Companhia Paranaense de Energia COPEL : Result of Copel Distribuição's 5th Periodic Tariff Review Cycle (Form 6-K)

Result of Copel Distribuição's 5th Periodic Tariff Review Cycle

Companhia Paranaense de Energia - COPEL ('Company'), a company that generates, transmits, distributes and trades energy, with shares and stock deposit certificates (UNITs) listed on B3 S.A. - Brasil, Bolsa, Balcão (CPLE3, CPLE5, CPLE6, CPLE11), on the NYSE (ELP) and LATIBEX (XCOP, XCOPO, XCOPU), informs its shareholders and the market in general that the National Electric Energy Agency - Aneel approved, at its 22nd Ordinary Public Meeting, held today, the result of Copel Distribuição's 5th Tariff Review Cycle, with the establishment of R$ 8,362.1 million for the value of the net regulatory remuneration basis ('RAB'), representing an increase of approximately 70% compared to the R$ 4,920.4 million from the 4th Tariff Review Cycle, reflecting the recognition as a prudent investment of 100% of the investments made by Copel Distribuição in the last 5 years and the consequent inclusion in the remuneration base.

The result of Copel Distribuição's 5th periodic tariff review, effective from June 24, 2021, applies the average effect to be perceived by consumers of 9.89%, with an average of 9.57% for high voltage consumers and 10.04% on average for low voltage consumers.

Item	Composition of the Readjustment (%)
Update of Portion B	1.05
Update of Portion A	8.63
Inclusion of Financial Components	1.19
Financial Components of the Previous Tariff Process	-0.98
Medium Effect	9.89

Here are some highlights of the tariff review process:

Portion B: composed of operating costs, annuities, remuneration and depreciation, totaled R$ 2,852.2 million, highlighting the increase of R$ 217.1 million (+28.3%) in the remuneration portion, which is now R$984.4 million (compared to R$767.3 million in the previous cycle).

Portion A: includes costs with charges, transport, energy and irrecoverable revenues, totaled R$ 8,997.1 million, of which (i) R$ 2,468.4 million refer to sector charges, (ii) R$ 1,544.2 million to transmission costs, (iii) R$ 4,920.3 million to energy purchase costs and (iv) R$ 64.1 million refer to irrecoverable revenues.

X Factor: defined at -0.94% based on potential productivity gains, compatible with growth the market and the number of consumer units, the variation of technical and commercial indicators of quality and the trajectory of operating costs.

Curitiba, June 22, 2021.

Adriano Rudek de Moura

Chief Financial and Investor Relations Officer

For further information, please contact the Investor Relations team:

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