Companhia Energética de Minas Gerais (CIG): Business Model Canvas [Dec-2025 Updated]

You're digging into the engine room of Companhia Energética de Minas Gerais's business, and honestly, what you find is a classic utility balancing act: managing the predictable, regulated revenue stream against a massive, necessary capital expenditure drive. As of late 2025, this isn't just about keeping the lights on across 774 municipalities; it's about executing a R$6.3 billion CapEx plan while navigating tariff adjustments, like the 7.78% hike ANEEL approved this year, to fund that growth. We're looking at a model built on exclusive concessions and over 400 thousand km of lines, but the real story is how they convert that physical asset base into shareholder value amidst rising energy purchase costs and a R$15.242 billion gross debt capacity. Dive into the full Business Model Canvas below to see exactly how Companhia Energética de Minas Gerais is structuring its operations to meet regulatory demands and fuel its next decade of infrastructure upgrades.

Companhia Energética de Minas Gerais (CIG) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships that underpin Companhia Energética de Minas Gerais (CEMIG)'s regulated and semi-regulated operations as of late 2025. These partnerships aren't just nice-to-haves; they are the very mechanisms that allow the company to operate its concession and generate its revenue streams.

State of Minas Gerais: Majority shareholder and ultimate concession grantor

The State of Minas Gerais is the ultimate grantor of the essential distribution and transmission concessions that form the backbone of Companhia Energética de Minas Gerais's business. The state government maintains a controlling influence through its shareholding structure. As of late 2025 reporting dates, the State of Minas Gerais holds 17.04% of the total shares but commands 50.97% of the voting shares, cementing its steering power over the utility. The sovereign's own credit rating stands at B1 positive, which still constrains Companhia Energética de Minas Gerais's rating ceiling.

ANEEL (Regulator): Approves tariff adjustments and investment returns

The Agência Nacional de Energia Elétrica (ANEEL) is central to Companhia Energética de Minas Gerais's revenue certainty, as it approves the annual tariff adjustments that allow cost recovery and return on investment. For the distribution arm, Cemig-D, ANEEL approved an average Reajuste Tarifário Anual (RTA) of 7.78% starting in May 2025. This single adjustment broke down into an average of 7.03% for low voltage customers and 9.45% for high voltage customers. The transmission segment, Cemig-GT, saw a tariff adjustment of 5.2% in the 2024 cycle, which supports the expected R$ 1.26 billion in net revenue for that segment in 2025.

Taesa: Electric transmission subsidiary for non-core revenue

Companhia Energética de Minas Gerais maintains a significant, though not majority, stake in the pure-play transmission company, Taesa (Transmissora Aliança de Energia Elétrica S.A.). Companhia Energética de Minas Gerais holds 21.68% of the total shares in Taesa, with a 36.97% stake in common shares (ON), as part of a controlling block with ISA Investimentos that holds a 63% voting interest. This investment provides Companhia Energética de Minas Gerais with non-core, regulated revenue streams. Taesa's consolidated Permitted Annual Revenue (PAR) for the 2025-2026 cycle is set at BRL 2.8 billion, and its expected EBITDA margin for 2025 to 2028 is high, around 82.5% based on regulatory accounting.

Here's a quick look at the key financial metrics associated with this partnership:

If onboarding takes 14+ days, churn risk rises, and similarly, the timing of any potential sale of the Taesa stake by Companhia Energética de Minas Gerais introduces uncertainty into the capital structure outlook.

Energy Suppliers/Traders

To cover its demand not met by its own generation assets, Companhia Energética de Minas Gerais relies on purchasing energy from the spot market and through bilateral contracts with other suppliers and traders. The company's supply planning explicitly accounts for the Generation Scaling Factor (GSF), which directly impacts the volume of energy it must purchase or sell. For 2025, Companhia Energética de Minas Gerais's own resources calculation includes an expected GSF effect of 0.889. This factor dictates the shortfall Companhia Energética de Minas Gerais must cover commercially. The assumed average energy purchase cost for 2025 was projected to be between R$90/MWh and R$100/MWh, contrasting with an expected average energy sale price of R$170/MWh to R$175/MWh for the same year.

The key elements of the energy supply/trading relationship are:

• GSF Factor inclusion for 2025: 0.889.
• Projected Average Energy Purchase Cost: R$90/MWh to R$100/MWh.
• Projected Average Energy Sale Price: R$170/MWh to R$175/MWh.
• Distribution to Clients: Roughly 9.3 million units in 2024.
• Installed Capacity: 4.5 gigawatts (GW) across 61 power plants.

Finance: draft 13-week cash view by Friday.

Companhia Energética de Minas Gerais (CIG) - Canvas Business Model: Key Activities

You're looking at the core operational drivers for Companhia Energética de Minas Gerais as of late 2025. The numbers tell a story of heavy capital deployment despite near-term profit pressure.

Electricity Distribution: Manage the largest network in South America.

Companhia Energética de Minas Gerais continues to focus heavily on its regulated distribution base. Results in the third quarter of 2025 were affected by large clients migrating away from the network. Still, the company sees long-term positive returns from regulated investments once recognized by the agency.

The investment focus here is clear, with a significant portion of capital directed toward grid modernization:

• Investment in distribution for the first nine months of 2025 reached BRL 3.6 billion.
• This distribution spend was primarily focused on new substations.
• The company is actively working to manage risks associated with customer migration.

Infrastructure Investment: Executing a R$6.3 billion CapEx plan for 2025.

The overall capital expenditure program is substantial, reflecting a commitment to long-term asset value. For the first nine months of 2025, Companhia Energética de Minas Gerais already deployed BRL 4.7 billion across its sectors. The expected additional revenue from these regulated investments, when recognized by the agency, is estimated to be a little over BRL 500 million for the nine-month period based on the WACC (Weighted Average Cost of Capital).

Here is a breakdown of the capital deployed in the first nine months of 2025:

The company expects to manage its leverage prudently to fund these investments while aiming to maintain stable net debt over recurring EBITDA ratios.

Generation and Transmission: Operate hydro, wind, and new photovoltaic plants.

Companhia Energética de Minas Gerais operates a diversified generation mix, including hydro assets. The company is also actively expanding its renewable footprint, particularly in solar generation.

Key generation and transmission activity metrics include:

• CEMIG SIM delivered 31 megawatts (MW) of installed capacity from new photovoltaic plants.
• The company faced financial impacts in Q3 2025 due to energy purchases needed to cover shortfalls, resulting in a negative impact of BRL 136 million for the distribution segment alone, linked to trading and spot price volatility.
• EBITDA for Q3 2025 was BRL 1.5 billion, representing a 16.3% decline year-over-year.

Digital Transformation: Implement SAP S4/HANA and ADMS for grid efficiency.

The drive for efficiency is supported by technology upgrades. While specific implementation milestones for Companhia Energética de Minas Gerais regarding ADMS aren't detailed, the company is clearly investing in its technology backbone. The SAP S/4HANA 2025 version is the current focus for many enterprises looking to optimize processes like Sourcing and Procurement. The company's focus on digital infrastructure is part of its strategy for long-term growth.

The financial performance reflects the ongoing operational focus:

The final cash position at the end of the nine-month period was BRL 2.3 billion.

Companhia Energética de Minas Gerais (CIG) - Canvas Business Model: Key Resources

You're looking at the core assets Companhia Energética de Minas Gerais (CIG) relies on to operate its integrated energy business. These aren't just line items on a balance sheet; they are the physical and legal foundations of their regulated market position.

Regulated Concessions represent the exclusive right to operate in a specific geographic area, which is a massive barrier to entry. Companhia Energética de Minas Gerais (CIG) holds the rights to serve a significant portion of the state of Minas Gerais.

• Concession area covers about 97% of Minas Gerais' territory.
• Exclusive rights for distribution in 774 municipalities.
• Serves approximately 9 million customers.

The sheer scale of the Physical Infrastructure is a resource in itself, demanding constant maintenance and investment. This network is what physically connects supply to demand across the concession area.

The distribution network spans over 400 thousand km of lines, making it the largest in South America. This physical footprint is critical for maintaining service quality and meeting regulatory targets.

For Generation Assets, Companhia Energética de Minas Gerais (CIG) maintains a substantial installed capacity, heavily weighted toward clean, renewable sources, primarily hydro. As of late 2024, the total installed capacity across centralized and distributed generation stood at approximately 4,885.78 MW. This capacity mix is a key strategic resource.

The company's Financial Capital position dictates its ability to fund its massive investment programs and manage market volatility. As of the first quarter of 2025, the reported gross debt capacity was R$15.242 billion. This figure reflects the capital structure Companhia Energética de Minas Gerais (CIG) is managing to fund its strategic plan, which includes over R$39 billion in planned investments through 2029.

The net debt to recurring EBITDA ratio was reported at 1.76x at the end of Q3 2025, which management noted as a very safe level, supporting their strong credit ratings.

Finance: draft 13-week cash view by Friday.

Companhia Energética de Minas Gerais (CIG) - Canvas Business Model: Value Propositions

You're looking at the core promises Companhia Energética de Minas Gerais (CIG) makes to its customers and stakeholders in late 2025. These aren't just vague goals; they are backed by massive capital deployment and regulatory compliance.

Essential Service Reliability

The fundamental value proposition is keeping the lights on across a massive service territory. Companhia Energética de Minas Gerais (CIG) serves customers across 780 municipalities in Minas Gerais. That's a huge footprint to manage consistently. You see the commitment to reliability when you check the operational metrics; for the twelve months ending June 2025, the company reported total energy losses at 11.43%, which was comfortably inside the regulatory limit set by ANEEL of 11.48%. Honestly, this is a significant turnaround, considering the company was in a situation in the past where unmet load approached nearly 15% of the total load. They've definitely put capital to work to fix that.

Regulated Price Stability

For the captive user base, predictability in pricing is key, and that comes directly from the regulator. The Agência Nacional de Energia Elétrica (ANEEL) approved the Annual Tariff Adjustment for Cemig Distribuição S.A. (Cemig-D) in May 2025, with new indices taking effect on May 28, 2025. This adjustment impacts over 9.4 million consumer units. While ANEEL projected an average readjustment of 3.5% for 2025 generally, Cemig Distribution's specific adjustment was 7.78%, reflecting the actual cost recovery, inflation, and specific charges applicable to their service area. The tariffs for certain generation units are set to be in effect for a full year, from July 1, 2025, through June 30, 2026.

Here's a quick look at the regulatory context for some of those tariffs:

Modernized Grid

Improving the physical infrastructure is a major focus, supported by the largest investment program in the company's history. The strategic plan calls for a total investment of R$59 billion through 2029, with the bulk going into the regulated distribution sector. This investment directly translates into tangible upgrades for service quality.

• Plan to build 200 new substations by 2028, representing a 50% increase over the previous 70-plus years of construction.
• Installed 400,400 smart meters since September 2021.
• Replaced 173 thousand outdated meters, with 425 thousand replacements planned for 2025 alone.
• Regularized 9,500 clandestine connections using bullet-proofed installations.
• Protected 8,751 consumer units in housing complexes with Shielded Metering Panels (QMB).

Sustainable Energy Mix

Companhia Energética de Minas Gerais (CIG) is actively shifting its energy sourcing towards cleaner alternatives, especially solar. For the last reporting year, out of the total 100,714.29 GWh of electricity sold (own/controlled assets and purchased), 72,181 GWh was classified as renewable, which includes hydro, wind, and solar. The non-renewable portion, mainly from thermal power stations, was 13,336 GWh. The company is making concrete moves to expand its renewable footprint, particularly in distributed generation (DG) and centralized solar farms.

• In 2024, invested approximately R$342 million in photovoltaic solar energy generation plants, achieving an installed capacity of 207MW.
• Cemig SIM, the DG arm, reached 33 thousand solar energy subscription consumer units in 2024.
• The ambition is to invest approximately R$442 million in the DG segment between 2025 and 2026.
• The 2025-2029 strategy includes adding ~1.2 GW of centralized generation renewables to return capacity levels to ~6.0 GW.
• The DG goal is to reach an installed capacity of 600 MWp by 2029.
• As of November 2025, the state of Minas Gerais itself surpassed 13 GW of installed solar energy capacity, with CIG aiming to preserve leadership in the DG market within the state.

Companhia Energética de Minas Gerais (CIG) - Canvas Business Model: Customer Relationships

You're managing a utility that serves nearly 9.4 million customer units across Minas Gerais state, so your customer relationships are split between a highly controlled, regulated base and a growing, competitive one. Honestly, the relationship model is defined by regulation first, and commercial agility second.

Regulated Service: Standardized, non-negotiable service terms for captive customers.

For the bulk of your customers in the captive market, the relationship is strictly governed by ANEEL (Agência Nacional de Energia Elétrica). The terms aren't negotiable; they are set by the tariff adjustment process. For instance, the 2025 Annual Tariff Adjustment (RTA), approved on May 19, 2025, set the average effect for all consumers to be 7.78% for the period running until May 27, 2026. This is a compliance-driven relationship where service quality is directly tied to regulatory performance targets.

The captive base, which includes most residential users, is the core revenue driver, with the Residential category alone contributing approximately 45% of Cemig's distribution-derived total revenue. The tariff impact varies by segment:

• Low Voltage captive consumers saw an average adjustment of 7.03%.
• High Voltage captive consumers saw an average adjustment of 9.45%.
• The B1 class, covering residential customers on low voltage, received an average adjustment of 6.86%.

This standardized service is under pressure, as the regulatory barriers protecting this segment are set to fall, with full deregulation for households projected around 2027.

Digital Self-Service: Online portals and apps for billing and outage reporting.

Companhia Energética de Minas Gerais (CIG) has made significant strides in pushing customers toward digital channels, which helps manage costs and improve service speed. In 2024, a full 80% of all customer service encounters happened via digital means. That's a massive shift.

To further support this, the company installed 166 self-service machines (totems) across branches and key locations, which handled 30% of face-to-face services in 2024. For the free market segment, the digital experience is even more integrated, offering 100% ONLINE CONTRACTING for everything from simulation to final agreement on the energialivre.cemig.com.br platform.

Here's a snapshot of the customer segmentation that drives these digital efforts:

Dedicated Account Management: Commercial teams for large industrial and free market clients.

For large industrial and commercial clients, especially those in the free market, the relationship moves from standardized terms to dedicated commercial engagement. This is where the competitive edge matters. As of the latest data, Companhia Energética de Minas Gerais (CIG) holds a 15% market share in the retail free market, with 114.8 average megawatts of contracted energy. These clients demand tailored pricing and service structures.

Even within the transition, there's activity: up to April 2025, Companhia Energética de Minas Gerais (CIG) distribution area had 1,286 consumer units awaiting approval to migrate to the free market, representing a potential load of 62.6 MWa. Managing these migration requests and servicing these high-demand users requires specialized commercial teams, not just automated systems. The free market growth is defintely a key focus area for relationship management.

Compliance-Driven: Relationship heavily managed by regulatory mandates for quality.

Every aspect of the regulated relationship is under ANEEL's microscope. The 2025 tariff adjustment was directly influenced by factors like sectorial charges and distribution costs. Furthermore, the regulatory framework dictates quality metrics, which influence operational focus. For example, the company must manage its performance against regulatory thresholds for technical loss ratio, which stood at 11.11% total losses in 2022.

The relationship is also managed through specific compliance reporting, such as the mandatory reports on service interruptions in emergency situations (ISE) for events like the heavy rains in Ipatinga on January 12, 2025, and the windstorm in Minduri on June 9, 2025. These events trigger specific compliance reporting obligations to ANEEL, reinforcing the regulatory oversight of service delivery.

Companhia Energética de Minas Gerais (CIG) - Canvas Business Model: Channels

You're looking at how Companhia Energética de Minas Gerais (CIG) gets its power to the people and businesses it serves. It's a massive physical undertaking, supported by modern digital touchpoints. Honestly, for a utility this size, the channels are mostly about infrastructure scale and geographic reach.

Physical Distribution Network: The core channel for delivering electricity.

The delivery backbone is Companhia Energética de Minas Gerais (CIG)'s distribution grid, which is the largest in South America by several metrics. This network is what directly connects to the end-user. The company serves a huge footprint, covering 774 municipalities primarily in the state of Minas Gerais, Brazil. Companhia Energética de Minas Gerais (CIG) invoiced approximately 9.51 million clients as of June 2025, with 9,504,790 identified as final consumers. Companhia Energética de Minas Gerais (CIG) has a stated strategy to invest heavily in modernizing this network, with a plan to invest R$ 23.2 billion in the 2025-2029 period specifically for the distribution segment (Cemig D). This investment is aimed at achieving operational excellence and improving Net Promoter Score (NPS).

Here are the key physical scale metrics for the distribution and transmission assets, based on recent filings:

Customer Service Centers: Physical agencies for in-person service and payment.

While the trend is digital, physical presence remains a channel for service, especially for payments and complex inquiries across the 774 municipalities Companhia Energética de Minas Gerais (CIG) covers. The company is actively working on collection efficiency, with a focus on migrating payments to digital channels, but the physical agencies are the fallback and primary in-person touchpoint for customers who need face-to-face interaction. The exact number of physical agencies isn't explicitly stated in the latest reports, but the service footprint is vast.

Digital Platforms: Company website and mobile application for residential users.

Companhia Energética de Minas Gerais (CIG) is putting serious capital behind its digital future. The company's investment plan earmarks R$ 4.3 BILLION for Innovation and Digital Transformation between 2019 and 2029. This spend directly supports the company website and the mobile application used by residential customers. The strategic goal includes modernizing these platforms to improve customer experience and support the push for digital payment collection. You can expect these platforms to handle a growing percentage of service requests, reducing reliance on the physical network.

• Investment in Digital Transformation (2019-2029): R$ 4.3 BILLION.
• Strategic focus on collection efficiency via digital means.
• Digital channels are key to achieving customer excellence targets.

Transmission Lines: Dedicated infrastructure for bulk power delivery to other utilities/regions.

The transmission network acts as a separate, high-voltage channel, moving large blocks of power, often to other agents in the Brazilian electricity sector or for the company's own trading operations. Companhia Energética de Minas Gerais (CIG) operated approximately 5,060 km of transmission lines as of early 2025, supported by around 40 to 42 substations. This infrastructure is critical for maintaining the integrated nature of Companhia Energética de Minas Gerais (CIG)'s operations, linking its generation assets to the broader grid. The company also sees distributed generation growing over time, which impacts the energy transported over this network.

Companhia Energética de Minas Gerais (CIG) - Canvas Business Model: Customer Segments

You're looking at the core of Companhia Energética de Minas Gerais (CIG)'s regulated business, which is massive, serving nearly all of Minas Gerais. The total customer base for the Cemig Group was around 9.46 million final consumers as of March 2025, which was a 2.2% increase from March 2024. The distribution arm, CEMIG D, is the largest distribution company in Latin America, covering 774 municipalities, which is about 97% of the state.

Here's a quick look at the scale of the distribution network and customer growth targets:

Residential Customers: The largest segment by volume, increasingly adopting distributed generation.

Residential customers form the bedrock of the regulated sales volume, though the company is actively working to grow this base. For the gas segment under Gasmig, the residential base stood at 11,392 clients in March 2025. The trend toward distributed generation (DG), particularly solar, is notable here. Cemig SIM, for instance, hit a milestone of 33 thousand solar energy subscription consumer units by the end of 2024. To support this, Companhia Energética de Minas Gerais plans to invest approximately R$442 million between 2025 and 2026 specifically in the distributed generation segment.

Industrial Clients: Large users, with a trend of migration to the free energy market.

Industrial clients are significant users, but this segment is highly exposed to the migration trend toward the free market, which impacts the regulated distribution results. In the gas business, the number of industrial clients on the conventional (captive) market was 870,667 in March 2025. However, the Industrial - Free Market segment for Gasmig showed 87,133 clients in March 2025. This movement is structural; in Q3 2025 earnings calls, management noted that large clients leaving the network directly impacted distribution results.

Commercial and Services: Businesses that rely on stable power for operations.

This segment requires reliable supply to keep operations running smoothly. Looking at the Gasmig figures, the commercial client base was 23,114 as of March 2025. The overall customer base expansion in the group reflects growth in this commercial sector, with Gasmig adding 6,100 new commercial and residential clients between June 2024 and June 2025. Companhia Energética de Minas Gerais is focused on strengthening its network to support these users.

Free Market Clients: Large consumers who purchase energy directly from generators/traders.

The expansion of the free market eligibility is a major factor shaping Companhia Energética de Minas Gerais's customer landscape. Up to April 2025, there were 1,286 consumer units within Companhia Energética de Minas Gerais's concession area awaiting approval to migrate to the free market, representing a load of 62.6 MWa. Despite this outflow from the regulated base, Companhia Energética de Minas Gerais maintained its leadership in the broader free energy market in 2024, holding a 14% market share nationwide. This dual role means the company is both losing customers from its regulated base while actively serving them in the free market.

• The pace of migration in Brazil was slowing by late 2025, with only 1,133 migrations recorded in August 2025, down from 2,024 in August 2024.
• The Difference Settlement Price (PLD) cap for 2025 was set at 751.73 reais (US$140.41)/MWh.
• The company is focused on superior risk management practices to handle the volatility associated with these clients.

Companhia Energética de Minas Gerais (CIG) - Canvas Business Model: Cost Structure

You're looking at the heavy, fixed costs that underpin Companhia Energética de Minas Gerais (CIG)'s operations, which are dominated by infrastructure maintenance and energy procurement. Honestly, for a utility this size, the cost structure is mostly about managing massive capital deployment and volatile commodity exposure.

The investment cycle is clearly a major cost driver. Companhia Energética de Minas Gerais (CIG) reported R$4.7 billion in capital expenditures (CapEx) over the first nine months of 2025. This high investment is necessary to keep the grid modern and compliant, with a significant portion directed toward distribution infrastructure. Here's a quick look at how those major cost buckets stack up based on recent disclosures:

Energy purchase costs remain a volatile expense line. While the average cost in the distribution business is set around R$295 per MWh for 2025, market spreads can cause significant swings. For instance, in 1Q25, the cost of energy acquired in the spot market saw an increase of 400.7% over 1Q24 due to regional price differences.

Personnel and managed expenses show a focus on efficiency, even as headcount has seen some movement. Companhia Energética de Minas Gerais (CIG) has over 5K fulltime employees. The operational focus is on driving down controllable costs, which for the distribution segment includes initiatives to improve collection efficiency and reduce penalty payments. This aligns with the regulatory drive for operational excellence.

Financial costs are directly tied to the company's debt load. The gross debt reached R$15.242 billion by the end of March 2025. With the average interest rate environment in 2025 at approximately 14.8%, servicing this debt represents a substantial, non-discretionary financial outflow. The company is actively managing this by structuring debt to increase the average term to 5.7 years.

• Distribution segment's focus areas for cost control include:
• Reducing penalty payments and offsets.
• Improving collection efficiency.
• Maintaining total energy losses below regulatory limits, which was achieved at 11.43% in the 12 months ending June 2025 against a limit of 11.48%.

Finance: draft 13-week cash view by Friday.

Companhia Energética de Minas Gerais (CIG) - Canvas Business Model: Revenue Streams

You're looking at the core ways Companhia Energética de Minas Gerais pulls in cash, which is heavily weighted toward regulated income streams, though trading still plays a part. Honestly, for a utility this size, predictability is the name of the game, but the trading segment can still cause some quarterly noise.

Electricity Distribution Tariffs: This is the bread-and-butter, regulated revenue from your captive customers in Minas Gerais. The revenue base here got a boost from regulatory action; we saw a tariff adjustment ratified by Aneel with an average effect of 7.78%, which took effect around May 2025. The operational strength in this area is clear when you look at the segment's performance: Distribution adjusted EBITDA rose by 39.2% in Q2 2025.

Energy Sales: This covers revenue from generation and trading activities. For the second quarter of 2025, Companhia Energética de Minas Gerais reported a consolidated net revenue of R$10.786 billion. This represented a 14.3% year-over-year increase for that quarter. Still, you have to watch the trading segment; price differences between submarkets can create expenses, though management has been working to mitigate the negative impact.

Transmission Revenue: Like distribution, this is a regulated stream based on permitted annual revenue from the transmission lines Companhia Energética de Minas Gerais operates. A specific, recent accounting event impacting this area was a non-cash effect of R$198.895 million reported in Q2 2025, stemming from a change in the grid calculation methodology (RBSE remeasurement).

Dividends from Subsidiaries: Income from equity stakes in other companies provides a nice, often less volatile, supplement. Companhia Energética de Minas Gerais holds a significant ownership stake in Taesa, for example. For the 2025 fiscal year, Taesa has the intention to propose distributions between 90% and 100% of its regulatory net income. Specifically, in the third quarter of 2025, Taesa announced a distribution of R$323.2 million in dividends and JCP (Juros sobre Capital Próprio, or Interest on Own Capital). Since Companhia Energética de Minas Gerais holds approximately 21.68% of Taesa, this specific announcement translates to an approximate income stream of R$69.99 million (R$323.2 million $\times$ 21.68%) for that period, which will be recognized as income from equity stakes.

Here is a quick look at the key revenue figures we have for the Q2 2025 period:

The revenue composition is clearly anchored in regulated assets, but the trading and equity income streams add important variability and potential upside. You'll want to track the final approved tariffs for the next cycle, as that sets the floor for the next few years.

• Regulated revenue is supported by a 7.78% average tariff adjustment.
• Distribution segment adjusted EBITDA showed strong growth of 39.2% in Q2 2025.
• Taesa intends to distribute between 90% and 100% of its regulatory net income for 2025.
• Companhia Energética de Minas Gerais holds 21.68% of Taesa.

Finance: review the impact of the 7.78% tariff adjustment on the full-year 2025 distribution revenue forecast by next Tuesday.