Customer satisfaction

Ensuring satisfaction and quality service is a basic premise of our work. Therefore, every two years we conduct an Integrated Customer Satisfaction Survey. In 2018, we carried out the most recent edition, referring to the biennium 2018/2019, contemplating Generation clients (free/potentially free consumers, traders and distribution companies) and Transmission clients (users of the connected transmission services: distributors, free/potentially free consumers and generation companies). The methodology used was the “Customer Window”, a method that allows measuring the degree of satisfaction based on the customer’s perceptions of value attributes and relating them to the degree of importance given by them. The global satisfaction index was 88.45%, higher than the integrated global satisfaction target of Eletrobras companies of 85.31%.

Operational performance

The main reservoir in the Northeastern region, Sobradinho, decreased from 48.65% in April to 29.34% of its useful volume on December 31. This, however, did not affect Chesf’s operating performance indicators, which in some cases reached their best levels in recent years. We generated 20,734 GWh in 2019 compared to 15,132 GWh in 2018, an increase of 37%.

The availability of generating units, an indicator also evaluated by the Brazilian Electricity Regulatory Agency (Aneel) in the tariff adjustment processes, achieved their best result ever in 2019 (1.13). This result is due to the process initiated in 2016 to recover Chesf’s economic-financial balance. In 2017, improvements were observed, but the plants of the Paulo Afonso complex were still underperforming. However, in 2018, the indicator again showed positive results for all assets and in 2019 the target was met and exceeded. According to the readjustment process established by Aneel, when the company exceeds the target established in the generation concession contract, an additional revenue is applied. For this reason, there is an expectation of revenue incorporation in 2020.

Positive results were also registered in the Variable Portion (PV) and Availability of Transmission Lines Indicators, as we present in the graphics below.

12 remotely assisted facilities were incorporated to the Operation Centers and new supervision points were included for the Network Procedure 2.7, which deals with minimum requirements to be met by the agents regarding the information to be made available to the National System Operator. Additional investments were made in the area of automation, such as modernization of the operational measurement of the Itabaianinha Substation and replacement of 54 servers of the Open Energy Management System (Sage). These efforts resulted in increased monitoring of the system, reaching the mark of 248,641 supervision points.

Of the 25 projects in this situation, 22 were concluded in 2019, entering into the asset management of the Operations Board. We also continued the modernization plan, replacing end-of-life equipment to improve operating results, which brought more monitoring and automation resources and improved the safety and reliability of the system. As current regulation2 provides for increased revenues through the replacement of depreciated assets, the intention is to continue with the modernization plan in 2020. For those assets that cannot yet be replaced, we will maintain a differentiated maintenance plan.

Energy supply management

In 2019, we executed a series of operational projects, among which we highlight the improvements in electromechanical systems of the plants and in civil structures and signaling of dams and plants; the modernization and improvement of protection systems and equipment, automation systems and equipment and telecommunications systems and equipment; the technical reserve of electromechanical equipment for plants; and the regulatory strategy of generation and transmission.

We also implemented firewall in 12 installations to meet the Cyber Security Program and expanded the operation and maintenance support systems in the areas of Automatic Voltage Regulation, Supervision of Protection Systems, Power Quality and Oscillography. Together with Inmetro, we maintained the accreditation of the Chesf Metrology Laboratory – MetroChesf, the implementation of pluviometry in six hydrological stations and the operationalization of hydrometric measurements in seven hydrological stations, in compliance with Resolution ANA/Aneel 03/2010.

Energy trading

In 2019, we sold 48,901 GWh, distributed among 26 Brazilian states plus the Federal District. Of this amount, 44,704 GWh (91.4%) were sold on a quota basis. The remaining 4,197 GWh (8.6%) was allocated to the Free Contracting Environment (free industrial consumers, industrial consumers served under Law 13,182 and suppliers) and the Regulated Contracting Environment (distributors). Energy purchases totaled 1,695 GWh, as part of the Company’s supply strategy.

Business ethics and integrity

Main documents guiding ethics and integrity at Chesf:

  • Code of Ethical Conduct and Integrity;
  • Anti-corruption policy of Eletrobras companies;
  • Conflict of Interest Management Policy of Eletrobras companies; and
  • Regulation of the Eletrobras Companies Integrity Program (represents a tactical unfolding of the strategic guidelines of the Anticorruption and Conflict of Interest Management Policies).

We have adopted the Eletrobras Companies Integrity Program, also called the “Eletrobras Five Dimensions Program”, whose objective is to prevent, detect and remedy situations of fraud and corruption. The following infographic shows the composition of the Program.

We execute controls related to the Sox Certification (Sarbanes-Oxley Act), which are tested annually by internal and external audits. It is worth mentioning that, in the 2019 cycle, there were no reports of deficiencies related to the Integrity Program. We can also mention the integrity audits carried out by control agencies, such as the Office of the Comptroller General of Brazil, in a process carried out in 2019, 88% of the recommendations recorded by the agency in previous work in 2016 were considered to have been complied with and the rest is covered by action plans. Additionally, the following indicators are monitored quarterly:

  • employees trained in anti-corruption policies and procedures;
  • supplier due diligence;
  • critical suppliers trained in fighting corruption; and
  • business partners trained in fighting corruption.

Also, in 2019, we consolidated the process of evaluating the integrity of third parties, which involves:

  • supplier evaluation with automation of the due diligence form application, improvement of the background check tool and improvements in integrity reports;
  • evaluation of sponsorships, donations, agreements and social actions;
  • evaluation of governance members (board directors and members) with the improvement of the background check tool and with a broader scope of the opinion issued by the integrity area; and
  • integrity assessment in disinvestment processes.

For further information about this theme consult about reporting and integrity management channels at Corporate governance and ethics > Business ethics and integrity.