Economic and Financial Management

Regarding the economic and financial management, in 2015, it can be highlighted that ANEEL approved the ONS's request concerning the compatibility of the budget cycle with the calendar year (January to December). ONS’s request was based on the following benefits:

• Compatibility of the figures presented in the financial statements with the ones of the budget approved by ANEEL;
• Compatibility of the tax calculation basis with the budgetary cyclehorizon;
• Compatibility ofthe budgetarycycle with the Operator’s Organizational
• Programs (e.g.: Performance Management and Development Programs).

For the budgetary cycle alteration from the July - Juneperiod,to the January - Decemberperiod, a transitional cycle of six monthswas established, the period from July to December 2015. From 2016, ONS’sbudgetary cycle will coincide with the calendar year.

The financial statements for 2015 were prepared and are presented in accordance with the accounting practices adopted in Brazil, comprising the statements of the Accounting Pronouncements Committee (CPC) and in accordance with the instructions contained in ONS’s Accounting Manual, established by ANEEL.

 

Year Budget

ONS’sbudgetwas approved by ANEEL through the Authorizing Resolution No. 4,731 of June24th,2014 for the period from July 2014 to June 2015 was R$ 527,748 million, of which R$ 244,298million estimated for the semester ended on December 31st, 2014 and R$ 283,450 million semester ended on June 30th, 2015.

The budget for the period from July to December 2015 was approved by ANEEL’s Authorizing Resolution No. 5,339 of July 7th, 2015, was R$ 275,706 million.

Thus, the budget for the period January-December 2015 amounted to R$ 559,156 million, of which were released R$ 533.406 million, corresponding to 95,4% of the proposed budget. From that deviation, it is highlighted the Personnelentries, with R$ 14,094 million, and Taxes, with R$ 9,353 million, a result of the composition of items of expenditure and investment that occurred during 2015.

 

ONS’s Funding Sources

Under the Article 34 on the Bylaws’ single paragraph, amended by ANEEL’s Resolution No. 1,888, of April 22nd, 2009, the following are sources of ONS’s resources:

1. Contributions from its associate members, proportional to the number of votes in the General Assembly, included in Part "A" for purposes of tariff transfer and collected by other associates and agents of the electric power sector not subject to tariff transfer.
2. Resources deriving from the budget established by ONS and approved by ANEEL:

1. Transferred by associate members and agents of the electric power sector connected to the Main Grid, whose values are included in the Transmission System Usage Tariff (TUST) andin the Part "A" of the Electric Energy Service Tariff;
2. Collected by other associate members and agents of the electric power sector that are not subject to tariff transfer;
3. Other revenues authorized by ANEEL.

For the viability of its budget, ONS used, in 2015, the resources of the transmission usage charges and contributions from associate members, R$ 501,164 million and R$ 16,525 million respectively, as well asprevious year’s budgetary cycle resources.

 

Results Statement

In the preparation of2015’s result, the deficit resulting from the lower level of investments made by ONS in 2015 can be highlighted. Despite the accounting deficit presented after the adjustments were made in line with current tax laws, fiscal profit was calculated thereby generating the current income tax (IRPJ) and social contribution (CSLL).