EDP Energias do Brasil S A : 4Q22 Operational Release

4Q22 Operational Release

São Paulo, January 23, 2023-EDP Energias do Brasil S.A. ("EDP Brasil" or "Company") (B3: ENBR3; LATIBEX: XENBR) announces information on the electric energy market for the fourth quarter 2022 ("quarter") and the year 2022 ("year") for the Company's business segments.

DISTRIBUTION: Distributed energy volume was up 1.5% in the quarter, being a 3.0% gain at EDP São Paulo ("EDP SP") and a 0.8% loss at EDP Espírito Santo ("EDP ES"). In the year, distributed energy volume was up 1.8% (2.0% at EDP SP and 1.6% at EDP ES).

Note: the lines referring to permit holders are not included in the Company's Financial Statements as they do not have a book value.

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4Q22 Operational Release

CONSUMPTION BY CLASS (MWh)
	EDP CONSOLIDATED		EDP SP	EDP ES
	Comercial		Comercial	Comercial
	29%		16%	27%
	Rural		Rural	Rural
	4%		3%	3%
	Outros		Outros	Outros
	12%
		12%	13%
Industrial		Perm. +	Industrial
33%	Perm. +
	33%
	Concessionárias	Industrial	Concessionária
	Concessionárias
	4%	33%	4%
	4%
	Residencial		Residencial
	19%		Residencial
		26%
				21%

Note: Refers to the year

The year was marked by resumed economic and commercial activity after the negative impact from the COVID-19 pandemic that struck the world in 2020 and 2021. Despite the higher inflation1 and interest2 rates, the manufacturing sector3, commerce4 and services5 displayed positive performance. As for the jobs market6, unemployment was down and average income was up, reflecting in increased household energy consumption.

The Company was up 2.6% in new customers and 13.9% in free customers, which now answer for 48.1% of distributed energy.

• EDP SÃO PAULO: up 3.0% and 2.0% in the quarter and the year, respectively, due to the positive performance of the main consumer classes (residential, industrial and commercial).
• • Residential: the 6.4% and 2.4% increases in the quarter and the year, respectively, reflect a higher number of average billing days (+1.5 day in the quarter and +2.4 days in the year) and revenue recovery actions, mitigated by milder temperatures (-0.5°C in the quarter and -0.7ºC in the year);
  • Industrial: the quarter's 2.5% increase arises from higher activity in the paper and pulp (12.4%), metallurgy (6.8%) and automotive (11.2%) industries. In the year, the 0.6% increase arises from higher activity in the paper and pulp (10.4%) and rubber and plastic (5.9%) industries. Also noteworthy is the re-categorization of customers (5 thousand) as commercial, as seen from the number of customers. Ex- this effect, consumption increases would have been 2.9% and 1.1% in the quarter and the year, respectively;
  • Commercial:the 3.1% and 6.5% increases in the quarter and the year, respectively, reflect customer re-categorization (particularly from the industrial class). Ex- this effect, the increases would have been 1.9% and 5.2% in the quarter and the year, respectively. Furthermore, the results were affected by the increased number of average billing days (+1.4 day in the quarter, and +2.6 days in the year), mitigated by milder temperatures (-0.5°C in the quarter and -0.7ºC in the year); and
  • Other7: down 4.4% in the quarter due to the effect had in the 4th quarter 2021, when clearance was given to bill public-service class customers and resume loss combatting actions through asset replacement. In the year, the 0.7% is due to the increased number of average billing days (+1.7 day), mitigated by the high baseline mentioned before.

1 Inflation at yearend 2022 was 5.79%, above the Central Bank's target. Source: IBGE. National Consumer Prices Indices System IPCA and INPC. December/22

2 The funds rate at yearend 2022 was 13.75%, the highest since January 2017. Source: BACEN. December/22

3 A -0.6% contraction in physical output of the Brazilian manufacturing sector in the year until November/22, compared with the same period in 2021. Source: IBGE. Monthly Industry Survey - Brazil. Industrial output indicator. November/22

4 Retail sales volume up 1.1% until November/22, compared with the same period in 2021. Source: IBGE. Monthly Services Survey - Brazil. Sales index and volume change by segment. November/22

5 Accumulated services volume up 8.5% until November/22. Source: IBGE. Monthly Services Survey - Brazil. Service volume index and variation by service activity. November/22

6 Unemployment was down -3.8 percentage points and real income habitually earned from all jobs was up 4.7% in the moving quarter for August-October 2022 compared with the same period in 2021. Source: IBGE. Continued National Sampled Household Survey - Monthly Publication. October/22

7 Other includes the public sector, public lighting, public service and own consumption.

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4Q22 Operational Release

• EDP ESPÍRITO SANTO: down 0.8% in the quarter, due to decreased consumption from the Industrial and Other classes. Up 1.6% in the year due to the performance of the residential, commercial and rural classes.
• • Residential: the 8.9% and 5.5% gains in the quarter and the year, respectively, reflect the categorization of customers (particularly from the rural class) and revenue recovery actions. Ex- these effects, the gains would have been 4.6% and 1.0% in the quarter and the year, respectively. It is worth underscoring the negative impact of milder temperatures (-0.5°C in the quarter and -0.7ºC in the year)
  • Industrial: down 9.8% and 2.0% in the quarter and the year, respectively, due to the negative contributions from the metallic minerals extraction (-13.2% in the quarter and -6.6% in the year) and chemical (-27.7% in the quarter and -6.8% in the year) industries;
  • Commercial:The 2.5% and 8.1% increases in the quarter and the year, respectively, reflect the recovery of commerce and the positive influence from higher temperatures (+0.5ºC in both the quarter and the year);
  • Rural: up 11.4% in the quarter, reflecting the positive impact on consumption from the low rainfall observed in October and November (-114 mm). Down 0.5% in the year due to the reduced number of average billing days (-1.5 day), mitigated by higher rainfall (+11 mm); and
  • Other8: down 4.8% in the quarter and 1.1% in the year, reflecting the negative performance of the Pubic Lighting class due to the energy efficiency actions adopted by the state's administration.

TRANSMISSION

The table below shows the uptime factors for the transmission lots, substantiating efficient asset maintenance and operation.

Lot

Lot 18

Lot 21

Lot Q

EDP Goiás

MGTE

GENERATION

CONSOLIDATED GENERATION SALES (GWH)

2022

100.00%

100.00%

100.00%

99.95%

100.00%

SEASONALLY WEIGHTED AND CONSOLIDATED HYDROELECTRIC GENERATION CONTRACT SALES (%)

• HYDRO GENERATION

On a consolidated basis, the volume of energy sold was 1,479 GWh, down 23.4%, due to the reduced volume from Lajeado (-171.4 GWh) and Enerpeixe (-185.3 GWh), a result of the decrease in bilateral agreements executed in the period because of the improved hydrological

8 Other includes the public sector, public lighting, public service and own consumption.

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4Q22 Operational Release

scenario, with PLD decrease and the Mascarenhas HPP disposal completed in early December. The accumulated energy volume was 3,510 GWh, down 12.2%, due to the previously discussed effects.

Considering unconsolidated projects9, the volume of energy sold was down 5.1% in the quarter and 3.1% in the year.

Average GSF in the quarter was 77.2%, producing an exposure of 415.0 GWh at an average PLD of R$ 55.7/MWh (SE/CO sub-market), due to the seasonal allocation of backup energy and increased generation from intermittent sources, such as solar and wind. In the year, average GSF was 85.4%, producing an exposure of 974.7 GWh at an average PLD of R$ 59.0/MWh (SE/CO sub-market).

PLD EVOLUTION (MWH)

GSF EVOLUTION (%)

• THERMAL GENERATION

The Plant's average uptime in the year was 97.6%, due to its scheduled stop for generator units maintenance in May. The plant has not seen dispatch since December 2021.

In December, EDP produced its first green hydrogen molecule at the Pecém Thermal Power Complex. The plant is an R&D pilot that is part of the Group's commitment to the energy transition. The project received R$ 42 million in investments and provides for a 3 GWh solar power plant.

TRADING

The volume of energy traded was 4,790 GWh in the quarter, up 27.4%, due to market trading opportunities and lower prices, a product of the continued favorable hydrological scenario, higher reservoir levels, realized load below estimates and the low market credit risk. In the year, the volume of energy traded was 17,836 GWh, up 21.4%, due to the previously named effects, together with a larger customer portfolio and the maintained integrated portfolio hedging strategy.

9 Considering the interest in the Jari, Cachoeira Caldeirão and São Manoel HPPs

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4Q22 Operational Release

RETAIL AND WHOLESALE

The volume of energy sold was 453 GWh and 1,420 GWh, up 303 GWh and 905 GWh, in the quarter and the year, respectively, due to the larger customer portfolio and new agreements executed, in addition to increase migration of customers from the captive to the free market, boosted by reduced short-term prices on the spot market. It is worth emphasizing that there has been an increase arising from maintaining the strategy for renewal of customers in the existing portfolio, and regulatory changes as provided in MME Ordinance No. 50, aimed at customers with lower energy consumption.

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