Eneva : Notice to the Market - New information involv...

NOTICE TO THE MARKET

ENEVA S.A. ("ENEVA" or "Company") hereby, in continuity to the communication to the market pronounced in October 19, 2016, provides the market with new information involving Pecém II TPP (Pecém II Geração de Energia S.A.), thermoelectric power plant in which the Company holds interest of 50%, and the State of Ceará regarding the collection of an emergency hydric fee due to local hydric shortage.

The Company informs that a modification in the State Decree No. 32,044 of September 16th 2016, was published today, establishing new conditions for the collection of the emergency water charge, comprehending the period between September 2016 and August 2017, adding to the current water tariff an extra charge of three times its current monthly amount.

As previously disclosed in the Notice to the Market of October 19th 2016, Pecém II TPP had previously presented to the National Electric Energy Agency - ANEEL the request for re- adaptation of the financial and economic balance of its Unit Variable Cost (CVU) due to the collection of such emergency water charge.

In view of ANEEL's negative response, prior to this amendment to the State Decree No. 32,044, a lawsuit had already been filed questioning the collection of such charge.

Notwithstanding the above events mentioned, ENEVA continues to negotiate with the competent bodies and it is committed to find a solution that is beneficial for everyone involved, without jeopardizing the State of Ceará energy security or the financial health of our thermal power plant.

Best Regards,

Rio de Janeiro, March 2nd, 2017.

Pedro Zinner

Executive Vice President - CFO and Investor Relations Officer

ENEVA S.A.