The Company respects and applies all regulatory frameworks, as well as all international agreements and treaties relevant to its business. As a result, there were no incidents of non-compliance with rules, regulations and voluntary codes concerning health, safety, disclosure of information about the Company’s facilities and services (labeling) in the period covered by the report. (GRI PR2, PR4)
The same goes for communication. CTEEP’s Communication Policy is based on the CONAR [the Brazilian National Advertising Self-Regulation Council] Code and other the electric sector rules. As a result, there were no incidents of non-compliance with regulations and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship in 2012. (GRI PR6, PR7)
The same goes for communication. CTEEP’s Communication Policy is based on the CONAR [the Brazilian National Advertising Self-Regulation Council] Code and other the electric sector rules. As a result, there were no incidents of non-compliance with regulations and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship in 2012. (GRI SO7, PR8)
Nevertheless, the Company is expecting a decision on an administrative appeal filed on 02.27.2012 in response to a tax delinquency notice issued by the Federal Revenue Department in connection with tax-like social contributions by reason of the non-cumulative system of PIS [Social Integration Program] and COFINS [Tax for Social Security Financing], in 2009 and 2010. (GRI SO8)
As far as products and services are concerned, the Company received the following notices from ANEEL in 2012:
1) Administrative Proceeding 48500.005093/2011-15, Infringement Notice 082/2012-SFE
This administrative proceeding is related to the outage of about 870 MW of the Eletropaulo Metropolitana Eletricidade de São Paulo S.A. load, resulting from an incident at Milton Fornasaro Substation in 2011. The infringement notice imposes a fine of R$1,250,336.26. In April 2012, CTEEP filed an Administrative Appeal that is pending consideration.
2) Administrative Proceeding 48500.003216/2011-83, Infringement Notice 090/2012-SFE
In 2012, the Company paid a fine related to the administrative proceeding for irregularities in the operations and maintenance of Jupiá and Salto Substations, which are part of CTEEP’s 2011 concession. The initial amount of R$384,304.46 was reduced to R$139,508.89 after an appeal filed by the Company.
3) Administrative Proceeding 48500.000037/2012-75, Infringement Notice 122/2012-SFE/ANEEL
CTEEP received a fine in connection with service quality and failure to provide transmission services, in accordance with Articles 32 and 33 of Normative Resolution 270 between June 2010 and May 2011. The infringement notice imposes a fine of R$416,167.00. In September 2012, CTEEP filed an Administrative Appeal that is pending consideration. (GRI PR9)