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Investor Presentaiton

lity of loss in the annulment action as possible and, therefore, there are no amounts provisioned. As at December 31, 2021, the updated amount of the possible contin- gency estimate (comprising exclusively of the fine) of the subsidiary VCSA was R$2,167. The subsidiary VCSA emphasizes that this estimate does not represent any agreement with CADE's conviction and any of the penalties imposed in the PA, but a mere estimate for purposes of possible contin- gency reporting. 25. Use of public assets Accounting policy The amount is originally recognized as a financial liability (obligation) and as an intangible asset (right to use a public asset) which corresponds to the amount of the total annual charges over the period of the agreement dis- counted to present value (present value of the future payment cash flows). The subsidiaries own or participate in companies that hold concession con- tracts in the electrical energy industry. Most of these contracts provide for annual payments from the commencement of operations and are adjusted by the General Market Price Index for the Use of Public Assets. The contracts have an average duration of 35 years, and the amounts to be paid annually are as follows: 175 =
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