Info Report Check
Submission incomplete:
1: The DOE is requested to include information on how it has validated the input values to the financial calculations as per VVM v 1.2 paragraph 114 (a).
The DOE is requested to provide a validation opinion on how the energy price (free market price) and the depreciation were available and applicable at the time of investment decision in line with paragraph 6 of the “Guidelines on Investment analysis” given that the sources provided are undated. Moreover, the DOE should provide a validation opinion on the source of the Administrative Costs (Page 22,VR) and whether or not it can be considered an independent source.

2: The DOE is requested to provide information on how it has validated the suitability of the benchmark as per VVM v 1.2 paragraph 114 (b).
The DOE should provide a further validation opinion on the suitability of the benchmark, in particular: a) the source of the formula used (i.e. Ke = RfR + Brazilian RP + (βl * Total country RP)) and whether it corresponds to the best practices for the industry, and b) the suitability of using a total country risk premium (7.5%) and a Brazilian risk premium (5.2%) in the calculation of the cost of equity. In doing so the DOE should also explain why data vintage of 1 year (2009) was used for calculating the total country risk premium, whereas 10 years data (i.e. 2000-2009) was used for calculating the Brazilian risk premium.