Companhia Paranaense de Energia COPEL : *MF 01/22 - Impacts of the Enactment of Federal Law 14,385/2022 on 2Q22 Results

MATERIAL FACT | 01/22

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)

Impacts of the Enactment of Federal Law 14,385/2022

on 2Q22 Results

Companhia Paranaense de Energia - COPEL ("Company"), a company that generates, transmits, distributes and trades energy, in continuity to Material Fact 05/20 disclosed on July 2, 2020 ("MF 05/20"), hereby announced to its shareholders and the market in general that the Company's subsidiary, Copel Distribuição S.A. ("Copel DIS"), with the support of its legal advisors, recognized a "Provision for the Allocation of PIS and COFINS credits" account to record the impacts of Federal Law 14,385/2022, of June 27, 2022 ("Law"), which negatively affected the Company's Net Income in the second quarter of 2022, in the amount of approximately R$1.2 billion, with no immediate cash effect.

The Law, despite the lack of regulation, defines the destination of mandatory tax amounts that were collected in excess by the providers of the public electric energy distribution service in the country, due to the collection of PIS/COFINS on ICMS, recognized by the judiciary as undue.

As explained in MF 05/20, based on a final and unappealable decision in a lawsuit filed in 2009, Copel DIS was granted the right to exclude the full amount of ICMS from the PIS/COFINS tax base. The immediate effect was an average reduction of 3.8% in energy bills, as of July 2020. Since then, Copel DIS has already passed on to consumers, through reductions in tariff adjustments approved by the Agência Nacional de Energia Elétrica ("Aneel"), in the amount of approximately R$2.3 billion.

The aforementioned provision of R$ 1.2 billion, based on the risk assessment carried out by Management and supported by the opinions of legal advisors, refers for the period comprising the 11th and the 16th year from the date of the final and unappealable decision of the lawsuit, exacerbating the prescription and decay period.

The Management of Copel DIS is evaluating the appropriate measures to be taken, including legal measures, considering the shelter given to unappealable decisions and applicable limitation periods.

More details are provided in Explanatory Note 12.2.2 of the Company's quarterly financial statements for June 30, 2022.

Curitiba, August 09, 2022.

Adriano Rudek de Moura

Chief Financial and Investor Relations Officer

For further information, please contact the Investor Relations team:

[e-mail] or [phone]

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