The Brazilian electricity regulator, ANEEL, approved today a 14.48% annual tariff readjustment index for Bandeirante, for the period from October 2008 to September 2009.

Considering the financial adjustments included in the last period?s tariffs (non-recurring items), which are associated to the recovery of tariff differences incurred in the past, the current tariff readjustment results in an effective average tariff increase of 15.14% to be applied to Bandeirante?s tariffs as from October 2008.

Within the annual tariff readjustment process, ANEEL recognizes in the tariffs of the distribution companies the pass-through of some cost components incurred in the previous twelve months, namely i) the annual change in non-controllable costs (?Parcela A?) and ii) the adjustment of the controllable costs (?Parcela B?) to inflation (IGP-M) corrected by an X Factor. In addition, the regulator also recognizes financial adjustments, which usually correspond to the recovery, for a twelve months period, of the non-controllable costs incurred in the past that were not covered through the tariffs.

Overall, the result of tariff revision, occurred in October 2007, is still on a preliminary basis.

EDP - Energias de Portugal, S.A.