Strategy and Competitive Advantages

We enjoy a unique opportunity for organic growth in our distribution concessions, given our competitive standing.

We have three Discos in the Northeast region (Neoenergia Coelba, Neoenergia Pernambuco and Neoenergia Cosern) which historically have grown above the Brazilian average. These concessions require a large volume of investments, especially in new connections, expanding our regulated asset base and, consequently, our remuneration base. On the other hand, we have two other Discos (Neoenergia Elektro and Neoenergia Brasília) that take advantage of being exposed to more mature markets.

Thus, we will continue to carry out our investment plan, expanding the access to electric energy (universalization) and increasing the quality of the service we provide, as well as the automation of networks and systems aiming the evolution to smart energy networks.

We will continue to seek operational excellence, staying at the forefront of efficiency and quality in the industry. We expect that widespread automation, smart metering, and mobile workforce management, will lead us to better utilization of resources and use of networks, reducing marginal costs.

Due to our experience and proven ability of execution in the Transmission business, with Capex savings and anticipations compared to Aneel`s schedule, we also see opportunities for growth in this way, obviously in a selective manner and respecting the returns pursued.

As Brazil’s electricity consumption grows over the next decade, we will continue to explore investment opportunities in new generation projects, in particular, wind and solar photovoltaic energy generation through our pipeline, observing a strict return on investment rules, in order to ensure that energy demand is met as well as creating value for its shareholders.

The commitment to cost control is a non-negotiable value for Neoenergia. Since 2017, the group has maintained the Opex at almost constant levels, thus absorbing the period’s inflation, the increase in the Discos’ customer base, which has grown at an average pace of around 250 thousand new consumer units per year, and the new business.

The review of operational and corporate processes, the use of technologies and the constant search for efficiencies and synergies have allowed us to obtain significant cost savings.