Power Consumption - The total power consumption in Brazil for the year ended December 31, 2023, was 531,013 GWh, reflecting a 4.2% increase from 509,441 GWh in 2022[687]. - The residential sector's electricity consumption grew by 7.6%, reaching 164,323 GWh in 2023 compared to 152,771 GWh in 2022[689]. Financial Performance - Liabilities related to compulsory loans decreased by R$7.2 billion to R$17.3 billion in 2023, down from R$24.4 billion in 2022[693]. - The total value of RAP for the 2022-2023 cycle was R$18.3 billion, representing a 25% increase compared to the previous cycle[703]. - The company reduced its short-term cash flow curve by approximately R$8.0 billion due to the re-profiling of RBSE's financial component approved by ANEEL[705]. - The transfer of shares in Itaipu to ENBPar for R$1.1 billion impacted the company's results in 2022 by an estimated R$897.0 million[700]. - The outstanding balance of the transfer price for Itaipu was paid by ENBPar on March 31, 2023, amounting to R$952.0 million[702]. Financial Strategy - The company has a financial hedging policy to mitigate exposure to fluctuations in the U.S. dollar and is still exposed to the Euro, with loans totaling (38,223) EUR thousands and (204,552) R$ thousands[686]. - The commercialization strategy aims to optimize energy sales with 20% of energy traded on the Free Market in 2023 and all trading to be conducted on the Free Market from 2024[690]. - The company has extended the maturity of debentures for Eletronorte by 5 years, with interest rates reduced to CDI + 2.75% per annum[716]. - In September 2023, the company completed its fourth debenture issuance totaling R$7.0 billion, with R$4.0 billion in the first series and R$3.0 billion in the second series[717]. - The subsidiary Furnas issued commercial notes in five series amounting to R$3.5 billion, with the largest series being R$1.0 billion[718]. - In November 2023, the subsidiary SAESA underwent a debt restructuring, with a capital increase of R$2.04 billion used to prepay part of SAESA's debt, and the company assumed an outstanding debt balance of R$11.5 billion[719]. Impairments - The company recorded impairments totaling R$1.847 billion for the year ended December 31, 2023, compared to R$2.690 billion in 2022[724]. - The impairment for the Coxilha Negra wind farm was R$591.9 million, while the Samuel Hydroelectric Plant recorded an impairment of R$261.9 million[726][727]. - The discount rates used for impairment testing were 5.81% for non-renewed generation and 6.53% for renewed generation in 2023[724]. Revenue and Expenses - The company’s operating revenues are primarily derived from electricity generation and transmission, with regulatory charges impacting gross revenues[730][731]. - Financial expenses mainly reflect debt and leasing expenses, with significant exposure to U.S. dollar-denominated debt totaling U.S.$1.25 billion[747]. - The company entered into a derivative transaction in April 2023 to hedge foreign currency debts against exchange rate fluctuations[748].
Eletrobras(EBR_B) - 2023 Q4 - Annual Report