EDP Energias do Brasil S A : 3Q20 Market Release

3Q20 Operational Release

São Paulo, October 09, 2020 - EDP Energias do Brasil S.A. ("EDP" or "Company") (B3: ENBR3) announces information on the electric energy market for the third quarter of 2020 ("quarter") and the year to date 2020 ("year-to-date") for the Company's business segments.

Distributed energy volume was down 3.5% in the quarter, of which -3.4% at EDP São Paulo ("EDP SP") and -3.6% at EDP Espírito Santo ("EDP ES"). In the year to date, the distributed energy volume is down 6.8%, (-5.5% at EDP SP and -8.7% at EDP ES).

							EDP Distribution
		Volume (MWh)					Volume (MWh)				Consumers (unit)
		3Q20		3Q19			Var		9M20		9M19		Var		3Q20		3Q19		Var
Residential	1,587,009	1,464,148	8.4%	4,836,863	4,715,022	2.6%	3,057,768	2,976,558	2.7%
Industrial	2,641,376	2,841,512	-7.0%	7,611,037	8,441,999	-9.8%	25,091	24,657	1.8%
Free		2,274,498		2,411,612		-5.7%		6,579,241		7,141,241		-7.9%		626		515		21.6%
Captiv e	366,878	429,900	-14.7%	1,031,796	1,300,758	-20.7%	24,465	24,142	1.3%
Commercial	855,749	962,599	-11.1%	2,793,970	3,192,050	-12.5%	262,088	259,127	1.1%
Free		214,180		223,877		-4.3%		719,174		733,862		-2.0%		594		448		32.6%
Captiv e		641,569		738,722		-13.2%		2,074,796		2,458,188		-15.6%		261,494		258,679		1.1%
Rural	246,318	241,150	2.1%	688,091	749,350	-8.2%	200,306	202,081	-0.9%
Others	469,760	507,090	-7.4%	1,450,490	1,562,547	-7.2%	28,527	27,647	3.2%
Free	86,051	78,850	9.1%	254,304	229,921	10.6%	17	10	70.0%
Captiv e	383,709	428,239	-10.4%	1,196,187	1,332,625	-10.2%	28,510	27,637	3.2%
Permissionary	11,468	12,339	-7.1%	35,245	32,265	9.2%	-	-
ConcessionariesGeneration	143,284	141,244	1.4%	406,958	420,695	-3.3%	-	-
Total Energy Distributed	5,954,964	6,170,080	-3.5%	17,822,654	19,113,929	-6.8%	3,573,780	3,490,070	2.4%
Free - Total	2,718,013	2,855,583	-4.8%	7,959,677	8,525,720	-6.6%	1,237	973	27.1%
Captiv e - Total	3,236,951	3,314,497	-2.3%	9,862,977	10,588,209	-6.8%	3,572,543	3,489,097	2.4%
							EDP São Paulo
		Volume (MWh)					Volume (MWh)				Consumers (unit)
		3Q20		3Q19			Var		9M20		9M19		Var		3Q20		3Q19		Var
Residential	1,016,585	940,996	8.0%	2,991,556	2,860,099	4.6%	1,798,956	1,745,963	3.0%
Industrial	1,706,823	1,817,202	-6.1%	4,956,320	5,409,004	-8.4%	13,883	13,644	1.8%
Free	1,462,361	1,519,853	-3.8%	4,272,768	4,515,789	-5.4%	419	342	22.5%
Captiv e		244,462		297,349		-17.8%		683,552		893,215		-23.5%		13,464		13,302		1.2%
Commercial	524,184	598,308	-12.4%	1,689,745	1,942,375	-13.0%	134,442	132,683	1.3%
Free	134,088	147,016	-8.8%	454,953	481,091	-5.4%	332	245	35.5%
Captiv e	390,095	451,292	-13.6%	1,234,793	1,461,284	-15.5%	134,110	132,438	1.3%
Rural	15,380	19,235	-20.0%	45,895	60,418	-24.0%	5,288	8,201	-35.5%
Others	276,290	298,764	-7.5%	851,656	902,141	-5.6%	14,513	13,877	4.6%
Free		81,429		78,850		3.3%		249,171		229,921		8.4%		10		10		0.0%
Captiv e		194,861		219,914		-11.4%		602,485		672,220		-10.4%		14,503		13,867		4.6%
Permissionary	11,468	12,339	-7.1%	35,245	32,265	9.2%	-	-
ConcessionariesGeneration	93,235	86,381	7.9%	271,697	264,108	2.9%	-	-
Total Energy Distributed	3,643,964	3,773,223	-3.4%	10,842,113	11,470,410	-5.5%	1,967,082	1,914,368	2.8%
Free - Total	1,771,113	1,832,100	-3.3%	5,248,589	5,490,909	-4.4%	761	597	27.5%
Captiv e - Total	1,872,851	1,941,123	-3.5%	5,593,524	5,979,501	-6.5%	1,966,321	1,913,771	2.7%
							EDP Espírito Santo
		Volume (MWh)					Volume (MWh)				Consumers (unit)
		3Q20		3Q19			Var		9M20		9M19		Var		3Q20		3Q19		Var
Residential	570,424	523,152	9.0%	1,845,307	1,854,923	-0.5%	1,258,812	1,230,595	2.3%
Industrial	934,554	1,024,310	-8.8%	2,654,717	3,032,995	-12.5%	11,208	11,013	1.8%
Free		812,137		891,759		-8.9%		2,306,473		2,625,452		-12.1%		207		173		19.7%
Captiv e		122,417		132,551		-7.6%		348,244		407,543		-14.6%		11,001		10,840		1.5%
Commercial	331,566	364,291	-9.0%	1,104,224	1,249,676	-11.6%	127,646	126,444	1.0%
Free		80,092		76,861		4.2%		264,221		252,771		4.5%		262		203		29.1%
Captiv e		251,474		287,430		-12.5%		840,003		996,905		-15.7%		127,384		126,241		0.9%
Rural	230,938	221,915	4.1%	642,197	688,932	-6.8%	195,018	193,880	0.6%
Others	193,470	208,326	-7.1%	598,834	660,405	-9.3%	14,014	13,770	1.8%
Free	4,622	-				5,132	-			7	-
Captiv e	188,848	208,326	-9.3%	593,702	660,405	-10.1%	14,007	13,770	1.7%
ConcessionariesGeneration	50,049	54,863	-8.8%	135,261	156,588	-13.6%	-	-
Total Energy Distributed	2,311,000	2,396,857	-3.6%	6,980,541	7,643,519	-8.7%	1,606,698	1,575,702	2.0%
Free - Total	946,901	1,023,483	-7.5%	2,711,088	3,034,811	-10.7%	476	376	26.6%
Captiv e - Total	1,364,100	1,373,373	-0.7%	4,269,453	4,608,708	-7.4%	1,606,222	1,575,326	2.0%

1

3Q20 Operational Release

Industrial	Commercial
44%
14%
	Rural
	4%
	Others
	8%
	Perm. +
	Concessionaries
	3%
	Residential
	27%

Industrial	Commercial
47%	14%
	Rural
	0%
	Others
	8%
	Perm. +
	Concessionaries
	3%
	Residential
	28%

	Commercial
Industrial	14%
41%	Rural
	10%
	Others
	8%
	Concessionaries
	2%
	Residential
	25%

The consumption of distributed energy is a result of the novel coronavirus ("Covid-19") pandemic, reflecting the preventive and social- distancing measures adopted in Brazil, leading to contracting industrial output 1 , reduced commercial activity 2 and increased unemployment 3. Despite these effects, consumption is already recovering compared with the first quarter, a result of the gradual reopening of commercial and industrial businesses.

The number of free clients was up 27.1% (164 clients at EDP São Paulo and 100 clients at EDP Espírito Santo) due to migration of captive clients into the free market.

down 3.4% and 5.5% in the quarter and in the year to date, respectively, due to the effects of the COVID-19 preventive and social isolation measures to avoid the spread of the virus.

• Residential: the 8.0% and 4.6% gains in the quarter and in the year to date, respectively, reflect the higher temperatures (+1.6° C in September) and the expanding number of clients (3.0%). In addition, the social isolation measures that were encouraged as a means to prevent COVID-19 led the population to stay home, causing class consumption to increase;
• Industrial: the 6.1 % and 8.4%, decreases in the quarter and in the year to date, respectively, reflect the economic downturn. It is worth emphasizing that the quarter's retraction was smaller than the previous quarter's, particularly in the automotive industry. In the year to date, the automotive and steel industries were the hardest hit.
• Commercial: the 12.4% and 13.0%, decreases in the quarter and in the year to date, respectively, are the result of social isolation actions, despite their easing and the gradual reopening of commercial establishments. Activity and consumption are already recovering compared with the previous quarter;
• Rural: the 20.0% and 24.0% decreases in the quarter and in the year to date, respectively, reflect client reclassification; and
• Other: the 7.5% and 5.6% decreases in the quarter and in the year to date, respectively, reflect the effects of social isolation as mentioned in connection with the previous classes.

down 3.6% and 8.7%, in the quarter and in the year to date, respectively, due to the impacts of the pandemic, despite the easing of social isolation measures, which contributed to improved consumption.

• Residential: the 9.0% increase in the quarter is due to the expanding number of clients (+2.3%) and the greater number of low- voltage billing days (+0.7 day). In addition, social isolation measures that were encouraged as a COVID-19 preventive action, influenced the population to stay at home, leading to increased class consumption. In the year to date, the 0.5% decrease reflects the negative impact of milder temperatures (-1.6° C, peak temperatures in Vitória);

1 8.6% retraction in physical output of the Brazilian industrial sector year to date as of August/20, compared with the same period in 2019. Source: IBGE. Monthly Industrial Survey - Brazil. August/20 physical industrial output index.

2 6.3% reduction in sales volume year to date as of July/20, compared with July/19. Source: IBGE. Monthly Commerce Survey - Brazil. Extended Retail Sales Volume Index, July/2020.

3 13.8% in the quarter ending July, the highest rate in the time series, which begins in 2012. Source: IBGE. PNAD. May-July/2020 moving quarter.

2

3Q20 Operational Release

• Industrial: the 8.8% and 12.5% decreases in the quarter and in the year to date, respectively, reflect reduced consumption from Vale because of developments from the activities stoppage in Brumadinho-MG, mitigated by variation in self-generation clients' consumption. Excluding these effects, the effects would have been +1.7%, in the quarter and -1.4%, in the year to date;
• Commercial: the 9.0% and 11.6% decreases in the quarter and in the year to date, respectively, are a result of social isolation measures, despite their easing and the gradual reopening of commercial establishments. In the quarter, the greater number of low- (+0.7 and ) and high- (+0.8 day) voltage billing days impacted class performance positively;
• Rural: the 4.1% increase in the quarter is due to the greater number of low- (+0.7 day) and high- (+0.8 day) voltage billing days. In the year to date, the 6.8% decrease is the result of increased rainfall (+244 mm in the Northern part of the state compared with the previous year), leading to reduced electric energy consumption for irrigation purposes; and
• Other: the 7.1% and 9.3% decreases in the quarter and in the year to date, respectively, are the result of the previously mentioned effects of social isolation and milder temperatures.

5,014
657	3,734
1,358
654
	1,358
2,999
	1,722
3Q19	3Q20

Jari, Cachoeira Caldeirão and São Manoel HPP's

Total TPP

Total HPP's

		28%	28%
		27%
			26%
24%	23%
22%
	22%
1Q	2Q	3Q	4Q
	2019	2020

On a consolidated basis, energy sales volume was 1,722 GWh, down 42.6% in the quarter, due to the lower volume of energy sold from Lajeado (-543.9 GWh) and Energest (-730.4 GWh), due to the lower volume of bilateral agreements in the period. Considering the unconsolidated projects,4 the volume was down 0.5%.

In the year to date, the volume of energy for the consolidated entities was 4,938 GWh, down 29.1%, due to the effects mentioned before, in addition to the lower volume of energy sold from Enerpeixe (272.1 GWh), due to the expiration of long-term bilateral agreements. Considering the unconsolidated projects, volume was down 1.6%.

It is worth emphasizing that the Company's seasonality strategy was to allocate more energy for the second half of the 2020.

Average GSF was 66.0%5 in the quarter, producing an exposure of 709.7 GWh6, at an average PLD of R$ 91.68/MWh (SE/CO submarket). In the year to date, average GSF has been 84.5%, producing an exposure of 786.8 GWh at an average PLD of R$ 118.35/MWh (SE/CO submarket).

4 Considers stakes in the Jari, Cachoeira Caldeirão and São Manoel HPPs 5 Weighted averages.

6 Excludes the Jari, Cachoeira Caldeirão and São Manoel HPPs

3

3Q20 Operational Release

Average plant uptime in the year has been 91.8% due to corrective maintenance works on GU02 in January and February. In the quarter, the plant was only dispatched on 3 days due to the dropping demand scenario associated with the economic downturn, reflecting the preventive measures adopted to contain the spread of the coronavirus.

92.9%	91.6%	92.3%			92.4%	98.1%	95.2%	97.6%	86.1%	91.8%
83.4%
			77.2%	80.3%

2017	2018		2019	9M20
	GU01	GU02	Average TPP

The volume of energy traded7 was 6,408 GWh in the quarter, up 5.9%, due to the easing of restrictions on commercial activities adopted after the pandemic intensified in the previous quarter, increasing the number of transactions between market players. In addition, the Company engaged in purchase operations to rebuild its backup energy, contributing to the increased volume of energy traded.

In the year to date, the volume of energy traded has been 20,703 GWh, up 58.9%, reflecting trading of the "backup energy sales" product.

7 Traded energy considers provisioned + realized amounts

4