Companhia Paranaense de Energia - COPEL (ELP): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and understand exactly how Companhia Paranaense de Energia - COPEL (ELP) makes money now that it's a private entity, and honestly, the shift to a fully integrated utility model is the key story here. As an analyst who's seen a few utility transformations, what stands out is their aggressive $\text{BRL } \mathbf{2.6} \text{ billion}$ capital expenditure program through the first nine months of 2025, all while targeting top-tier corporate governance by migrating to B3 Novo Mercado. This structure balances regulated revenue from serving over $\mathbf{5} \text{ million}$ consumer units in Paraná with the market risks of their energy trading, which still managed a $\text{BRL } \mathbf{1.3} \text{ billion}$ recurring EBITDA in Q3 2025. To see the precise mechanics-from their key partnership with the regulator ANEEL to how they manage that extensive transmission network-you need to look at the full nine-block breakdown below.

Companhia Paranaense de Energia - COPEL (ELP) - Canvas Business Model: Key Partnerships

Brazilian electricity sector regulator (ANEEL) for concessions and tariffs sets the rules for generation, transmission, distribution, and commercialization segments. ANEEL establishes tariffs that aim for market development balance. For instance, a tariff adjustment in June 2024 resulted in an average increase of 2.7% on TUSD (Tariff for Use of the Distribution System). Companhia Paranaense de Energia - COPEL (ELP) is preparing for a significant regulatory event, with a 'historical tariff review in the distribution company' scheduled for 2026.

Financial institutions provide funding, supporting Companhia Paranaense de Energia - COPEL (ELP)'s robust investment cycle. The company's total net debt was BRL 16.6 billion at the end of Q2 2025, with a net debt/EBITDA leverage ratio of 2.9x (excluding the Baixo Iguacu acquisition effect). The company used BRL 4 billion in cash to pay the granting bonus for the renewal of generation assets for another 30 years during Q3 2025.

The State of Paraná maintains a Golden Share with veto power to protect public interests. Companhia Paranaense de Energia - COPEL (ELP) had a plan to complete its share structure change, including migration to Novo Mercado, by the end of 2025, following shareholder approval in August 2025.

Technology and equipment suppliers are critical for the ongoing modernization efforts. Companhia Paranaense de Energia - COPEL (ELP) has been developing photovoltaic solar plants through partnerships, including the 79 MWp Lavras II solar project, developed in partnership with Canadian Solar. The company is also focused on digital transformation and restructuring its technology base.

Energy trading partners are secured by Copel Comercialização, which is focused on consolidating relevance in the free trade energy market. Sales volume contracted for 2026 to 2030 grew by 96.2% relative to Q2 2025, adding a volume sold of 131 megawatt. A past example of a trading contract involved the Port of Paranaguá, a five-year deal expected to yield between BRL 10 million and BRL 13 million in savings over the contracted period.

The planned capital expenditure for 2025 is projected to exceed BRL 3 billion. The allocation across the main business units for the 2026 plan, which follows the 2025 execution, shows the following breakdown:

Unit	2026 Capex Allocation (BRL)	Percentage of Total 2026 Capex
Copel Distribuição (DisCo)	1.9 billion	64%
Copel Geração e Transmissão (GenCo)	972 million	N/A
Transmission Segment (within GenCo)	450 million	N/A
Hydroelectric Assets (within GenCo)	314 million	N/A
Wind Farms (within GenCo)	127 million	N/A
Commercialization, Services, and Holding	107 million	N/A

The investment execution through the first three quarters of 2025 totaled BRL 2.6 billion, with BRL 981 million invested in Q3 2025 alone.

Companhia Paranaense de Energia - COPEL (ELP) prioritizes renewable energy sources and diversification of its generation matrix. The energy mix includes several sources in partnership with various entities:

• Hydraulics
• Wind (Jandaíra wind complex contributes 22% of renewable additions)
• Solar (including the 79 MWp Lavras II project)
• Biomass and Biogas (interest expressed in opportunities from sugarcane pomace, forestry, and urban solid waste)
• Thermal (divested from two thermoelectric plants in early 2024)

Companhia Paranaense de Energia - COPEL (ELP) - Canvas Business Model: Key Activities

You're looking at the core actions Companhia Paranaense de Energia - COPEL (ELP) is taking right now to run the business and set up future value. It's all about keeping the lights on, spending wisely, managing risk, and cleaning up the corporate structure. Here's the breakdown of what they are actively doing as of late 2025.

Operating and maintaining integrated Generation, Transmission, and Distribution assets

Companhia Paranaense de Energia - COPEL (ELP) is actively managing its integrated energy system, which includes an installed capacity of 6.2 GW and a focus on a renewable energy mix. The operational performance in the third quarter of 2025 showed strength, with the recurring consolidated EBITDA growing 7.8% over Q3 2024. This performance was driven by the different segments:

• The Distribution unit (Copel Distribuição) saw its recurring EBITDA rise by 7.2% in the quarter, supported by a 1.7% growth in the build grid market and an average adjustment of 6.8% at TUSD in June.
• The Generation and Transmission unit (Copel Genco) had its recurring EBITDA grow by 11% over Q3 2024, benefiting from better asset performance and consolidation of new endeavors.
• Specifically in Transmission, the EBITDA increased by BRL 119.4 million due to the consolidation of Mata de Santa Genebra and an average increase of 2.2% in RAP (Regulated Asset Base).

The company also executed cost discipline, with recurring PMSO (Personnel, Material, Services, and Other) expenses totaling BRL 718.7 million, a 4.1% reduction year-over-year.

Executing the BRL 2.6 billion (9M 2025) capital expenditure program

A major activity is the execution of the current investment cycle. For the first nine months of 2025, Companhia Paranaense de Energia - COPEL (ELP) invested a total of BRL 2.6 billion in capital expenditure (CapEx). This included a significant spend of BRL 981 million in the third quarter alone. This spending is clearly directed toward modernization and service quality. To give you a forward look, the Board approved a much larger, multi-year program in November 2025:

Investment Program Component	2026 Planned Capex (BRL Million)	Total 2026-2030 Capex (BRL Billion)
Total Approved Capex for 2026	3,021.3	N/A
Copel Distribuição Allocation	1,942.80	N/A
Copel Geração e Transmissão Allocation	971.6	N/A
Total 5-Year Program (2026-2030)	N/A	17.8

The 2026 allocation for Distribution is specifically aimed at continuous improvement in quality and operational excellence, while the Generation and Transmission portion focuses on modernizing capacity and reinforcing lines.

Managing hydrological and market risks in the energy trading segment

Companhia Paranaense de Energia - COPEL (ELP) is one of the largest energy traders in Brazil, and managing market exposure is a constant activity. The results show this risk exposure in action. In Q3 2025, the trading segment posted a margin drop of BRL 7.3 million, which management attributed mainly to the effect of legacy contracts of electricity. This highlights the ongoing need to manage contract positions against current market dynamics, including hydrological variability, which also generated a negative effect of BRL 39 million more in generation deviation in the quarter due to curtailment.

Ensuring regulatory compliance and preparing for the 2026 tariff review

A critical near-term activity is preparing for the upcoming regulatory reset. Companhia Paranaense de Energia - COPEL (ELP) is actively ensuring compliance while positioning for what is described as a 'historical tariff review in the distribution company in 2026'. The current high investment cycle, totaling BRL 2.6 billion in the first nine months of 2025, is explicitly linked to modernizing the asset base to support the arguments for the 2026 review. The company notes it has a good track record in past cycles, but there is always room for optimization in this process.

Implementing high corporate governance standards for B3 Novo Mercado migration

Companhia Paranaense de Energia - COPEL (ELP) has been intensely focused on a structural overhaul to migrate to the B3 Novo Mercado segment, which represents the highest corporate governance standard in Brazil. This activity involved several key steps completed in late 2025:

• The participation agreement with B3 was signed on November 5, 2025.
• Shareholders approved the mandatory conversion of all preferred shares (PN) on November 17, 2025, clearing the final structural hurdle.
• The conversion mechanism dictates that each existing preferred share converts into one new common share and one new class "C" preferred share (PNC).
• The PNC shares are compulsorily redeemed at a price of R$ 0.7749 per share.

The effective migration is contingent upon the completion of this conversion and the subsequent redemption of all PNC shares, which is designed to simplify the capital structure and enhance appeal to global institutional investors.

Companhia Paranaense de Energia - COPEL (ELP) - Canvas Business Model: Key Resources

You're looking at the core assets that make Companhia Paranaense de Energia - COPEL run, especially after the privatization moves. These aren't just line items; they are the physical and human capital underpinning their market position in Paraná and beyond. Honestly, the scale of the physical infrastructure is what immediately jumps out.

Generation and Network Assets

The generation fleet is heavily weighted toward hydro, which is a key strategic advantage for dispatch flexibility, even with the challenges of curtailment seen in Q3 2025. You can see the installed capacity breakdown here:

Asset Type	Installed Capacity (MW)	Notes
Total Installed Capacity (Adjusted to Share)	6,573.9	As per latest reported figures, primarily hydroelectric.
Own Plants (Hydroelectric)	18 plants	Part of the 62 own plants.
Own Plants (Thermal)	1 plant	Part of the 62 own plants.
Own Plants (Wind)	43 plants	Part of the 62 own plants.
Incremental Power Potential	2.7 GW	From existing and renovated plants.
Reversible Hydro Pipeline	4 GW+	Taking advantage of existing infrastructure synergies.

The distribution and transmission backbone is massive, serving millions of customers in Paraná, which is Brazil's third-largest distribution network. The company directly serves over 5 million consumer units in 395 municipalities.

Here's a look at the physical network scale:

Network Component	Length/Count	Context
Distribution Lines	209,665 km	For energy distribution.
Transmission Lines	9,685 km	For energy transmission.
Substations	390	Total count mentioned in one overview.

Financial Strength and Regulatory Capital

Post-privatization, Companhia Paranaense de Energia - COPEL is showing strong operational cash generation, which is critical for funding its investment program. For Q3 2025, recurring EBITDA hit R$ 1,337.4 million. This operational strength helps keep leverage in check, which is a key metric for analysts. The Net Debt/EBITDA ratio was manageable at around 2.8x post-divestment as of Q3 2025.

The distribution assets are underpinned by the Regulatory Remuneration Base (BRR), which is how the regulator determines the allowed return on those assets. Investments, like the ongoing "Programa Transformação," are specifically aimed at increasing efficiency and growing this base. Furthermore, the company secured new concession contracts in November 2024, locking in another 30 years of operation for key generation assets, with cash flows tied to this BRR.

Human Capital

The technical expertise is a definite resource, especially given the focus on complex assets like hydroelectric power plants (HPPs). You can't run a system this large without deep institutional knowledge. Post-privatization, this specialized talent remains a core asset:

• 130+ engineers specialized in HPPs.
• Approximately 50% of these engineers hold specializations.
• Roughly one-third (1/3) of the HPP engineers have master's or doctoral degrees.

Finance: draft 13-week cash view by Friday.

Companhia Paranaense de Energia - COPEL (ELP) - Canvas Business Model: Value Propositions

You're looking at the core value Companhia Paranaense de Energia - COPEL (ELP) delivers to its stakeholders as of late 2025, grounded in its operational scale and governance shift.

Highly reliable and integrated energy supply across four segments is a key proposition, supported by an installed capacity of 6.2 GW and a transmission network spanning 9.7 thousand km across eight states. The company operates across four main areas: generation, transmission, distribution, and commercialization.

The commitment to top-tier corporate governance is being formalized through the migration to B3's Novo Mercado segment, with the process expected to conclude in the fourth quarter of 2025, which simplifies the structure to only ordinary shares.

The sustainable energy mix prioritizes renewables, with hydroelectric power still accounting for 65% of output, complemented by investments in wind and solar. Specific figures show a capacity component of 22% wind and 79MW solar capacity mentioned in Q2 2025 context, alongside a signed contract for a 260 MW solar power plant.

The universal service obligation covers more than 5.1 million consumer units across the state of Paraná, with the distribution arm serving 4.3 million homes, representing 28% of the state's electricity consumption.

Operational efficiency gains are directly reflected in the financial performance, driving a Q3 2025 recurring EBITDA of BRL 1.3 billion, an increase of almost 7.8% year-over-year. This efficiency is evidenced by a 4.1% reduction in recurring PMSO (Personnel, Materials, Services, and Others) expenses, which totaled BRL 718.7 million in Q3 2025, with personnel and administrative expenses down 18.4% year-on-year.

Here is a quick look at the Q3 2025 financial snapshot:

Metric	Value (Q3 2025)	Comparison/Detail
Recurring EBITDA	BRL 1.3 billion	Up almost 7.8% year-over-year
Recurring Net Income	BRL 374.8 million	Down 36.5% year-over-year
Total CapEx (9M 2025)	BRL 2.63 billion	Q3 2025 CapEx was BRL 981.4 million
Recurring PMSO Expenses	BRL 718.7 million	Down 4.1% year-over-year

The value proposition for investors is further detailed by the governance and capital structure alignment:

• Migration to Novo Mercado segment expected in Q4 2025.
• Payout minimum policy set at 75%.
• Target leverage ratio of 2.8x Net Debt/EBITDA.
• Distribution billed market grew by 1.7% in Q3 2025.

The company's commitment to its service area is quantified by the service footprint:

• Total Consumer Units in Paraná: Over 5.1 million.
• Residential Customers: 4.3 million homes served.
• Residential Consumption Share: 28% of Paraná's electricity consumption.

Finance: review the impact of the BRL 1.3 billion preferred share conversion payment on the Q4 2025 leverage ratio by next Tuesday.

Companhia Paranaense de Energia - COPEL (ELP) - Canvas Business Model: Customer Relationships

You're looking at the relationship structure for Companhia Paranaense de Energia - COPEL (ELP) as the company operates under a post-privatization mandate, balancing regulated utility obligations with market-driven efficiency.

Regulated service model with high switching costs for distribution customers

As the distributor in its core territory, Companhia Paranaense de Energia - COPEL serves more than 5 million consumer units across 395 municipalities and 1,068 locations (districts, towns and villages) in Paraná. The relationship is characterized by the regulated nature of the distribution concession, which inherently creates high switching costs for residential and small commercial customers tied to the physical network infrastructure. To maintain and improve this regulated base, Companhia Paranaense de Energia - COPEL Distribuição planned to invest 2.5 billion reais in 2025 for projects focused on service quality and efficiency. This modernization effort is part of a larger annual modernization plan totaling R$3 billion (US$500 million), with distribution investments reaching R$678 million in Q1 2025 alone. The company is executing modernization programs, such as Redes Elétricas Inteligentes (Smart Grid), intended to conclude by 2025.

Dedicated account management for large industrial and commercial clients

For high-volume users, the relationship shifts toward tariff structure management, especially given the regulatory focus on large loads. Energy sales to industrial and residential users saw growth of 3.3% in the first quarter of 2025. The regulatory environment is actively considering how to structure terms of service for these users, with public commentary sought on a tentative model tariff for Large Load Customers. This implies a need for dedicated management to navigate infrastructure upgrade cost allocations, which regulators noted could run into the hundreds of millions of dollars for major new demands.

Digital self-service platforms for billing and service requests

Companhia Paranaense de Energia - COPEL is integrating advanced technology to support customer interactions, though specific usage metrics for customer-facing platforms aren't public. Internally, the company has adopted generative AI to empower employees to self-serve data needs from the SAP ERP system, which has already led to realized cost savings by automating manual processes. This internal push for self-service aligns with broader market trends where, for instance, 81% of customers attempt to solve problems independently before contacting a live agent.

Community engagement and social responsibility programs

Community relations are formalized through structured social programs aligned with the 2030 United Nations Sustainable Development Agenda. These programs focus on areas like energy and social inclusion, health, and education. A concrete example of this commitment is Companhia Paranaense de Energia - COPEL's R$ 20 million investment to bring solar energy to isolated and traditional communities on the Paraná coast. Furthermore, the company has an overarching Carbon Neutrality Plan aiming to neutralize GHG emissions for its controlled assets by 2030.

Long-term contracts and risk mitigation for energy trading clients

In the energy trading segment, Companhia Paranaense de Energia - COPEL actively manages its portfolio exposure through contracting. For 2025, the company successfully reduced its non-contracted energy exposure to 57 MWavg. This action was taken to secure higher-priced contracts amid renewable expansion. The trading unit's margin in Q3 '25 was impacted by the effect of legacy contracts from intermittent sources, highlighting the ongoing transition and restructuring of their energy supply agreements.

Here's a quick look at the scale of the distribution customer base and related investment:

Metric	Value	Context/Year
Consumer Units Served	More than 5 million	Directly served
Municipalities Served	395	Paraná state
Distribution Capex Planned	2.5 billion reais	For 2025
Total Annual Modernization Plan	R$3 billion (US$500 million)	2025
Non-Contracted Energy Exposure	57 MWavg	Reduced for 2025

The company's focus on operational efficiency is also visible in personnel cost management, with a 16% reduction in personnel costs year-on-year noted in Q3 '25.

Finance: draft 13-week cash view by Friday.

Companhia Paranaense de Energia - COPEL (ELP) - Canvas Business Model: Channels

You're looking at how Companhia Paranaense de Energia - COPEL (ELP) gets its product-electricity-to its customers and how it communicates with the market. This is all about the physical and digital pathways they use to deliver value and secure capital.

Physical Electricity Grid (Transmission Lines and Distribution Network)

The core channel is the physical infrastructure that moves power across Paraná. This network is substantial, though some figures reflect the end of 2021 data, which is the most granular infrastructure detail available in the latest reports.

The distribution concession is exclusive across 395 municipalities in the State of Paraná, serving over 5 million consumer units as of the latest detailed operational reports. The transmission network is the high-voltage backbone, spanning approximately 9,685 km of lines. The distribution network itself is vast, with approximately 204,957 km of lines.

The distribution segment showed growth in the billed energy market of 1.7% in the third quarter of 2025.

Infrastructure Component	Metric	Latest Available Figure
Installed Capacity (Total)	Megawatts (MW)	Approximately 6,573.9 MW
Transmission Network Length	Kilometers (km)	Approximately 9,685 km
Distribution Network Length	Kilometers (km)	Approximately 204,957 km
Distribution Customers	Consumer Units	Over 5 million

Customer Service Centers and Authorized Payment Agents

For customers needing in-person service or traditional payment methods, Companhia Paranaense de Energia - COPEL relies on physical points of contact. While the company serves over 5 million units, specific, current figures for the exact number of dedicated customer service centers or the count of authorized payment agents are not explicitly detailed in the recent financial disclosures.

You know the service quality is tied to these touchpoints, so if you're tracking operational KPIs, you'll want to watch for updates on service center efficiency, especially following the privatization focus on operational discipline.

Digital Channels (Website, Mobile App) for Billing and Outage Reporting

Digital interaction is key for efficiency gains, which Companhia Paranaense de Energia - COPEL has been prioritizing, evidenced by cost-cutting measures like the 16% year-on-year reduction in personnel expenses in the distribution segment in Q3 2025.

The company makes its investor presentation materials available for download on its Investor Relations website, ri.copel.com.

• Digital channels support the overall efficiency drive, which saw recurring PMSO (Personnel, Material, Services, Others) expenses drop by 4.1% in Q3 2025, totaling BRL 718.7 million.
• The company's focus on operational excellence suggests high adoption rates for digital billing and outage tools, even if specific user counts aren't public.

Direct Sales and Trading Desk for Free Market Energy Contracts

The trading desk is a significant channel for revenue diversification, especially in the free energy market. Companhia Paranaense de Energia - COPEL has been actively expanding this area.

The sales volume for contracts spanning 2026 to 2030 saw massive growth, increasing by 96.2% relative to Q2 2025, adding a sold amount of 431 megawatts. This aligns with the reported 17% free-market customer growth seen in Q2 2025. The trading segment, Copel GeT, posted a recurring EBITDA of BRL 761.4 million in Q2 2025, marking a 12.6% increase year-over-year. Furthermore, the company reduced its non-contracted energy exposure to 57 MWavg for 2025, securing positions in the market.

Trading Metric (Q2/Q3 2025)	Value	Context/Change
Copel GeT Recurring EBITDA (Q2 2025)	BRL 761.4 million	Up 12.6% year-over-year
Free-Market Customer Growth (Q2 2025)	17%	Indicates channel expansion success
Forward Sales Volume Growth (2026-2030)	96.2%	Compared to Q2 '25, adding 431 MW sold
Non-Contracted Energy Exposure (2025)	57 MWavg	Reduced exposure

Investor Relations (IR) for Global Institutional Capital (NYSE: ELP)

The IR function serves as the channel to global capital markets, primarily through the NYSE listing, ticker ELP. As of late 2025, the market capitalization was reported around $7.86 billion to $7.89 billion.

A key recent communication channel for shareholders was the November 18, 2025, announcement regarding the distribution of Interest on Equity (IoE).

The Board approved an IoE distribution based on June 30, 2025, financials, with a gross total amount of R$ 1,100,000.00 (one billion, one hundred million reais). The gross amount per common share was set at R$ 0.37041621069. For direct inquiries, the Investor Relations team can be reached at ri@copel.com.

• NYSE Ticker: ELP
• Market Capitalization (Nov 2025): Between $7.86B and $7.89B
• IoE per Common Share (Gross): R$ 0.37041621069
• IR Contact Email: ri@copel.com

Finance: draft 13-week cash view by Friday.

Companhia Paranaense de Energia - COPEL (ELP) - Canvas Business Model: Customer Segments

Companhia Paranaense de Energia - COPEL (ELP) serves a diverse base of energy consumers primarily within the state of Paraná, Brazil, directly serving more than 5.1 million consumer units across 395 municipalities and 1,068 locations as of late 2025.

Residential consumers (largest volume of consumer units)

This segment represents the largest volume of consumer units for Companhia Paranaense de Energia - COPEL (ELP). The company serves these customers through its distribution arm, Copel Distribuição S.A., which segments them primarily under Group B (low voltage) as per ANEEL Normative Resolution number 1000/2021.

• Total consumer units served: more than 5.1 million in Paraná.
• Residential consumption in Q3 2025 was 2,366 GWh, showing a year-over-year growth of 4.0%.

Commercial businesses and small-to-medium enterprises (SMEs)

Commercial clients fall under both Group A (medium/high voltage) and Group B (low voltage) depending on their scale and technical requirements. This segment showed positive consumption trends in the third quarter of 2025.

• Commercial energy consumption in Q3 2025 reached 1,727 GWh, a 2.2% increase year-over-year.

Large industrial consumers requiring high-volume, reliable power

These are typically Group A clients, demanding higher technical and regulatory complexity for their power supply. Companhia Paranaense de Energia - COPEL (ELP) focuses on providing quality and security in contracts for this segment.

The industrial segment is a major consumer of energy volume. For instance, in Q1 2025, energy sales to industrial users grew by 3.3% year-over-year, reflecting the economic activity in Paraná.

Customer Segment	Latest Volume Metric	Value (2025 Data)
Residential Consumers (Units)	Total Consumer Units Served	More than 5.1 million
Residential Consumers (Energy)	Q3 2025 Billed Energy (GWh)	2,366 GWh
Industrial Consumers (Energy)	Q3 2025 Billed Energy (GWh)	3,293 GWh
Commercial Consumers (Energy)	Q3 2025 Billed Energy (GWh)	1,727 GWh

Energy trading clients and other utility companies

The energy commercialization arm, Copel Comercialização (Copel Mercado Livre), serves clients in agribusiness, commerce, industry, services, the public sector, and other energy traders and generators.

Companhia Paranaense de Energia - COPEL (ELP) has actively grown its presence in the deregulated market. The company reported a 17% growth in free-market customers as of Q2 2025.

Key expectations from these trading clients include cost reduction, predictability, and flexibility of negotiation.

Rural customers in the concession area

Rural customers are served under the distribution network, and Companhia Paranaense de Energia - COPEL (ELP) has specific infrastructure programs aimed at this group. The company has a program called Paraná Trifásico to strengthen the reliability of its rural energy network.

• The company has 402 on-site service stations across all municipalities in its concession area to support service delivery.

Companhia Paranaense de Energia - COPEL (ELP) - Canvas Business Model: Cost Structure

The Cost Structure for Companhia Paranaense de Energia - COPEL (ELP) is heavily weighted toward capital-intensive infrastructure maintenance and necessary operational inputs, reflecting its regulated utility nature. You see significant outflows dedicated to maintaining and upgrading the grid, plus the direct costs of the energy it sells.

High Capital Expenditures (CapEx)

Companhia Paranaense de Energia - COPEL (ELP) is executing a significant investment cycle. For the first nine months of 2025, the total CapEx reached BRL 2.6 billion. This heavy spending is directed toward network modernization and service quality improvements, especially within the distribution arm. To give you a clearer picture of the investment cadence, the CapEx for the first quarter of 2025 was BRL 678 million, and the third quarter alone saw BRL 981 million in CapEx.

Personnel, Materials, Services, and Others (PMSO) Expenses

Controlling PMSO is a clear priority, though costs still fluctuate based on operational needs and restructuring efforts. For the third quarter of 2025, recurring PMSO expenses totaled BRL 718.7 million. This followed a Q2 2025 figure of BRL 708.3 million, which was down from BRL 735.9 million in the same period of the prior year. Management has set an internal target for a 20% cost reduction in PMSO by the end of 2025.

The composition of these expenses is managed through specific actions:

• Personnel and administrative expenses saw an 18.4% reduction in Q3 2025 due to voluntary severance programs.
• A 16% year-on-year reduction in personnel costs was noted in the distribution segment in Q3 2025.
• In Q2 2025, personnel and administrative expenses dropped by almost 15% year-over-year.

Financial Costs and Debt Structure

Financial costs are a notable component, often influenced by the prevailing interest rate environment in Brazil. In the fourth quarter of 2024, expenses related to monetary variation, exchange rate, and debt charges increased by BRL 84.8 million, representing a 20.7% rise, driven by higher debt levels and the CDI rate. Despite this, the company maintains a relatively controlled balance sheet, reporting a debt-to-equity ratio of 0.63 as of the third quarter of 2025. Furthermore, a significant cash outflow related to financing decisions was the approval of an R$ 1.1 billion Interest on Equity distribution in November 2025.

Energy Purchase Costs

The cost of energy purchased for resale is a variable but substantial cost, particularly for the trading and distribution segments. In the second quarter of 2025, there was an increase of BRL 126.3 million in the cost of energy purchased for resale, which put pressure on the results, especially for distribution. This is a direct pass-through cost that Companhia Paranaense de Energia - COPEL (ELP) must manage against its regulated tariffs and free-market sales.

Regulatory Charges and Concession Fees

Regulatory obligations are fixed costs tied to the right to operate the concession. The tariff structure directly reflects these costs. For instance, the 2.02% average tariff adjustment approved for Copel Distribuição S.A. in June 2025 included updates to sectoral charges. The company's heavy investment focus in distribution during Q1 2025, which consumed 87% of the quarter's CapEx, was explicitly aimed at the regulatory remuneration base, indicating that compliance and optimization within the regulated framework drive significant spending.

Here are some key financial metrics that define the scale of these costs and the company's financial footing as of late 2025:

Financial Metric	Amount/Value	Period/Context
Total CapEx	BRL 2.6 billion	9 Months of 2025
Recurring PMSO Expenses	BRL 718.7 million	Q3 2025
Debt Charges Increase (Q4 2024 vs Q4 2023)	BRL 84.8 million	4Q24
Energy Purchase Cost Increase (Q2 2025 vs Q2 2024)	BRL 126.3 million	Q2 2025
Debt-to-Equity Ratio	0.63	As of Q3 2025
Approved Interest on Equity Payment	R$ 1.1 billion	Approved November 2025

The debt charges increase was 20.7% year-over-year in 4Q24. The company's net margin for the quarter was 12.77%. Finance: draft 13-week cash view by Friday.

Companhia Paranaense de Energia - COPEL (ELP) - Canvas Business Model: Revenue Streams

Companhia Paranaense de Energia - COPEL (ELP) derives revenue from its integrated operations across the power value chain, including generation, transmission, distribution, and commercialization.

Total TTM revenue ending September 30, 2025, was approximately BRL 24.95 billion.

Key components contributing to the top line include:

• Regulated revenue from electricity distribution tariffs, with a specified TUSD adjustment of 6.8% occurring in June.
• Revenue generated from electricity generation and transmission services.
• Energy sales realized in the free market (trading).
• Equity earnings derived from consolidated strategic assets.

Looking specifically at the third quarter of 2025 results, the company posted a quarterly revenue of $6.81 billion. Operationally, Companhia Paranaense de Energia - COPEL recorded sales of almost 5 GWh in the third quarter of 2025. The distribution grid market saw electricity consumption grow by 1.7% in the third quarter of 2025 compared to the prior year.

The generation segment faced operational challenges, recording a Generation Scaling Factor (GSF) of approximately 65% in Q3 2025. Conversely, the spot market price (PLD) increased by close to 50% compared to Q3 2024, reaching about BRL 250 BRL/MWh.

The table below summarizes key financial performance indicators for the nine months and the third quarter of 2025:

Metric	Period	Amount	Unit
Total TTM Revenue	TTM ending September 30, 2025	24.95 billion	BRL (implied)
Quarterly Revenue	Q3 2025	6.81 billion	USD
Recurring EBITDA	Q3 2025	1.3 billion	BRL
Recurring Net Income	Q3 2025	374.8 million	BRL
CapEx	Nine months of 2025	2.6 billion	BRL
CapEx	Q3 2025 alone	981 million	BRL

The company also highlighted its capital structure management, noting that the net debt to total debt ratio was three times in the quarter, which would have been 2.8 times considering the sale of Mashu HPP completed in October. Total net debt before that sale was BRL 16.6 billion.

Companhia Paranaense de Energia - COPEL is preparing for a historical tariff review in the distribution company scheduled for 2026.