Companhia Paranaense de Energia - COPEL (NYSE:ELP) Q4 2019 Earnings Conference Call - Final Transcript

Mar 27, 2020 • 09:00 am ET


Companhia Paranaense de Energia - COPEL (NYSE:ELP) Q4 2019 Earnings Conference Call - Final Transcript


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Q & A

Thank you very much. [Operator Instructions] Ms. Carolina from Credit Suisse has a question.

Maria Carolina Carneiro

I have two questions. The first one is about what Daniel said in the beginning regarding the recent merger announced by Aneel, which is the suspension of charges for those residential electric sales. And you mentioned -- I think there was a request by [Indecipherable] saying that there was a possibility or trying to check with Aneel. This increasing delinquency could be allocated to another segment. And considering you're an integrated company, that obviously could impact your segmental generation and transmission if this type of allocation happens. I would like to hear more about that. If really -- this request is really out there and if it makes sense? Maybe it's possible that the companies have signed it.

And second question also Daniel about what you mentioned about other measures that might help distributing companies. And what kind of measures then you might have been considering so that you can face a higher working capital. It has to do with funding from the MDS. What kind of measures could we see there to face these next 90 days considering what has been announced? Thank you.

Daniel Pimentel Slaviero

Thank you, Carol, for your questions. Basically, as I mentioned in the beginning, Aneel has taken these measures, which all of you know, it's for essential activities and residential customers. Once again, that has shown, as we believe, that the agencies with the right measure with a social responsibility action, but now we need to start discussing, and we are already doing so, about measures that we will guarantee the economic balance of the industry and all distributing companies. Obviously, we cannot sign and we do not know how long this crisis will last, and neither the impact that will come from it. But as I said, it's an explosive combination because we have a lower energy demand.

And the distributing company will be under-contracted and an expectation of a delinquency increase, and several areas in the economy. They really are -- they came to a halt or they are working in very minimum condition. So what is on the table, and we are following that up with the authorities. All of that that we were saying, so in the first level financing, of course, and all the charges that these companies have with the industry, especially CDE that may and should be reused in the second week also is already on the agenda at the federal administration and has to do with taxes, federal and state tax. We believe that there should be some flexibility there.

And, if these measures are not possible to be taken, also a great extension line or loan line, this has happened in the past, but also we should be discussing all the links in the chain because in spite of Copel being an integrated company, this can also fall back on the distributing company because that is one of the main entry points for the