FIGUEIRA
2
SÃO PAULO
2
2
2
CURITIBA
BLUMENAU
FLORIANÓPOLIS
2
LAJES
2
2
SIDERÓPOLIS
URUGUAIANA
50 MW
ALEGRETE
3
S.CRUZ
3
4
P.REAL
LIVRAMENTO
70 MW
P.MÉDICI
PORTO ALEGRE
CAMAQUÃ
MELO
500 MW
PELOTAS
QUINTA
STA.VITÓRIA DO PALMAR
LEGEND
EXISTING
IN THE
FUTURE
ELETROBRAS SYSTEM TRANSMISSION LINE (TL)
TL´S ELETROBRAS SYSTEM IN PARTNERSHIP
OTHER COMPANIES´S TL
1
2
3
4
5
PARANÁ RIVER COMPLEX
PARANAPANEMA RIVER COMPLEX
GRANDE RIVER COMPLEX
PARANAÍBA RIVER COMPLEX
PAULO AFONSO COMPLEX
n
NUMBER OF CIRCUIT
Distribution
Eletrobras’s electric power distribution companies—including Celg-D—
operate in two states in the Northeast, four in the North and in the State
of Goiás, benefiting over 6.9 million consumers, equivalent to 8.5% of all
customers in the Brazilian territory. On December 31, 2015, these companies
used a low-, medium-, and high-voltage distribution network, extending
for 471,485 km and a total of 555 substations, spanning across 700
municipalities.
Key
Number of clients
100,000 a 500,000
500,001 a 900,000
900,001 a 1,300,000
1,300,001 a 1,700,000
Acima de 1,700,000
Market (GWh)
Abaixo de 2,000
2,001 a 3,000
3,001 a 4,000
4,001 a 5,000
5,001 a 6,000
Over 6,000
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES
88
System’s Physical Data – EDE Dec/2014
89
D
Description E
s
a
n
o
z
a
m
A
D
E
s
a
o
g
a
l
A
í
u
a
i
P
D
E
D
E
a
i
n
ô
d
n
o
R
e
r
c
A
D
E
D
E
a
m
i
a
r
o
R
D
-
g
l
e
C
l
a
t
o
T
The regulatory scenario in 2015 brought several uncertainties to the
electric power distribution sector because the regulation of the conditions
for extending distribution concessions did not occur before October. This
factor had a strong impact on investment funding. Except for Celg-D, all
other distributors were removed from the agenda of the 164th Extraordinary
General Meeting of Eletrobras Shareholders, held on December 28, 2015, as
requested by a representative of the Federal Government, with the purpose
of better analyzing the matter and the model to be adopted in case the
decision is made for an extension in distribution concessions. Therefore,
subsidiaries Eletrobras Distribuição Piauí, Eletrobras Distribuição Alagoas,
Eletrobras Distribuição Acre, Eletrobras Distribuição Rondônia, Eletrobras
Distribuição Roraima, and Eletrobras Distribuição Amazonas requested, on
December 28, 2015, for an extension in the deadline for the execution of the
addendum, under Provisional Measure 706, of December 28, 2015, granting
210 days after that date for the distributors to execute the addendum.
In addition to the uncertain decision on the extension of distribution
concessions, the mismatch between expenses from energy acquisition and
revenues had a negative impact on the cash flow of some distributors, in
certain cases preventing them from honoring important commitments,
including in the spot market of the Regulated Contracting Market of the
Electric Power Trading Chamber (CCEE).
Regarding the National Program for Universal Access to and Use of
Electricity (LPT - Light For All Program), in spite of the adverse conditions in
2015, distributors managed to serve 6,733 new clients, including: 1,117 rural
consumers in the state of Alagoas, 2,857 in Amazonas, 1,900 in Piauí, 1,028
in Rondônia, 277 in Acre, and 582 new units served by Celg-D, in a total
investment of R$184.7 million in the Light For All Program.
Nationwide consumption of electricity dropped 2.1% in 2015, according
to data by the Brazilian Energy Research Agency (EPE). In the same period,
the Eletrobras distribution companies (EDE) recorded an increase of 2.4% in
the captive market, supplying 29,517 GWh to 6,858,853 consumer units.
In 2015, 200,845 new units were added, an increase of 3.0% year-
over-year, reaching 700 cities in the states of Amazonas, Acre, Alagoas,
Piauí, Rondônia, Goiás, and in the city of Boa Vista. In order to achieve this
performance, distributors invested R$1.1 billion.
Distribution
Lines (230kV)
- km
Distribution
Lines (69 and
138kV) - km
MT (13,8 e
34,5kV) – km
Lines
Networks
374
0
0
0
0
0
348
1,818
2,696
696
417
71
30,091 21,918 62,053 50,517 14,794
2,108
BT – km
13,706 17,058 22,251
5,916
3,841
1,329
Total km
44,519 40,794 87,000 57,129 19,052
3,508
System’s Physical Data – EDE Dec/2015
D
Description E
s
a
n
o
z
a
m
A
D
E
s
a
o
g
a
l
A
í
u
a
i
P
D
E
D
E
a
i
n
ô
d
n
o
R
e
r
c
A
D
E
D
E
a
m
i
a
r
o
R
D
-
g
l
e
C
Distribution
Lines (230kV)
- km
Distribution
Lines (69 and
138kV) - km
MT (13.8 and
34.5kV) – km
Lines
Networks
390
0
0
0
0
0
348
1,827
2,824
806
442
72
33,527 22,467 62,371 50,665 14,891
2,132
BT – km
13,931 17,749 22,684
6,176
3,885
1,349
Total km
48,196 42,043 87,879 57,647 19,218
3,553
System’s Physical Data – YTD 2015
D
Description E
í
u
a
i
P
D
E
D
E
a
i
n
ô
d
n
o
R
e
r
c
A
D
E
a
m
i
a
r
o
R
D
E
D
-
g
l
e
C
Distribution
Lines (230kV)
- km
Distribution
Lines (69 and
138kV) - km
MT (13.8 and
34.5kV) – km
Lines
Networks
0
0
0
128
110
25
0
1
24
20
45
97
44
3,436
549
318
148
BT – km
225
691
433
260
Total km
3,677
1,249
879
518
166
* With the de-verticalization of Amazonas Energia, the transmission and generation assets no longer belong to Amazonas Distribuidora.
*
s
a
n
o
z
a
m
A
16
0
s
a
o
g
a
l
A
D
E
0
9
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
374
6,046
181,481
64,101
252,002
l
a
t
o
T
390
6,319
186,053
65,774
258,536
l
a
t
o
T
16
273
4,572
1,673
6,534
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES
90
91
Electric power trading by
distribution companies
Eletrobras distributors billed a total of 29,517 GWh in the captive
market in 2015, up 2.4% year-over-year, and 208 GWh in supply to other
distributors, representing a total market increase of 2.45%. This increase is
important because the country recorded a decrease of 2.1% in consumption
nationwide, as mentioned in chapter 3.1.
Eletrobras’s growth was positively impacted by the residential segment,
up 5.1%—this segment fell 0.7% nationwide—and the residential segment
accounts for 39.1% of the total energy supplied by the Eletrobras companies.
This is, therefore, an unbalance factor when consumption decreases. The
negative impact on consumption came from the industrial segment, down
5.5% for the Eletrobras companies, and down 5.3% in the country.
Another highlight was public lighting, which increased 7.9% due to the
re-registration actions for the public lighting sector.
Consumption class
Industrial
Residential
Commercial
Rural
Energy sold (MWh)
2015
2014
(%)
5,262,677
5,566,288
-5.45%
11,527,085
10,971,668
6,253,194
6,029,746
2,076,915
2,038,532
Public lighting
1,436,622
1,331,245
Other
2,960,647
2,886,727
Total captive consumers
29,517,140
28,824,206
Supply
Total
207,542
190,794
29,724,682
29,015,000
5.06%
3.71%
1.88%
7.92%
2.56%
2.40%
8.78%
2.45%
Quality of service
GRI G4-EU28, G4-EU29
The DEC (Equivalent Outage Duration per Consumer Unit) represents
the total number of hours during which a consumer unit experienced
power outage. The FEC (Equivalent Outage Frequency per Consumer Unit)
represents the frequency of disruptions to power supply.
The quality of service provided to customers by distribution utilities is
measured by ANEEL using the DEC and FEC.
In 2015, the Eletrobras distribution companies had a positive
consolidated result in the continuity index DEC of 1.2 hours when compared
with the previous year, going from 39.9 to 38.7 hours. In relation to the FEC
indicator, there was a consolidated decrease of 1.6 interruptions in the same
period, going from 26.9 in 2014 to 25.3 in 2015.
In spite of the delays in construction works to improve the electric
power network, given the difficulty to obtain investment resources in 2015,
some actions had a positive impact on these results. Some of them were
the construction and energizing of the new 138 kV circuits, expanding the
power at substations, contracting new live line maintenance teams for 13.8
to 138 kV voltages, replacement of obsolete equipment at substations and
distribution networks, installation of reclosers on the distribution network.
Equivalent Outage Duration
per Consumer Unit (DEC)
Total DEC Eletrobras (hour/year)
39.9
39.5
39.3
38.7
38.7
2015*
2014*
2013
2012
2011
Standard DEC / Source: ANEEL.
* Years 2014 and 2015 were consolidated with Celg-D figures; Celg-D is not consolidated in other years.
Equivalent Outage Frequency per Consumer
Unit (FEC)
Total FEC Eletrobras (Number of interruptions/year)*
31.4
31.5
27.7
26.9
25.3
2015*
2014*
2013
2012
2011
Standard DEC / Source: ANEEL.
* Years 2014 and 2015 were consolidated with Celg-D figures; Celg-D is not consolidated in other years.
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES
92
Distributors’ consolidated INAD (%)
93
Distribution losses
GRI G4-EU12
Loss in energy distribution, expressed in MWh, is defined as the difference
between the energy injected in the network of the distribution company
and the total energy sold and delivered. Losses can be either technical, that
is, losses in distribution inherent to the transportation process, voltage
transformation, and metering of energy in the utility company’s network;
or non-technical, that is, all other losses associated with distribution of
electricity, such as electricity theft or fraud, metering errors, billing errors,
and unmetered consumer units.
In 2015, all distributors but Eletrobras Distribuição Acre and Celg-D
recorded an increase in losses. Consolidated losses went up from 23.62% in
December 2014 to 24.69% in December 2015.
Eletrobras Consolidated
2015
2014
Technical losses
Non-technical losses
Total losses
9.57%
15.12%
24.69%
9.51%
14.11%
23.62%
Factors that contributed to this increase included the change in the
population’s behavior in the face of the rate increase, unfavorable economic
conditions, and the reduced payment capacity of residential clients—this
segment recorded an increase in illegal connections as a response to
suspended supply for late payment (combating delinquency).
In addition, several companies recorded delays in the Electric System
Construction Program, given the difficulty to obtain financing in the scenario
of uncertainty regarding the extension of the concessions, making actions
to combat non-technical losses not enough to reach the regulatory level of
losses.
Actions to regularize and inspect consumer units where electricity theft
or fraud occur, and investments in network infrastructure allow for an
improvement in the quality of the service provided, as well as its continuity
and safety, contributing to reduce global losses. Out of a total of 87,157
illegal consumer units, 12% of the goal has been met, with financial
execution of 21%, and completion expected for 2017.
Delinquency
The main indicator that measures delinquency in the Eletrobras
Distribution companies, the Delinquency Index (INAD), is obtained by
dividing the Active Delinquency by Annualized Revenues, as shown in the
chart. The different consumer categories showed a sharp improvement in
non-delinquency as a result of a more effective collection process, through
operational actions, such as disconnection of consumer units for lack of
payment, installment plan to settle outstanding debts, legal actions, and
other penalties.
In spite of the adversities in 2015, including the economic crisis, and high
electricity rates because of the water crisis, which created an unfavorable
condition for collection and consequent resource flow problems, preventing
the hiring of disconnection teams to handle delinquent clients, the INAD
improved from 11.29% in 2014 to 10.39% in 2015. This improvement was
due to the rise in revenue in 2015, due to extraordinary revisions, time-of-
use rates, annual adjustments, and consolidation of Celg-D in 2015.
Class
2015
20 14
2013
2012
2011
Residential
8.51%
8.67%
67.11
12.61
Commercial
6.33%
6.73%
Industrial
5.29%
6.62%
Rural
9.64%
10.42%
Government
34.46%
33.83%
8.14
13.35
23.19
16.15
9.46
17.20
36.07
20.22
10.10
10.27
24.37
44.01
23.64
Difference
2015x2014
-0.16
-0.40
-1.33
-0.77
0.62
Utilities
Public
lighting
Other
Total
46.84%
65.24%
101.06
107.63
128.76
-18.40
17.75%
14.21%
4.96%
12.25%
10.39%
11.29%
10.46
15.54
22.41
22.46
11.95
17.29
27.62
16.81
18.95
3.54
-7.29
-0.91
Distributors’ consolidated revenue (R$ thousand)
Class
2015
2014
2013
2012
2011
2015x2014
% change
Residential
7,284,899
5,069,994
451,414 2,848,049 2,297,026
Commercial
3,914,012
2,610,829 1,423,912 1,620,771 1,308,353
Industrial
2,587,238
1,790,862
842,854 1,077,049
945,200
Rural
840,267
533,515
180,087
201,491
157,513
Government
Utilities
Public
lighting
Other
Total
950,903
723,645
654,414
628,519
472,730
463,503
309,259
185,543
221,117
175,695
566,446
341,376
211,384
167,258
136,623
114,223
76,812
49,218
68,054
52,084
16,721,491 11,456,292 3,998,825 6,832,308 5,545,225
43.7%
49.9%
44.5%
57.5%
31.4%
49.9%
65.9%
48.7%
46.0%
Distributors’ consolidated delinquency (R$ thousand)
Class
2015
2014
2013
2012
2011
Residential
620,219
439,524
302,962
359,118
232,059
Commercial
247,645
175,671
115,965
153,288
134,395
Industrial
136,820
118,502
112,485
185,212
230,392
Rural
81,038
55,578
41,757
72,683
69,317
Government
327,663
244,844
105,699
127,106
111,757
Utilities
217,088
201,748
187,511
237,998
226,225
2015
vs. 2014
change (%)
41.1%
41.0%
15.5%
45.8%
33.8%
7.6%
Public lighting
100,533
48,516
22,113
37,566
37,732
107.2%
Other
Total
5,668
9,409
7,649
8,131
8,757
-39.8%
1,736,673 1,293,792
896.142 1,181,101 1,050,635
34.2%
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES 94
95
Research and
Development
GRI G4-DMA (antigo EU8)
The pursuit of new ways of doing business and becoming increasingly
more efficient in power generation, transmission, and distribution has
always been the driving force of the Eletrobras companies. The commitment
to explore ideas to access new markets and reinforce its presence where it
already operates is part of the pursuit of sustainability in its operations and
of improved results for the company.
All of the Eletrobras companies make annual investments in internal
research and development and publish call for submissions of proposals
and projects for their scientific research and technological development
programs. Since 2009, they have complied with the guidelines of the
corporate Research, Development, and Innovation Policy and addressed this
topic as a short-, medium-, and long-term corporate strategy. Thus, they
strive to reach—and achieve—results that add competitive advantage and
are critical elements to combine sustainable business growth with social and
environmental responsibility.
In 2015, the company invested R$ 223.7 million in R&D, up 12.3% year-
over-year. The table below shows how much each Eletrobras company
invested in research and development.
Investments in research and development*
Company
Amount invested
Holding
Amazonas Energia (without G&T)
Cepel
Chesf
Acre
Piaui
Eletronorte
Eletrosul
Furnas
Itaipu
CGTEE
Alagoas
Rondônia
Total invested
R$1,963,617.85
R$3,217,605.20
R$146,719,334.56
R$6,500,000.00
R$1,191,991.75
R$2,855,006.43
R$16,530,489.72
R$61,104.51
R$16,386,358.70
R$23,867,875.96
R$54,015.50
R$3,579,063.15
R$743,647.57
R$223,670,110.90
* Eletrobras is released from this commitment under Law 8,987/95, and Eletropar is not a utility company. Amazonas G&T started operating in
7/1/15, reason why it has not developed any P&D project.
P&D project highlights
Holding
In 2015, the holding supported the following energy efficiency P&D
projects from the Technological Development Fund (FDT), through
the National Program for the Conservation of Electricity (Procel), in an
investment of R$ 1,963,617.85.
{ Federal University of Santa Catarina (UFSC) / Feesc: technical support
to the building labeling program by creating the embryonic nucleus of
the Brazilian Center for Energy-Efficient Buildings (CB3E).
{ Federal University of Rio Grande do Norte (UFRN) / Funpec: technical
and financial cooperation for the development of the Energy-Efficient
Buildings Network (R3E). The works consist basically of integrating
the parties through video conference, developing an electronic
environment for concentrating content on energy-efficient buildings,
and building labeling.
{ Federal University of Itajubá (Unifei) / Fapepe: technical and financial
cooperation among the members for integrating efforts and capacity
in the implementation—through Procel—of actions to supplement
the infrastructure of the Didactic and Pedagogical Energy Efficiency
Lab of the Center for Excellence in Energy Efficiency (Excen). The lab
provides technical qualification and professional certification on
energy efficiency, and develops technical research and disseminates it
in seminars focusing on Metering & Verification (M&V). It also focuses
on perfecting the methodology for assessing the results of Procel, and
expands its actions into new concepts.
The agreements that use FDT resources for energy-efficient actions are
managed by Eletrobras through the monitoring of the physical and financial
schedule.
Eletrobras Amazonas Energia
In 2015, Eletrobras Amazonas Energia invested nearly R$ 3.2 million in
research and development projects. The highlights were the following:
{ Voltmeter, Ammeter, Wattmeter Plier (AVAW) for the low and medium
voltage distribution network up to 35kV;
{ Mini-station for disposal, treatment and reuse of lubricant oils at
thermal power plant in the interior of the state of Amazonas;
{ Universal Anti-Fraud Shielding System for electric power meters;
{ Development of a smart system to determine the harmonic impacts of
multiple industrial consumers on electric power distribution networks;
{ Market recovery – safe energy with theft inhibit systems; and
{ Evolution of the proof of concept of the Parintins Smart Grid Project:
analysis of the inter-operability of telecommunications and AMI
network, telecommunication network management, and assessment of
the photovoltaic generation.
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES
96
97
Eletrobras Eletrosul
In 2015, Eletrobras Eletrosul invested nearly R$ 61,100 in research and
development projects.
The Research and Development Advisory department (APD) manages the
R&D resources. Based on the corporate strategic plan, the lines of research
are determined to guide the projects. All employees can contribute ideas to
the development of the projects. Eletrobras Eletrosul has an R&D committee
that periodically evaluates project proposals and chooses the ones that
can be developed. The APD manages this whole process of selecting ideas,
formatting projects, proposing the contracting of projects, and submitting
them to the Board of Executive Officers. The final decision of contracting an
R&D project is made by the company’s Board of Executive Officers.
The resources allocated to each project depend on each theme’s specifics,
time of execution, the team involved, and the potential return of each
project. This analysis is taken into account when formatting a project. The
projects completed in 2015 and included in the previous categories are the
following: Magnus Hydropower Turbine; Project for a Network of Passive
Sensors for Measuring Equipment Integrity in Wireless Energy Transmission
Systems; Development of Biodigestion Technology for Processing
Agricultural Waste that Matches the Brazilian Rural Context; Development of
a Microbial Fuel Cell for Distributed Electricity Generation.
Eletrobras Chesf
In 2015, Eletrobras Chesf invested nearly R$ 6.5 million in research and
development projects. The highlights were the following:
{ Photovoltaic plant of the solar platform in Petrolina;
{ From the idea to the market: developing and implementing an
innovative methodology that ensures a systematic and continual value
creation process in R&D+I projects for Chesf;
{ Non-destructive and micro-mechanic techniques applied to the study
of alkali aggregate reaction (AAR) mitigation;
{ Development of a Methodology for the Electric-Energy Integrated
Planning for the Northeast (DMPIER);
{ Environmental management system supporting geospatial data,
multimedia, and mobile devices;
{ Geometrology system: detection, processing, analysis and monitoring
of hydropower use at Eletrobras Chesf’s structures; and
{ Transmission lines’ controlled switching.
Eletrobras Acre
In 2015, Eletrobras Acre invested nearly R$ 1.2 million in research and
development projects. The highlights were the following:
{ System prioritizing MV / HV expansion plans - 2012/2015; Analytical
intelligence system of the electric power sector (ANEEL priority) -
2014/2015; and
{ Universal anti-fraud shielding system for meters - 2013/2015.
Eletrobras Piauí
In 2015, Eletrobras Piauí invested nearly R$ 2.9 million in research and
development projects. The highlights were the following:
{ Methodology for calculating and managing losses in electric power
distribution networks;
{ Electric power management system based on energy efficient
indicators;
{ Reactive energy and harmonics offsetting to improve the energy
efficiency of distribution networks;
{ Integrated system for continued evaluation of the grounding
system’s safety at energized substations subject to lightning strikes;
Methodology for optimized allocation of electric power quality
monitors in distribution systems;
{ Market recovery – safe energy with theft inhibit systems; and
{ Development of an environment-friendly triphasic recloser.
Eletrobras Eletronorte
In 2015, Eletrobras Eletrosul invested nearly R$ 16.5 million in research
and development projects. The Management of Innovation in Technology
and Energy Efficiency is based on three programs, managed by a
superintendent based in Brasilia:
{ The Eletronorte Research and Development Program (PEPD), whose
goal is to manage technological innovation;
{ The Eletronorte Intellectual Property Program (PEPI), which seeks to
create a culture of innovation at the company; and
{ The Eletronorte Energy Efficiency Program (PEEE), whose goal is to
develop actions to fight electricity waste and reduce its cost, through
energy-efficient programs and projects.
The resources used to support, fund and promote innovation at
Eletronorte may be compulsory resources form Law 9,991/00, or optional
resources targeted at innovative technological solutions developed by
employees, and resources for the acquisition of innovation that is original
only for Eletrobras.
Sources of optional resources include company or external resources
through the Studies and Projects Funding Entity (FINEP). Resources passed
through to the Electric Power Research Center (CEPEL) can be used to
execute research projects that have a systemic vision for Eletrobras
companies, and lab tests for R&D+I projects.
Eletronorte’s Technological Innovation Master Plan (PDIT) is a funnel
of ideas whose output is innovation, and it is responsible for orienting the
company’s R&D+I investments and adapt them to its strategy.
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES 98
99
Eletrobras Furnas
In 2015, Eletrobras Furnas invested nearly R$ 16.4 million in research and
development projects. The highlights were the following:
{ Coconut fiber biomats - environmental use;
{ High performance fiber concrete
{ Rheology applied to HPP concrete;
{ Comp. analysis of fragments and reforestation;
{ Tip vortex cavitation;
{ Atmospheric numeric modeling platform;
{ Influence of network tanks on sediment;
{ Structures modeling and optimization;
{ Monitoring of erosion processes;
{ Use of TFV generation synchronous machines;
{ Photovoltaic plant - Jaiba;
{ LAB UAT;
{ Energy generation using pyrolysis;
{ Offshore wave energy converter;
{ Electric traction vessels;
{ Electric traction buses;
{ Strategic planning of new technologies for Smart Grid operation;
{ Wind turbine with folding and articulated blades;
{ Automation and monitoring of dams’ safety;
{ Methodology - projects optimization;
{ Analysis of the macro-turbulence on stepped spillways;
{ System for analyzing and forecasting the analytical matrix of risks to
generation and transmission;
{ Engineering regulation aspects; and
{ Economic regulation aspects.
Itaipu Binacional
In 2015, Itaipu Binacional invested nearly R$ 23.9 million in research and
development projects. The highlights were the following:
{ Distributed energy: research on the scientific and technological
methodology for distributed generation with environmental
improvement;
{ Distribution and transmission technologies: specialized development
of research, and testing of the dynamic performance of equipment and
systems associated with electric power generation, transmission, and
distribution. A digital platform simulates electric systems in real time,
and is dedicated to the real-time testing of the control and protection
of power systems; to studying the transitory, dynamic and permanent
behavior of power systems, supervisory systems; and to power
management and automation systems;
{ Renewable energy technologies: research, and management and
accreditation of Biogas labs; research and operationalization of the
Hydrogen Production Plant in a pilot scale; support to the development
of sodium batteries;
{ Dams’ safety: development of Applied Research in Dam’s Safety
through a center for studies on the behavior of these structures and
their materials, to evaluate the results of the past measurements,
to evaluate the correlation between the measurements made and
the probable causes, and developing computational intelligence
techniques relating to the behavior and safety of dams.
Eletrobras CGTEE
In 2015, Eletrobras Eletrosul invested nearly R$ 54,000 in research
and development projects. The company continued executing the R&D
agreements of the following projects: Microalgae, Air Quality, and CCR. It
also started executing the Burn numeric modeling project, with no cost for
CGTEE.
Seven project proposals are being contracted relative to Public R&D Call
CGTEE 2014:
{ Elastomer (using the ashes of the Candiota Plant);
{ Selenium in the Environment;
{ Microgenerator (using residual energy);
{ Mercury (diagnosis and minimization of mercury in electrostatic
precipitators and in the desulfurizer of the Candiota Plant);
{ Solar energy (development of an integrated system for converting and
storing solar power);
{ Gasification (of the coal of Candiota); and
{ Capturing CO2 (post-combustion of mineral coal and synthesis of
zeolites and pilot plant testing).
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES 9
-
4
G
I
R
G
e
c
n
a
m
r
o
f
r
e
p
l
a
i
c
n
a
n
fi
d
n
a
c
i
m
o
n
o
c
E
Selected image from the photo contest
“Eletrobras Employees at the Olympic Sports”
Employee
Vania Elza de Farias, Eletrobras
Eletrosul
(Photo: Bóris Machado Corrêa)
103
Eletrobras recorded net loss attributed to controlling shareholders of
R$ 14,442 million in 2015, versus net loss of R$ 3,031 million in 2014. This
result was influenced by the following factors:
{ Provision for contingencies in the amount of R$ 7,084 million, including
a provision for a R$ 5,283 million compulsory loan and adjustments in
amounts referring to lawsuits involving Eletrobras Furnas, Chesf, and
Eletronorte;
{ Impairment of R$ 5,991 million, influenced by the impairment at
thermal-nuclear power plant Angra 3 in the amount of R$ 4,973
million; and
{ Losses recorded by the distribution companies in the amount of R$
5,195 million in 2015.
In addition to the abovementioned factors, the result for 2015 was also
impacted by the following variables:
{ Reduction of 53% on energy
sales revenue at Câmara de
Comercialização de Energia
Elétrica (CCEE);
{ Expenses related to energy
purchased for resale in the
amount of R$ 10,766 million;
and
{ Reduction in compensations
of the 1st installment of
Law 12,783 / 2013, which
showed a variation of 89%
due to the decrease in the
balance of payments from
the 1st installment and to
the recalculation of interest
and updates of compensatory
credits.
{ Reversal of provision for losses
in investment, amounting
to R$611 million, mainly
influenced by the reversal
of R$ 1,100,499 relating
to a lawsuit involving ICMS
liabilities, due to a court
decision in favor of subsidiary
Amazonas Energia;
{ Increase of 22.5% in operating
and maintenance revenue in
the transmission segment;
{ Improvement of 146% in the
results of equity investments;
and
{ Itaipu allocation of R$234
million;
{ Positive effect related to the
Conta de Compensação de
Variação de Valores de Itens
da “Parcela A” – CVA (Variation
Compensation Account of
Items of “Portion A” – CVA), in
the amount of R$324 million.
2015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES 104
105
Operating revenue
G e n e r a t i on
s
e
u
er Reve n
h
t
O
Revenue
by business
segment
n
o
i
t
u
b
i
r
t
s
i
D
60%
13%
23%
4%
Transmission
Net Operating Revenue of R$ 32,589 million in 2015, an increase of 8.1%
compared to the R$ 30,138 million in 2014. Broken down by segments, the
highlights were the following:
{ Generation revenues decreased by 6.1% to R$ 19,959 million in 2015,
down from R$ 21,256 million in 2014. This was due to the reduction
in revenue from the sale of energy in the spot market (CCEE), and the
decrease in revenue from supply of the Eletronuclear subsidiaries, due
to the scheduled shutdown of Thermal-nuclear Power Plant Angra
2 in October 2015, and CGTEE, due to the reduction in its plants’
generation. Sale of energy in the spot market went down from R$
3,818 million to R$ 1,812 million, especially due to the sale of energy
by subsidiaries Furnas and Eletronorte in the A-1 Auction, in 2014,
and the reduction in the Difference Settlement Price (PLD) in 2015.
The reduction in sales at the CCEE was partially offset by the increase
of 1.1% in revenue from supply, up from R$ 12,175 million to R$
12,310 million, mostly due to the effect of the sale of energy at the A-1
Auction, where long-term energy was sold at an average rate above
the current market value. Revenue from supply increased by 7.7% to R$
3,572 from R$ 3,317 million in 2014. Revenue from construction has an
equivalent amount recognized at construction cost.
{ Revenues from transmission were up 20.2%, from R$ 4,702 million in
2014 to R$ 5,611 million in 2015, mostly influenced by the increase of
22.5% in revenues from operation and maintenance, and the rise of
17.3% in the return rate adjustment. This is mostly due to the inflation
adjustment in the Allowed Annual Revenue (RAP), and the deployment
of new investments. Revenue from construction went up from R$ 1,786
million in 2014 to R$ 2,078 million in 2015, with no effect in profit or
loss because an equivalent amount is recognized as construction cost.
{ Distribution revenues increased by 97% to R$ 16,171 million in 2015,
up from R$ 8,184 million in 2014. Net of revenues relative to Celg-D,
distribution revenues increased by 26.2% to R$ 8,193 million in 2015,
up from R$ 6,491 million in 2014. The increase in revenue from supply
is mostly due to the implementation of time-of-use rates, which on the
other hand increase sector charges. Net of revenues relative to Celg-D,
revenues from supply increased by 5.2% to R$ 7,689 million in 2015,
up from R$ 7,310 million in 2014. Revenue from construction has an
equivalent amount recognized as construction cost.
Net Operating Revenue
Generation – Supply
Generation – Supply
Generation – CCEE
Generation – Operation and maintenance revenue
Generation – Construction revenues
Generation – Itaipu transfer (see II.3.a)
Transmission – Operation and maintenance revenue
Transmission – Construction revenue
Transmission – Return rate adjustment
Distribution – Supply
Distribution – Construction revenues
Distribution – CVA and other financial components
Other revenues
Total
(-) Deductions from revenue
Net Operating Revenue
2015 (R$
million)
2014 (R$
million)
12,310
12,175
3,572
1,812
1,883
148
234
2,696
2,078
838
14,835
1,012
324
1,484
43,226
-10,637
32,589
3,317
3,818
1,803
240
-98
2,201
1,786
714
7,310
873
38
1. 339
35,519
-5,381
30. 138
Financial result
The net financial result went down from net revenues in the amount of R$
695 million in 2014 to net expenses of R$ 1,699 million in 2015. Net of the
financial result from Celg-D, the financial result was an expense of R$ 833
million in 2015, versus revenue of R$ 823 million in 2014. This result is due to
the rise in debt costs, up from R$ 3,449 million in 2014 to R$ 6,340 million in
2015, influenced by interest rates and late payment charges relative to the
debt of the distributors with fuel suppliers due to the receiving of sector fund
credits from the Fuel Consumption Account (CCC). Payment of compensation
of the first tranche of Law 12,783/2013 went from a positive amount of R$
1,019 million in 2014 to a positive amount of R$ 115 million in 2015, due to
the reduction of the balance deriving from first tranche payments, and the
recalculation of interest and adjustment of compensatory credits.
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES 106
107
Consolidated Result
Net Income
2015
2014
Net Operating Revenue
Operating Costs
Energy purchased for resale
Use of the electricity grid
Fuel for electricity production
Construction
Gross income
Operating Expenses
Personnel, material and services
Remuneration and reimbursement
Depreciation and amortization
Other expenses
Equity interest
Operating provisions
Income from interest and financial investments
Inflation adjustment
Exchange rate variation
Debt charges
Charges on shareholders’ funds
Compensation referring to Law 12,783/2013
Other financial results
Income tax and social security
Net income for the period
Minority interest
Consolidated net income
32,589
30,138
-10,766
-10,425
-1,738
-1,250
-3,238
15,597
-9,495
-349
-1,843
-2,347
1,563
531
-14,639
-12,545
2,251
2,403
33
-1,523
-1,480
-2,900
13,810
-8,485
-387
-1,777
-2,146
1,015
-1,217
-1,755
-1,957
2,092
346
296
-6,340
-3,449
-41
115
-120
-14,244
-710
-14,954
-512
-14,442
-87
1,019
478
-1,262
-1,701
-2,963
69
-3,031
Earnings Before
Interest, Taxes, Depreciation
and Amortization (EBITDA)
EBITDA was a loss of R$ 10,702 million in 2015, with a negative margin of
33%, down 32 p.p. year-over-year. Adjusted EBITDA improved compared to
2014, and closed 2015 with a positive result of R$ 2,853 million.
Consolidated EBITDA (R$ million)
2015
2014
Income for the year
-14,954
-2,963
(+) Provision for income tax and social security
(+) Financial result
(+) Depreciation and Amortization
(=) EBITDA
ADJUSTMENTS
Loss from investments
Onerous contracts
Provision for losses from financial assets
Impairment
Provision for contingencies
Allowance for losses with property, plant and
equipment
Provision for doubtful accounts
PID
= Adjusted EBITDA
710
1,699
1,843
-10,702
-611
366
0
5,842
7,084
0
659
214
2,853
1,701
-695
1,777
-180
-314
-1,800
-792
149
3,656
235
-185
380
1,150
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES
108
Segment reporting
Below is the result by business segment for 2015 and 2014.
“Eliminations” refer to intercompany transactions that are subtracted from
the consolidated profit or loss of Eletrobras.
Result by business segment (R$ million)
Results
t
n
e
m
e
g
a
n
a
M
Generation
Transmission
n
o
i
t
a
r
o
p
x
E
l
M
&
O
n
o
i
t
a
r
o
p
x
E
l
M
&
O
n
o
i
t
u
b
i
r
t
s
i
D
s
n
o
i
t
a
n
m
i
i
l
E
t
a
s
A
5
1
0
2
/
1
3
/
2
1
Net Operating Revenue
348
16,494
1,748
1,839 3,826
10,352 -2,018
33,589
Operating Costs and Expenses
-11,819 -21,212
-1,587 -3,254 4,008 -10,270
7,484 -45,665
Operating Result Before Financial
Result
Financial Result
Equity interest
-11,471
-5,718
161 -1,415
-182
82
5,466 -13,076
3,958
-2,361
-657
-573
-241
-1,752
-74
-1,699
Income tax and social security
-871
-127
-6,092
-
-
0
-
257
-
20
-
6,623
531
11
-
-710
Net profit (loss) for the period
-14,475
-8,206
-496 -1,731
-404
-1,658 12,016 -14,954
Result by business segment (R$ million)
Results
t
n
e
m
e
g
a
n
a
M
Generation
Transmission
n
o
i
t
a
r
o
p
x
E
l
M
&
O
n
o
i
t
a
r
o
p
x
E
l
M
&
O
n
o
i
t
u
b
i
r
t
s
i
D
s
n
o
i
t
a
n
m
i
i
l
E
t
a
s
A
4
1
0
2
/
1
3
/
2
1
Net Operating Revenue
82
18,266
1,555
1,998
2,979
6,664 -1,407
30,137
Operating Costs and Expenses
6,075
-14,030 -1,756 -1,912 -2,792
-6,457
2,143 -30,877
Capital markets
109
On December 31, 2015, Eletrobras’s capital stock was R$ 31,305,331
thousand, represented by 1,352,634,100 shares, according to the table
below.
The company’s common shares are listed on the BM&FBovespa São Paulo
Stock exchange under ticker ELET3, and its preferred class B and A shares
are traded on BM&FBovespa under tickers ELET6 and ELET5 respectively. On
the New York Stock Exchange (NYSE), the shares are traded through the ADR
Level II Program, under ticker codes EBR and EBR-B. On the Madrid Stock
Exchange, the shares are traded through the Latibex Program, under ticker
codes XELTO and XELTB.
Shareholders
Common
Pref. “A” (%)*
Pref.“B” (%)*
Total (%)
Controlling shareholder
826,022,020
76%
Federal Government
554,395,652
51%
BNDESpar
141,757,951
13%
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
45,705,317
17% 871,727,337
63%
1,544
0% 554,397,196
41%
18,691,102
7% 160,449,053
11%
18,262,671
0
0
0
0
8,750,000
7%
0%
0%
0%
3%
92,807,935
45,621,589
1,000,000
8,701,564
8,750,000
6%
3%
0%
1%
1%
74,545,264
45,621,589
1,000,000
8,701,564
-
7%
4%
0%
1%
-
CBLC Custody
259,494,572
24% 81,384
55% 206,903,805
78% 466,479,761
35%
261,028,277
24% 146,920 100% 219,731,566
83% 480,906,763
37%
124,893,621
11% 81,383
55% 90,516,497
34% 215,491,501
16%
53,229,265
81,371,686
6%
7%
1
0
0% 95,124,435
36% 148,353,701
11%
0% 21,262,873
8% 102,634,559
1,533,705
0% 65,536
45% 12,827,761
1,533,459
0% 65,509
45% 12,827,548
Non-Resident
246
0%
27
0%
213
5%
5%
0%
14,427,002
14,426,516
486
8%
2%
2%
0%
BNDES
FND
FGHAB
CEF
FGI
Non-controlling
shareholder
Resident
Non-Resident
ADR Program
Other
Resident
-5,993
4,236
-200
87
188
208
736
-740
Total
1,087,050,297 100% 146,920 100% 265,436,883 100% 1,352,634,100 100%
2,463
-1,280
420
-271
-30
-596
-12
695
* The company’s preferred shares do not have tag along rights.
Operating Result Before Financial
Result
Financial Result
Equity interest
Income tax and social security
-242
-2,690 -1,309
3,422
-904
-1,484
-
-
-
-
-
22
268
-1,217
-
-1,701
Net profit (loss) for the period
-5,256
265 -1,089
3,239
-746
-367
991
-2,963
Consolidated debt
Net debt
2015
2014*
Financing payable + Debentures - (RGR)
40,521
32,877
Cash + Securities
Financing receivable - (RGR)
Net Debt
* Rectified using the new methodology
8,432
15,353
16,737
5,362
12,093
15,422
In 2015, there was no material change in the Eletrobras’s capital stock
breakdown, such as increase, stock split, reverse stock split, bonus, or
reduction.
Outstanding shares
Number of outstanding shares
Base date: 12/31/2015
Amount
(Units)
ON
PNA
PNB
Individual shareholders
82,581,236
34,769,273
88,369
47,723,594
Corporate shareholders
1,019,064,118
917,679,827
58,523
101,325,768
Institutional investors
250,988,746
134,601,197
28
116,387,521
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES
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Value-Added Statement
GRI G4-EC1
In 2015, the value added to shareholders recorded a negative variation
of R$ 11,991 million, down from a negative R$ 2,963 million in 2014 to a
negative R$ 14,954 million in 2015. The increase of R$ 15,103 in amounts to
third parties mainly reflects:
{ The foreign exchange impact on the foreign currency-denominated
debt, reflecting on the “Loss from foreign exchange variation” account
(increase of R$ 7,220 million);
{ Debt charges (increase of R$ 2,892 million), due to a higher
indebtedness and the adjustment of debts with fuel suppliers and CDI.
The increase of R$ 2,956 million in taxes derives from the rise in taxes on
revenue, especially due to the revenue from the distribution segment, which
increased 97%, from R$ 8,183 million in 2014 to R$ 16,171 million in 2015,
strongly influenced by the acquisition of Celg-D.
Value added statement (R$/million)
6
6
8
9
1
,
3
6
7
4
,
3
3
0
9
,
7
7
0
6
,
Third Parties
Taxes
5
0
0
6
,
9
0
6
5
,
0
1
Personnel
4
5
9
4
1
-
,
3
6
9
2
-
,
Shareholders
2015
2014
The 7.1% change in the personnel account—up from R$ 5,609 million
in 2014 to R$ 6,005 million in 2015—is in line with inflation for the period,
reflecting the salary adjustment (collective bargaining), PID of Eletronuclear,
and other factors. Without Celg-D, the personnel account was up by only 1%.
This increase in amounts to third parties was offset by:
{ An increase in financial income (R$9,252 million), mostly in the “Gains
from foreign exchange variation” account (R$6,958 million) due to
Itaipu’s receivables, and the “Gains from inflation adjustment” account
(R$2,923 million) for the adjustment of receivables and credits from
sector funds;
{ Increase in revenue from distribution.
Therefore, the change of R$ 11,991 million for Eletrobras’s shareholders
is mostly explained by the increase in provisions, including:
{ Legal contingencies (compulsory loan and other), in the amount of R$
7,084 million; and
{ Impairment of R$ 5,991 million (including R$ 4,973 million of Angra 3).
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 2015 e
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Employees
Eletrobras understands its employees are key for the company’s results
and success. The Eletrobras People Management Policy sets the guidelines
for providing an appropriate environment for developing, valorizing, and
retaining people.
The company promotes actions that improve the work conditions and
quality of life of its employees, and it goes beyond law requirements in
offering a series of benefits and types of leave agreed upon on the Labor
Collective Bargaining, usually negotiated every year. Eletrobras also offers
benefits for employees’ dependents, proving that caring for quality of life is
more than worrying about the workplace.
Because it is a government-controlled corporation, Eletrobras must hire
its employees through public service exams, under the Federal Constitution
of 1988.
Whenever it decides to call a new public exam, the People Management
department checks with all other departments for their demand for
professionals. The desired disciplines are chosen by Eletrobras, but the
content of the exam is chosen by the institution contracted to organize
it, which is approved by Eletrobras. The exams usually have an estimated
number of positions plus a reserve for future calls, as necessary, for the
exam’s duration.
Recruiting focuses on knowledge, based on the result of the exam. The
company analyzes the profile of the candidate to choose where they will be
allocated to.
Professional profile
GRI G4-9, G4-10, G4-LA12
Selected image from the photo contest
“Eletrobras Employees at the Olympic Sports”
By gender
Men
employees:
19,069 (81%)
contractors:
2,811 (80%)
employees:
4,464 (19%)
contractors:
701 (20%)
Women
W h i te
Bla c k
s
u
Y e lll o w
o
Indig e n
t infor m
o
N
e d
By
race/
color
Brown
By age
-30
years
old 1,666 7.1%
30
a 50
years
old 12,394 52.7%
+50
years
old 9,473 40.2%
13,694 (58.2%)
7,828 (33.2%)
1,150 (4.9%)
215 (0.9%)
91 (0.4%)
555 (2.4%)
By region
4,858
(21%)
1,812
(7%)
3,358
(14%)
7,234
(31%)
6,271
(27%)
Employee
Terezinha Maria Vieira,
Eletrobras Eletronorte
(Photo: Rogerio Soares Carvalho Silva)
By type of employment
By employment contract
3,561 (15%) part time
19,972 (85%) full time
100% for
undetermined time
2015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES 116
Turnover
Turnover is low at Eletrobras, with few employees leaving the company,
and has remained nearly unchanged for the past few years, according to the
table below.
Turnover Rate¹
Companies
2015
2014
2013
Holding
Cepel
CGTEE
Chesf
Eletronorte
Eletronuclear
Eletrosul
Furnas
ED Acre
ED Alagoas
Amazonas*
ED Piauí
ED Rondônia
ED Roraima
Itaipu
Total of all Eletrobras companies
¹ Refers to the admissions-to-dismissals ratio.
* The percentage of Amazonas refers to Amazonas Energia (D) and Amazonas GT.
1.10%
6.10%
0.70%
0.40%
0.30%
0.60%
1.20%
0.80%
1.40%
4.80%
0.40%
2.20%
0.80%
1.30%
3.50%
1.50%
1.70%
6.20%
4.50%
2.70%
0.50%
1.90%
2.00%
1.10%
2.90%
1.10%
0.70%
1.20%
1.50%
5.00%
1.40%
1.70%
1.60%
1.20%
2.50%
2.40%
0.50%
1.30%
0.30%
1.00%
2.40%
2.80%
3.50%
6.60%
0.40%
1.50%
3.50%
1.66%
Employee health and safety
Eletrobras manages occupational health and safety issues by
anticipating, recognizing, assessing, and controlling occupational risks in the
workplace, and promoting the health of its employees.
G4-LA8
Every year Eletrobras negotiates Collective Bargaining agreements, including
health and safety issues. In 2015, the key aspects addressed in the agreements
were the following:
• Maternity protection, reducing daily work hours by up to two hours for
up to 180 days after the maternity leave.
• A leave is granted for the employee to accompany their spouse,
first degree relatives, children, and health insurance dependents in
hospitalizations for illness, surgery, home recovery, and/or emergencies.
• Leave for death of stepmother or stepfather in the same conditions as in
the death of mother and father.
• Pay supplement, including in the thirteenth salary, for employees on
leave, in the amount corresponding to the difference between their
monthly pay and the Social Security benefit received as health assistance
or occupational accident allowance.
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Medical exams, and occupational accident and disease prevention
programs are promoted every year. The company also counts on the
exclusive dedication of professionals of the Specialized Occupational Health
and Safety Engineering Service (SESMT) in the companies’ facilities and/or
strategic situations.
In July 2015, the Unified Prevention Campaign was carried out on
the National Occupational Accidents Prevention Day, focusing on
transportation; each company addressed the matter with employees.
Employee work conditions and well-being is part of the Eletrobras
companies’ Sustainability Policy, and are enforced through the Occupational
Health and Safety Policy, focusing on preventing accidents and occupational
disease, in line with legal and regulatory requirements.
In 2015, the holding complied with environmental risk and
dangerousness rules, and monitored employees that carry out external
activities and construction work, projects and or service inspection. It also
maintained the ergonomics committee, and extended the Occupational
Safety and Ergonomics Programs to the offices in Brasilia.
Every year, all Eletrobras companies report on occupational risks and
take necessary precautions. The Environmental Risks Prevention Program
(PPRA) identifies, assesses and creates actions to neutralize the potential risk
of accidents, disease and/or unfavorable workplace conditions, which are
disclosed to all employees, contractors, and staff.
Eletrobras Eletronuclear uses specific tools and controls to identify and
monitor workplace risks relating to nuclear energy, in order to prevent
significant negative impacts. The company uses state-of-the-art technology,
and has safety and emergency plans in place.
In addition to the SESMT, the Eletrobras companies also have Internal
Accident Prevention Committees (CIPA). CIPA’s mission is to prevent
occupational accidents and diseases, in order to align work with the
preservation of life and promotion of occupational health. The Internal
Accident Prevention Week (SIPAT) is promoted at least once a year.
Quality of life
Eletrobras’s different quality-of-life programs focus on preventing
disease and promoting the health and quality-of-life of its employees,
including actions for reducing chronic disease risk factors, encouraging
the practice of exercises and promoting healthy eating habits, team spirit,
and integration among employees. Therefore, the programs add value
for occupational quality of life, and support the employees eligible for
retirement.
In 2015, Eletrobras conducted the 1st Occupational Quality of Life
Unified Survey, prepared by the Quality-of-life Work Group as part of the
Transformation Plan of the Eletrobras Companies.
The goal of the action was to check the perception of the employees
regarding their occupational quality of life and promoting improvement
actions aligned with organizational goals. The survey had 32 questions
divided into four scopes: biological, psychological, social, and organizational.
Based on the answers from 5,183 employees, Eletrobras calculated that the
occupational quality of life ratio is 62 (on a scale from 0 to 100).
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Other actions carried out in 2015 included the following:
{ Presentations of the holding’s and Eletrobras Cepel’s choirs
{ Employees of the holding, Eletrobras Cepel, Eletronuclear, and Furnas
participated in several street runs
{ Annual flu vaccination campaign
{ Celebration of Children’s Day through the Family-Company Program,
bringing employees’ families closer to the company’s routine, creating
moments of synergy, learning, and fun at the holding
{ “Pink October” and “Blue November” campaigns for breast cancer,
prostate cancer, and diabetes prevention
{ Occupational exercises at Itaipu and Eletrobras Furnas
{ Music Festival at Eletrobras Furnas
{ Ballroom dance, collective singing classes, Weight Watchers, and
several art performances at Eletrobras Eletronuclear
{ Workplace inter-personal relations actions, and anti-alcohol and drug
abuse program at Eletrobras CGTEE
{ Itaipu continued to develop the actions of the Reviver Program,
whose goal is to propose a new way of seeing health, and encourage
employees to be responsible for their own balance and well-being, in
al spheres (physical, emotional, social, and organizational), through
integrated and reflexive practices.
In the scope of the best people management practices, the holding
participated in the following events to present its health and quality-of-life
practices:
{ HR Rio 2015 Congress;
{ Annual Human Resources Congress of Latin American Energy
Companies, and 3rd Annual LatAm HR in Energy;
{ The company’s Health and Quality-of-Life Division participated in the Panel
“HR Strategies to Eliminate Health, Safety and Environmental Risk Factors”;
{ 4th Latin American Congress of Health, Safety, Security and the
Environment in Energy Companies (4th Annual Latam HSSE Energy).
Remuneration and Benefits
GRI G4-51, G4-52, G4-53, G4-EC3, G4-LA2, G4-LA13
Eletrobras’s salary policy considers the salary matrix of each position,
defined in the Career and Remuneration Plan (PCR), the resolutions of
collective bargaining, and the variable pay in the form of profit sharing (PLR),
agreed with unions.
119
The PCR is based on meritocracy, career development, promotions and salary
raises, with no distinction of gender, race, or other characteristics that influence
the access to the career. In 2015, women’s base salary, compared to the salary of
men on the same positions, was very close to being equivalent, with variations
only for factors such as employment time. In managerial positions, women’s
average salary was 0.96 of men’s salaries; in positions requiring higher education,
0.88; and in positions not requiring higher education, 0.96. The comparison
between remuneration of women and men, presented by company, can be
observed in the following table.
Mathematical ratio of salary and remuneration between women and men
Company
Managerial
positions
Positions
requiring higher
education
Positions not
requiring higher
education
Holding
Cepel
CGTEE
Chesf
Eletronorte
Eletronuclear
Eletrosul
Furnas
ED Acre
ED Alagoas
Amazonas Energia
Amazonas G&T
ED Piauí
ED Rondônia
ED Roraima
Itaipu
EletrobrasPar
Total (average)
0.95
0.98
0.70
0.81
0.87
0.84
0.97
1.03
1.05
1.09
0.92
1.08
1.16
0.99
0.67
0.91
1.23
0.96
0.98
0.96
0.91
0.81
0.84
0.91
0.92
0.85
0.99
0.88
0.88
0.98
0.72
0.86
0.75
0.89
-
0.88
1.11
1.18
0.92
1.00
0.97
0.98
1.03
0.97
1.15
0.82
0.96
1.00
0.85
1.06
0.36
0.92
-
0.96
In addition to the fixed and variable pay, the company also offers a series of
benefits, as follows:
Caretaker program, funeral assistance, maternity leave and extended leave,
paternity leave, health insurance, coverage for disability/invalidity, group life
insurance, retirement funds, daycare/preschool assistance, variable pay, food/
meal vouchers, vacation pay, dental insurance, public transportation voucher,
leave for employees victims of domestic violence, maternity protection, leave
for accompanying ill relative, leave for stepmother/stepfather death, education
assistance, additional health assistance, assistance for undergraduate
and graduate education in various areas, master’s degree, doctorate, and
specialization programs, foreign language courses, additional pay for time of
service, psychological-pedagogical assistance for employees and/or dependents
with special needs. The employees also have a pension fund.
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Executive officers and top management
remuneration
The monthly remuneration of Eletrobras’s executive officers is determined
by the State-run Companies Governance and Coordination Department (DEST),
under Decree 8,578 of November 26, 2015. The monthly compensation of the
members of the board of directors and supervisory board of federal state-run
and government-controlled companies shall not exceed, in any circumstance,
ten percent of the average monthly remuneration of these companies’ executive
officers, under Law 9,292 of July 12, 1996. Members of the board of directors
do not receive any additional pay for participating in board committees and/
or advisory commissions. Remuneration consultants do not participate in
determining the remuneration of board members and executive officers.
Members of the Board of Executive Officers are entitled to fixed remuneration
and the Annual Variable Pay (RVA) of executive officers, connected to profit
sharing. In 2015, executive officers did not receive the variable pay due to a
negotiation proceeding with the DEST.
Career plan
The Career and Remuneration Plan (PCR) of the Eletrobras companies
has been in place since 2010, and unifies the guidelines and policies on
positions, career, and remuneration.
The PCR involves four dimensions— career, positions, remuneration, and
performance—prepared based on the needs required by the companies’
operation model, the environment, and the reality of each organization, and
based on the competence model concept.
In the competence career system, the employee evolves professionally by
acquiring, developing, and delivering the competences predetermined and
assessed by the organization.
In managing people for competences, the career evolution criteria are
no longer the position, activities or time, but the abilities of the professional
that enable a superior performance, aligned with the organizational goals
and translated into value creation. This means the career will evolve as a
result of two variables: the needs of the organization and the employee’s
capacity to meet them.
A career model was created in this structure, encompassing a basic career
and functions, with specific access and movement requirements.
Professional development
Since its inception in 2009, the corporate education model of the
Eletrobras companies provides for integration and cooperation among the
companies of the system, in line with the strategic goals of integration,
competitiveness, and profitability.
This model comprises the Eletrobras Corporate University (UNISE), and
15 associated corporate education units, each corresponding to one of the
companies, and its goal is to promote the development of all employees
in the required competences. The image below illustrates the Corporate
Education of the Eletrobras Companies.
C
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C
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p
S
o m p
C o r p
m
Manage
Competencie
o r a te Universit
y
e
nt
s
Policies /
Guidelines and
Educational
Model
C
orporate Educ a t
o
i
n U nits
n
e
G
nces
eral
te
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p
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S
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m p any
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The operations of UNISE and the corporate education units is governed
by the Corporate Education Plan (PEC 2015-2019), which addresses and
prioritizes the actions that will be offered during the four years. Each
year, due to the business dynamics, the PEC is reviewed for new strategic
demands. In 2015, the plan’s revision added new educational actions, like
Project Management of Eletrobras Companies, qualification in the new
ERP system to be implemented, Management of Special Purpose Entities,
Compliance, and others.
Employee development and education provided for in the PEC are in line
with the companies’ strategies and are implemented through educational
actions coordinated by UNISE and the Corporate Education area of each
company, in addition to training that may be contracted from suppliers in
the market or given by one of our professionals.
Since 2012, the Educator Employee Program allocates employees of the
Eletrobras companies to promote educational actions with other employees.
This creates a culture of education at Eletrobras, joining development and
qualification, cost optimization, and employee valorization.
At the holding, 74 employees were trained in four educator employee
actions in 2015, generating estimated savings of R$ 62,000.00. This program
is expected to be expanded in 2016, especially by using it for Individual
Development Plan (PDI) courses, and other educational actions.
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Eletrobras Corporate University (UNISE)
UNISE: Employee development and education
UNISE plays a key role in developing the general competences set out
in the Career and Remuneration Plan (PCR), leadership competences,
dissemination of values, and critical specific competences, in order to enable
Eletrobras’s strategies.
UNISE is formed by five schools—Operational Excellence, Market
Strategies, Management, Leadership, and Corporate Social Responsibility—
and 18 areas of study according to the table below.
Transversal
themes
School
Area of study
Integration,
Competitiveness,
Sustainability
1. Operational
Excellence
2. Market
Strategies
1. Generation
2. Transmission
3. Distribution
4. Government Programs
1. Trading
2. Internationalization
3. New Projects
4. R&D and Innovation
5. Sector Regulation
3. Management
1. Management Technology
2. Business Support
3. Communication
4. Corporate Governance
4. Leadership
1. Leader Training and Development
5. Corporate
Social
Responsibility
2. People Management
1. Culture and Values
2. Social and Environmental Responsibility
3. Occupational Safety
The schools are great knowledge axes that reflect the Eletrobras
companies’ strategic guidance. The areas of study are core themes inside the
schools that orient the educational programs for the development of critical
123
professional competences that will enable these strategies.
In 2015, despite the restrictive scenario, but understanding how
important certain on-campus actions are for corporate education, especially
those targeted at the behavioral development of professionals and
managers, UNISE adopted solutions for optimizing education resources.
Therefore, in order to maintain an appropriate budget and offer actions in
a coherent and viable manner, UNISE focused on the following:
{ Using the poles strategy, whose goal is to reduce/eliminate costs with
transportation and hotel stays, without losing the integration of the
companies. For that purpose, whenever possible, educational actions
are offered in Rio de Janeiro, Brasilia, and Recife.
{ Partnerships with institutions that add more value to the educational
actions, and create a unique quality standard, such as the Dom
Cabral Foundation (FDC), Getúlio Vargas Foundation (FGV), Brazilian
Governance Institute (IBGC), the Accounting, Actuarial, and Financial
Research Institute Foundation (Fipecafi), Amana-key, FIA/USP, Coge
Foundation, among others.
{ Using economy of scale, since the actions are negotiated in a unified
manner.
In all, UNISE promoted 34 actions, including actions in the PEC and
seminars sponsored by Eletrobras, with investment totaling R$ 3.2 million,
according to the table below.
UNISE 2015
School
Investment
Number of
Actions
Participants
Number of
Hours
Operational
Excellence
R$ 1,440.00
Market Strategies
R$ 596,020.00
Management
R$ 1,338,804.93
Leadership
R$ 1,319,415.00
Corporate Social
Responsibility
R$ 14,500.00
TOTAL
R$ 3,270,179.93
Hours of training per participant
Investment per participant
8
6
12
6
2
34
94
167
364
128
75
828
2,752
12,796
12,362
19,942
288
48,140
58.1
R$ 3,949.49
In 2016, we expect to maintain the same level, and add new distance-
learning actions in order to expand the reach of UNISE’s actions at optimized
costs.
Corporate education units
The Corporate Education units are responsible for developing the
specific competences of its businesses by identifying the demands of the
departments and based on each company’s specific PEC, aligned to that of
the group.
In all, the actions promoted by UNISE and the Corporate Education units
totaled an investment of R$ 38.5 million in 1.1 million hours of training, resulting
in an average of 17.63 hours and R$ 609.29 per participant in the year.
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UNISE + Corporate Education Units in 2015
Actions
Investment
Number of
Actions
Participants Participants
Number
of Hours
Stricto Sensu
Graduate Degree
Lato Sensu
Graduate Degree
Other Educational
Actions
Congresses and
Seminars
Foreign Language
Classes
Travel and
Transportation
R$319,133.33
27
R$3,779,657.93
107
35
359
37
15,526
491
64,261
R$15,986,310.69
5,652
18,000
59,102
975,026
R$2,490,383.94
463
2,324
3,251
51,209
R$1,659,414.58
290
750
2,037
38,201
R$14,312,436.65
-
-
-
-
TOTAL
R$38.547.337,12
6.539
21.468
64.918 1.144.223
Hours of training per participant
Investment per participant
17.63
R$609.29
Performance Evaluation
The Performance Management System (SGD) is currently in its fourth
unified application cycle at the Eletrobras companies and includes the review
of team goals by organizational unit, and a corporate goal set for each
company, determined in the Strategic Planning of the Eletrobras System and
of each company in the group.
The corporate goal is based on the 2015-2019 Management and
Business Master Plan and on the Corporate Performance Goals Agreement of
each company. In addition to a results review, the system also includes the
assessment of general competences, which identifies the development level
of the employees in their skills, knowledge, and attitudes, comparing the
relation of these aspects with the behavior verified in the assessment period.
After the assessment, each employee’s result is recorded in the
performance classification matrix. This result allows for companies to
monitor the evolution in their employees’ career, and supports the Individual
Development Plan (PDI) with the goal of filling in the gaps of required
competences. The employees that stand out for their performance and meet
the progression requirements described in the Career and Remuneration
Plan (PCR) can be promoted horizontally (remaining on the same complexity
level) or vertically (change in complexity level).
In each cycle, the companies share the lessons learned and seek to
improve the assessment process, since the SGD allows for the company to
strategically develop and manage its employees, channeling people’s efforts
to meet goals and achieve results that ensure profitability, sustainability,
competitiveness, and value creation.
GRI G4-44
Eletrobras’s directors and executive officers participate every year in a
performance assessment process, according to the methodology contained
in the Manual for Assessing the Performance of the Board of Directors and
Board of Executive Officers, so that they perform their duties in line with the
company’s strategy, observing impacts, and economic, environmental and
social risks.
The holding has standardized this methodology and enabled its replication
to all Eletrobras companies. According to the methodology, directors and
executive officers perform their self-evaluation and the evaluation of their
respective board. Directors also evaluate the Board of Executive Officers.
The performance evaluation form of the Board of Executive Officers
addresses the alignment of the management with the company’s strategy
and the guidelines of the Board of Directors. General results are scored and
consolidated in a final report, in compliance with the methodology applied, and
presented to the respondents at a feedback meeting.
Climate research
Every two years, Eletrobras makes an organizational climate survey
to monitor the workplace climate. This is an integrated survey, and all
Eletrobras companies participate in it at the same time.
In November 2015, the 4th Organizational Climate Survey of the
Eletrobras Companies resulted in a general favorableness rate of 69.03%. For
2017, the company goal is to reach the rate of 70%.
Favorableness Rate
It is the benchmark for monitoring the organizational climate and shows the
employees’ perception about their relation with the company and its image in
the market, work conditions, their work itself, people management practices,
leaders and colleagues. This rate is calculated by analyzing the answers
employees give to a questionnaire available for the survey. The questionnaire
assesses four aspects: motivation, people management, management
philosophy, and work environment.
Employees participated and expressed their opinions voluntarily,
answering questions about motivation, people management, management
philosophy, and work environment. The result will help prepare actions to
improve the organizational climate in each company, in line with strategic
goals, coordinated by the people management department and with the
participation of leaders and employees.
The organizational climate survey has also allowed for the calculation of
the Corporate Performance Goals Agreement (CMDE), whose goals include
strengthening the corporate governance and corporate management
process among the Eletrobras companies. These are indicators and goals
that foster economic and financial, operational and strategic efficiency,
reflecting on the corporate performance.
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ABRADEE Survey – General Satisfaction Rate (ISG)
Company
2015
2014
2013
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Clients
Product responsibility
The Eletrobras companies are known for the transparency and
accessibility to information about their services. Therefore, in a
standardized electricity bill model, the distribution companies provide
their clients with a detailed account of their consumption, including tariffs
based on tiered rates, scheduled meter readings (current, previous, and
next), taxes, charges, voltage level, type of connection, meter, indicators
of the quality of supply - such as DEC (Equivalent Outage Duration per
Consumer Unit) and FEC (Equivalent Outage Frequency per Consumer Unit),
contact points, among others.
The Eletrobras companies continue to evolve in the enhancement of the
electricity bill model, which, based on a new graphic layout, provides on the
backside information and images that clarify how energy can be used safely
by the population. Important supplementary information is added to 100%
of the bills sent out to clients. The companies disseminate information on
the risks related to electricity, on energy theft and its legal consequences,
low-income social tariff, regulatory information, customer rights about the
calculation of indicators, concerning the duration and frequency of power
outages, in addition to information about the possibility of paying electricity
bills using direct debit, payment locations, and time-of-use pricing, in
addition to details on overdue amounts and bill payment options.
Users can also use other channels to obtain information about energy,
including the customer service centers of the distribution companies,
company websites, and their Facebook and Twitter pages. The companies
use their websites to provide clients with an electronic branch that offers
a number of services, such as: print and request a copy, look up overdue
amounts, information on the appropriate use of the service, information
on the rights and responsibilities of fighting frauds, incentive for timely
payment, rational use of energy—anti-energy waste—and safety in using
the service.
Customer satisfaction
GRI G4-PR5
The six Eletrobras distribution companies evaluate their customers’
satisfaction through a survey conducted by the Brazilian Electricity
Regulatory Agency (ANEEL) based on the ANEEL Customer Satisfaction
Rate (IASC), and the survey by the Brazilian Association of Electric Power
Distributors (ABRADEE), based on the Perceived Quality Satisfaction
Rate (ISPQ).
ED Acre
ED Amazonas
ED Alagoas
ED Rondônia
ED Piauí
ED Roraima
44.1
68.3
57.0
52.0
31.6
64.0
55.4
78.4
74.0
62.1
64.2
75.5
ANEEL Survey – ANEEL Customer Satisfaction Rate (IASC)
Company
2015*
2014
2013
ED Acre
ED Amazonas
ED Alagoas
ED Rondônia
ED Piauí
ED Roraima
45.25
45.93
54.56
52.15
46.76
51.87
56.66
62.59
52.30
56.21
53.24
57.33
44.8
71.3
66.9
61.5
43.0
83.5
40.17
54.64
56.33
57.24
51.86
58.73
* Brazil’s IASC was 50.03 in 2015
In 2014, the holding implemented a unified biennial survey for the
G&T segments, to demonstrate in a consolidated manner their customer
satisfaction level. The global satisfaction and importance rate of the
generation and transmission clients of the Eletrobras companies, in the
commercial segment, was 86.32% and 92.00% respectively.
The methodology used to consolidate the survey was the Customer
Window. This methodology measures the commercial generation and
transmission customer satisfaction level based on their perception of value
attributes and relating them to the importance level given by the client.
Residential disconnections
GRI G4-EU27
In order to improve the power disconnection rate, the Eletrobras
distribution companies contacted customers to investigate the causes of
their debts and attempt settlement.
The table shows a comparison between the number of consumer units
and the time it takes for reconnection, in the period between disconnection
and payment of overdue bills.
Number of consumer units vs. Length
of time between disconnection and reconnection
2015
2014
2013
2012
Under 48 hours
152,047
131,274
115,808
86,414
Between 48 hours and one week
51,373
41,812
47,529
35,337
Between one week and one month 67,829
57,712
77,218
49,529
between one month and one year
204,584
154,356
237,458
151,660
Over one year
Total
N/A
N/A
N/A
N/A
475,833
385,154
478,013
322,940
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129
The Eletrobras companies also consolidated the information concerning
the length of time for reconnection after payment of the installment plan
negotiated for the debt.
Number of consumer units vs. Length of time between payment of
installment plan and reconnection
Under 24 hours
24 to 48 hours
49 to 72 hours
Over seven days
Total
2015
2014
2013
2012
14,879
8,063
19,324
18,008
8,153
5,045
5,281
2,905
4,955
1,880
1,496
913
9,684
1,707
4,029
2,257
37,671
16,695
30,130
24,083
Educational projects
GRI G4-SO1
Eletrobras also seeks, through educational and citizenship awareness
projects, to strengthen its relationship with low-income communities in
order to disseminate information about the appropriate use of energy, the
risks and hazards of the power grid, and the rights and responsibilities of
consumers.
Terra Nova Project
The project brings the company closer to the residents of the Terra Nova
district, by discussing issues like energy losses, distribution network safety, tips for
the efficient use of electricity, focusing on their impacts. The social-educational
actions were disseminated in six public schools in the district, benefiting 2,400
students. The benefits of the social rate were also explained, and there were sale
services available. An event was made to report to clients on the result of the
technical-operational works, and on social actions developed in the community.
Furthermore, the companies distribute booklets containing safety tips, written
in plain language, about safety on power grids, commercial services, and tips on
the efficient use of energy. In order to facilitate access, the distribution companies
provide an accessibility portal with Offline Chat for people with hearing or speech
disabilities, in compliance with the international accessibility standards set out by
the Web Accessibility Initiative (WAI).
The companies have evolved especially with regard to the partnerships with
utilities that provide services to the communities, such as public lighting. The
Social and Environmental Responsibility and Sustainability Advisory team is
developing actions in a partnership with a work group on energy losses, made of a
team of multidisciplinary company professionals, facilitating the convergence in
the execution of technical and social services in energy loss projects.
Project for the Regularization of the Distribution
Network
The Project for the Regularization of the Distribution Network in the
planned perimeter is serving as a model for new projects of Eletrobras
Amazonas Energia. This project was introduced at the First Meeting of
Council Members of the Residential and Government Classes of the Electric
Power Distribution Companies of the Southeast, in the city of Rio de Janeiro.
The technical-operational project benefited 1,187 clients, by improving the
distribution network and standardizing the installation at the consumer
units included in the project.
Suppliers
GRI G4-12
Eletrobras seeks to nurture a close relationship with its suppliers,
monitoring the development of their activities and maintaining constant
dialogue and transparent relationships, based on ethical principles and
regular updates on the procedures used in hiring and contract management.
According to its Sustainability Policy, Eletrobras conducts its businesses
using internationally recognized management practices, seeking to
potentize positive environmental and social impacts, and minimize
the negative impacts of its operations. Therefore, when the company
recommends that its suppliers comply with sustainability parameters when
making their products or providing their service, it is contributing for their
suppliers to also act this way.
Throughout 2015 the supply chain of the Eletrobras companies consisted of
almost six thousand suppliers, totaling expenses of more than R$ 19.7 billion in
the period.
The company is also committed to effectively contributing to the
sustainable development of the areas where it operates, and therefore it
requires that its suppliers and contractors prioritize clean and ecological
manufacturing processes.
From an environmental perspective, Eletrobras’s suppliers must preserve
the environment in terms of the use of natural resources and generation
of solid waste, liquid effluents, and atmospheric emissions, which must
conform to the environmental standards and legislation in effect.
From a social and human rights perspective, suppliers and service
providers of the Eletrobras companies enter into agreements that contain
clauses governing the employment of minors under 18 at night shifts,
unsafe, or unhealthy activities; minors under 16 in any activity whatsoever;
or of any individuals in degrading or compulsory labor in their production
chain. When suppliers register or enter bidding processes, they should
attach to the documents a formal commitment not to engage in such
practices.
To avoid contractual noncompliance with suppliers, Eletrobras has
developed a proceeding to monitor suppliers and contracts for compliance
with sustainability and human rights clauses, including the prohibition of
child labor and degrading or forced labor. When there is noncompliance with
these clauses, the monitored companies can be penalized according to the
agreement.
Meeting with suppliers
This meeting is periodically held by Eletrobras to add value to the relation
between Eletrobras companies and its suppliers. The meetings intensify the
integration, align contracting information, addresses the key guidelines and
requirements for the maintenance and development of the supply chain,
maximizes supplier performance, and minimizes noncompliance in contracting
and executing the contracts.
This event, among other practices, engages the suppliers in the sustainability
practices that permeate the company’s contracting process.
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Critical suppliers
Critical suppliers provide inputs or services that are essential to the
company’s activities (generation, transmission, distribution, and research,
in the case of Cepel), which cause a direct impact on the final quality of our
services, as well as to the environment, health and safety of employees and
whose activities may cause significant social risks. This definition includes all
labor-intensive contractors.
These suppliers have access to confidential information that is part of the
company’s essential and critical business processes.
To determine whether a supplier is capable of meeting the requirements,
Eletrobras adopts criteria for registering, selecting, and for bidding
processes, available on the Eletrobras website, in the call for bid, in the
Suppliers Handbook, the Bidding and Contracts Law, and relative legislation.
Using these criteria, several aspects of the supplier are analyzed, including
the following:
{ Legal license: corporate structure, business purpose, legal nature, and
others.
{ Tax compliance: verification of whether the company has been in order
with tax obligations with the government.
{ Economic and financial capability: the company’s balance sheet is
analyzed to check whether the supplier is capable of honoring the
commitments it intends to take on with Eletrobras.
{ Technical qualification: the company must prove it has the necessary
qualification to be a supplier of Eletrobras, through previous
experience, documentation, technical visits, professionals, equipment,
adequate infrastructure, and portfolio.
{ Technical Compliance with regard to the Terms of Reference
(specifications of the contract): the proposal is verified for including
all technical specifications required for the execution of the purpose of
the contract, including sustainability criteria.
{ Compliance with contractual clauses provided in the draft contract
that is attached to the selection process: this is verified for the whole
duration of the contract, through a contract management process.
Noncompliance results in administrative sanctions (penalty) listed in
the contract.
Freedom of association
As a Global Compact signatory, Eletrobras supports the principles
established therein, including freedom of association. This commitment
is reflected in its Code of Ethics, valid for all suppliers and attached to
contracts. =
Pursuant to the laws in effect, Eletrobras is not allowed to intervene in
negotiations between contractors and their employees, regardless of their
presence at the company’s facilities; however, all applicable measures are
taken to ensure compliance with agreements and covenants.
131
Engagement with
communities
Assessing the impacts of
mitigation and compensation
actions
GRI G4-EU20, G4-EU22, G4-SO1
When projects start being planned, the Eletrobras companies identify
their social and environmental impacts and plan actions to minimize these
impacts on the surrounding communities and to compensate them for
possible negative factors.
The expectation for new jobs significantly increases inflow of
migrants to the region, the substantial availability of workers overloads
local infrastructure, road traffic increases, daily social interactions
change, pollution and noise levels rises, there is the risk of leakage, soil
contamination, and accidents—these are some of the impacts the company
identifies and evaluates in the different stages of implementation of projects
in the electric power sector.
However, the major potential impact on the life of these communities
is the displacement of families for the implementation of hydropower
generation projects and transmission lines. This is why the company always
focuses on minimizing displacements, seeking alternative project designs
and locations that avoid interfering with the communities.
In 2015, Eletrobras Eletrosul allocated R$ 4.8 million to the compensation
of 200 people due to the opening of access ways and restriction of the
use of the right-of-way of transmission lines. Eletrobras Distribuição Piauí
used R$ 226,622.83 as right-of-way compensation in the construction
of DL 69 KV Nazária / São Pedro. Eletrobras Furnas spent R$ 9.8 million in
the compensation of 667 people and displacement of 39 people due to
transmission line projects.
Dialoguing and interacting with the surrounding communities—since
they involve complex situations and multiple interests—takes the form of
different types of engagement, especially through the involvement of the
individuals affected in preparing participative diagnoses, public hearings
and meetings. In their engagement with affected communities, the
companies provide information and solve doubts about the stages of the
study and construction of a project, the studies that will be made, the law,
and commitments the companies take on. Agreements and partnerships
are also made to determine how the Eletrobras companies will develop
the initiatives, in a voluntary or compulsory manner—which is the case of
licensing covenants.
Regarding the social and environmental impacts of their projects, the
companies seek to promote actions that engage community representatives,
social movements, NGOs, and universities, in addition to public
administration representatives, city government, environmental agencies,
INCRA, FUNAI, and Fundação Palmares.
In the areas of the reservoirs of hydroelectric power plants, in which
displacement of populations is more frequent, since 2010, Brazil has relied
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on specific regulations that govern the identification, qualification, and
public registration of the population affected. The Social and Economic
Registration, conducted during the studies that predate the auction for the
concession of developments, reinforces the commitment to the rights of
the individuals affected and assesses the possibility of allowing residents to
remain or use a remaining area of the reservoir. Inter-ministerial Ordinance
340/12 addresses the social and economic registration, and provides a series
of guidelines for the execution of a social communication plan that informs
the population on the registration and promotes the publicity, transparency,
and the safety of those involved.
In other situations, such as for thermal plants or wind farms, physical
and economic displacement is minimal and companies identify the
population affected, pursuant to the instructions of environmental agencies.
For transmission and distribution lines, alternative project layouts are
assessed, to avoid displacement of people. If this change is not feasible, the
right-of-way is registered for restricted use, upon payment of respective
compensation and, when necessary, eminent domain is made through the
acquisition of the property.
Eletrobras participated in the Dialogue Between Companies and
Indigenous Peoples to prepare the “Proposal for Brazilian Guidelines on
Good Corporate Practices with Indigenous Peoples,” launched in 2015 with
the goal of presenting the guidelines to govern the relation between the
corporate sector and indigenous peoples in Brazil, in order to consolidate
good practices that contribute to a mutually positive relationship. This
articulation of the corporate sector and indigenous peoples started in 2012,
with an initiative by The Nature Conservancy (TNC) to promote meetings
of representatives of companies from different sectors, FUNAI, NGOs, and
Brazilian indigenous peoples and organizations.
Eletrobras Volunteering Program
The Eletrobras Volunteering Program was launched in December 2015
with the goal of fostering the exercise of citizenship among its employees,
strengthening the organizational culture, proximity with the community where
it has operations, human and professional development, seeking to contribute
to the achievement of the best results in the company’s organizational
climate. Eletrobras volunteers use their time, knowledge and talent in a
spontaneous and non-remunerated manner in volunteer actions with not-
for-profit organizations, positively influencing the lives of the beneficiaries.
Five institutions of the Professora Ismênia de Lima Martins Social Assistance
Reference Center, and the Viva Rio NGO are currently supported by our
volunteering program.
Volunteers initiated actions in December 2015
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Social-environmental engagement
and development programs
GRI G4-SO1, DMA
Eletrobras is not only concerned with local community engagement, but
also with their development. Therefore, it promotes actions to mitigate the
social-environmental impact when building or remodeling one of its plants,
to sensitize its population to conserving and preserving the environment,
and social responsibility actions. Below are the main social development
programs of the Eletrobras companies.
In 2015, the Eletrobras companies expanded their Environmental Policy
to include Guidelines for Redistributing the Populations Affected by Electric
Power Generation, Transmission, and Distribution Projects. These guidelines
were prepared based on the relationship of the Eletrobras companies with the
affected communities, on the good practices of Eletrobras companies, and on
the national and international debate about this matter, including the debate
on national legal frameworks.
Holding
While conducting environmental impact and feasibility studies for electric
power generation and transmission projects, the company implements
social communication actions that include opening local offices, preparing
and delivering communication materials such as folders, videos and radio
programs, and holding meetings with different social groups in order to
make consultations, disclose information, and promote social interaction.
Opinion surveys can also be conducted in the project area to identify, among
others, the population’s expectations.
These activities are usually executed by the Social Communication Plan,
which also maps the stakeholders, monitors the media, and helps promote
dialogue and solve occasional social conflicts. The Environmental Impact
Studies also include a diagnosis of the social aspects in areas influenced
by the projects, with the participation in interviews and meetings of local
communities and their representatives, and an assessment of the impacts.
One of the projects Eletrobras is responsible for are the social
communication and interaction actions in the hydropower projects of São
Luiz do Tapajós and Jatobá, currently in the environmental and feasibility
licensing stage. Continuing the communication activities in the area, the
Tapajós Dialogue team updated the mapping and diagnosis of stakeholders,
visited institutions and communities, talked to students, international
NGOs, and other stakeholders, joined technical teams at meetings with local
communities, and produced printed and audiovisual material.
In 2015, the meetings promoted by the Dialogue team gathered
2,100 people. Other highlights were the 2nd Pedagogical Workshop of
Transversal Themes, with teachers from Trairão and Jacareacanga; the
production of the booklet “The hydroelectric power plants of São Luiz do
Tapajós and Jatobá” in the Munduruku language (not distributed yet), and
the production and distribution of 9,700 “Voadeira” newsletters (published
every two months) and 1,100 booklets about the São Luiz do Tapajós
hydropower development (AHE), and 4,500 newsletters and 3,000 booklets
about the Jatobá AHE. Also, 436 Environmental Impact Reports on the São
Luiz do Tapajós were distributed.
In the first quarter of 2015, Eletrobras and its partner in Argentina,
Ebisa, through the Uruguai River Energy Consortium, continued the
communication actions in the Brazilian cities that could be affected by
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the Garabi AHE. Several meetings were held in the rural communities and
with their representatives, such as municipal administration, associations,
and unions, to provide information and discuss the Social-Economic and
Property registration questionnaires.
The activities relating to the development of technical and environmental
feasibility studies of the Garabi AHE were suspended in July 2015, while the
company awaits the development of the lawsuit that suspended the studies
relating to the Panambi AHE.
The three “Leite Legal” Community Production Centers (CCPs) are part
of a project in a partnership with Cooperativa Agroleiteira Transamazônica
(Coopetra) and Sebrae in the city of Rurópolis (PA). Located on side roads off
of the Transamazônica highway, the Baianos, km 115, and Ouro Verde CCPs
were implemented due to the efforts of Coopetra associates, who built the
industrial sheds, and the private social investment of Eletrobras, used to
acquire a 3,000-liter cooling tank for each center, and a 5,000-liter tank for
the cooperative’s headquarters to store the additional milk coming from the
CCPs. Electric equipment enabled a better processing of the milk and the
production of its by-products. Therefore, in addition to the productive use of
energy, the project helps generate income and improve the quality of life of
the producers involved. In all, 71 producers were directly benefited. On the
company side, there was an improvement of reputational favorableness rate
(ISR), making the company’s brand recognized by various stakeholders.
The “Seeding Citizenship” Project (Semeando a Cidadania) is executed
in a partnership with the administration of the city of Candiota (RS), and
focuses on giving an opportunity for professional qualification to 120 kids
and 80 adults in the city of Candiota, giving them equal conditions to access
the labor market, and enabling the generation of income, social inclusion,
and better quality of life, promoting local and regional development.
11 classes have been implemented—boiler operation, ironware work,
hydraulic installation, building painting, wood form carpentry, ceramic
tile installation, masonry, general electrician work, industrial mechanics,
industrial plumbing, welding—and 115 students completed the programs.
A Community Telecenter will be implemented in 2016, enabling the
community to access, free of charge, the internet to send CVs, find jobs, and
complete distance-learning programs.
In 2015, the partnership of Eletrobras and Norte Energia with the Kabu
Institute in the Project for Supporting and Assisting the Kayapó Indians of
the West enabled an increase of 274.56% in the amount of Amazon nut
collected by these indigenous communities. In the previous year, the nine
Kayapó communities included in the project, located in the Indigenous Lands
of Baú and Menkrãgnoti, in the south of Pará, had collected 29,707 kg of
nuts. In 2015, with the investment managed by Eletrobras in the acquisition
of boats, engines, fuel, consumer material and clothing, the Kayapó Indians
of the West managed to handle nut forests farther from their communities
and structure the outflow of the product, having collected 81,565 kg of
nuts. In addition to sustainable economic alternatives (stewardship of nuts,
cumaru, and babaçu), the project invests in the institutional strengthening
of the Kabu Institute, on inspection and protection of indigenous lands, and
cultural valorization.
Partnership enabled an increase of 274.56% in the amount of Amazon nut collected
In 2015, with the support of consulting firm Comtexto, which specializes
in indigenous matters, Eletrobras continued to negotiate with Norte
Energia, FUNAI, and indigenous Kayapó communities living on the east
side of the Xingu River, for the approval of and later execution of the Plan
to Support the Autonomy of the Kayapó Indians of the East. In addition to
contacts during the year to discuss and improve the work plan prepared
with the participation of representatives of the indigenous communities,
Eletrobras promoted a workshop with Funai and Kayapó leaders to present
and negotiate the last details of the project, in August, in São Félix do Xingu
(PA). Administrative actions have been taken among the partners with the
perspective of beginning the implementation—following the example
of Kayapó of the West, which has been in place since 2013—of the Plan
to Support the Kayapó Indians of the East in the first half of 2016, in 22
communities represented by the Floresta Protegida Association.
Eletrobras Distribuição Acre
The Energização Project is a social responsibility action involving
volunteer employees and partners of ED Acre. The company develops a
program to promote citizenship, with the support of its employees, for
territorial development and the integration between the company and the
communities where it has operations.
In 2015, this action was carried out in the Cidade do Povo district, in
Rio Branco. This project brought to the city services such as registration in
CadÚnico for the Social Tariff, tips on safety and electric power consumption
awareness, legal advice through the “Fala Comunidade Project” of OAB/AC,
and “MP in the Community” of the Prosecutor’s Office, in addition to actions
focusing on health.
Eletrobras Eletronuclear
In 2015, Eletrobras Eletronuclear promoted community engagement,
impact assessment, and development programs in a partnership with the
city administration of Paraty (RJ), and institutions in Angra dos Reis (RJ).
In Paraty, an ambulance-speedboat was acquired for the program to
re-equip the city’s Civil Defense department; the São Pedro de Alcântara
Municipal Hospital was remodeled and expanded; the Jacu Road was paved
and drained, with the construction of a bikeway and additional drainage in
the Villa Princesa Isabel district.
In Angra dos Reis, equipment, furnishings, and a collection were acquired
for building a library, to complete the installation of the Cefet campus (RJ)
of Angra dos Reis. The Marine Repopulation Project of the Ilha Grande
Bay (Pomar Project) continued, as well as the monitoring of Eletrobras
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Eletronuclear’s marine farm located in Ilha Comprida. Environmental
education, mariculture, and entrepreneurism classes were promoted, and
five marine farms were donated to mariculture farmers in the surrounding
area of the Nuclear Plant.
Marine Repopulation Project of the Ilha Grande Bay
Eletrobras Eletrosul
Eletrobras Eletrosul has continued the work developed with public schools
in the Itinerant Open House Program for 5th grade students, with important
information on electric power consumption awareness and the different
energy sources.
Program provides information about consumer awareness for child audience
Eletrobras Furnas
In the city of Fronteira (MG), where the Marimbondo Plant is located,
Eletrobras Furnas mobilized the population to clean the Grande River,
through educational actions of the Environmental Education Program in
2015. Improvements were made in structures and population awareness
at Jardim Veraneio regarding the rational use of water, the planting
of vegetables in Permanent Preservation Areas (APP), release of fry,
and lectures were given and dynamic discussions were made on the
environmental theme with the kids of the “Guarda Mirim” (kid guards).
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In January 2015, Eletrobras Furnas published the results of the
Environmental Education R&D project in the licensing process:
Methodological Construction. After three years collecting data from the
populations living in the areas influenced by the Furnas transmission lines, a
methodology was developed in a partnership with three universities for the
implementation and evaluation of environmental education programs in the
environmental licensing process of transmission systems. The methodology
was presented to the Ibama and to consulting firms and companies in the
electric energy sector. Thirteen scientific articles have been published so far
on this study and presented in 13 national and international congresses and
seminars.
Itaipu Binacional
In order to meet strategic goals, Itaipu maintains direct or indirect
relationships with different social actors. The company has several
communication tools and involves the audiences in the preparation,
planning, execution and evaluation of the programs, projects and actions it
develops.
Cultivando Água Boa Program (Cultivating Good Water): it gathers over
20 programs and 65 actions, ranging from riparian forest reforestation,
and monitoring the quality of water and reservoir levels to sustainable rural
development, fish production, valorization of the institutional and regional
heritage, and the sustainability of vulnerable segments. On March 30, 2015,
CAB received the UN International Award for “Best water management
practices,” for its “potential to transform the lives of millions of people,
because it has extraordinary possibilities.”
Developing West Program: its challenge is to raise one of the regions
that grow the most in Brazil to a new development and structuring stage,
focusing on propelling productive chains to expand and multiply prosperity.
The region is formed by 50 cities that together have 1,291,492 inhabitants
(2015 Census estimate).
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Corporate Volunteering Program, created by Itaipu employees
Corporate Volunteering Program – Força Voluntária: introduced in April
2015, Força Voluntária resulted from an internal demand and was built
by the Itaipu employees that had already been involved in volunteer work
in social institutions. This was the first formal program of this type in the
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Eletrobras companies, and became a benchmark for the implementation
of similar projects in other companies in the electric power sector and in
other companies in the country. Força Voluntária is a corporate volunteering
program that supports and encourages employee initiatives. The activities
focus on volunteer work that transforms, that is, joining the employee’s
desire to exercise their citizenship with the company’s strategies and social
needs, contributing in the construction of a more egalitarian society. The
initiatives are based on three pillars: Fostering Volunteer Work, Project
Database, and Third-Sector Support.
Eletrobras CGTEE
Eletrobras CGTEE maintained its social programs in 2015. The Native
Trees Project—included in the Instrument of Conduct Adjustment with
IBAMA—recovers forests in degraded areas of the drainage basins of the
Jaguarão and Arroio Candiota rivers (RS).
Backyards Project (health and food safety): this project contributes to
the social, economic, and environmental sustainability of socially vulnerable
audiences, especially family farmers, settlers benefited by land reform,
Indigenous communities, quilombo inhabitants, and students of rural and
urban schools.
Eletrobras Amazonas G&T
The Aquatic Mammal and Chelonia Preservation and Research Center
(CPPNAQ) of Eletrobras Amazonas G&T rescues, rehabilitates and handles
captive fauna, sets free apt animals (with authorization by IBAMA), and
promotes educational campaigns and actions to sensitize local communities.
The Center also produces scientific research, generating and disseminating
information on handling and conserving the Amazon fauna. The Center has
an internship program for high school students from the Balbina school,
monitored visits, and partnerships with universities to foster student and
research work improvement.
Eletrobras Chesf
The environmental education programs of the 500kV Jardim/Camaçari,
230kV Banabuiú/Mossoró, 230kV Picos/Tauá, LT 230kV Messias/Recife II,
and 230kV Milagres/Coremas transmission lines address land fires, and
harmoniously living near the company’s projects, in order to promote
environmental safety and preserve the interconnected system.
In 2015, Eletrobras Chesf continued its campaigns for the Control of
Sucarcane Field Fire under Transmission Lines in the state of Alagoas. 16
actions were carried out relating to environmental education, involving 992
people, including teachers, students, employees and suppliers of sugarcane
mills, and inhabitants of the cities included in the program. The actions
reached the following locations in the state of Alagoas in 2015: Murici, Chã
de Pilar – Pilar, Boca da Mata – Atalaia, Satuba, Sumaúma mill - Marechal
Deodoro, Utinga Leão mill - Rio Largo, São José da Laje Alto Piauí – Coruripe,
Pindorama mill – Coruripe, Gulandin – Teotônio Vilela, Paísa mill – Penedo,
Tabuleiro – Penedo, and Riachão – Junqueiro.
The actions managed to reduce the number of transitory and permanent
failures of the transmission system, increasing its availability and preventing
an expense of nearly R$ 950,000 in monetary sanctions.
Government and public
policies
GRI G4-SO1, G4-SO5, G4-DMA ( former EU7), G4-DMA ( former EU23)
Sector programs
The Eletrobras companies support important initiatives of the federal
government, managing programs and sector funds in the most diverse areas
of the electric power sector. These focus on universal access to electricity,
energy efficiency, sustainable development, and on consolidating and
expanding science and technology in the country, such as the National
Program for the Conservation of Electricity (PROCEL), Luz Para Todos,
Alternative Energy Source Incentive Program (PROINFA), and Science
Without Borders.
National Program for the Conservation of
Electricity (PROCEL)
Coordinated by the Ministry of Mines and Energy (MME), this is a federal
government program executed by Eletrobras. The program was implemented
on December 30, 1985, to foster efficient energy use and fight waste.
PROCEL actions contribute to increase the efficiency of goods and services,
helps develop energy-efficient habits and knowledge, and postpones
investments in the electric power sector, mitigating environmental impacts
and contributing to a more sustainable country.
PROCEL promotes energy-efficiency programs in different sectors of
the economy, in connection with education, information dissemination,
buildings, environmental sanitation, municipal energy management, public
lighting, and industry, in addition to the PROCEL Seal, helping the country
save energy and generating benefits for the whole society.
The benefits for the society include both the saving of energy, and the
investments postponed in the expansion of the electric power generation
network.
In 2015, PROCEL contributed to savings of 11.68 million megawatt-hour
(MWh), equivalent to the annual consumption of six million homes. It also
avoided the emission of 1.453 million tCO2 equivalent.
Indicator / Year
2015
2014
2013
2012
2011
Energy saved (million MWh/year)
11,680
10,517
9,744
9,097
6,696
GHG emissions avoided (thousand
tCO2 equivalent)
1,453
1,425
935
624
196
Decrease in peak demand (MW)
4,453
4,022
3,769
3,458
2,619
Em 2015, houve a concessão do Selo Procel de Economia de Energia a
39 categorias concorrentes. Nesse mesmo ano, o Selo Procel foi concedido
para 3.640 modelos de 190 fabricantes. Destaca-se que o Programa do Selo
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In 2015, the PROCEL Energy Saving Seal was given to 39 categories. The
PROCEL Seal was also granted to 3,640 equipment and appliance models
made by 190 companies. The PROCEL Seal Program was used by power
utilities as a criterion for equipment replacement in their bonus campaigns
and replacement of older for more energy-efficient equipment.
In the knowledge field, the following actions stood out in 2015 through
PROCEL Educação and PROCEL Info:
{ Support to power utilities in the Energy Efficiency Program (PEE)
for implementing the “Energy that transforms” and “Nature of the
landscape” methodologies, reaching 51,300 students, 1,290 teachers,
and 600 schools.
{ The episodes the “Vida de República” (Co-living) series—a partnership
of Eletrobras, PROCEL, Roberto Marinho Foundation, and Canal
Futura—were made available on YouTube and recorded over 15,000
views.
{ Two classes completed the Energe course on energy conservation
and efficiency, in 140 hours of distance learning (EaD), totaling
610 students from 89 universities throughout the country. This is a
partnership with the Federal University of Itajubá.
The Brazilian Energy Efficiency Information Center’s PROCEL Info website
(www.procelinfo.com.br) registered, in 2015, 7,707 new users, totaling 41,662
users since it was created, in 2006. Over 1.1 million page views were recorded in
the year, corresponding to a monthly average of over 90,000 views.
in 2015, PROCEL Indústria was responsible for updating the High
Performance Engines Technical Guide, and for structuring the Energy
Efficiency Project for the implementation of the ISO 50001 standard (Energy
Management Systems) in companies that are members of the SEBRAE (RJ).
The actions developed by PROCEL Edifica in 2015 included the following:
{ Implementation and consolidation of the PROCEL Building Seal
(voluntary adoption by companies);
{ Technical evaluation of the thermal power performance of two
prototype projects in the Minha Casa, Minha Vida Mais Sustentável
Program, in the cities of Rio de Janeiro (RJ) and Lauro de Freitas (BA);
{ Publication of the Building’s Operational Energy Performance
publication, a benchmark for corporate offices and recommendations
for DEO certification in Brazil, prepared in a partnership with the
Brazilian Sustainable Construction Center (CBCS), and funded by the
British Embassy, through the Prosperity Fund.
In 2015, PROCEL EPP (Public Buildings) accounted for:
{ Granting the PROCEL Building Seal, in the project stage, to the Bloco
B building of Esplanada dos Ministérios, where the Ministry of the
Environment and Ministry of Culture are located.
{ Acting in the Work Group for the Implementation of ordinance 02/2014
of the Ministry of Planning, Budget, and Management (MPOG), and
in the Technical Consulting Committee of the BRA 09/G31 Project –
Transformation of the Energy Efficiency Market in Brazil, financed by
the Global Environment Fund (GEF), executed and coordinated by the
Ministry of the Environment (MMA), and operationalized by the United
Nations Development Programme (UNDP). This project prioritized
resources for professional qualification in energy-efficient buildings,
emphasizing the public sector.
In 2015, PROCEL Sanear, in a partnership with the Federal University
of Mato Grosso do Sul (UFMS), the Foundation for Support to Research,
Education and Culture (FAPEC), and the LENHS Network (Sanitation Energy
and Hydraulic Efficiency Labs), made the fifth edition of the hydro-energetic
diagnoses qualification course, in Rio de Janeiro (RJ), for professionals of the
companies that provide sanitation services in the Southeast.
141
In 2015, PROCEL Reluz actions resulted in energy savings of 120.67
million kWh, and a reduction of 27,510 kW in peak demand. Since 2000,
nearly 2.78 million public lighting spots have been replaced in the country.
PROCEL Municipal Energy Management (GEM), in a partnership with
Eletrobras Eletronorte, delivered, in 2015, four Municipal Electric Energy
Management Plans to the public administration of the cities of Belém (PA),
Sinop (MT), Cacoal (RO), and Porto Velho (RO), with potential savings of
9,021.3 MWh/year, 1,468.5 MWh/year, 1,078.1 MWh/year, and 4,977.4
MWh/year, respectively, totaling 16,545.3 MWh/year.
For more information on PROCEL’s sub-programs, visit the PROCEL Info
website.
Luz Para Todos Program
The purpose of the National Program for Universal Access to and Use of
Electricity - Luz Para Todos (LPT - Light For All Program), established in 2003
is to take, by 2018, electricity to the Brazilian rural population who does not
have access to this service.
The Luz Para Todos Program has already benefited nearly 3.3 million families,
or 15.6 million inhabitants of rural areas in Brazil. The initial target of reaching
10 million people was met in May 2009.
Considered one of the largest social programs in the world by the United
Nations (UN), it promotes universal access to electricity and is an example to be
followed by other nations.
In addition to taking energy to the rural population, the Program offers
solutions for its use as a driver of social and economic development in low-
income communities, contributing to reducing poverty and increasing household
income. Access to electricity enables integration with health, education, water
supply, and sanitation services and with the social programs of the federal
government, helping retain families in rural areas. The program also provides for
the free installation of up to three light boxes (one per room), two power outlets,
conduits, light bulbs, and other materials required.
The initiatives of this program are prioritized to serve the communities
assisted by the Citizenship Territory Program or by the Brazil Without Extreme
Poverty Plan, in addition to rural settlements; Indigenous and quilombola
communities; communities located within extractive reserves or within the
areas of influence of energy generation or transmission projects for which
the respective utility company is not responsible; schools; health centers; and
community water wells.
Luz Para Todos is coordinated by the Ministry of Mines and Energy and
implemented by Eletrobras, which manages contracts and monitors the
execution of the work for rural electrification.
Transparency in LPT’s resource allocation
In LPT’s structure, Eletrobras is responsible for the technical-budgetary
analysis of the Construction Programs proposed by Enabling Agents, for
executing the funding and subsidy granting contracts, and managing
the carrying out of these contracts, releasing the financial resources and
verifying their use.
Verification of the physical execution of the construction works is made
through on site inspections, during which Eletrobras professionals visit a
set of construction works selected in a sampling manner, and check the
information registered in the LPT System.
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Luz Para Todos: in numbers
{ Investments planned for the implementation of the Luz Para Todos
Program, by the end of 2015: R$ 22.85 billion, of which R$ 16.60 billion
(73%) refer to sector-specific resources managed by Eletrobras (Energy
Development Account and Global Reversion Reserve).
{ In 2015 alone, R$ 0.66 billion were released from CDE resources.
{ Since 2004, a total of R$ 13.90 billion (funded by CDE and RGR) were
released, from a total contracted amount of R$ 16.60 billion, that is,
84% of the total resources contracted.
{ In 2015, a total of 57,676 connections were made, adding to a total of
3,258,086 since 2004.
{ Over 15.6 million people have benefited in the Brazilian rural area.
{ 99% of the overall goal of 3,278,430 connections was reached, considering
the commitment made by the enabling agents to Eletrobras and to state
governments.
In 2015, a total of 12,851 projects were registered in the Project
Management System of the Luz Para Todos Program (LPT), totaling 519,840
projects since 2004 (considering only the commitments made between the
Enabling Agents and Eletrobras). This total has resulted in 2,786,062 new
connections, which corresponds to 93% of the total number of connections
contracted between the enabling agents and Eletrobras, as well as:
{ Connection of consumer units in 5,432 municipalities in the Brazilian
rural area.
{ Construction of 716,892 km of high- and low-voltage networks.
{ Implementation of 7.45 million poles.
{ Installation of 1.06 million transformers.
{ Installation of 2,258 photovoltaic systems.
Eletrobras also executed 18 agreements for Special Projects with Enabling
Agents, with CDE resources, for the amount of R$ 7.61 million, with the
goal of serving 377 consumer units through decentralized generation,
using renewable sources, and building small distribution networks (mini-
networks). Of that amount, by the end of 2015, 328 consumer units were
connected, according to on site inspections.
The table below contains the contracted amounts released from 2004 to
2015, broken down by region:
Sector resources up to 12/31/2015 (R$ million)
Region
Contracted
Released
CDE
RGR
CDE+RGR
CDE
RGR
CDE+RGR
North
4,171.97
318.29
4,490.26
3,295.31
284.30
3,579.61
Northeast
6,818.83
942.14
7,760.97
5,865.02
837.42
6,702.44
Mid-West
Southeast
South
Brazil
864.24
589.77
1,454.01
746.95
526.96
1,273.91
858.13
1,174.51
2,032.64
737.80
942.98
1,680.78
346.24
511.90
858.14
276.59
387.26
663.85
13,059.41
3,536.61 16,596.02 10,921.67
2,978.92
13,900.59
Number of connections as of December 31, 2015
Eletrobras Agreements
(Registry LPT System + Special Projects Inspected)
North
550,149 Connections
BRAZIL
2,786,390 Connections
Northeast
1,427,373 Connections
Southeast
424,168 Connections
Midwest
199,407 Connections
KEY:
State with up to 25,000 Connections
25,001 < Connections in the State < 50,000
50,001 < Connections in the State < 75,000
75,001 < Connections in the State < 100,000
100,001 < Connections in the State < 200,000
State with over 200,000 Connections
South
185,293 Connections
The number of connections, mostly in the northern and northeastern
regions of Brazil, reflects the program’s focus on the regions that are farther
from the South-Southeast region.
Indirect impacts of the LPT
The Ministry of Mines and Energy (MME) estimates that over 488,000
direct and indirect jobs were generated through the implementation of
the program, considering the prioritization of local labor and purchase of
domestic materials and equipment, manufactured in the areas surrounding
the locations served.
The benefits generated in the economy are noteworthy, with the
increased demand for home appliances and rural electric equipment.
International technical cooperation agreement to assist
remote regions
In order to support distribution companies in the provision of services to
remote areas with systems based on renewable energy sources and to foster
the social inclusion of the rural population of Brazil, Eletrobras maintains
a technical cooperation project with the Inter-American Institute for
Cooperation on Agriculture (IICA), called “Access to and use of electricity as
an inclusion factor for communities in the Brazilian rural areas” (PCT BRA/
IICA/09/001). The goal of the project, which completed six years of operations
in October 2015, is to create processes and methodologies to qualify
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Eletrobras and its partners for the development and execution of projects
focusing on expanding the electric power public service, emphasizing the use
of renewable sources and the productive use of energy.
During 2015, this cooperation included actions such as studies on hydro-
kinetic turbines for the rural electrification of riverside communities in the
Amazon, viability analysis of the electrification of remote communities
considering the energy efficiency aspect, and methodology for developing a
computer tool to measure the costs of the main equipment of photovoltaic
solar systems, joining efforts to help distribution companies in the challenge of
providing universal access to electricity.
Since the implementation of the Luz Para Todos Program, in 2004, the
Eletrobras distribution companies executed over 468,000 connections,
benefiting over two billion people. The new connections made in 2015
generated additional revenue of R$ 1.3 million for the companies.
Alternative Energy Source Incentive Program
(PROINFA)
The world’s largest alternative energy source incentive program, PROINFA
was created on April 26, 2002, by Law 10,438, regulated through Decree
5,025/04, and started being implemented in 2004.
PROINFA has been playing its role of leveraging the diversification of the
Brazilian energy matrix by increasing the share of projects based on wind,
small hydroelectric power plants (PCH), and biomass sources. The right to
purchase and trade energy contracted from PROINFA plants was ensured
to Eletrobras for 20 years starting from the launch of the commercial
operations of the projects.
PROINFA has contributed to diversify the country’s energy matrix by
using local energy sources, and has helped create nearly 150,000 direct and
indirect jobs in the whole country, enabling large industrial demands and the
internalization of cutting-edge technology.
A total of 131 new projects, shared among 60 PCHs (1,159.24 MW), 52
wind farms (1,282.52 MW), and 19 biomass-fired thermal power plants
(533.34 MW), were added to the Brazilian energy matrix by PROINFA,
amounting to an installed capacity of 2,975.10 MW. From the launch of
the first project, in 2006, to the end of 2015, PROINFA’s contribution to the
system in terms of energy generated totaled approximately 70 million MWh.
Energy contracting ended on December 31, 2011.
For 2016, in order to set the annual electric power quotas referring to
distribution and transmission companies, Ratification Resolution 2003 of
December 15, 2015, determined that the amount to be apportioned during
the year is of 11,192,200 MWh, at an estimated cost of R$ 3.64 billion.
Institutional relations
GRI G4-15, G4-16
The holding’s mission is to lead the coordination of the matters
concerning the regulatory framework of the electric power sector, the
institutional relations, and the management of Federal Assets Managed by
Eletrobras (BUSA).
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Participation in entities
Eletrobras takes part in the most important voluntary initiatives,
recognized in Brazil and abroad, that promote sustainability.
{ Global Compact (2006)
{ Women’s Empowerment Principles (2010)
{ Statement of Corporate Commitment for the Protection of Children
and Adolescents Against Sexual Exploitation (2010)
{ 5th Edition of the Pro-Gender and Race Equality Program (2013)
{ Statement of Commitment on Climate Change (2012)
{ Mão Certa Program - Instituto Childhood Brasil (2010)
{ Brazilian Greenhouse Gas Protocol Program - GHG Protocol (2008)
{ Public Administration’s Environmental Agenda (2012)
{ Emissions Trading System of the Empresas pelo Clima Platform (SCE
EPC) - Center for Sustainability Studies of the Business Administration
School of São Paulo, of the Getulio Vargas Foundation (GVces), in a
partnership with the Rio de Janeiro Green Exchange – BVRio (2014)
{ Tri-national Plan Against Violence - Regional Strategy Against
Trafficking of Children and Adolescents – Mercosur (2010)
{ Responsible Corporate Education Principles (PRME) (2011)
{ Certificate of Compliance with Transparent Management (2014)
{ Treaty on Environmental Education for Sustainable Societies and Global
Responsibility (2003)
The Eletrobras companies also take part in the discussion of important
topics, since they are members of a number of entities, including the
following:
{ International Atomic Energy Agency (IAEA), where Eletronuclear is
among the specialists representing Latin America
{ Associação Brasileira das Companhias Abertas (Abrasca);
{ Associação Brasileira de Concessionárias de Energia Elétrica (Abce);
{ Associação Brasileira de Carvão Mineral (ABCM);
{ Associação Brasileira de Distribuidores de Energia Elétrica (Abradee);
{ Associação Brasileira das Empresas Geradoras de Energia Elétrica
(Abrage);
{ Associação Brasileira da Infraestrutura e Indústria de Base (Abdib);
{ Associação Brasileira das Grandes Empresas de Transmissão de Energia
Elétrica (Abrate);
{ Associação Brasileira da Indústria Elétrica e Eletrônica (Abinee);
{ Associação Brasileira das Instituições de Pesquisa Tecnológica (Abipti);
{ Associação Brasileira de Energia Nuclear (Aben), where Eletronuclear
is a member of the board and of the editorial board of Brasil Nuclear
Magazine, published by Aben
{ Associação Brasileira dos Geradores Térmicos (Abraget);
{ Câmara de Comercialização de Energia Elétrica (CCEE);
{ Câmara de Comércio Americana (Amcham);
{ Centro Internacional de Energias Renováveis-Biogás (CIBiogás-ER);
{ Centro para Inovação e Competitividade (CIC);
{ Comissão de Integração Elétrica Regional (Bracier);
{ Comissão de Integração Energética Regional (Cier);
{ Comissão de Proteção ao Programa Nuclear Brasileiro (Copron);
{ Comissão de Uso Racional de Recursos Naturais, of Rede Rio de
Sustentabilidade, where the holding coordinates a work group;
{ Comitê Brasileiro de Barragens (CBDB);
{ Comitê da Bacia Hidrográfica do São Francisco (Cbhsf);
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{ Comitê Brasileiro de Eletricidade (ABNT/Cobe);
{ Comitê Brasileiro do Conselho Mundial de Energia (CME);
{ Comitê Brasileiro de Gestão e Economia de Energia da ABNT (which the
holding coordinates);
{ Brazilian Global Compact Committee (CBPG);
{ Comitê Consultivo do Projeto Esplanada Sustentável (which the
company is a member of);
{ Comitê de Entidades no Combate à Fome e pela Vida (Coep);
{ Comitê Gestor de Índices de Eficiência Energética do Ministério de
Minas e Energia (MME), which the holding coordinates;
{ Comitê Nacional Brasileiro de Produção e Transmissão de Energia
Elétrica (Cigre);
{ Comitê Permanente para Questões de Gênero do MME e Empresas
Vinculadas (Eletrobras Amazonas Energia is a member);
{ Conseil International des Grands Réseaux Électriques (Cigré);
{ Conselho de Consumidores, where Eletrobras Distribuição Piauí is the
Executive Secretariat;
{ Conselho Empresarial Brasileiro para o Desenvolvimento Sustentável
(Cebds);
{ Conselho Mundial da Água (CMA);
{ Fórum Nacional da Gestão de Ética das Empresas Estatais;
{ Fórum Brasileiro de Mudanças Climáticas (the holding used to
coordinate this forum);
{ Fórum de Meio Ambiente no Setor Elétrico (the holding used to
coordinate this forum);
{ Fórum de Meio Ambiente do Setor Elétrico Brasileiro (Fmase);
{ Fundação Nacional da Qualidade (FNQ);
{ Global Sustainable Electricity Partnership (Gsep);
{ Instituto Ethos de Empresas e Responsabilidade Social;
{ Instituto Nacional de Investidores (INI);
{ Instituto Nacional de Pesquisa e Desenvolvimento de Empresas
Inovadoras (Anpei);
{ Instituto para o Desenvolvimento de Energias Alternativas da América
Latina (Ideal);
{ International Electric Research Exchange (Iere);
{ Instituto Nacional de Metrologia, Qualidade e Tecnologia (Inmetro);
{ International Energy Agency (IEA);
{ International Hydropower Association (IHA);
{ Operador Nacional do Sistema (ONS);
{ Organização das Nações Unidas para o Desenvolvimento Industrial
(Onudi);
{ Rede Latino-americana e do Caribe para a Eficiência Energética (Red-
LAC-EE), where the holding chairs the Executive Committee;
{ Section of the Latin American Nuclear Society (LAS);
{ Sustainable Energy for All;
{ World Association of Nuclear Operators (Wano);
{ World Energy Council (WEC);
{ World Nuclear Association (WNA);
{ World Water Council (WWC) – Seção Brasil.
In addition to associations, the company also participated, by itself, in
the debate of and support to several public policies and initiatives for the
development of the sector and the society:
{ Meetings promoted by SDH with the goal of preparing an Action
Benchmark Document for the Promotion and Defense of Human
147
Rights at State-Run Companies. This initiative of the SDH is part of
the strategy of mobilizing companies, government bodies and the
civil society to build a National Human Rights and Companies Plan, as
recommended by the United Nations Human Rights Council Guiding
Principles.
{ Organization of the 1st International Workshop on Smart Grids
Regulation, in a partnership with Cigré Brasil and Eletrobras Furnas.
{ Participation and forwarding of contributions to the 12 public hearings
of ANEEL, especially the 1st and 2nd stages of AP 032/2015, which
aimed at obtaining subsidy and additional information for discussing
the concept of the GSF and subsidies for the improvement of the
instruments for the renegotiation of the risk of displacement of the
hydropower generation participating in the Energy Reallocation
Mechanism (MRE).
{ Contribution to the MME public consultation referring to Ordinance
515 of November 10, 2015, including the report “Methodology for the
Calculation of Guaranteed Power Output of Hydroelectric Power Plants
Dispatched in a Centralized Manner,” with the goal of establishing
the methodology for the calculation of guaranteed power output of
hydroelectric power plants dispatched in a centralized manner in the
National Interconnected System (SIN).
{ Preparation and forwarding to ANEEL of a proposal to improve ANEEL
Resolution 063/2004, which addresses the proceedings to regulate
the penalties to concession, permission, and authorization holders and
other electric power installation and service agents, and to the entities
in charge of operating the system, selling electricity, and managing the
resources from sector charges.
{ Follow-up on, at ABRATE and ANEEL, the developments of the public
hearing 027/2014, which addresses the proposal to improve Resolution
270/2007; this resolution sets the terms regarding the quality of the
public electric power transmission service.
{ Coordination of the work group for the standardization of rate review
and adjustment proceedings, and their integration to the project for
the Implementation of the ERP System in the Eletrobras companies
(ProERP), and the work group for the merger of Amazonas GT into
Eletrobras Eletronorte.
{ Negotiations with ANEEL and SPU regarding the application and
interpretation of law 1,383/74.
Communication
mechanisms
GRI G4-37, G4-50, G4-57, G4-58
Eletrobras seeks to provide an increasing number of mechanisms that
contribute to strengthening its relationship with external and internal
audiences. The Ombudsman’s Office is one of the most important and relies
on various channels to receive and forward suggestions, claims, reports,
compliments, and requests for the improvement of internal processes, and
provide transparency in Eletrobras’s initiatives.
In all communication channels, the name of the reporting person is kept in
secrecy and the content of the message is treated with seriousness, exemption,
and in a reserved manner. The Eletrobras companies take on the commitment
to not retaliate, and to make sure no employee will retaliate based on
information supplied in good faith.
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES 148
In order to facilitate and encourage participation of shareholders in
the meetings convened by the company and to present contributions to
understand the matters proposed, the company also makes available, on
its website, the Eletrobras Shareholders’ Meeting Participation Handbook.
Shareholders can find detailed information about the matters discussed in
these meetings through a link provided in this guidebook.
Eletrobras’s website offers “Fale com o RI” (Talk to IR), which is another
communication channel through which shareholders can reach the Investor
Relations department, in addition to e-mail or over-the-phone contact, in
case of questions, recommendations, or other relevant requests.
Ombudsman’s Office: This office can be reached through the numbers
(21) 2514-4526/5895, through regular mail sent to Av. Presidente Vargas,
409/17° andar - Centro - Rio de Janeiro/RJ - CEP: 20071-003, through
personal contact, at the same address, or through the e-mail ouvidoria@
eletrobras.com. Eletrobras website also provides a form to contact the
Ombudsman’s Office, found at www.eletrobras.com/ouvidoria. In 2015,
the Ombudsman’s Offices of the Eletrobras companies received 37,097
contacts, 34,158 (92%) of which were resolved and 2,939 (3%) were being
processed on December 31, 2015. Compared to the previous year, there was
a significant increase (100%) in the number of contacts, partly justified by
the addition of Ombudsman contacts of Celg-D in 2015.
Gender Channel: Created in consonance with the Federal Government’s
Pro-Gender Equity Program, the gender channel is dedicated exclusively to
the internal audience and is available on the intranet. This tool receives
contacts (suggestions, comments, or grievances) related to gender,
discrimination, and sexual harassment issues.
Reporting Channel: Created to address requirements of the Sarbanes-
Oxley Act (SOX), exclusively to receive reports about potential accounting
and/or financial irregularities or frauds in the Eletrobras companies and
about potential cases of corruption in Brazil and abroad, with strong
emphasis on anonymous reports (websites of all Eletrobras companies or at
www.eletrobras.com/canaldenuncia).
Talk to the CEO: This tool places employees and the CEO of the company
in direct contact; the e-mail address falecomopresidente@ eletrobras.com
is an additional channel, exclusively dedicated to the internal audience and
replies to e-mails are monitored by Eletrobras’s Ombudsman’s Office.
Citizen Information Service: Monitored by the Ombudsman’s Office
to address requests and inquiries that fall under the Access to Public
Information Act. In relation to management of the demands concerning
Law 12,527 (Access to Public Information), Eletrobras’s Citizen Information
System – SIC received 804 requests for information, all fully addressed,
in 2015. Of those requests, 762 (95%) were answered, and 42 were being
answered by the end of 2015. Among the Eletrobras companies, the holding
received the most requests through e-SIC in 2015: 220 (27% of all requests
received by all the companies), and 98% were answered.
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 2015 e
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Selected image from the photo contest
“Eletrobras Employees at the Olympic
Sports”
Employee
Marcelo Meireles Goulart,
Eletrobras
(Photo: Marcelo Luis de O. Toledo)
153
Eletrobras’ Environmental Management System monitors all
environmental actions of the companies. It is based on three core elements:
the Environmental Policy, the Environment Committee (SCMA), and the
System of Indicators for Corporate Sustainability Management (IGS System).
Environmental Policy: steers the treatment of social and environmental
issues associated with the energy projects of the Eletrobras companies
through a document that reinforces the company’s commitment to the
respect for the environment and the sustainable development of the country.
In 2015, a new version of this policy was finalized, incorporating a guideline
about the resettlement of people affected by electricity sector enterprises
to the other five guidelines that refer to biodiversity, environmental
communication, social, environmental, and equity management of
reservoirs, environmental education, and climate change.
In 2014, Eletrobras approved the Internalization and Disclosure of
Environmental Policy Plan in the Eletrobras companies. In line with this
corporate guidance from the holding company, several actions were carried
out by Eletrobras companies throughout 2015, using multiple communication
channels with all employees. For a relevant example, we mention the
production and propagation of the video “Eletrobras and the Environment”,
which presented the words “I care” as the campaign guiding element, also
posters and booklets were created and distributed to employees. Policy
internalization actions were developed in the companies during the week
of the environment and a team from the environmental area of the holding
company held presentations about Environmental Policy at the headquarters
of Eletrobras distribution companies.
Environment Committee (SCMA): space for discussing practices and
guidelines for the social and environmental issues of the companies. It is
composed of managers of the environment department of the companies,
who convene at least three times each year. Currently, SCMA has 13 working
groups and a topic-specific committee.
System of Indicators for Corporate Sustainability Management (IGS
System): since 2010, the IGS System has monitored the environmental
indicators of all Eletrobras companies. As a strategic tool for the company,
currently, the system has 187 indicators and 280 variables that involve
topics such as water, energy, waste, biodiversity, volunteer actions, and
compliance.
In 2015, the IGS System had 588 users registered across the Eletrobras
companies. Its expansion to the social, economic, financial, energy efficiency
and governance dimensions is being developed.
Water
GRI G4-EN8, G4-EN10
The rational use of water resources is essential to maintain the provision
of services to the energy market and develop the activities conducted by the
Eletrobras companies.
The years 2012, 2013, 2014 and 2015 were characterized by periods of
rainfall below historical averages in several regions of the country, causing
reduction in water availability in some river basins, being named “water
crisis”, which, in addition to affecting water supply, hindered the generation
of power by our hydroelectric power plants Therefore, Eletrobras must guide
and implement best practices in water resource management, aiming at
the maintenance of the business, the prevention of the effects arising from
critical hydrological events, the multiple uses of water, and the decrease in
the impacts on the population and the environment.
2015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES 154
In 2015, Eletrobras began to hold the vice-presidency of the Water Technical
Committee of the Brazilian Business Council for Sustainable Development (Cebds).
The water used in the hydroelectric power plants to generate electricity
is not consumed, but only diverted to move the turbines, therefore is not
considered in the total volume of water consumed. Likewise, the seawater
used by Eletrobras Eletronuclear (approximately 3,199 million m³) to cool
the secondary system of the Angra 1 and 2 nuclear power plants is fully
returned to the sea at Saco Piraquara de Fora with a slight rise in temperature,
which is constantly monitored to comply with the standards established by
environmental laws and to prevent any impact on the aquatic wildlife.
In 2015, a total of 4,615,056.94 m³ of water were used for administrative
purposes, including the volume used in fish farming stations of Eletrobras
Furnas, and 3,196,741,779.89 m³ for thermal power generation, as shown in
the next tables. There was also an increase in water coverage data withdrawn
from groundwater sources and from the supply network.
Total volume of water used for
administrative purposes, by source, in m³
Fonte
2015
2014
2013
Surface water¹
Groundwater²
Supply network³
Total (in m³)
3,611,235.02
3,609,999.68
3,621,391.50
423,280.69
184,769.65
199,109.30
580,541.23
579,773.41
581,610.10
4,615,056.94
4,374,542.74
4,402,110.90
Data does not consider the following companies:
1 - In 2015: Distribution companies, Chesf, CGTEE, Amazonas Energia, Amazonas Geração e Transmissão, Eletronuclear. Not applicable to Cepel and
Eletrobras Holding. In 2014: Distribution companies, Chesf, Cepel, CGTEE, Amazonas Energia, Eletronuclear, Itaipu Binacional and Eletrobras
holding. In 2013: Eletrobras Amazonas Energia, Eletronorte, Eletrosul, Furnas, and Itaipu Binacional.
2 - In 2015: Amazonas Geração e Transmissão, Chesf, CGTEE, Acre, Alagoas, Rondônia, Roraima and Eletronuclear. Not applicable to Cepel and
Eletrobras Holding. In 2014: Distribution companies, Chesf, Cepel, CGTEE, Amazonas Energia, Eletronuclear and Eletrobras holding. In 2013:
Eletrobras Amazonas Energia, Eletronorte, Eletrosul, Furnas and Itaipu Binacional.
3 - In 2014: Eletrobras Distribuição Roraima.
In Eletrobras’ Business and Management Master Plan 2015-2019, Eletrobras
established as an indicator the reduction of administrative consumption of water
from the supply network. Based on 2014 consumption (579,773.41 m3) the goal
is to achieve a consumption of 571,076.81 m3 in 2019.
Total volume of water used for thermal
power generation, by source, in m³
Fonte
2015
2014
2013
Surface water¹
Groundwater²
Total (in m³)
20,531,665.54
35,879,025.70
9,495,785.2
193,229.30
207,900.00
4,176.00
20,724,894.84
36,086,925.74
9,499,961.2
Not applicable to Distribution companies, Itaipu, Eletrosul, Cepel and Eletrobras Holding.
In 2015, data does not consider the following companies:
1- Chesf.
2- Chesf, CGTEE, Amazonas Energia, Furnas and Eletronuclear.
In 2015, there was a decrease in the use of water drawn from surface
sources in plants operated by Eletrobras CGTEE and by Eletrobras Amazonas
Geração e Transmissão.
Eletrobras companies also promoted the reuse and recycling of
water, mainly through wastewater treatment, capturing rainwater and
155
intelligent use in cycles, adding about 3 million m3 in reused water in 2015,
in the Eletrobras, Eletronorte, Eletronuclear, Eletrosul, Furnas and CGTEE
companies, in addition to Itaipu.
Eletrobras and its companies have a technical group to jointly assess and
monitor the hydric resources topic. The Working Group on Water Resources
and Hydroelectric Potential of the Eletrobras Companies (GTRH-EE) was
established in 2005 in order to address the various issues related to the
hydric resources topic that influence Eletrobras companies’ operations and
results. The group prepared the draft text for the Water Resources Policy of
Eletrobras companies (PRH-EE), which was approved in June 2010.
The GTRH-EE has been monitoring the situation of water resources and
has developed an evaluation of historical streamflow for the entire period
currently provided by the Brazilian electricity sector (1931-2014), of all
projects 100% Eletrobras, with the objective of evaluating the behavior of
the basins in recent years. Still in 2015, the group began a diagnosis of water
use for power generation in thermal and nuclear power plants of Eletrobras
companies. These and other questions related to the issue were contained in
the document “Panorama of Water Resources Situation for Eletrobras Power
Generation companies”, from April 2014, prepared by the group.
In order to illustrate the water resources situation a chart is presented
below for the period 2000-2015 with the storage volume percentages of
the three major reservoirs of Eletrobras companies and of the electricity
sector. It is noted that the regulation reservoirs volumes are not only related
to water availability, but also from centralized dispatch of power plants
that are connected to the National Interconnected System, coordinated by
the Electric System National Operator (ONS). The importance of regulation
reservoirs for the country should be emphasized, as they provide the multiple
uses of water and allow better conditions so that priority uses are maintained
during periods of low rainfall.
Useful storage percentage achieved by
the reservoirs of Tucuruí, Sobradinho and Furnas*
120
100
80
60
40
20
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Sobradinho
Tucuruí
* Calculation period: from January 2000 to December 2015. (Source: ONS, historical volumes of the reservoirs)
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES
156
Observing the chart above, it may be noted that the water levels of the
Sobradinho (PE) and Furnas (MG) reservoirs until the end of 2015 were
influenced by the recent period of rainfall below historical averages in their
basins, situation which has become a little more favorable after the rains
that occurred in early 2016.
Energy
GRI G4-EN3, G4-EN4, G4-EN6, G4-EN7
As a company committed to maintaining environmental and business
sustainability, Eletrobras develops actions to mitigate and monitor power
consumption. The direct energy consumption, renewable and non-
renewable, happens in the use of equipment and machinery, in thermal
power plants operation, in the vehicle fleet, among other operations.
On the other hand indirect energy refers to consumption by intermediate
sources i.e., the energy consumed in the form of electricity. The following
shows the power consumption of Eletrobras companies in 2015, inside and
outside the organization.
Consumption Inside the Organization
Fuels in TPPs in 2015
GJ
Biodiesel
Natural Gas
Coal
LPG
Fuel Oil
Diesel
SubTotal
Uranium
Total
Fuel in Administrative activities 2015
GJ
Biodiesel
Automotive Ethanol
Ethanol added to gasoline
Natural Gas
Coal
Gasoline
Aviation kerosene
LPG
Two-stroke oil
Fuel Oil
Diesel
Aviation kerosene
Total
1,758,730
59,817,568
27,962,651
566
5,490,305
25,018,119
120,047,939
53,161,671
173,209,610
17,104.00
30,574.00
18,211.00
266.42
n.a.
72,886.00
0.00
2,605.00
62.48
0.00
243,306.00
6,384.00
391,398.90
Consumption Outside the Organization
Activity
GJ
157
Fuel transportation
PIE
Non Energy Products Transportation
Air Travel
Employee Transportation
Total
112.87
45,444,402.00
64,737.00
159.65
68,838.00
45.578.249,52
Electricity Consumption in 2015
Atividade
Em Gj
Administrative activities
Thermal generation
Hydroelectric generation
Transmission
Distribution
Total
Goals
380,550
500,814
615
395,604
24,125
1,301,707
In order to improve the management and environmental efficiency in
Eletrobras companies in 2013, the holding company suggested that their
companies establish goals for reduction in consumption of some resources,
also in order to contribute to reducing the emission of greenhouse gases.
The suggested indicators were the percentage of reduction from fossil
fuel use of own vehicle fleet (scope 1) and the reduction percentage in
own consumption of electricity from the public grid (Scope 2). Having the
year 2012 as baseline, which shall be completed by 2015, each company
has set its own goals. On a consolidated basis, we tried to reach the 6.6%
reduction in consumption in ground mobile sources and 3.6% relative to the
consumption of electricity.
Goal
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Scope 1
2012
6,046,702
-
-
15,375
-
-
2015
5,607,261
- 7.27
YES
14,178
-7.79
YES
6.6% reduction
in consumption
in ground mobile
sources
Goal
r
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Y
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Scope 2
2012 70,007,064
-
-
4,506
-
-
2015 55,555,173
-20.64
YES
6,750
49.79
YES
Reduction of 3.6%
relative to the
consumption of
electricity
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES
158
The Monitoring the overall goal for the Eletrobras companies was carried
out as follows:
{ Consumption goals: for the units of the companies defined for their
individual goals having 2012 as the baseline, it was verified the values
consumed, in 2015, of fuels (scope 1) and electricity (scope 2).
{ Emissions goals: for the units of the companies defined for their
individual goals having 2012 as the baseline, it was verified the GHG
emission values, in 2015, of fuels (scope 1) and electricity (scope 2).
In the period, the consumption of fossil fuels for ground vehicles
decreased 439,441 liters, 7.27% less than in 2012. GHG emissions decreased
7.79%, exceeding the target.
However, one must consider the target set by Furnas, not included
in this calculation for being of a different nature: the scale increase of
renewable fuels (ethanol) consumption, to 6% in 2015. In 2012, Furnas
vehicles consumed 18,570 l of ethanol, while in 2015, this consumption rose
to 234,334 l, an increase of 1.162%, representing a 1.090% improvement
over the established goal.
The goal concerning power consumption of the public grid was also
successfully achieved; the reduction of all companies was 14,451,891 kWh,
which corresponds to 20.6% less than the consumption in 2012. Despite
the reduction in the power consumption (Scope 2) in the 2012-2015 period,
the goal for emission of GHG equivalent was not met. This is explained by
the higher dispatch of thermoelectric plants in the National Interconnected
System (SIN) in this period to compensate for the reduced power generation
by hydroelectric plants in the country, caused by the severe drought, which
greatly increased the CO2 emission factor of the SIN and consequently the
calculation of this portion.
In Eletrobras’ Business and Management Master Plan 2015-2019, the
company established new goals for these two indicators. The intention is to
achieve a reduction of 0.2% per year until 2019, having as base line the 2014
consumption in all operating units of Eletrobras companies. For the fossil
fuel consumption of own vehicle fleet, 301,655.62 GJ in 2014, the goal is to
reach the consumption of 298,639,07 GJ in 2019. For the 884,134.27 MWh
consumed in 2014, the goal is to achieve 835,692,93 MWh in 2019.
Climate Change
GRI G4-EC2, G4-EN15, G4-EN16, G4-EN17, EN21
Eletrobras has the goal of contributing to the transition to a new development
model based on a low-carbon economy. With this in mind, in 2012, Eletrobras’
senior management signed a statement concerning climate change, in which
the company makes commitments that steer the actions of Eletrobras and of its
companies concerning issues on climate change. Such statement is included to
the Environmental Policy of the Eletrobras companies (item 3.2.4).
In order to achieve this goal, Eletrobras companies, via its risk management
integrated process, act identifying, analyzing, treating and monitoring risks, not
only climate change and greenhouse gases risks, but also all their correlative
identified in both environmental and in social fields.
159
So it is important to note that the Eletrobras system risk matrix is organized in
pillars (strategic, operational, financial and compliance), divided into categories
within risk events are organized. The events related to the environment, can be
found both in the strategic and operational pillars. Among them we highlight the
risks: Climate Change (physical and regulatory nature), Hydrological risk (physical
and regulatory nature), Biodiversity and Physical Environment (physical and
regulatory nature), Environmental Licensing (regulatory nature), Environmental
Controls (physical and regulatory nature), Environmental Accidents (physical
nature) and Greenhouse Gas Emissions (physical and regulatory nature), which
were prioritized in 2015 and had their factors and impacts mapped and analyzed.
Then for each of those risks, recommendations were defined and based on them,
action plans were developed, whose activities aim to reduce the group’s exposure
to such risks.
These activities consist mainly of measures to reduce greenhouse gases
emissions, greater control of the management of inputs and contaminants,
adaptation and/or readjusting to impacts caused by climate change and projects
for the prevention and/or compensation of possible impacts generated by
businesses in their surrounding areas. These plans should be implemented by
risk managers and monitored by appropriate authorities in order to verify its
effectiveness in mitigating each of these risks. Regarding the costs associated
with the implementation of these measures/projects, it is not business practice to
measure them in a stratified manner and/or by project, since they are included in
the budget of the areas responsible for their treatment.
To ensure the implementation of actions to manage GHG emissions, prioritize
renewable energy projects, and encourage studies on climate change are some
of Eletrobras companies’ goals, mainly when significant climate changes took
place, affecting the country’s water availability in recent years, and subsequently,
the generation of hydroelectric power, forcing a higher dispatch from the thermal
power plants, especially those that use fossil fuels.
Even facing this adverse situation, the greenhouse gas emissions of the
Eletrobras companies were reduced, as can be seen in the following table:
Greenhouse Gas Emissions
2015
2014
2013
2012
8,413,812
9,358,352.2
10,270,406.6
8,169,468.0
1,839,372
2,544,950.0
1,771,779.4
1,654,495.0
2,991,807
1,985,312.3
1,828,086.1
1,948,184.0
13,244,991
13,888,614.5
13,870,272.1
11,772,147.0
Scope 1
Scope 2
Scope 3
Total
For more information on this subject, the questionnaire answered by
Eletrobras relative to carbon is publicly available on the CDP website: https://
www.cdp.net/en-US/Pages/HomePage.aspx
The GHG emissions inventory of companies Eletrobras uses the IPCC
methodology (2006) and the Greenhouse Gas Protocol - GHG Protocol
(WRI, 2004) guidelines, having as organizational limit those companies in
which Eletrobras holds the operational control. In the operational control
approach, an organization is responsible for 100% of the GHG emissions of
the corporate units over which it has operational control, not accounting for
those emissions coming from operations in which the organization has only
corporate participation. GHG Protocol is a corporate standard for accounting
and reporting greenhouse gas emissions, launched in 1998 and revised in
2004, recognized internationally, and today the tool most used worldwide
by companies and governments to understand, quantify and manage their
emissions.
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES
160
The information necessary for the preparation of this Inventory were
collected in each company through their representatives in the GT3 - Climate
Strategy Working Group, established under the SCMA - Subcommittee on
Environment of Eletrobras companies.
The following figure presents the process of preparation of the GHG inventory
of Eletrobras companies, its scope, general structure and sources listed.
GHGs Inventory – Eletrobras Companies
Scope 1
Scope 2
Scope 3
Emission
factors:
Electric Energy
(MCTI)
Energetic
content of
fuels (National
Energetic
Balance - BEN
2013)
Direct emissions
of fixed sources
(thermal pp)
Mobile sources
Fugitive
emissions (SF6,
cooling gases, ETE)
Other fixed
sources: LPG,
natural gas,
diesel, etc
Emissions related
to the amount of
energy acquired
from the grid
Transmission
losses
Distribution
losses
Independent
Power
Producers
Air trips
Ground logistics
Transportation
of employees
Methodology:
GHG Protocol
IPCC (2006)
Operational
Control
Approach
Gases: CO2
CH4
N20 SF6
PFC
HFC
GHG Emissions Calculations
Working Groups of
Climate Strategy of
Eletrobras Companies
Transmission losses data
Gathering and sending of quantitative data
Eletrobras Holding
Transmission
Director
Company 1
Company 2
Company 3
Company ‘n’...
For the calculation of emissions from electricity consumption and losses
in transmission and distribution, emission factors for the transmission grid
(National Interconnected System - SIN) were used, which are calculated
and published by the Ministry of Science, Technology and Innovation-MCTI
(available in the following web-site: http://www.mct.gov.br/index.php/
content/view/321144.html#ancora)
In Brazil, since there is mandatory addition of a fraction of sugar cane
ethanol in gasoline, and biodiesel in the diesel as well, oil derived fuels
present less potential of pollution as those used internationally. Thus,
the CO2 emissions from the consumption of biofuels (biodiesel, ethanol
added to gasoline and ethanol in vehicles) are reported separately from
the calculations of this inventory, because these emissions are reabsorbed
through photosynthesis (in crops of sugar cane and soybeans, among other
vegetables used in the production of these biofuels).
Due to this reason, since the last Eletrobras companies GHG inventory
(base year 2013), for the fuel consumption of road mobile sources (ethanol,
161
natural gas, gasoline and diesel), emission factors published in the first
National Inventory of Atmospheric Emissions by Road Vehicles (MMA, 2011)
are used replacing the IPCC factors.
Emissions resulting from the conventional thermoelectric generation
from independent power producers of energy (PIE), whose energy is used by
the distribution utilities and resold to their final consumer (e.g., Eletrobras
Amazonas Energia, Eletrobras Distribuiçao Rondônia, Eletroacre and
Eletrobras Distribuição Roraima), are quantified in the scope 3 and therefore
they are presented separated from emissions related to the Eletrobras
companies’ own thermoelectric park, which are considered in scope 1.
The value of consumed fuels energy content was calculated on the basis
of the conversion factors set out by the BEN - National Energy Balance report
(base year 2013).
For the calculation of the GHG emissions intensity were considered
the scopes 1 and 2 (direct and indirect emissions related to purchase of
energy), as defined by the Carbon Disclosure Project (CDP) and other GHG
emission reporting.
GHG emissions from hydroelectric reservoirs belonging to Eletrobras
companies were not considered because there is, so far, no international
scientific consensus methodology that allows to estimate these emissions
and calculate the emissions balance (or net emissions) of water bodies.
In addition to the GHG emissions, the emissions of sulphur oxides
(SOx) and nitrogen oxides (NOx) are also estimated, according to indirect
calculation methodology (Source: European Environmental Agency. Air
pollutant emission inventory guidebook: Technical guidance to prepare
national emission inventories /2009), which is based on the information
on consumption of fossil fuels by the thermoelectric powerplants of
Eletrobras companies.
This inventory was verified by independent third party and all the
information and memories, in addition to identification of data sources, are
archived. The independent auditor assurance letter was issued in May 20,
2016 by KPMG Risk Advisory Services Ltd. The KPMG Risk Advisory Services
Ltd is a simple Brazilian society, a limited liability company, and member firm
of the KPMG network of independent member firms affiliated with KPMG
International Cooperative – (“KPMG International”), a Swiss entity.
SOx and NOx Emissions
GRI G4-EN21
SOx and NOx emissions in own TPP in 2015 were 37,118.50 tons and
19,675.90 tons respectively.
At coal-fired thermal power plants, the continuous monitoring is done
by extraction method with analysis by non-dispersive infra-red absorption
for SOx and NOx. In the monitoring by isokinetic sampling, the following
methods are used: For SOx, the Cetesb L9.228 method; for NOx, the Cetesb
L9.229 method.
The Monitoring of Air Emissions from Candiota Thermoelectric complex
is carried out by independent systems, operating continuously to verify the
atmospheric emission in each flue of the Complex: Flue 1 (Boilers I and II -
Phase A); Flue 2 (Boiler III - Phase B); Flue 3 (Boiler IV - Phase B) and Flue 4
(Boiler V - Candiota TPP, Phase C).
The flues are built in reinforced concrete and are 150 meters high in
Phases A and B and 200 meters in Phase C. Each system performs the
measurement of sulfur dioxide concentrations (SO2), nitrogen oxides (NOx),
carbon monoxide (CO) and particulate matter (PM).
The percentage of oxygen (O2) in air emissions, pressure values,
temperature and flow of flue gases are also measured to correct the
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concentration of pollutants in milligrams per normal cubic meter (mg /
Nm3), at 6% oxygen, according to process characteristics and environmental
licensing settings. The variables are measured every second, generating
an average at the end of each hour. This hourly average is transmitted to a
Supervisory Center for Environmental Monitoring at Eletrobras CGTEE, which
relays the data to the environmental licensing agency, IBAMA.
Monthly reports containing the validated data from air emissions
monitoring, failure identification and conclusions on monitoring are sent in
physical medium to IBAMA, with the signature of the area responsible.
Isokinetic samplings are held monthly in each flue, subject to operational
availability of each Generating Unit, in order to validate the continuous
monitoring.
Eletrobras CGTEE maintains, by contract with a specialized company,
maintenance and periodic calibrations in continuous monitoring instruments.
This monitoring meets the requirements of environmental enforcement agencies
and CONAMA Resolution No. 436 of December 22, 2011.
Biodiversity
Considering that environmental issues are directly associated with the
nature of Eletrobras companies, the management and minimization of
impacts on biodiversity are a strategic guideline that must be incorporated
into our projects from planning to operations.
In view of the Environmental Policy of Eletrobras’ principles and
guidelines, the companies develop biodiversity recovery and protection
initiatives, aimed at rational use of energy resources while maintaining a
balance with the environment, engineering aspects and environmental
aspects, always serving the principles of sustainability.
Since 2012, the Environmental Policy of Eletrobras has specific guidelines
for Biodiversity, to improve the management and include the issue in the
decision-making processes of all Eletrobras companies.
Guided by the compliance to public policies and international agreements
to which Brazil is a signatory, Eletrobras companies seek to maintain a
systematic and continuous improvement in management practices, with
the help of the IGS system, a tool that allows monitoring the environmental
performance of companies regarding biodiversity issues. Since 2012, the
IGS system has specific indicators and variables for the management of
biodiversity, for example, to support protected areas, recovery of degraded
areas, flora and fauna monitoring programs, among others.
Considering the importance of the development of initiatives
representing a difference in the management of social and environmental
issues and which may bring benefits to the region where the project was
implemented, Eletrobras develops, since 2011, the project “Best Practices”.
The update of this project in 2015 showed an increase in voluntary activities
by companies to protect biodiversity, which can be considered an important
indicator of the commitment of the companies in promoting environmentally
sustainable development. This result is in line with the goal of Eletrobras of
increasing investment in biodiversity protection by 2019.
The analysis of biodiversity-related risk is considered critical to
improving the management and performance of Eletrobras companies. In
line with this perception, the biodiversity-related risks were identified in
the company’s Risk Matrix and reported to the management. Furthermore,
in 2015 Eletrobras began to participate in the pilot project developed by
the Institute for Sustainability Leadership (CISL), from the University of
Cambridge. The “Natural Capital Protocol” project aims to identify the
premises / business impacts in relation to biodiversity and biodiversity in
163
relation to business as well as the opportunities arising from this interaction,
aiming to improve management. Participation in this project is in line with
the activities carried out under the Biodiversity Technical Chamber (CTBio) of
the Brazilian Business Council for Sustainable Development (CEBDS), where
Eletrobras holds the vice presidency, and the Environmental Committee of
the Eletrobras Companies (SCMA).
Still in 2015, the SCMA has defined that the “Study on exposure to risks
related to biodiversity and strategies for the management of biodiversity and
performance improvement within Eletrobras companies” will be developed
by the Biodiversity Working Group and Aquatic Resources of this Committee.
Waste
GRI G4-22
The IGS system also assists in the management and monitoring of waste
generated by the activities of Eletrobras companies. Since verifications are
carried out constantly, it is possible to detect inconsistencies such that one
resulting in the need to review the data presented for the year 2014. The
corrected value of the total waste in 2014 was 1,444,294.96 tons.
In 2015, the companies disposed of 1,430,168.34 tons of waste, mostly
to industrial landfills and to reuse. Much of the waste comes from ash
generated by the operation of coal-fired thermal power plants located in
Candiota (RS).
At the Eletrobras companies, treatment of solid waste complies with the
laws in effect. Hazardous waste is collected, sorted, and stored at its source,
according to its main characteristic (oily waste and solvent-contaminated
waste, etc.) and then shipped to companies that specialize in transportation,
treatment, and disposal of this type of waste. In the storage and final
disposal of biomedical waste, all Eletrobras companies comply with ANVISA
standards
As for the ashes, part is destined to landfills and some is generally reused
by the cement industry, according to the demand from the construction
industry.
Cases
{ Reverse Logistics and Manufacturing of Outdated Energy meters
Project: developed by Eletrobras Distribuição Alagoas, started in 2014,
this project is an example of environmental initiative that generates
revenue for the company. The project objective is the environmentally
proper disposal of energy meters, both outdated meters (meters with
over ten years of use), and also meters of vegetative growth. Unlike
other contracts with its suppliers, this contract was intended to sell
scrap materials to the recycler who won the auction, which took place
in June 2014. A total of 59,330 meters were transferred to the recycler,
totaling 5 lots. For each lot delivered, according to contract term, the
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recycler issued a certificate of disposal, reporting the total of each
component in the respective lot (plastic, glass, iron, etc) and the final
disposal of these materials. A total amount of R$61,109.90 (R$1.03
unit price) was generated in revenue.
{ In 2015, the auctioning of industrial waste by Eletrobras Eletronuclear
aiming reuse/reprocessing/recycling generated revenue of
R$221,145.00 for the company.
{ Eletrobras Eletronorte sold its used insulating and lubricant oil, as
well as batteries and scrap metal generating revenue and minimizing
environmental impacts. In 2015 the value reached R$774,150.00.
{ Eletrobras Furnas sold its oil and ferrous scrap amounting to
R$1,836,900.00.
Spills
The Eletrobras companies have local contingency plans and conduct drills
that enable the companies to prevent accidents related to spills and other
types of incidents that could require the evacuation of the workplace.
Furthermore, the companies have built tanking dikes and use materials
such as sawdust, absorbent mats, and containment berms. The companies
also conduct environmental audits to inspect the effectiveness of the
containment methods used in the prevention of this type of accident.
In case of accidents, processes are immediately reviewed and errors are
assimilated as lessons learned to avoid recurrence.
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Selected image from the photo contest
“Eletrobras Employees at the Olympic
Sports”
169
GRI Indicator
1. STRATEGY AND ANALYSIS
Page /
Direct Answer
External
assurance
G4-1
Statement from the most
senior decision-maker of
the organization about the
relevance of sustainability to
the organization
Message from the
president
G4-2
Description of key impacts,
risks, and opportunities
Risk management
2. ORGANIZATIONAL PROFILE
G4-3
G4-4
G4-5
G4-6
G4-7
G4-8
G4-9
G4-10
G4-11
G4-12
G4-13
G4-14
G4-15
Name of the organization
Eletrobras
Primary brands, products, and
services
About Eletrobras
Location of the organization’s
headquarters
Number of countries where the
organization operates
Headquartered in
Brasília (DF) and its
main office is located in
Rio de Janeiro ()RJ
Eletrobras companies
Nature of ownership and legal
form
Mixed capital traded
corporation
Markets served
Business performance
Scale of the organization
Financial performance,
Business performance,
Employees
Total number of employees
Employees
Percentage of total employees
covered by collective
bargaining agreements
All employees of the
Eletrobras companies
are covered by collective
bargaining agreements.
Describe the organization’s
supply chain
Suppliers
Significant changes during the
reporting period regarding the
organization’s size, structure,
ownership, or its supply chain
De-verticalization of
Amazonas Energia
COMMITMENTS TO EXTERNAL INITIATIVES
Report whether and how the
precautionary approach or
principle is addressed by the
organization
List externally developed
economic, environmental and
social charters, principles, or
other initiatives to which the
organization subscribes or
which it endorses
Precautionary principle
Message from
the President and
Institutional relations
Employee
Clovis Nicoleit,
Eletrobras Eletrosul
(Photo: Divulgation)
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G4-16
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Direct Answer
External
assurance
Institutional relations
GRI Indicator
List memberships of
associations (such as industry
associations) and national
or international advocacy:
organizations in which
the organization, holds a
position on the governance
body, participates in projects
or committees, provides
substantive funding beyond
routine membership dues
3. IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES
G4-17
G4-18
G4-19
G4-20
G4-21
G4-22
G4-23
List all entities included in the
organization’s consolidated
financial statements
Page 9
Explain the process for defining
the report content and the
Aspect Boundaries
Pages 9 and 10
List all the material Aspects
identified in the process for
defining report content
For each material Aspect,
report the Aspect Boundary
within the organization
For each material Aspect,
report the Aspect Boundary
outside the organization
Report the effect of any
restatements of information
provided in previous reports,
and the reasons for such
restatements
Report significant changes
from previous reporting
periods in the Scope and
Aspect Boundaries
Page 11
Page 11
Pages 10 and 11
Pages 27, 29 and 156
There were no
significant changes
from previous reporting
periods in the scope and
aspect boundaries
4. STAKEHOLDER ENGAGEMENT
G4-24
G4-25
G4-26
G4-27
List of stakeholder groups
engaged by the organization
Pages 10 and 11
Page 11
Page 11
Page 11
Report the basis for
identification and selection
of stakeholders with whom to
engage
Report the organization’s
approach to stakeholder
engagement, including
frequency of engagement
Report key topics and concerns
that have been raised through
stakeholder engagement,
and how the organization has
responded to those key topics
and concerns
5. REPORT PROFILE
G4-28
Reporting period
About this report
GRI Indicator
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assurance
171
G4-29
G4-30
G4-31
G4-32
G4-33
Date of most recent previous
report
2014
Reporting cycle
Annual
Contact point for questions
regarding the report or its
contents
sustentabilidade@
eletrobras.com
Report the ‘in accordance’
option the organization has
chosen, GRI Content Index and
External Assurance Report
About this report
Report the organization’s
policy and current practice
with regard to seeking external
assurance for the report
Summary of GRI G4
Disclosures / Audit
Opinion
6. GOVERNANCE
GOVERNANCE STRUCTURE AND COMPOSITION
G4-34
G4-35
G4-36
G4-37
G4-38
G4-39
G4-40
G4-41
Governance structure
Governance structure
Governance structure
and Supporting
agencies
Communication
mechanisms
Report the governance
structure of the organization,
including committees
Report the process for
delegating authority for
economic, environmental and
social topics from the Board of
Directors to senior executives
and other employees
Report whether the
organization has appointed
an executive-level position or
positions with responsibility for
economic, environmental and
social topics, and whether post
holders report directly to the
Board of Directors.
Report processes for
consultation between
stakeholders and the Board
of Directors on economic,
environmental and social
topics
Report the composition of the
Board of Directors
Governance structure
and Board of Directors
Governance structure
Governance structure
Conflict of interest
Report whether a Board of
Directors member is also an
executive officer (and, if so,
which one?)
Report the nomination and
selection processes for the
Board of Directors and its
committees
Report processes for the Board
to ensure conflicts of interest
are avoided and managed.
Report whether conflicts
of interest are disclosed to
stakeholders
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GRI Indicator
G4-42
G4-43
G4-44
G4-45
G4-46
G4-47
G4-48
G4-49
G4-50
G4-51
G4-52
G4-53
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Direct Answer
External
assurance
Governance structure
Corporate governance >
principles
Performance evaluation
About this report and
Risk management
Risk management
Risk management
About this report
Governance structure
Communication
mechanisms and
Compliance
Report the Board’s and
senior executives’ roles in the
development, approval, and
updating of the organization’s
purpose, value or mission
statements, strategies, policies,
and goals related to economic,
environmental and social
impacts.
Report the measures taken
to develop and enhance the
Board’s collective knowledge of
economic, environmental and
social topics
Report the processes for
evaluation of the Board of
Directors’ performance and
governance
Report the Board of Directors’
role in the identification
and management of
economic, environmental
and social impacts, risks, and
opportunities. Report whether
stakeholder consultation and
materiality are taken to Board.
Report the Board of
Directors’ role in reviewing
the effectiveness of
the organization’s risk
management processes
Report the frequency of the
Board’s review of impacts, risks,
and opportunities.
Report the highest committee
or position that formally
reviews and approves the
organization’s sustainability
report and ensures that all
material Aspects are covered
Report the process for
communicating critical
concerns to the Board
Report the nature and total
number of critical concerns
that were communicated to the
Board and the mechanism(s)
used to address and resolve
them.
Report the remuneration
policies for the Board of
Directors and senior executives
Compensation and
benefits
Report the process for
determining remuneration
Board of Directors and senior
executives
Report how stakeholders’
views are sought and taken
into account regarding
remuneration
Compensation and
benefits
Compensation and
benefits
GRI Indicator
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assurance
173
G4-54
G4-55
Report the ratio of the annual
total compensation for the
organization’s highest-paid
individual in each country
of significant operations
to the median annual total
compensation for all employees
(excluding the highest-paid
individual) in the same country
Report the ratio of percentage
increase in annual total
compensation for the
organization’s highest-paid
individual in each country of
significant operations to the
median percentage increase in
annual total compensation for
all employees (excluding the
highest-paid individual) in the
same country
The ratio between the
average compensation
and the highest-paid
individual is 4.62. All
employees considered
work full time.
The ratio between the
percentage increase in
median compensation
is 0.85 of the increase
of the highest
paid individual. All
employees considered
work full time.
7. ETHICS AND INTEGRITY
G4-56
G4-57
G4-58
Mission, vision and
values / Conduct and
ethical principles
Conduct and
ethical principles
/ Communication
mechanisms
Conduct and
ethical principles
/ Communication
mechanisms
Describe the organization’s
values, principles, standards
and norms of behavior such as
codes of conduct and codes of
ethics
Report the internal and
external mechanisms for
seeking advice on ethical and
lawful behavior, and matters
related to organizational
integrity, such as helplines or
advice lines
Report the internal and
external mechanisms for
reporting concerns about
unethical or unlawful behavior,
and matters related to
organizational integrity, such
as escalation through line
management, whistleblowing
mechanisms or hotlines
Economic Performance
Aspect
Economic performance
EC1
EC2
EC3
Report the direct economic
value generated and
distributed
Financial implications and
other risks and opportunities
for the organization’s activities
due to climate change
Distribution of added
value (DVA)
Climate Change
Coverage of the organization’s
defined benefit plan
obligations
Compensation and
benefits
ENVIRONMENTAL Global Compact
Aspect
Energy
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GRI Indicator
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External
assurance
GRI Indicator
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Direct Answer
External
assurance
175
EN3
EN4
EN6
EN7
Energy consumption within the
organization
Energy
Energy consumption outside of
the organization
Energy
Reduction of energy
consumption
Reductions in energy
requirements of products and
services
Energy efficiency /
Energy
Energy efficiency /
Energy
Aspect
Emissions
EN8
EN9
EN10
EN15
EN16
EN17
EN21
Total water withdrawal by
source
Water
Report the total number of
water sources significantly
affected by withdrawal by type
The company does
not significantly affect
water sources by
withdrawal
Percentage and total volume of
water recycled and reused
Water
Direct greenhouse gas (GHG)
emissions
Climate Change
Energy indirect greenhouse gas
(GHG) emissions
Climate Change
Other indirect greenhouse gas
(GHG) emissions
Climate Change
NOX, SOX, and other significant
air emissions
Climate Change
Social: Labor practices and decent work
Aspect
Employment.
LA2
LA3
Benefits provided to full-
time employees that are not
provided to temporary or part-
time employees, by significant
locations of operation
Return to work and retention
rates after parental leave, by
gender
Benefits
All employees of the
Eletrobras companies,
that had the end of
their maternity and
paternity leave in 2015,
have returned to work,
with the exception of
one Chesf employee,
who resigned during his
paternity leave.
Aspect
Occupational health and safety
LA5
LA8
Percentage of total workforce
represented in formal joint
management–worker health
and safety committees that
help monitor and advise on
occupational health and safety
programs
Health and safety topics
covered in formal agreements
with trade unions
100% of the employees
of the Eletrobras
companies are
represented by health
and safety committees
Health and safety
Aspect
Diversity and Equal Opportunity
Employee profile
LA12
Composition of governance
bodies and breakdown of
employees per employee
category according to gender,
age group, minority group
membership, and other
indicators of diversity
Aspect
Equal Remuneration for Women and Men
LA13
Ratio of basic salary and
remuneration of women to
men by employee category,
by significant locations of
operation
Compensation and
benefits
Aspect
Supplier Assessment for Labor Practices
Social: HUMAN RIGHTS
Aspect
Non-discrimination
HR3
Total number of incidents of
discrimination and corrective
actions taken
In 2015, 3 cases of
discrimination were
received by Furnas
Ethics Committee and
Itaipu’s Ombudsman’s
Office. Both cases
were resolved in the
same year with those
responsible.
Social: Society
Aspect
Local communities
SO1
Percentage of operations with
implemented local community
engagement, impact
assessments, and development
programs
Community
engagement
Aspect
Anti-corruption
SO3
SO4
Total number and percentage
of operations assessed for risks
related to corruption and the
significant risks identified
Communication and training
on anti-corruption policies and
procedures
Compliance
Compliance
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GRI Indicator
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External
assurance
GRI Indicator
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Direct Answer
External
assurance
SO5
Confirmed incidents of
corruption and actions taken
A total of ten
complaints of
corruption were
received. Of these,
four were analyzed
and the complaint was
considered unfounded;
three cases of
corruption were subject
to corrective measures
(warning, dismissal
without cause and 5
days suspension); one
is being investigated by
the holding; one is in
disciplinary proceedings
and one is being
investigated by the
court.
Aspect
Compliance
SO8
Monetary value of significant
fines and total number of
non-monetary sanctions for
non-compliance with laws and
regulations
The total significant
fines (above 1% of NOI)
was R$396,504,796.05.
No non-monetary
sanctions were verified.
Social: Product Responsibility
Aspect
Product and Service Labeling
PR5
Results of surveys measuring
customer satisfaction
Clients
Aspect
Compliance
PR9
Monetary value of significant
fines for non-compliance
with laws and regulations
concerning the provision and
use of products and services
No significant fines were
verified (above 1% of
NOI).
Sector Supplement
Page / Direct Answer
External
assurance
Aspect
Organizational Profile
EU1
EU2
Installed capacity, broken down
by primary energy source and
by regulatory regime
Generation
Net energy output broken
down by primary energy source
and by regulatory regime
Net energy output
EU3
Number of residential,
industrial, institutional and
commercial customer accounts
Residential: 3,470,864;
Institutional
(government and public
services): 288,361;
Commercial: 52,021;
Industrial: 11,857;
Other categories (rural,
private consumption,
etc.): 234,441; Total:
4,057,544. Celg-D
consumers were not
added.
EU4
Length of above and
underground transmission and
distribution lines by regulatory
regime
Transmission,
Distribution
Aspect
Availability and Reliability
DMA (former EU6) Management approach to
EU10
ensure short and long-term
electricity availability and
reliability
Planned capacity against
projected electricity demand
over the long term, broken
down by energy source and
regulatory regime
Aspect
Demand-Side Management
DMA (former EU7) Demand-side management
programs including residential,
commercial, institutional and
industrial programs
DMA (former EU8) Research and development
activity and expenditure aimed
at providing reliable electricity
and promoting sustainable
development
Aspect
System Efficiency
Business performance
(Transmission service
quality)
Planned capacity vs.
projected electricity
demand
Governo e políticas
públicas
Pesquisa e
desenvolvimento
EU11
EU12
Eficiência média de geração
das termelétricas por fonte de
energia e sistema regulatório.
Perdas na transmissão e
distribuição de energia como
porcentagem do total de
energia.
Eficiência de geração de
plantas térmicas
Perdas na transmissão
/ Perdas na
distribuiçãoPerdas na
distribuição / Perdas na
transmissão
Aspecto
Desastre / emergência: planejamento e resposta
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 20152015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES
178
GRI Indicator
Page /
Direct Answer
External
assurance
DMA (former
EU21)
Contingency planning
measures, disaster/emergency
management plan and training
programs, and recovery/
restoration plans
Aspect
Customer Health and Safety
Measures to prevent
and reduce damages
EU22
Number of people physically
or economically displaced and
compensation, broken down by
type of project
Community
engagement
Aspect
Access
DMA (former
EU23)
EU26
EU27
EU28
EU29
EU30
Programs, including those in
partnership with government,
to improve or maintain access
to electricity and customer
support services
Percentage of population
unserved in licensed
distribution or service areas
Number of residential
disconnections for non-
payment, broken down by
duration of disconnection and
by regulatory regime
Government and public
policy
The percentage of
population unserved
based on the ratio
between the total
population and the
unserved population is
1.93%
Residential
disconnections
Power outage frequency in the
year (FEC)
Quality in services
Average power outage duration
in the year (DEC)
Quality in services
Average plant availability factor
by energy source
Average plant
availability by plant
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 2015
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(photo: Helen Albuquerque Borges de Miranda)
Employee Helen Albuquerque Borges de Miranda, da Eletrobras Eletronuclear Selected image from the photo contest “Eletrobras Employees at the Olympic Sports”
(all amounts in thousands of reais)
HOLDING COMPANY
CONSOLIDATED
I. Human Resources
a. Remuneration
Gross payroll (FPB)
- Employees
- Administrators
Ratio of highest to lowest remuneration:
- Employees
- Administrators
b. Benefits Provided
Payroll Taxes
Food
Transportation
Private Pension Plan
Health
Occupational Safety and Health
Daycare or daycare assistance
Culture
Training and professional development
Others
Total
c. Workforce Breakdown
Number of employees at the end of the fiscal
period
Number of hires
Number of terminations
Number of interns at the end of the fiscal
period
Number of employees with disabilities at the
end of the fiscal period
Number of contractors at the end of the fiscal
period
Number of employees, by gender:
- Male
- Female
Number of employees, by age group:
- Under 18 years old
- 18-35 years old
- 36-60 years old
- Over 60 years old
Number of employees, by education level:
2015
227,485
223,197
4,287
13,68
1,16
2015
72,895
18,193
1,364
19,500
18,308
1,429
2,729
0
2,181
43,113
179,713
2015
1,016
14
8
241
9
652
670
346
0
201
713
102
- Illiterate
- Elementary and middle school
- High school
- Technical school
- Undergraduate school
- Graduate school
0
13
107
0
490
406
Percentage of employees in managerial positions, by gender:
0,75
0,25
- Male
- Female
2015
d.Contingencies and labor liabilities
Number of labor lawsuits filed against the
entity
Number of labor lawsuits upheld
Number of labor lawsuits dismissed
Total amount of indemnifications and fines
paid, pursuant to court ruling
II. Interaction of the entity with the external environment
2.1 Relationship with the Community
Total investments in:
Education
1,399
95
194
1,735
2015
71
2014
214,077
207,029
3,982
2015
4,512,261
4,443,637
33,116
2014
4,230,476
4,198,301
29,108
13,09
1,15
2014
64,541
15,570
685
34,423
18,944
4,310
2,385
0
2,460
37,687
181,005
2014
-
-
-
-
2015
2014
1,361,287 1,206,869
342,359
23,106
295,409
438,377
28,769
87,782
2,540
55,089
777,938
3,258,238
2014
354,954
26,602
328,420
441,194
33,949
58,696
2,383
58,458
487,400
3,153,344
2015
990
20
21
222
9
23,775
750
509
24,089
455
870
2,418
2,442
450
407
693
15,095
14,432
658
332
0
255
655
80
0
48
136
0
439
367
0,75
0,25
19,394
4,381
0
4,952
16,788
2,035
0
1,993
4,953
6,544
7,659
2,6 26
-
-
19,592
4,497
111
5,312
16,835
1,831
0
1,950
5,114
6,340
7,859
2,826
-
-
2014
2015
2014
702
3
145
13,895
1,610
1,279
12,582
1,857
1,814
2,259
140,521
200,593
2014
2015
2014
20
8.513
8,691
2014
2015
0
1.410
0
10.094
348.874
8.233.106
2015
386.824
8.179.040
2014
1,339
0
0
0
0
0
0
1.410
0
8,942
0
988
0
143
0
0
10.094
0
24,521
111,332
4.064
891
3.934
0
82.361
235.794
7.556.422
12,326
95,118
1.203
269
4.174
0
34.123
155.726
7.728.506
Culture
Health and infrastructure
Sports and leisure
Food
Creation of job and income opportunities
Resettlement of families
Others
Total investments
Taxes (excluding payroll taxes)
Financial compensation for the use of water
resources
Total - Relationship with the community
2.2 Interaction with suppliers
Social responsibility criteria used to select suppliers:
In all call for bids, bidders present the following statements:
They DECLARE, under the penalty of law that:
1.1. As provided for in item V of article 27 of Law 8,666, of June 21, 1993, in addition to Law 9,854, of
October 27, 1999, they do not employ minors under 18 in night shifts, unsafe, or unhealthy work, or
minors under 16, except as apprentices, 14 or older;
1.2. They do not have, in their production chain, any employee performing degrading or forced
labor, pursuant to items III and IV of article 1, and of item III of article 5, of the Constitution of the
Federative Republic of Brazil, of October 5 1988;
1.3. They are not in any way restricted of any rights arising from any environmental administrative
infraction, pursuant to article 72, paragraph 8, item V, of Law 9,605/98 – Environmental Crime Law;
2. Furthermore, they STATE their knowledge and commitment to respect, abide by, and enforce,
as applicable, the Code of Ethics of the Eletrobras companies. Not allowing, primarily, the practice
or maintenance of any type of discrimination that may restrict access in employment relations, or
negative, in relation to gender, origin, race, skin color, physical condition, religion, marital status,
age, family status, or pregnancy;
Upon submitting the proposal, bidders should also present proof of clearance with the Social
Security (CND), with the Government Severance Indemnity Fund (CRF), and with the Labor Court
(CNDT).
If bidders fail to present any of the aforementioned documents, their proposal is disqualified.
Suppliers are inspected for their compliance with labor and social security regulations and are
responsible for providing proof of good standing with the payroll and labor taxes established by
law by providing certificates of clearance with tax and labor matters pertaining to Social Security,
the Labor Court, and the Government Severance Indemnity Fund for Employees (FGTS), at the time
of approval and adjudication and throughout the term of the agreement in question.
Some companies have added social and environmental clauses to their contracts, aiming to share
the commitment to the sustainable development of the country.
III. Interaction with the environment
Investments in and spending on maintenance
of operational processes to improve the
environment
Investments in and spending on preservation
and/or recovery of degraded areas
Investments in and spending on environmental
education for employees, contractors,
self-employed professionals, and
administrators of the entitye
Investments in and spending on environmental
education for the community
Investments in spending on other
environmental projects
Number of environmental, administrative, and
legal proceedings filed against the entity
Value of fines and indemnifications related
to environmental matters, determined by
administrative and/or legal proceedings
Environmental liabilities and contingencies
Total Interaction with the Environment
IV. Other Information
Net operating income (NOI)
Net operating income (NOI)
2,708,903 32,588,838 30,137,807
2,497,392
-13,792,291 -2,794,990 -14,243,546 -1,261,984
10.092
296,641
3.994
521,948
0
1,219
0
843
250,327
101,389
192,844
65,672
83,530
97,132
2,467
3,775
1,081
1.466
1.077
5.215
122
840
138
565
3
0
0
0
3
0
0
0
0
0
0
0
Foto selecionada no concurso de
fotografias “Empregados Eletrobras
nos Esportes Olímpicos”
Employee
Galvani Cavalcante,
Eletrobras Furnas
(Photo: Christian Dinesen)
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Selected image from the photo contest
“Eletrobras Employees at the Olympic
Sports”
189
Eletrobras – Centrais Elétricas Brasileiras S.A. - offers many
communication channels to its audiences.
Headquarters
Av. Presidente Vargas, 409 – 13º andar – Centro
Rio de Janeiro – RJ – CEP 20071-003 - Brazil
Phone: (21) 2514-5151
Contact Us – Eletrobras website > Contact Us
Website – www.eletrobras.com
Facebook – www.facebook.com/Eletrobras
YouTube – www.youtube.com/user/SistemaEletrobras
Twitter – @Eletrobras
Ombudsman’s Office
Av. Presidente Vargas, 409 – 17° andar
Centro – Rio de Janeiro – RJ – CEP 20071-003 - Brazil
Phone: (21) 2514-4526
www.eletrobras.com/ouvidoria
ouvidoria@eletrobras.com
Reporting Hotline
www.eletrobras.com/canaldenuncia/
denuncia@eletrobras.com
Branches
Eletrobras maintains multinational offices:
{ ACentral America and Caribbean (Panama City – Panama)
Edificio Torres de las Américas, piso 5
Torre B, oficina 506 – Punta Pacífica
{ Southern Cone (Montevideo – Uruguay)
Av. Luis Alberto de Herrera 1.248 Torre 2, oficina 311, CP – 11.300
{ Andina (Lima – Peru)
Calle Basadre 310 Oficina 601 B – San Isidro
Investor Relations (IR)
Phone: +55 (21) 2514-6331 or +55 (21) 2514-6333
Fax: +55 (21) 2514-5964
Website – www.eletrobras.com.br/elb/ri
Fale com o RI (Talk to IR) – invest@eletrobras.com
Custodian and Administrator of Eletrobras’ Portfolio
Share and Custody Department
Phone: +55 (11) 3684-9441
Fax: +55 (11)3684-3811
Employee
Carlos Silva da Mota,
Eletrobras Distribuição Alagoas
(Photo: David Bezerra dos Santos)
2015 - ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES 190
Comments, suggestions, and information about this report:
sustentabilidade@eletrobras.com
Credits
This Annual and Sustainability Report is a result of the efforts of the
Eletrobras team. We thank you all for your participation and commitment.
Executive coordination
{ Planning, Strategic Management, and Sustainability Superintendence
{ Press Office and Press Relations
Editing and general coordination
{ Executive Sustainability Committee of the Eletrobras Companies
Coordination, translation and collection of GRI indicators and
texts
{ RICCA RI
Graphic project, layout, and infographics
{ AbóboraX Design
Illustrations
{ Eletrobras / Teofilo Rodrigues da Silva
Photo credit
{ Acervo Eletrobras
ANNUAL AND SUSTAINABILITY REPORT OF THE ELETROBRAS COMPANIES - 2015