Investor Presentaiton

Tariff methodology for distributors - - Tariff Reset is applied each 4-5 years AES Eletropaulo next Tariff Reset: Jul/2019; Parcel A: costs are passed on through to the tariff Parcel B: costs are set by ANEEL Annual Tariff Adjustment Parcel A: costs are passed on through to the tariff Parcel B: costs are adjusted by IGPM +/- X Factor 1 AES Eletropaulo Energy Purchase Transmission Sector Charges Regulatory Opex (PMSO) Parcel A Costs Non-manageable costs passed on through to the tariff Incentives to reduce costs Regulatory Opex Efficient operating cost determined by ANEEL X WACC Investment Remuneration Remuneration Asset Base X Depreciation Depreciation 1. X Factor: index that capture productivity gains Remuneration on Special Obligations Regulatory Ebitda - Remuneration Asset Base Prudent investments used to calculate the investment remuneration (applying WACC) and depreciation Special Obligations Recognition of the opportunity cost of equity capital over third party investments Parcel A - Non-Manageable costs Parcel B Manageable costs - 47

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