Financial Statements and Reporting - The consolidated financial statements are presented in millions of Reais, with all amounts rounded to the nearest million[422]. - The Company’s Audit Committee authorized the issuance of the consolidated financial statements as of December 31, 2021, and 2020, and for the years ended December 31, 2021, 2020, and 2019[420]. - The Company intends to adopt new and amended accounting standards and interpretations when they become effective, as disclosed in the consolidated financial statements[425]. - Management uses various estimates and judgments that significantly affect the amounts recognized in the consolidated financial statements, including provisions for expected credit losses and deferred income taxes[428]. - The Company’s actual results may differ materially from those anticipated in forward-looking statements due to various risks and uncertainties[418]. Revenue Recognition - The Company recognizes revenue from energy transmission concession contracts when performance obligations are satisfied, with the Annual Permitted Revenue (RAP) being a key component of this revenue[439]. - Revenues from energy supply are recognized when delivery occurs, with unbilled supply estimated based on contracted volume and historical data showing minimal differences between estimated and actual revenues[462][463]. - Revenue from the use of distribution systems (TUSD) increased by 14.10% year-on-year, reaching R1,157 million in 2021, attributed to excess energy compared to deficit positions in 2020[498]. - Revenue from gas supply rose by 72.55% to R26,665 million in 2021, a 15.5% increase from R25,228 million in 2020 to R26,651 million, a 15.78% increase from R892 million in 2021 due to exposure to foreign exchange rate changes[484]. - Operating costs and expenses increased by 31.75% to R16,101 million, a 32.95% increase from 2020[501]. Tariff Adjustments - Average rate for industrial customers decreased to R327.62 in 2020, while residential rates increased to R899.31[474]. - Average annual tariff adjustment for CEMIG D was 1.28% in 2021, compared to 0.00% in 2020 and 8.73% in 2019[477]. - The annual tariff adjustment effective from May 25, 2021, resulted in an average increase of 1.28% on customer tariffs[491]. Investments and Capital Expenditures - CEMIG plans to allocate approximately R27.6 million in research and development (R&D) projects[568]. - The company has planned capital injections of R9,899 million as of December 31, 2021, down from R500 million of its Eurobonds, reducing the principal of this debt to US5,601 million, a decrease from R5,705 million, a decrease from R28 million, a slight increase from R25 million in 2019[595]. - The Executive Board consists of seven members, elected for a two-year term, with the current term expiring at the Annual General Meeting in April 2024[589]. - The company had 190 management-level employees as of December 31, 2021, compared to 179 in 2020 and 185 in 2019[608]. - The 2021-2023 Collective Work Agreements included an economic benefits adjustment of 11.08% to compensate for inflation, effective from November 1, 2021[610]. Governance and Compliance - The Audit Committee is composed of four independent members, providing oversight on financial statements and internal controls[601]. - The company is currently facing civil actions involving allegations of administrative impropriety related to past business purchases[584]. - The board includes members with significant academic and professional qualifications, enhancing its governance capabilities[581]. Operational Performance - The total volume of energy sold by CEMIG in 2021 increased by 1.46% compared to 2020, reaching 54,087 GWh[493]. - Energy consumption by industrial customers rose by 28.51% in 2021 compared to 2020, reflecting new contracts for sales to free clients[494]. - The total volume of energy sold to final customers was 43,229 GWh in 2021, compared to 38,390 GWh in 2020, marking an increase of 12.5%[474].
CEMIG(CIG_C) - 2021 Q4 - Annual Report