Afluente Transmissão de Energia Elétrica S.A. is a publicly held company incorporated on August 18, 2008, originally under the name Imanisse Participações S.A. Its creation is directly linked to the unbundling process of the Brazilian electricity sector, structured by Law No. 10,848 of March 15, 2004, which mandated the segregation of generation, transmission, and distribution activities that had previously been concentrated in integrated companies. In this context, the transmission assets of Companhia de Eletricidade do Estado da Bahia (Coelba) were separated and allocated to a specific structure, initially Afluente Geração e Transmissão de Energia Elétrica S.A., and then spun off, giving rise to the current Afluente Transmissão de Energia Elétrica S.A. The corporate reorganization and transfer of concessions were authorized by the Brazilian Electricity Regulatory Agency (ANEEL) through specific resolutions, culminating in the execution of Concession Contract No. 001/2010, which governs the provision of public electricity transmission services by the company until August 2027.

The capital of Afluente Transmissão de Energia Elétrica, whose common shares are traded on B3 under the ticker AFLT3, is majority owned by Neoenergia S.A., which consolidated a controlling stake of over 90% after corporate transactions involving Caixa de Previdência dos Funcionários do Banco do Brasil (Previ) and Eletronorte. The remaining stake is held by Iberdrola Energia S.A. and the free float on the stock exchange. Recent developments include share purchase and swap transactions aimed at simplifying the corporate structure within the Neoenergia group and the Eletrobras group, all subject to the approval of regulatory bodies such as ANEEL and the Administrative Council for Economic Defense (CADE), as well as creditors and other relevant stakeholders. These transactions reinforce the role of Afluente T as a regional transmission vehicle within a larger power sector conglomerate.

Afluente Transmissão de Energia Elétrica’s core activities are fully focused on high-voltage electricity transmission. Its corporate purpose covers studies, planning, design, construction, operation, maintenance, and exploitation of transmission systems, including lines, substations, and control centers, as well as associated infrastructure. The company is compensated through Permitted Annual Revenue (RAP), defined in the concession contract and regulated by ANEEL, with annual adjustments based on the IGP-M index and periodic tariff reviews every five years. The financial statements show that 100% of net revenue comes from the transmission segment, with no material diversification into generation, distribution, or power trading. The business model is based on regulated assets, with low exposure to the volume of energy transported and greater predictability of revenues derived from the availability of facilities.

Afluente T’s operating infrastructure is fully located in the state of Bahia, within the Basic Network of the National Interconnected System (SIN). The company operates eight 230 kV substations – including Tomba, Funil, Brumado II, Itagibá, Ford, Pólo, and Camaçari – with an aggregate installed capacity of approximately 600 MVA. In addition to the substations, it manages about 489 km of 230 kV transmission lines, interconnecting points such as Itagibá, Funil, Brumado II, Ford, Pólo, Camaçari IV, Tomba, Governador Mangabeira, and Poções II. Over the years these assets have undergone expansions and reinforcements approved by ANEEL through specific authorizing resolutions, including busbar reconfiguration at substations, implementation of new circuits, and voltage uprating of specific segments, with incremental impacts on the company’s RAP.

From an economic-operational standpoint, Afluente Transmissão de Energia Elétrica operates in a segment characterized as a natural monopoly, in which each concession covers a specific area and set of assets, with no direct competition between transmission companies over the same stretch of grid. Access to transmission facilities is regulated and guaranteed to all agents that produce or consume electricity, through standardized contracts managed by the National Electric System Operator (ONS), such as Transmission Service Agreements (CPST), Transmission System Usage Agreements (CUST), and connection contracts. The company’s remuneration is composed of transmission system and connection usage charges, paid by distributors, generators, free consumers, and other users connected to the Basic Network, in accordance with tariff and procedural rules established by ANEEL and implemented by the ONS and the Electric Energy Trading Chamber (CCEE).

Afluente T’s customer base is concentrated in a few regulated agents, reflecting the structure of the transmission sector itself. There is record of an individual customer accounting for more than 10% of annual net revenue, with a share that has ranged between roughly one quarter and one third of revenue in recent fiscal years. Despite the concentration, revenues arise from regulated, standardized contracts, where the counterparty is typically a relevant agent in the interconnected electricity sector, such as distributors or large consumers connected to the high-voltage grid. There is no exposure to foreign markets, with 100% of revenue attributable to operations in Brazil, and the company is not subject to foreign regulation in its activities.

The regulatory environment in which Afluente Transmissão de Energia Elétrica operates is complex and involves multiple government institutions. The Ministry of Mines and Energy (MME) sets policies and guidelines for the electricity sector, while ANEEL regulates and oversees concessions, revenues, quality standards, and investments in reinforcements and improvements. The ONS coordinates operation of the National Interconnected System, non-discriminatory access to the grid, and transmission service contracting. The National Council for Energy Policy (CNPE), the Electric Sector Monitoring Committee (CMSE), the CCEE, and the Energy Research Office (EPE) also play structural roles in planning, security of supply, trading, and the expansion of the generation mix and transmission network. Afluente T’s activities are therefore strongly influenced by regulatory decisions, periodic tariff reviews, access rules, and system-wide planning.

On environmental, social, and corporate governance (ESG) matters, Afluente Transmissão de Energia Elétrica is included in Neoenergia’s reporting structure. Sustainability performance is disclosed annually in a report that consolidates financial and non-financial information, prepared in accordance with Global Reporting Initiative (GRI) standards, Sustainability Accounting Standards Board (SASB) standards for the electric utilities sector, Dow Jones Sustainability Index recommendations, and ANEEL guidelines for social and environmental reporting. Since 2021, reporting has also incorporated the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), later aligned with IFRS S1 and S2 standards of the International Sustainability Standards Board (ISSB). The document is subject to internal governance processes, including internal audit, with independent assurance performed by Deloitte Touche Tohmatsu Auditores Independentes, as well as review by sustainability and audit committees and the board of directors. The ESG strategy prioritizes topics such as climate change, system efficiency and reliability, working conditions, relationships with local communities, corporate culture, supplier management, and cybersecurity, in alignment with the UN Sustainable Development Goals, especially SDGs 7 and 13.

Afluente T’s role in electricity transmission does not involve power generation, but depends on integration with multiple generation sources – such as hydro, thermal, wind, solar, and biomass – that inject energy into the SIN. The company’s function is to enable, at high voltage, the flow of large energy blocks between generation areas and load centers, helping to balance regions with different hydrological regimes and demand profiles. After the implementation of lines and substations, operating activities become focused on operation and maintenance, using engineering services, electromechanical materials and equipment, as well as spare parts and specialized supplies. The company states that it seeks more efficient operation and maintenance solutions from suppliers, but does not exhibit critical dependence on a narrow group of providers, within the context of supply under the integrated logic of the Brazilian electricity system.

AFLT3 shares, traded on B3, represent an interest in a transmission company operating basic network assets in Bahia, with a focus on long-term concession contracts and regulated revenues based on Permitted Annual Revenue. The combination of strong sector regulation, revenue concentration in the transmission segment, and the company’s position within a larger economic group shapes the risk-return profile of the business within the structure of Brazil’s post-unbundling electricity sector.