Royalties - ENGIE Brasil

Royalties

The Financial Compensation for the Use of Hydro Resources (CFUHR) is a legal requirement for hydro power producers. Percentages apply to the monthly revenues from hydropower plants as the diagram next (source: National Power Regulatory Agency – Aneel).

The amount owed is 7% of the amount of the energy produced. This amount is distributed monthly as follows:

7.00%

of the total
amount produced

0.75% - Funds are channeled to the National Water Agency (“Agência Nacional das Águas” – ANA) for investment in the implementation of the National Hydro Resources Policy and the National Hydro Resource Management System

The remaining 6.25% are distributed as follows:

States

45%

Municipalities

45%

FNDCT – National Science and Technology Development Fund

4%

MMA – Ministry of the Environment

3%

MME – Ministry of Mines and Energy

3%

ENGIE therefore passes on these amounts on a monthly basis to the States and Municipalities within the scope of its Hydro Plants. ANEEL – the National Power Regulatory Agency – is the Authority responsible for managing payment and distribution of the funds among the beneficiaries. Inquiries can be made on the Agency’s Website, with breakdown by States, Municipalities or Plants. The same site contains full and summary monthly updated reports of the Financial Compensation. This lends transparency to the process, enabling proper control on the part of beneficiaries and society. To find out the amount that your state or municipality has collected, just click here.