REDE3: quote, dividends and indicators for Rede Energia

Rede Energia Participações S.A. is a holding company in the Brazilian electric power sector, with common shares traded on B3 under the ticker REDE3. Its origins date back to the early 20th century, with the founding in 1903 of Empresa Elétrica Bragantina in Bragança Paulista (SP), and the subsequent incorporation in 1929 of Caiuá Serviços de Eletricidade S.A., the former name of the company itself. From the 1980s onward, the corporate structure was organized through Denerge Desenvolvimento Energético S.A., created to control Bragantina, Empresa de Eletricidade Vale Paranapanema and, later, Companhia Nacional de Energia Elétrica. In 1985, Denerge acquired Caiuá, which operated as a power distribution concessionaire in Presidente Prudente (SP). With the unbundling process of the Brazilian electricity sector, Caiuá stopped directly performing distribution and generation activities and began to operate exclusively as the holding company of Grupo Rede, focusing on equity interests in companies in the electricity sector.

Throughout the 1990s and 2000s, the then Grupo Rede expanded its regional presence. In 1989, it took control of Companhia de Energia Elétrica do Estado do Tocantins, the first privatized power distribution company in the country, marking its entry into the North region. In 1995, it entered the South region with the acquisition of Companhia de Força e Luz do Oeste, in Paraná. The partnership with foreign investors, such as Central & South West (USA) and Inepar S.A., enabled it to scale up operations with the acquisition of Centrais Elétricas Mato-Grossenses (1997) and Centrais Elétricas do Pará (1998). In 2004, the group also started to operate in energy trading through REDECOM, authorized by ANEEL to operate in the Electric Energy Trading Chamber. In 2006, Caiuá changed its name to Rede Empresas de Energia Elétrica S.A., which in 2008 became Rede Energia S.A., consolidating the group’s brand.

A significant milestone in the company’s trajectory was the asset swap completed in 2008 between Rede Energia, Rede Power do Brasil S.A. and EDP Energias do Brasil. As a result of this transaction, Rede Energia and Rede Power came to hold control of Empresa Energética de Mato Grosso do Sul S.A. (currently Energisa Mato Grosso do Sul – EMS), while EDP took control of generation assets previously held by the group, such as Rede Lajeado, Tocantins Energia and Investco. From 2012 onward, part of Grupo Rede’s distribution companies were placed under intervention by the Brazilian Electricity Regulatory Agency (ANEEL), which culminated in 2014 with the acquisition of the group by Grupo Energisa, after approval of a judicial reorganization plan and a regulatory recovery plan for the concessionaires. With Energisa’s entry, a broad economic-financial and organizational restructuring was initiated, aimed at increasing operational efficiency, productivity and adjusting the debt profile of the new subsidiaries.

In 2017, the company adopted its current name, Rede Energia Participações S.A., consolidating its role as a distribution holding company within Grupo Energisa. Through its direct subsidiaries, Rede Energia began to concentrate power distribution concessions in four distribution companies: Energisa Mato Grosso (EMT), Energisa Mato Grosso do Sul (EMS), Energisa Sul Sudeste (ESS) and Energisa Tocantins (ETO). Among these, EMT, EMS and ESS are publicly held corporations, while ETO is a privately held company; EMT, classified in CVM’s category A, has shares traded on B3. Additionally, the holding company began to control Multi Energisa Serviços S.A., formerly Rede Eletricidade e Serviços S.A., focused on providing information technology services, operational support and activities related to the electricity sector in all regions of the country.

Rede Energia’s business model is heavily concentrated in power distribution, the segment that forms the basis of its revenue. The company does not operate networks directly, but does so through its subsidiaries, which distribute electricity to captive consumers and serve free consumers via use of the distribution system (TUSD). In 2025, the EMT, EMS, ESS and ETO distribution companies served approximately 4.5 million consumers in 437 municipalities across five Brazilian states, in a concession area of about 1.541 million km², equivalent to approximately 18% of the national territory, with an estimated population of 9.7 million inhabitants. The energy required to supply these markets is contracted mainly in regulated auctions, through Regulated Market Power Purchase Agreements (CCEAR), supplemented by quotas from specific projects, structured bilateral contracts, participation in programs such as PROINFA and energy from Itaipu, as well as adjustments through settlement in the CCEE.

From an operational standpoint, Rede Energia concentrates its activities in two major segments: power distribution and the provision of services related to the electricity value chain. In distribution, the subsidiaries read consumption from meters installed at consumer units, bill customers and operate networks covering voltages from high (69 kV or 138 kV) to low voltage (127/220 volts). Preventive and corrective maintenance of equipment and networks is planned by maintenance engineering departments, involving both in-house teams and outsourced service providers. In the services field, Multi Energisa provides IT, ICT, call center, billing, collection, receivables and technology support services, including software development and licensing, data processing, IT and energy consulting, as well as engineering services involving construction, operation and maintenance of power generation, transmission and distribution facilities.

Rede Energia’s economic and financial performance derives directly from the operation of these subsidiaries. In 2025, the company recorded consolidated net revenue of R$ 19.392 billion, generated entirely in Brazil, with no revenue abroad. Of this total, R$ 19.380 billion came from power distribution activities, while R$ 72.4 million were classified as revenue from the holding and others. Net income for the period totaled R$ 1.850 billion from the distribution segment, partially offset by a loss of R$ 82.9 million in holding and others. There is no significant customer concentration: no individual consumer accounted for more than 10% of the company’s net operating revenue for the year ended December 31, 2025, which reflects the fragmented nature of the distribution market, with a strong presence of residential, industrial, commercial, rural and other usage classes.

The activities of Rede Energia and its subsidiaries in power distribution take place in a heavily regulated environment under the Federal Government, mainly through the Ministry of Mines and Energy (MME) and ANEEL. Distribution concessions, typical natural monopolies, are granted by the Federal Government for fixed terms, usually 30 years, requiring compliance with continuity, quality, efficiency and safety obligations in supply. Tariffs are set and periodically adjusted and reviewed by ANEEL, with the aim of preserving the economic and financial balance of the concessionaires, while also considering tariff affordability criteria. Regulatory changes, such as the New Electricity Sector Model Law, the laws arising from Provisional Measures No. 579/2012 and No. 735/2016, and more recent discussions on sector modernization and expansion of the free market, directly affect the dynamics of energy contracting, tariff formation and the incentive structure in the distribution segment.

Geographically, the operations of Rede Energia’s subsidiaries are concentrated in Brazil’s Center-West, South/Southeast and North regions. In 2025, approximately 68.5% of the energy market of the company’s distribution subsidiaries, considering both captive and free markets, was located in the Center-West region, especially in Mato Grosso and Mato Grosso do Sul, served by EMT and EMS. The South/Southeast region accounted for about 19.2% of the distributed volume, mainly through ESS, which operates in states such as São Paulo and Paraná, while the North region, via ETO, represented about 12.3% of the total. This geographic profile exposes the company to diverse economic sectors, including agribusiness, mining, commerce, services and residential consumption, with demand variations influenced by climate, industrial performance and the expansion of free consumers and distributed generation.

In corporate terms, Rede Energia has been undergoing reorganization processes aligned with Grupo Energisa’s strategy of corporate simplification and operational efficiency gains. This movement included the merger of Rede Power into Rede Energia itself, the restructuring involving Denerge and Nova Denerge S.A., as well as significant capital increases, such as the issuance of 457.88 million common shares paid in with an interest in Energisa Mato Grosso and the capitalization of credits. These transactions seek to optimize the allocation of distribution assets under the holding listed on B3, represented by REDE3, and to strengthen the capital base of the concessionaires, supporting investments in the expansion and modernization of distribution networks in the states where they operate.