The economic and financial management of ONS in 2011 financial year continued the process of improvement of budgetary control, resulting in the optimization of financial resources from the charges for use of transmission and the contribution of its members.

The financial statements have been prepared and are presented in accordance with accounting practices adopted in Brazil, comprising the pronouncements of the Accounting Pronouncements Committee (CPC) and in accordance with the instructions contained in ONS Accounting Manual, established by ANEEL.

Fiscal Year Budget

ONS economic-financial Budget approved by ANEEL through Resolution No. 2459 of June 29th,2010 for the period from July 2010 to June 2011 was R$ 366,883 thousand, of which R$ 178.831 thousand was planned for the period ended on 31st December, 2010 and R$ 188.052 thousand was planned for the period ended on June 30th, 2011.

The budget for the period from July 2011 to June 2012, approved by ANEEL Resolution No. 3033 of August 16, 2011, was R$ 451.489 million, comprising R$ 213.785 million for the period ended December 2011 and R$ 237.704 million for the period ending on June 30th, 2012.

Therefore, the budget for the period from January to December 2011 corresponded to the amount of R$ 401.837 million and the budgetary performance reached R$ 339.395 million, comprising an achievement of 84% for the year.

ONS Funding Sources

Under the terms of the article 34 of the Bylaws, amended by ANEEL Resolution no. 1.888, of April 22nd, 2009, the following are ONS funds sources:

I. Contributions from its associate members, proportional to the number of votes in General Assembly, included in Parcel “A” for purposes of tariff transfer and collected by other associate members and agents who are not subject to tariff transfer.

II. Funds resulting from the budget developed by ONS and approved by ANEEL:

a) Re-passed by members and agents of the electricity sector connected to the Main Transmission Grid, whose values are included in the Tariff for the Use of the Transmission System (TUST) and in the Parcel "A" of the Electric Energy Service Tariffs;

b) Collected by other associate members and agents of the electric sector who are not subject to tariff transfer;

c) Other revenues authorized by ANEEL.

For the viability of its budget, ONS used the resources from charges for the use of transmission and the contribution from associate members collected, having billed R$ 335,502,000 and R$ 13,179,000, respectively, during the year 2011.

Balance Sheet

Among the variations in the balance sheet of 2011, stand out the items of recoverable taxes, intangible and labor obligations, which detailing of the events occurred during the year are shown in sections 9, 11 and 15 of the Financial Statements Explanatory Notes.