The Brazilian electricity regulator, ANEEL, approved today a 15.12% annual tariff readjustment index for Escelsa, for the period from August 2009 to July 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 10.01% to be applied to Escelsa?s tariffs as from August 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 August 2007, which is now in definitive basis as a result of changes occurred in July, 28. Consequently, there was an improvement of "Changes on Parcela A and Parcela B" index from -6.92% to -6.44% as well as the revision of X Factor from 1.45% to 0% to be applied to the annual tariff adjustments of EDP Escelsa of August 2008 and August 2009.


EDP - Energias de Portugal, S.A.