CESP Companhia Energetica de São Paulo : Notice to the Market - Paraibuna HPP's Concession Extension

CESP - COMPANHIA ENERGÉTICA DE SÃO PAULO

Publicly-held Company

CNPJ No. 60.933.603/0001-78

NIRE 35.300.011.996 | CVM Code 02577

NOTICE TO THE MARKET

CESP - COMPANHIA ENERGÉTICA DE SÃO PAULO ("Company" or "CESP") (B3: CESP3, CESP5, CESP6), in addition to the Notice to the Market published on February 12, 2021 ("02/12 Notice"), hereby informs its shareholders and the general market that:

By the terms of the Resolution no. 2,919 of August 3, 2021, published on the Union Official Journal on August 12, 2021, the Brazilian National Agency of Electrical Energy ("ANEEL" or "Agency") approved the extension terms of the hydroelectric plants participants of the Energy Reallocation Mechanism ("MRE") detailed in resolution's appendix I and II, according to the calculation of the Energy Trading Chamber ("CCEE"), as prescribed in the Federal Law no. 14,052/2020 and in the Resolution no. 895/2020.

The decision impacts the hydroeletric plants not affected by the changes caused by the Resolution no. 930/2021 and the Federal Law no. 14,182/2021, of July 13, 2021, which include among them the Paraibuna HPP, of which the Company have the concession rights ("Paraibuna HPP" or "Plant").

The Agency approved an extension term for the Plant of 451 days (approximatedly 15 months). Important to mention that, considering the final terms proposed in the original termination date of the concession, March 09, 2021, when the regulation regarding the issue was not conclusded, was signed the 4th additional term of the concession agreement, with a temporary extenstion term of 180-days. The final extension would be determined with the aprooval of the final calculation, which took place today, so that with the remaining term of 271 days, the Plant will be operated by CESP until June 03, 2022.

With the approval of the terms, the generators have a period of 60 (sixty) days to express to the Agency their adhesion and compliance with the conditions. CESP has already started the process for Paraibuna HPP.

It is noteworthy that, as disclosed in the 02/12 Notice, the Company sent a letter to ANEEL stating that it has no interest in continuing the request for a 30-year extension (Federal Law no. 12,783/2013), under the physical guarantee quota regime of energy and power, for the Paraibuna HPP's concession, which thus ends on the date indicated above, with the end of the definitive extension due to the compensation provided for in the Federal Law no. 14,052/2020.

On the other hand, the approval of the calculation of the concession extension period referring to the Porto Primavera HPP, also operated by the Company, will be subject to deliberation by the Agency at a later time, as it still depends on adjustments in the calculation rules to reflect the changes brought by the Resolution no. 930/2021 and by the Federal Law no. 14,182/2021. The Company continues to monitor the evolution of this topic.

Finally, it is important to note that the Company is not a party to any lawsuit on the subject and does not owe any amounts related to hydrological risk, with enforceability suspended under the scope of the

financial settlement of CCEE, and that the option for renegotiation does not depend on any cash expenditure or payment of a premium.

The Company will keep the market and its shareholders informed of relevant subsequent events.

São Paulo, August 12, 2021.

Mario Bertoncini

Chief Executive and Investor Relations Officer