SEC Form 6-K filed by Centrais Electricas Brasileiras S A

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

For the month of November, 2024

Commission File Number 1-34129

CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS

(Exact name of registrant as specified in its charter)

BRAZILIAN ELECTRIC POWER COMPANY

(Translation of Registrant's name into English)

Rua da Quitanda, 196 – 24th floor,
Centro, CEP 20091-005,
Rio de Janeiro, RJ, Brazil

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ___X___ Form 40-F _______

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes _______ No___X____

ELETROBRAS RELEASES RESULTS FOR
THE 3^rd QUARTER OF 2024

Eletrobras' operating and financial results in 3Q24 reinforce its solid financial position, enabling the Company to accelerate investments in asset modernization, expansion through transmission or generation auctions, operational streamlining and the effective reduction of legacy liabilities and contingencies.

Regulatory net operating revenue grew by 8.2% to R$10.6 billion YoY, mainly reflecting the increase in generation revenue due to the renegotiation of the hydrological risk of the Tucuruí Plant which had a R$1.3 billion impact. This increase was partially offset by the drop in transmission revenue, reflecting the effect of the Annual Permitted Revenue (RAP) revision. It is also worth highlighting the net reversal of provision for the sale of energy to Amazonas Energia, in the amount of R$347 million.

Adjusted regulatory EBITDA reached R$6.8 billion, up R$544 million compared to 3Q23.

MAIN HIGHLIGHTS OF 3Q24 RESULTS

+ R$1.3 billion impact from renegotiation of Tucuruí plant's hydrological risk

MAIN OPERATING AND FINANCIAL INDICATORS

Table 1 - Operating Highlights

(1) Assured Capacity (AC) reflects: (a) Ordinance GM/MME 544/21, which defined the revision of AC values of the plants that had their concession renewed due to capitalization (plants under the Quotas regime, Tucuruí, Itumbiara, Sobradinho, Mascarenhas de Moraes and Curuá-Una), with a significant reduction in AC as from 2023; (b) Ordinance GM/MME 709/22, with an Ordinary Review of the AC of hydroelectric plants as from 2023, affecting several Eletrobras plants; (c) increase in the AC of Santa Cruz TPP due to the closure of the Combined Cycle, as of ANEEL Order 481, of Feb 23, 2023, authorizing the start of commercial operation of a new generating unit at the plant; (d) exit of Candiota III TPP as of Jan/24; (e) inclusion of SPEs that started being consolidated: HPPs Teles Pires (Sep/23), Baguari (Oct/23), Retiro Baixo (Nov/23) and Santo Antonio (Nov/23); and (f) f) inclusion of the expanding wind farms Casa Nova B and Coxilha Negra with full AC in 2024.

(2) Does not include quotas;

(3) Includes contracts under Law 13,182/2015;

(4) The figures shown are the Assured Capacity of quotas in GWh.

(5) the significant increase in 3Q24 compared to 2Q24 was due to ACR contracts arising from the Tucuruí Hydrological Risk Renegotiation, in high amounts only in July and August

(6) Approved RAP for the current regulatory cycle, associated with active modules at the end of each period, including those that were active at the beginning of the cycle plus those that went into commercial operation. Includes transmission contracts of the companies Eletrobras Holding, Chesf, CGT Eletrosul, Eletronorte, TMT and VSB.

Table 2 - Financial Highlights

Generation Assets

In 3Q24, we operated 86 plants, of which 47 were hydroelectric, 7 thermal, 31 wind and 1 solar, taking into account corporate ventures, shared ownership and holdings via SPEs. Compared to 2Q24, there was a reduction of 13 wind farms, due to the sale of the Chapada do Piauí I and II wind farms (in which the Holding had a stake) and an increase of 1 wind farm due to the entry into commercial operation of CGT Eletrosul's Coxilha Negra 2 wind farm. As a result, at quarter’s end wind farms totaled 31, down from 43.

Our total installed capacity was 44,191 MW in 3Q24, which represents 22% of the total installed in Brazil. Of this total, 97% is derived from clean sources, with low greenhouse gas emissions.

Table 3 - Generation Assets

System Data - Installed Capacity and Generation

In 3Q24, Brazil's installed capacity was 205,521.59 MW.

Chart 1 – Brazil’s Installed capacity - by source

Source: ANEEL’s Generation Information System - SIGA

Chart 2 - Generated Energy SIN - National Interconnected System (GWh)

Source: Operating Results 01/01 to 9/30/2024 - ONS

Eletrobras Data - Generated Energy

The total amount of energy generated by Eletrobras declined 12% YoY in 3Q24.

Chart 3 - Eletrobras - Net Energy Generation (GWh)

System Data - Energy Market

Table 4 - PLD

Chart 4 - GSF (%)

Chart 5 - Historical Average of Affluent Natural Energy (ENA) - SIN (%)

During 3Q24, the indicator fluctuated between its historical high and low, closing the quarter at 51%, close to the bottom of the 93-year historical band.

Chart 6 - Energy Stored in Reservoirs - SIN (%)

2024 has been low in terms of tributary flow, except for April and May, mainly due to the rains in the southern region of the country.. Taking into account the entire 93-year history, notably September 2024 was the 2nd worst September performance during the period.

New Projects

Two projects are at the construction stage which, when completed, will add approximately 330 MW to Eletrobras' installed capacity by year-end 2024. These are the Coxilha Negra Wind Farm, with 302 MW and located in Rio Grande do Sul, and the Casa Nova B wind farm, with 27 MW, located in Bahia.

At Coxilha Negra, to date the assembly of 55 of the 72 wind turbines was completed by the end of 3Q24. The wind farm began its test operation in February 2024. Commercial operation began in July 2024, in stages. At the end of 3Q24, 23 wind turbines at Coxilha Negra 2 were operating commercially and a further 13 were in test phase. The construction progress of the project is at 94%.

The works at Casa Nova B also progressed in 3Q24, with construction continuing on the Medium Voltage Network (MVN) and Line Entrance (EL). With regard to the RMT, the excavation, duct laying, cable laying and backfill phases have been completed, and the interconnection boxes for the input and output of the wind turbines are currently under construction with 15 of 35 completed by the end of September. The Casa Nova B Project has completed a wind farm which had been halted. At the end of 3Q24, the construction progress was at 72 %.

Energy Sold in 3Q24

Eletrobras companies sold 38.7 TWh of energy in 3Q24, up 18% on the 32.8 TWh traded in 3Q23. The volumes sold include energy from plants under the quota regime, renewed by Law 12.783/2013, as well as from plants under the operating regime (Free Market - ACL and Regulated Market - ACR) and from consolidated SPEs (HPPs Teles Pires, as of Oct/23; Baguari, as of Oct/23; Retiro Baixo, as of Nov/23; and Santo Antonio, as of Nov/23).

Chart 7 - Energy Sold - ACL and ACR (TWh)

Chart 8 - Energy Sold - quotas (TWh)

ENERGY BALANCE

Table 5 - Energy Balance 3Q24 (aMW)

Contracts signed until 09/30/2024.

It should be noted that the balance sheet considers the SPEs consolidated by Eletrobras: Santo Antônio HPP (as of 3Q22), Baguari HPP and Retiro Baixo HPP (as of 4Q23), whether in terms of resources, sales or average prices. In the same way, it considers the SPE consolidated by Eletronorte: Teles Pires HPPs (as from 4Q23).

1. The Independent Energy Producers (IEP) contracts resulting from the Amazonas Distribuidora de-verticalization process, the thermal plant availability contracts and the Assured Capacity Quotas are not included in this energy balance, whether in resources, requirements (sales) or average prices. These resources are presented only for 2024 and are not considered for the following years due to divestments.

2. Own Resources include the plants migrating from the quota regime to the independent production regime (new IEPs) and the New Grants (Sobradinho, Itumbiara, Tucuruí, Curuá-Una and Mascarenhas de Moraes). For the hydroelectric projects, an estimate of GFIS2 was considered, i.e. the Assured Capacity taking into account the Adjustment Factors due to Internal Losses, Losses in the Basic Grid and Availability as well as adjustments due to the particularities of the portfolio.

3. The revised Assured Capacity values, as defined in Ministerial Order No. 709/GM/MME, of November 30, 2022, are taken into account.

4. The plants currently under the quota regime will be granted a new concession under the Independent Energy Producer (IEP) regime, gradually over a 5-year period starting in 2023 (“Decotization”). The Assured Capacity values were defined in Ministerial Order GM/MME No. 544/21.

5. Taking into account the new concession grants from 2023 onwards for the Sobradinho, Itumbiara, Tucuruí, Curuá-Una and Mascarenhas de Moraes plants, whose Assured Capacity values were defined in Ministerial Order GM/MME No. 544/21.

6. The balances from 2025 to 2027 consider around 200 aMW of intercompany transactions, impacting the energy purchase and sales lines on the ACL. 

Table 6 - Assured Capacity Quotas of Hydroelectric Power Plants (aMW)

7. This does not include the Assured Capacity of the Jaguari HPP, of 12.7 aMW, whose concession is under provisional administration by Furnas.

8. Decotization will take place gradually over a 5-year period starting in 2023. The Assured Capacity values considered from 2023 onwards were those defined in Ministerial Order GM/MME No. 544/21.

9. The figures show an estimate of the decontracted energy. The estimated amount for 2024 is 88.0%. For the other years, an average historical GSF value from 2018 to 2023 of 81.8% was used. Source: CCEE, obtained from the CCEE website, at the following link: https://www.ccee.org.br/dados-e-analises/dados-geracao (in Portuguese), under the MRE option in the panel. It should be noted that this is only an estimate, based on facts that occurred in the past.

Transmission Lines

The company ended 3Q24 with 74,0 thousand km of lines, being 67,1 thousand km of own lines and 6.8 thousand km of lines with partners, as well as 404 substations, including 295 of its own substations and 109 third-party substations.

Table 7 - Transmission Lines (Km)

(1) Includes TMT (100%) and VSB (90%).

(1) Partnerships consider extensions proportional to the capital invested by Eletrobras Companies in the project.

New Projects

245 large-scale transmission projects are being implemented, including reinforcements, improvements and auction projects. With respect to Nova Era Janapu, which was included in 2Q24. Nova Era Catarina, Nova Era Ceará, Nova Era Integração and Nova Era Teresina were included in 3Q24.

The group of new projects takes into account those registered with ANEEL's Transmission Management System (SIGET). Projects enter this group when they become part of SIGET, and leave it when either they are canceled or enter commercial operation.

The estimated investment is of R$ 13.2 billion, with an associated additional RAP of R$ 1.8 billion between 2024-2029. The projects will add approximately 2,359 km of TL and 9,695 MVA in substations. More information is available in the "Operating Data" document for 3Q24 available on the IR website.

According to the Improvement and Reinforcement Plans Management System (SGPMR), Eletrobras companies had a total of 11,130 small-scale events under implementation or to be implemented, of which 10,491 referred to small-scale improvements and 639 to small-scale reinforcements.

Table 8 - Income Statement IFRS (R$ mm)

Table 9 - Regulatory DRE (R$ mm)

(1) In 3Q24, the difference in regulatory generation revenue versus IFRS consists of the different treatment of Amazonas Energia's client billing in the amount of R$347 million, without impacting IFRS and Regulatory EBITDA.

IFRS Generation Revenue

In 3Q24, recurring IFRS generation revenue was R$8.348 billion, an increase of R$1,930 million over 3Q23. The main reasons for the increase were: (a) the renegotiation of Tucuruí's hydrological risk, with an impact of R$1,327 million; and ( b) the incorporation of Teles Pires, contributing R$251 million. These increases were partially offset by the reduction of R$ 158 million due to the sale of TPP Candiota in January 2024.

Sequentially, the increase was of R$ 2,520 million. In addition to the contribution from Tucuruí, there was also the recognition in September of R$606 million in revenue related to energy sold to Amazonas Energia from April to August, including R$376 million related to billing from April to June, unrecognized in 2Q24.

Note on the sale of thermal power plants

On June 10, 2024, a contract was signed with Âmbar for the sale of Eletrobras' thermoelectric portfolio for R$4.7 billion, of which R$1.2 billion consists of earn-out. In addition, Âmbar immediately assumed the credit risk of the energy contracts in this portfolio.

On June 12, 2024, Provisional Measure 1,232 was published, amending the legislation on isolated systems. The text established that, if ANEEL recognizes the loss of service conditions, a corporate transfer plan can be approved as an alternative to terminating the concession. The Provisional Measure also changes the rules on energy purchase and sale contracts, which are currently reimbursable by the Fuel Consumption Account (CCC). As a result, Eletronorte signed Reserve Energy Contracts (CERs) with the Brazilian Electric Energy Trading Chamber (CCEE), backed by the Aparecida, Jaraqui, Tambaqui, Cristiano Rocha, Manauara and Ponta Negra TPPs.

In addition, the following were signed with Amazonas Distribuidora de Energia S/A: (i) Terms of Termination of the Power Purchase Agreements (CCVEEs) backed by the aforementioned plants; and (ii) Term of Waiver and Renunciation of pre-existing rights against the Federal Government relating to the purchase and sale of electricity arising from events prior to the "exchange of contracts for CERs".

The drafts of the CERs, the Terms of Termination and the Term of Waiver and Resignation were approved on a sub judice basis, under the terms of ANEEL Order No. 3.025, of July 10, 2024.

The Company has been in negotiations with the CCEE to start receiving the payments for the CERs since June 13, 2024, the date on which the energy provided for in the CERs began to be supplied.

Regulatory Generation Revenue

Recurring regulatory revenue was R$8,001 million in 3Q24, R$347 million lower than recurring IFRS generation revenue, reflecting the different treatment of Balbina and thermal power plant billing.

In the regulatory result, the methodology of previous quarters is maintained. All billing is recognized in revenue, whether or not it has been paid, followed by any provisions or reversals.

In the IFRS result, bad debts with no prospect of being collected are not recognized either in revenue or in provisions. If the prospect of collection returns, billing that was previously in default is recognized. The situation of default, and the respective accounting treatment, depends on each plant.

With respect to Balbina, the billing recognized in regulatory revenue was R$58 million in 3Q24, of which R$29 million was defaulted on, and consequently provisioned. In IFRS results, only the R$29 million effectively paid was recognized.

Regulatory revenue therefore differs from IFRS revenue in two ways: the recognition of Balbina's defaulted billing of R$29 million and the billing for the months prior to 3Q24 of R$376 million. This difference between the two views, IFRS and regulatory, also occurs in the same amount in the provision line.

In in regulatory revenue, both Balbina's unpaid billing for 3Q24 (R$ 29 million) and the thermal power plants' billing for months prior to 3Q24 (R$ 376 million) were recognized. This difference also occurs, in the same amount, in the provision line.

Below we present the difference between regulatory and IFRS operating result (EBITDA):

Consistent throughout the first half of 2024, there was no difference between IFRS and regulatory EBITDA.

In 3Q24, revenue of R$376 million was recognized in IFRS results for the months prior to 3Q24, with no corresponding provision. On the regulatory results, all of the 3Q24 revenue from the sale to Amazonas Energia was recognized in revenue, including the R$29 million default on Balbina. As for the regulatory provisions, there was an expense of the same R$29 million and also a reversal of R$376 million that had been provisioned in previous months.

Generation Revenue - by type of Contracting Environment

If we exclude from the recurring regulatory revenue the construction portion, and, especially, the effect of eliminations, we arrive at revenues from the sale of energy in all contracting environments of R$ 8,078 million in 3Q24, 25% and 28% higher than in 3Q23 and 2Q24, respectively.

The increase in revenue is mainly explained by volume of 1,872 aMW in 3Q24, being 3,445 aMW during the 50-day period from July 12 to August 30, when the contract extensions were valid and settled in the ACR, relating to the additional sale in the ACR from Tucuruí[1] totaling R$1,327 million in the quarter. In addition, revenue was impacted by the effects of the sale or purchase of equity holdings (M&A), full or partial, in generating plants, primarily from: (a) the sale of TPP Candiota, which contributed R$158 million in 3Q24; (b) an increase in the stake in Baguari and Retiro Baixo, which contributed R$87 million in 3Q24, up from R$22 million in 3Q23; and (c) an increase in the stake in Teles Pires, which contributed R$251 million in 3Q24.

Excluding the effects mentioned above, regulatory revenue totaled R$6,422 million, up 1.9% YoY, as a result of an average sales price 2.2% higher than the previous year coupled with a 0.4% decline in volume.

Table 10 - Generation Revenue by Contracting Environment (R$ mm)

¹ Referring to the 12^th and 13^th Existing Energy Auctions by the Tucuruí Plant, as a result of the extension of the grant period by signing an energy contract in the ACR due to the renegotiation of the hydrological risk of power generation, according to ANEEL Order No. 1,395, of May 20, 2019. Revenue for the period between July 12, 2024 and August 30, 2024.

⁽¹⁾ Short-term market: Electricity Trading Chamber (CCEE)

⁽²⁾ Construction Revenues, Financial Effect of Itaipu and Elimination (accounting adjustments - internal sales). The sale of energy from Candiota took place on the ACR market, and 48% of the volume sold (227 aMW) was obtained via the purchase of energy from Eletronorte on the free market. In 3Q23, Eletronorte's revenue from the sale of energy to Candiota was R$ 67 million, in the form of eliminations. Between 3Q23 and 3Q24, the volume sold by Eletronorte, excluding the effect of consolidating Teles Pires, rose by 1 .274 aMW.

⁽³⁾ Amazonas' revenue of R$482 million in 2Q24 was not recognized as accounting revenue. In 3Q24, the difference of R$347 million between regulatory and IFRS revenue represents: (a) recognition on regulatory revenue of R$ 58 million related to the defaulted billing from Balbina for 3Q24, while on the IFRS revenue only the defaulted R$29 million was recognized, and (b) R$ 376 million recognized in IFRS revenue, referring to previously unrecognized billing prior to 3Q24.

⁽⁴⁾ M&A: involves revenue from assets in which Eletrobras' stake has changed over the last 12 months.

Regulated Market (ACR)

Regulatory revenue from generation in the Regulated Contracting Environment (ACR) totaled R$2,784 million in 3Q24, up R$1,709 million YoY, primarily due to R$1,327 million from Eletronorte, arising from the renegotiation of Tucuruí’s hydrological risk, and the effect of R$162 million due to the incorporation of Teles Pires.

Free Market (ACL)

Regulatory revenue from generation in the Free Contracting Environment (ACL) totaled R$2,593 million in 3Q24, down R$87 million YoY, primarily due to the R$144 million reduction in Eletronorte's revenue, reflecting the 29% decline in average sales prices and the R$114 million reduction at Chesf due to the lower volume of energy contracted in the period. This was partially offset by the increase in the volume contracted at Eletrobras, with a positive impact of R$136 million.

CCEE Revenue

CCEE (short-term market) revenue was R$695 million in 3Q24, up R$353 million YoY.

Operation and Maintenance (O&M) Revenue - Plants Renewed by Law 12,783/2013

O&M Revenues were R$734 million, down R$228 million YoY, mainly reflecting the decotization process, mitigated by the effects of the yearly adjustment of the Annual Generation Revenue (RAG), according to Homologatory Resolutions No. 3,068/2022 (2022-2023 cycle) and No. 3,225/2023 (2023-2024 cycle), impacting Eletronorte, Chesf and Furnas.

Table 11 shows the breakdown of IFRS Generation revenue in line with the financial statements.

Power supply for distribution companies is obtained from clients who are not end consumers, such as distributors, traders and generators - contracts in the ACR and ACL. Power supply for end consumers, in turn, is obtained directly from end consumers, such as industry and commerce, with only ACL contracts.

Table 11 - Gross Revenue 3Q24 (R$ mm)

Table 12 - Gross Revenue 3Q23 (R$ mm)

IFRS Transmission Revenue

IFRS transmission revenue was R$4,566 million in 3Q24, up 12% over 3Q23, primarily due to increases of R$336 million and R$239 million in Contractual and Construction revenue, respectively, partially offset by the reduction of R$76 million in O&M revenue.

Table 13 - Transmission Operating Revenue (R$ mm)

O&M revenue

O&M revenue was R$1.906 billion in 3Q24, down R$76 million YoY, mainly reflecting the R$57 million reduction in invoiced RAP, already deducted from the variation in amortizations of contractual assets.

Construction Revenue

Construction revenue for the periods is directly related to the investments made (appropriated and allocated) in transmission projects in progress. Construction revenue totaled R$1,044 million, up R$239 million over 3Q23, mainly reflecting an increase of R$92 million related to construction revenue from the SPEs Nova Era Teresina (R$58 million), Nova Era Integração (R$27 million) and Nova Era Ceará (R$6 million). In addition, the increase of R$82 million associated with greater investments in reinforcements and improvements added to the respective construction margins at Chesf, associated with contract 061/2001.

Contractual Revenue

Contractual (financial) revenue is associated with the application of inflationary indices to the balances of the contract assets of each concession. The accumulated IPCA index for July-Sept/2024 was 0.57%, while for July-Sept/2023 it was 0.27%. The IGP-M index varied by 1.72% and -2.77%, respectively, in the same periods. These effects are due to the application of IFRS rules and differ from the regulatory revenue, which applied the readjustment in July 2024, according to Homologatory Resolution No. 3,348/24, repositioning the RAPs for the 2024/2025 cycle.

Thus, contractual revenue in 3Q24 was R$1,616 million, R$336 million higher than in 3Q23. The impact on Eletrobras companies was:

(a) Chesf: up R$107 million, mainly due to the R$76 million increase in monetary restatement and of R$28 million in financial revenue from the renewed contract, due to the variation in the asset base;

(b) Eletrobras: R$105 million, mainly due to the increase of R$76 million in monetary restatement;

(c) CGT Eletrosul: R$50 million, mainly due to the increase of R$42 million in monetary restatement;

(d) Eletronorte: R$45 million, mainly due to the R$36 million increase in monetary restatement and R$14 million in RBNI financial revenue, and a decrease of R$5 million in RBSE financial revenue.

Regulatory Transmission Revenue

Regulatory transmission revenue was R$4.467 billion, down 13.5% and 15% compared to 3Q23 and 2Q24, respectively, reflecting the approval of the 2023 and 2024 periodic tariff review (RTP) processes, with emphasis on the review of revenue from concession contracts 057/2001, 058/2001, 061/2001 and 062/2001, extended by Law 12.783/2013.

Table 14 - IFRS vs. Regulatory Revenue (R$ mm)

It is important to note that, in transmission, the drop in gross revenue mainly reflects two negative effects: a R$385 million drop in the Annual Permitted Revenue (RAP) and R$328 million in the form of the Adjustment Portion (PA) due to the postponement to 2024 of the Periodic Tariff Review (RTP) process for renewed contracts, originally scheduled to take place in 2023.

Regulatory Transmission Revenue: Approved RAP x Gross Revenue 3Q24

Chart 9 below shows the reconciliation between approved RAP and regulatory revenue in 3Q24, highlights of which will follow.

Graph 9 - Reconciliation of RAP and Transmission Revenue 3Q24 (R$ mm)

Table 15 - Other Operating Revenues (R$ mm)

Other Operating Income totaled R$46 million in 3Q24, down 59.7% from 3Q23. The variation is mainly due to events that occurred in 3Q23, but had no counterpart in 3Q24, including R$4 million received in August 2023 relating to a Leniency Agreement, and R$18 million relating to the recalculation of court deposit balances from 2023. In addition, there was a revenue reduction in O&M contracts for telecommunications in the subsidiaries, in the amount of R$9 million.

Table 16 - Operating Costs and Expenses (R$ mm)

Energy purchased for resale

Energy purchased for resale totaled R$1,452 million in 3Q24, representing an increase of R$ 645 million compared to 3Q23, of which R$363 million at Eletrobras Holding, if which R$138 million from SAESA, due to the increase in CCEE costs, due to the low GSF in the period related to a scenario of low hydrology. In addition, there was a R$93 million increase due to the entry of incentivized energy PPA contracts, also at Eletrobras.

Charges on use of the electricity grid

Charges on the use of the network totaled R$1,016 million in 3Q24, up R$139 million YoY, explained mainly by the incorporation of Teles Pires into Eletronorte, adding R$111 million in charges for the use of the network, and by the TUST readjustment by the IPCA inflation index, which resulted in an increase of R$7 million in SAESA.

Fuel for electricity production

The costs associated with the use of fuel to produce electricity amounted to R$491 million in 3Q24, down R$19 million YoY, mainly reflecting the R$94 million drop at CGT Eletrosul due to the TPP Candiota sale. This effect was partially offset by a R$47 million increase at Eletronorte, due to the annual adjustment of the natural gas price and the dispatches Outside the Order of Merit and Price (FOMP), which are not eligible for reimbursement from the Fuel Consumption Account (CCC). In addition, there was a R$27 million increase at Eletrobras, also due to the natural gas price adjustment.

Construction

Construction-related costs totaled R$1,055 million in 3Q24, up R$189 million YoY, mainly due to the increase in costs related to new concessions, with R$96 million at Nova Era Janapu.

PMSO - Personnel, Material, Services and Other

Personnel

Recurring personnel costs and expenses totaled R$902 million in 3Q24, down 3.4% from R$934 million in 3Q23. There was a reduction of 192 employees from the sale of Candiota, totaling savings of R$11 million in 2024.

It is important to highlight that Personnel costs and expenses include R$10 million related to indemnity allowances for the readjustment of managers' salaries, bringing Eletrobras' practices in line with those of the market.

Additionally, the following were noted in the quarter: (a) pro rata recognition of R$75 million as Profit Sharing (PLR) and Short-Term Incentive (ICP), which in 2023 were fully booked in 4Q23; (b) greater recognition of hours worked as investments, with an increase of R$37 million in personnel costs in 3Q24.

Non-recurring effects: VDP totaling R$2 million in the period.

Material

Recurring material costs and expenses totaled R$64 million in 3Q24, up 27% compared to R$51 million in 3Q23. The rise in material costs was mainly explained by the R$10 million increase at Eletrobras as a result of higher direct purchases of materials for maintenance, health and safety.

There were no non-recurring effects in the quarter.

Services

Recurring costs and expenses with services totaled R$569 million in 3Q24, in line with R$574 million in 3Q23. The main highlights of the quarter were: (a) a reduction in personnel services of approximately R$37 million, reflecting, among other things, the reclassification of benefits to the Personnel account; and (b) an increase in the cost of operational maintenance services of approximately R$12 million.

There were no non-recurring effects in the quarter.

Others

Other recurring costs and expenses totaled R$157 million in 3Q24, up by R$97 million YoY, due to, among other effects, the R$65 million increase in consulting, legal and financial services.

It is worth noting that the expense with the premium paid for GSF insurance rose from R$15 million in 3Q23 to R$91 million in 3Q24, of which R$74 million from the extension of Tucuruí plant's ACR contracts recognized in July and August, with no counterpart in 3Q23. In return for this contracted protection, which is a product of the SP100 type, a revenue of R$126 million was recognized.

Non-recurring effects 3Q24: R$221 million, related to the write-off of court deposits and R$89 million, related to litigation prior to 2022. 

Table 17 - PMSO 3Q24 (R$ mm)

Table 18 - PMSO 2Q23 (R$ mm)

Table 19 - PMSO IFRS (R$ mm)

Table 20 - Other Costs and Expenses (R$ mm)

Operating Provisions

Table 21 - Operating Provisions (R$ mm)

Positive values in this table mean a reversal of provision.

Income from equity holdings include contributions of R$230 million from CTEEP and of R$148 million from Eletronuclear.

Table 22 – Equity Holdings (R$ mm)

Adjusted Regulatory EBITDA

Table 23 – Adjusted Regulatory EBITDA (R$ mm)

In 3Q24, Adjusted IFRS EBITDA was R$6,775 million, up R$544 million YoY.

Regulatory net revenue added R$801 million to the result, especially revenue from the Tucuruí contract extensions of R$1,327 million in July and August, which was partially offset by a R$695 million reduction in transmission revenue^[2]. In terms of costs and expenses, there was a R$801 million increase in spending on energy purchased for resale, charges in the use of grid and fuel purchases, costs related to generation and over which there is less management autonomy. PMSO expenses increased by R$17 million, or 1.0% compared to 3Q23, an increase lower than the accumulated inflation over 12 months of 4.42% as measured by the IPCA (Brazilian Consumer Price Index).

In the provisions line there was once again an inversion, with a net reversal of R$405 million in 3Q24 compared to net provisions of R$144 million in 3Q23, resulting in a positive variation of R$549 million. Of particular note was the reversal of the provision set up in months prior to 3Q24, relating to previously defaulted billing linked to the energy sale to Amazonas Energia, totaling R$376 million.

Finally equity income increased by R$12 million. 

It is worth highlighting two important events in 3Q24: the contractual extension relating to the energy sold from Tucuruí and the recognition of revenue from the sale of energy to Amazonas Energia.

² Reflecting the tariff review process consolidated by Homologatory Resolution 3.348/2024 published by ANEEL and which defined the RAP and PAs for the 2024/2025 regulatory cycle that began in 3Q24.

Adjusted IFRS EBITDA

Adjusted IFRS EBITDA totaled R$11,964 million, up 164.1% YoY, mainly reflecting the positive effect of the Regulatory Remeasurement of transmission contracts, of around R$6,130 million. Also noteworthy was the revenue increase which more than offset the increase in generation costs, combined with a small advance in PMSO expenses and provisions. Finally, there was an increase in equity income.

Table 25 – Adjusted IFRS EBITDA (R$ mm)

The table with the EBITDA information in accordance with CVM Resolution no. 156 of 2022 can be found in Annex 4 of this document.

Table 26 - Financial Result (R$ mm)