The Brazilian electricity regulator, ANEEL, approved a 5.46% annual tariff readjustment index for EDP Bandeirante, for the period from October 2009 to October 2010.

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 1.02% to be applied to EDP Bandeirante's tariffs as from October 2009.

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 month period, of the non-controllable costs incurred in the past that were not covered through the tariffs.

This annual tariff readjustment process considers the impacts from changes in tariff revision process, occurred in October 2007, which is now in definitive basis as a result of changes occurred in October, 7. Consequently, there was a decrease of "Changes on Parcela A and Parcela B" index from -8.80% to -9.79% as well as the revision of X Factor from 0.74% to 1.01% to be applied to the annual tariff adjustments of EDP Bandeirante of October 2008 and October 2009.


EDP – Energias de Portugal, S.A.