The Brazilian electricity regulator, ANEEL, approved a 7.19% tariff reset index for EDP Escelsa, for the period from August 7th 2010 to August 6th  2011.

Aneel established the rate of return for EDP Escelsa in 15.08% before taxes (9.95% after taxes) for the 3-year regulatory from August 2010 to August 2013. Additionally, ANEEL has also established a X Factor of 0.95%, to be applied to tariffs on the tariff readjustments of  August-2011 and August-2012.

The Tariff Revision Process is foreseen in the Concession Contract and considers changes in the company's cost structure and its market, tariffs charged by similar companies, both domestic and international, as well as incentives to promote efficiency.

The Tariff Revision Process is divided in two steps. In the first one, denominated tariff readjustment, tariffs are set so as to cover efficient operational costs – for a given level of quality in the rendered service – and so as to guarantee a proper return on investments. The second step comprises the X Factor calculation, which translates in the establishment of productivity targets for the next tariff period.

EDP – Energias de Portugal, S.A.