Details of the first preliminary proposal of Light SESA

7/27/2019 Details of the first preliminary proposal of Light SESA

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LIGHT S.A.

CORPORATE TAXPAYERS ID (CNPJ/MF) 03.378.521/0001-75

COMPANY REGISTRY (NIRE): 33.3.0026316-1

Publicly-Held Company

Notice to the Market

ANEEL discloses documents related to the preliminary Tariff Revision proposal

Light S.A. (BM&FBovespa: LIGT3 and OTC: LGSXY) (Company), the parent company of Light Servios

de Eletricidade S.A. (Light SESA), hereby announces to its shareholders and the market in general that

the National Electric Power Agency (ANEEL or Agency) disclosed today documents with details of the

first preliminary proposal of Light SESAs Tariff Revision.

To complement the Notice to the Market disclosed by the Company on August 6, 2013, we highlight

below the most significant points of the preliminary proposal disclosed by ANEEL. The full version of the

documents can be found on the Agencys website:http://www.aneel.gov.br/aplicacoes/audiencia/dspListaDetalhe.cfm?

attAnoAud=2013&attIdeFasAud=815&id_area=13&attAnoFasAud=2013.

1) Compensation Base: preliminary amounts, on currency of May 2013, obtained from the Asset

Appraisal Report conducted by an independent company hired in accordance with ANEELs pre-

requirements, which include the calculation of additional investments carried out in the last cycle,

according to the criteria established by the Agency, and the updated shielded base approved in 2008.

The amounts of the Compensation Base already include the effects of the inspection of Asset Under

Service, conducted in April 2013. The Asset Appraisal Report includes the amounts of the Smaller

Components (COM) and Additional Costs (CA) defined by ANEEL.

Gross Compensation Base: R$11,451,023,315

Net Compensation Base: R$6,398,174,913

Depreciation Rate: 3.81%


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2) Regulatory Non-Technical Losses:In this preliminary proposal, the starting point to the

regulatory reference of non-technical losses on the low-voltage market is 31.82%, which reflects the

direct use of the methodology defined in the Technical Note.The speed to reduce the direction of losses

was an annual 1.195 p.p. for the preliminary proposal, which means that the goal at the end of the cycle

will be 25.81%.The graph below shows the direction of the reference level of non-technical losses on thelow-tension market during the second and third tariff revision cycles.

This proposal still does not include the assessment of the Agencys technical department to the request

for the treatment of non-technical losses filed by Light SESA. ANEELs Board of Executive Officers

recommended the creation of a work group comprised of the Agencys technicians to assess on-site the

real concession complexity and Light SESAs efforts to combat losses, and present a diagnosis, within

thirty days as from August 7, 2013, and recommend how to treat the concessionaires non-technical

losses in accordance with the law.

38,98%

37,19%

35,40%

33,61%

31,82%

30,60%

29,40%28,20%

27,01%

25,81%

20,00%

22,00%

24,00%

26,00%

28,00%

30,00%

32,00%

34,00%

36,00%

38,00%

40,00%

nov/08 nov/09 nov/10 nov/11 nov/12 nov/13 nov/14 nov/15 nov/16 nov/17 nov/18

2Ciclo 3Ciclo

=1,195p.p. ao ano=-1,790p.p. ao ano


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3) Other significant items

DescriptionResult of LightSESAs 3rd RTP

Portion

ASECTOR CHARGES (CES)

R$460,732,858

ENERGY TRANSPORTATION (CT)R$

259,437,579

TOTAL ENERGY PURCHASED (CE)R$

3,176,304,535

TOTAL PORTION AR$

3,896,,474,972

Po

rtion

B

Management, Operation and MaintenanceCosts (CAOM)

R$826,438,075

Operating Costs (CO3)R$

744,781,956

Uncollectible Revenues Sector Charges (Vi)R$

16,765,325

Other Uncollectible Revenues (Vse)R$

64,890,794

Annual Asset Cost (CAA)R$

1,258,005,242

Return on Capital (RC)R$

726,832,670

Regulatory Reintegration Quota (QRR)R$

436,283,988Annual cost to install assets and properties

(CAIMI)

R$

94,888,583

Portion B (VPB)R$

2,084,443,316

Adjustment due to investments madeR$-

Delta X (X) 0.00%

Multiplier (m) 2.4%

Portion B with adjustment of 2CRTP(VPB')

R$2,084,443,316.31

Portion B Productivity Index 1.31%

Portion B with market adjustmentR$

2,057,055,448.32

REVENUE REQUIRED (PORTION A + PORTIONB)

R$5,953,530,420

( - ) Other RevenuesR$

37,567,698

REVENUE REQUIRED, NETR$

5,915,962,722

TARIFF REPOSITIONING -4.18%

FINANCIAL COMPONENTSR$

201,811,892TARIFF REPOSITIONING WITH FINANCIALCOMPONENTS -1.19%

CDE CONTRIBUTIONR$

390,776,277.4

It is worth noting that the amounts above are preliminary and may change. According to the procedure of


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the tariff revision process, the amounts disclosed will be in presented in a Public Hearing for the society

from August 8, 2013 to September 13, 2013, when an on-site meeting will be conducted in the city of Rio

de Janeiro.

Light reinforces its commitment to transparency and will keep the market fully informed on any furtherdevelopments related to this process.

Rio de Janeiro, August 8, 2013.

Joo Batista Zolini Carneiro

Chief Financial and Investor Relations Officer

Documents

Details of the first preliminary proposal of Light SESA