Companhia Paranaense de Energia COPEL : IR 22/22 - Energy Market

NOTICE TO THE MARKET | 22/22

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Corporate Taxpayer ID (CNPJ/ME) 76.483.817/0001-20 - Company Registry (NIRE)

41300036535 - CVM Registration

B3 (CPLE3, CPLE5, CPLE6, CPLE11)

NYSE (ELP)

LATIBEX (XCOP, XCOPO, XCOPU)

Copel Distribuição's Grid Market grows 2.5% in 3Q22 and

3.4% year-to-date

Companhia Paranaense de Energia - COPEL ("Company"), a company that generates, transmits, distributes and trades energy, informs its shareholders and the market in general the performance of the energy market in the third quarter and in the first nine months of 2022, compared to the same period of the previous year.

Distribution

Grid Market

Copel Distribuição's grid market, made up of the captive market, supply to concessionaires and licensees within the State of Paraná and all the free customers existing in its concession area, grew by 2.5% in electricity consumption in 3Q22 and growth of 3.4% in the year. The billed grid market, which considers the offset energy from Mini and Micro Distributed Generation of energy - MMGD, recorded growth of 1.0% in 3Q22 and 1.9% in the year, verified the Availability Cost1.

The volume of offset energy, which is the excess of generation from MMGD compensated in billing, grew 75.9% in 3Q22 and 80.0% in the year, highlighting the growth in the Residential, Commercial and Rural classes. The number of consumers joining the MMGD reached 183,885, an amount 99.9% higher than in September 2021.

			Number of Customers				Consumed			Energy (GWh)
			Sep-22	Sep-21	∆%		3Q22	3Q21	∆%			9M22	9M21	∆%
Residential	4,108,640	4,016,423	2.3		1,948	1,940	0.4			6,158	6,021	2.3
Industrial		70,220	71,811	(2.2)	3,118	3,026	3.0			9,202	8,957	2.7
Captive		69,149	70,823	(2.4)	543	575	(5.6)			1,595	1,720	(7.3)
Free		1,071	988	8.4	2,575	2,451	5.1			7,607	7,237	5.1
Commercial		429,040	421,007	1.9	1,489	1,374	8.4			4,738	4,341	9.1
Captive		427,641	419,800	1.9	996	954	4.4			3,246	3,056	6.2
Free		1,399	1,207	15.9	493	420	17.4			1,492	1,285	16.1
Rural		334,480	343,699	(2.7)	551	572	(3.7)			1,916	1,939	(1.2)
Captive		334,433	343,663	(2.7)	519	548	(5.3)			1,821	1,865	(2.4)
Free		47	36	30.6	32	24	33.3			95	74	28.4
Others		53,485	52,292	2.3	588	580	1.4			1,810	1,763	2.7
Captive		53,473	52,282	2.3	586	579	1.2			1,805	1,759	2.6
Free		12	10	20.0	2	1	100.0			5	4	25.0
Total Captive Market		4,993,336	4,902,991	1.8		4,592	4,596	(0.1)			14,625	14,421	1.4
Total Free Market			2,529	2,241	12.9	3,102	2,896	7.1			9,199	8,600	7.0
Supply to Concessionaries			7	7	-		230	236	(2.5)			700	699	0.1
Total Grid Market	4,995,872	4,905,239	1.8	7,924	7,728	2.5	24,524	23,720	3.4
Micro and Mini Distributed Energy Generation (MMDEG)							(285)	(162)	75.9			(812)	(451)	80.0
Total Billed Market					7,639	7,566	1.0	23,712	23,269	1.9

1 The availability cost represents the minimum amount charged for the availability of the distribution grid and is referenced in the input configurations of consumer units: 30 kWh single-phase, 50 kWh two-phase and 100 kWh three-phase circuits (ANEEL Ordinance Nº 1,000/2021 art. 291).

NOTICE TO THE MARKET | 22/22

The 3Q22 results is due to the consumption of the following classes:

1. Residential, with an increase of 0.4%, due to the 2.3% increase in consumer units, partially offset by the reduction in average consumption in the period, from 161.0 kWh/month to 158.0 kWh/month, reflecting to the return of work and school on-site activities, reducing the permanence of consumers in their homes;
2. Industrial, with an increase of 3.0%, due to the growth in consumption of: Food Products Manufacturing, both in the captive and free market, totaling 5.3%, representing 34.7% of class consumption; and Metallurgy, by 48.2%, mainly in the free market, representing 4.1% of class consumption, partially offset by the reduction in consumption of Wood Products Manufacturing, by 8.2%; and Pulp and Paper Manufacturing, at 1.2%, which together represented 20.9% of class consumption;
3. Commercial, with an increase of 8.4%, due to the growth in consumption, both in the captive and in the free market, of: Retail Commerce, by 5.6%, representing 29.0% of class consumption; Wholesale Trade, at 19.9%, representing 18.8% of class consumption; and Food, at 12.0%, representing 6.0% of class consumption;
4. Rural, with a reduction of 3.5%, mainly impacted by the decrease in the number of consumers by 2.7%; and
5. Other classes, with an increase of 1.2%, mainly due to the Public Power class due to the return of on-site activities, especially in public education.

Captive Market

The captive market had a drop of 0.1% in electricity consumption in 3Q22 and growth of 1.4% in the year. The billed captive market, which considers offset energy from MMGD, fell by 2.9% in the quarter and 1.1% year-to- date.

The following charts demonstrate the electricity consumed by class in the third quarter of 2022:

	Captive Market	Total Market
	Other		Other
	13%	Rural	8%	Residential
		7%
Rural			25%
11%	Residential
	42%	Commercial
		19%

Commercial
22%	Industrial	Industrial
	41%
	12%

NOTICE TO THE MARKET | 22/22

Generation

In 3Q22, Copel Geração e Transmissão (including energy from HPP Foz do Areia - FDA and SHP Bela Vista - BVE, but excluding TPP Araucária) recorded 4,256 GWh of electricity sold, a decrease of 7.2%, due to mainly to the reduction of contracts with free customers. Year-to-date, Copel GeT recorded 13,006 GWh, an increase of 0.3%. For wind farms, total electricity sold in 3Q22 was 794 GWh, an increase of 40.0%, mainly influenced by the acquisition of the Vilas Wind Power Complex, which, since December 2021, has entered the Company's generation portfolio. Year-to-date, the volume reached 2,310 GWh, an increase of 38.0%.

For TPP Araucária, there was no dispatch in 3Q22 (compared to 641 GWh in 3Q21), due to the improvement in hydrological conditions. Year-to-date, we have a generation of 238 GWh (compared to 1,835 GWh in 9M21), an 87.0% reduction.

Energy sold (GWh)

14,643	15,316

		12,969	13,006
5,151	5,050
4,584	4,256
567	794	1,674	2,310
3Q21	3Q22	9M21	9M22
Wind Farm Complex	Copel GeT+FDA+BVE

Trading

Copel Mercado Livre

In 3Q22, Copel Mercado Livre recorded 6,451 GWh of electricity sold, an increase of 1.8%, mainly due to the increase in contracts with free customers. For the year, Copel Mercado Livre recorded 18,607 GWh, an increase of 8.4%.

Copel's Consolidated Market

The total energy sold by Copel, comprising the sales of Copel Distribuição, Copel Geração e Transmissão, Wind Farm Complexes and Copel Mercado Livre in all markets, reached 17,421 GWh in 3Q22, an increase of 1.9%. Year- to-date, Copel recorded 51,433 GWh, an increase of 5.9%.

The following table presents Copel's total energy sales, segmented between Copel Distribuição, Copel Geração e Transmissão, Wind Farms and Copel Mercado Livre:

NOTICE TO THE MARKET | 22/22

		Copel's Consolidated Market	Number of Customers / Agreements			Energy Sold (GWh)
		Sep-22	Sep-21	∆%	3Q22	3Q21	∆%	9M22	9M21	∆%
Copel DIS				4,996,189	4,903,405	1.9	5,920	5,619	5.4	17,510	16,775	4.4
Captive Market	1		4,995,872	4,902,991	1.9	4,592	4,596	(0.1)	14,624	14,420	1.4
Concessionaries and Licensees	7	7	-	21	21	-	69	64	7.8
CCEE (Assigments MCSD EN)	288	396	-	54	323	(83.3)	159	672	(76.3)
CCEE (MVE)				22	11	-	177	158	12.0	524	363	44.4
CCEE (MCP)				-	-	-	1,076	521	106.5	2,133	1,256	69.8
Copel GeT				281	263	6.8	4,256	4,584	(7.2)	13,006	12,969	0.3
CCEAR (Copel DIS)		3	3	-	31	30	3.3	92	91	1.1
CCEAR (other concessionaries)	101	101	-	547	534	2.4	1,649	1,647	0.1
Free Customers			1	17	(94.1)	-	352	-	-	983	-
Bilateral Agreements (Copel Mercado Livre)	172	131	31.3	3,328	3,379	(1.5)	10,439	9,726	7.3
Bilateral Agreements	2	4	11	(63.6)	37	174	(78.7)	223	522	(57.3)
CCEE (MCP)	3			-	-	-	313	-	-	603	-	-
Wind Farms Complex	359	355	1.1	794	567	40.0	2,310	1,674	38.0
CCEAR (Copel DIS)		6	6	-	8	8	-	24	23	4.3
CCEAR (other concessionaries)	328	328	-	325	325	-	961	964	(0.3)
CER				10	10	-	231	231	-	685	685	-
Bilateral Agreements (Copel Mercado Livre)	5	-	-	91	-	-	234	-	-
Bilateral Agreements	2	10	-	-	139	-	-	334	-	-
CCEE (MCP)	3			-	-	-	-	-	-	72	-	-
Copel Mercado Livre	1,677	1,622	3.4	6,451	6,334	1.8	18,607	17,170	8.4
Free Customers			1,482	1,327	11.7	2,934	2,112	38.9	8,696	6,081	43.0
Bilateral Agreements (Group Companies)	26	74	(64.9)	625	1,194	(47.7)	899	2,504	(64.1)
Bilateral Agreements	2	169	221	(23.5)	2,854	2,983	(4.3)	8,898	8,504	4.6
CCEE (MCP)				-	-	-	38	-	-	114	81	40.7
Total Copel			4,998,498	4,905,723	1.9	17,421	17,104	1.9	51,433	48,588	5.9
Eliminations (operations with Group companies)	-	-	-	(4,081)	(4,614)	(11.6)	(11,749)	(12,349)	(4.9)
Total Consolidated Copel	4,998,498	4,905,723	1.9	13,340	12,490	6.8	39,684	36,239	9.5
Note: Not considering the energy from MRE (Energy Relocation Mechanism) and the energy from TPP Araucária sold in the CCEE Spot Market.

• For the billed market, the compensated energy from Mini and Micro Distribuited Generation (MMGD) is discounted.
  2 Includes Short Term Sales Agreements and CBR
  3 Assured Power allocated in the period, after impact of the GSF.
  CCEE: Electric Power Trade Chamber / CCEAR: Energy Purchase Agreements in the Regulated Market / MCP: Short Term Market / CER: Agreements Reserve Energy / MCSD EN - Mechanism for Compensation of Surpluses and Deficits of New Energy / MVE - MVE - Sale of energy to the free market through the Surplus Selling Mechanism.

Curitiba, October 24, 2022.

Adriano Rudek de Moura

Chief Financial and Investor Relations Officer

For further information, please contact the Investor Relations team:

[e-mail] or [phone]