CEBR6

Companhia Energética de Brasília – CEB is a mixed-capital publicly traded company controlled by the Government of the Federal District, with shares traded on B3 under the tickers CEBR3, CEBR5, and CEBR6. The company’s origins date back to 1968, with the creation of Companhia de Eletricidade de Brasília, derived from Novacap’s Department of Power and Light, which was responsible for the initial power supply structure in the federal capital. In the 1990s, the company expanded its scope of operations beyond electricity distribution, starting to invest in new businesses and, in 1992, changed its name to Companhia Energética de Brasília – CEB. In 1993, it obtained a concession to operate piped gas in the Federal District and, in 1994, carried out its IPO, marking its entry into the Brazilian capital markets.

CEB’s trajectory is marked by a process of diversification and corporate reorganization, in line with regulatory changes in the power sector. In the mid-1990s and early 2000s, the company began participating in hydroelectric generation consortia and created subsidiaries focused on equity interests and new energy ventures, culminating in the establishment of CEB Geração S.A. in 2005 and CEB Distribuição S.A. in 2006. The 2006 restructuring segregated holding, generation, and distribution activities, in compliance with Law No. 10,848/2004 and ANEEL resolutions. Starting in 2019, the privatization process of CEB Distribuição S.A. began, and was concluded in 2021 with the disposal of the subsidiary responsible for the power distribution concession in the Federal District, consolidating CEB as a holding company focused on generation, piped gas, energy trading, and public lighting.

Companhia Energética de Brasília – CEB’s current business model is structured as a pure holding company, whose revenue at the parent company level essentially arises from the recognition of equity income from subsidiaries, jointly controlled entities, and associates. The company’s corporate purpose is to hold interests in other companies and to directly or indirectly operate power and electric energy services, encompassing generation, transmission, trading, and related services, although operations are mainly concentrated in hydroelectric generation, energy trading, public lighting, and distribution of piped natural gas. The main subsidiaries include CEB Geração S.A., which operates the Paranoá hydroelectric power plant; CEB Lajeado S.A., focused on trading energy from the Luís Eduardo Magalhães HPP; CEB Participações S.A., dedicated to managing equity interests in energy assets and trading energy quotas; CEB Iluminação Pública e Serviços S.A. (CEB IPES), the public lighting concessionaire for the Federal District; and Companhia Brasiliense de Gás S.A. – CEBGAS, which holds the concession for the distribution and trading of piped natural gas in the Federal District.

In the power generation segment, CEB operates directly and indirectly through different corporate vehicles. CEB Geração S.A. is the concessionaire of the public generation service of the Paranoá Hydroelectric Power Plant, with 30 MW of installed capacity and a concession contract valid until 2050, allocating all its physical energy guarantee to distributors in the National Interconnected System under a quota regime, remunerated by a regulated tariff (Generation Annual Revenue – RAG) approved by ANEEL. CEB Lajeado S.A. is part of the Lajeado Consortium, which operates the Luís Eduardo Magalhães HPP on the Tocantins River, with installed capacity of 902.5 MW and a concession until 2035, being responsible for trading 19.8% of the energy produced. Through CEB Participações and direct equity interests, the group also holds stakes in projects such as the Queimado HPP (CEB–CEMIG Consortium), the Corumbá III HPP (Energética Corumbá III S.A.), and the Corumbá IV HPP (Corumbá Concessões S.A.), in addition to a minority interest in BSB Energética S.A., linked to a portfolio of Small Hydroelectric Plants located in several states.

Operations in public lighting services form another relevant pillar of CEB’s portfolio. CEB Iluminação Pública e Serviços S.A. – CEB IPES is responsible, under a concession contract signed with the Federal District, for the management, operation, maintenance, modernization, recovery, expansion, and efficiency improvement of the Federal District’s public lighting infrastructure. This network is described as one of the largest in the country in terms of number of fixtures and lighting points, and the concessionaire’s strategy involves large-scale replacement of sodium vapor fixtures with LED technology, focusing on energy efficiency, reduced power consumption, and improved lighting quality. CEB IPES’s activities also include preparing engineering projects, carrying out works to implement lighting systems, and services related to building electrical installations, within the scope allowed by the concession.

In the piped gas segment, Companhia Brasiliense de Gás – CEBGAS, controlled by CEB, holds an exclusive concession for the distribution and trading of piped fuel gas throughout the territory of the Federal District, with the current term until 2030, renewable. CEBGAS can serve industrial, commercial, residential, automotive, and thermoelectric generation uses, with the possibility of using gas from its own production or from third parties, including imported gas. This operation places the CEB group in the regulated public piped gas services subsector, subject to a concession regime and state supervision, with revenue based on approved tariffs and long-term contracts. Nevertheless, in the consolidated structure, most of the assets and results are concentrated in the electric power chain, especially in generation and trading of hydroelectric energy quotas.

CEB operates predominantly in Brazil, with all consolidated revenue originating from the domestic market, mainly in the Federal District and in generation assets located in states such as Tocantins, Goiás, Minas Gerais, Espírito Santo, and Rio de Janeiro, through consortia and equity interests. From a regulatory standpoint, generation and energy trading operations are subject to the National Electric Energy Agency (ANEEL), the National Electric System Operator (ONS), and the Electric Power Trading Chamber (CCEE). The concession contracts for the hydroelectric plants under CEB’s influence have long terms, generally until 2034, 2035, 2040, or 2050, ensuring revenue predictability under the conditions defined by the regulatory framework. As a mixed-capital company listed on B3, the company is also subject to the rules of the Brazilian Securities and Exchange Commission (CVM) and the Corporations Law, in addition to Law No. 13,303/2016, which governs state-owned companies.

In terms of environmental, social, and governance (ESG) practices, Companhia Energética de Brasília – CEB discloses information in its Management Report, with a special focus on measuring the positive environmental impacts associated with the modernization of the Federal District’s public lighting network. The company systematically collects and processes ESG data, quantifying the reduction in energy consumption resulting from the replacement of fixtures with more efficient technology, the environmentally appropriate disposal of replaced equipment, and the mitigation of greenhouse gas emissions. To this end, it uses the internationally recognized GHG Protocol methodology to calculate avoided emissions. CEB is in the process of building a materiality matrix and defining key ESG performance indicators, with plans to consolidate them in its own sustainability report, and links its public lighting modernization program to objectives aligned with the UN Sustainable Development Goals, especially SDG 7, focused on affordable and clean energy.

CEB’s operating environment is strongly influenced by the history and structure of the Brazilian power sector, characterized by the separation between generation, transmission, distribution, and trading, by the existence of regulated and free contracting environments, and by the concession, permit, and authorization regime established by law. The company operates within this framework as a generation agent and as a concessionaire of public lighting and piped gas services, basing its business model on regulated infrastructure assets, hydroelectric consortia, and long-term contracts. On a consolidated basis, the company records revenue and results mainly associated with these assets, reflected in its financial statements and in the equity income recognized by the holding company listed on B3 under the codes CEBR3, CEBR5, and CEBR6.