MARKET ANNOUNCEMENT


In response to Ofício SAE/GAE 2716/2014 BM& FBOVESPA, in which is requested clarification about the news published by the newspaper "Valor Econômico", 8/15/2014 edition, which states " Eletrobras negotiates debt relating to purchase of oil " as well as other information relating to this subject, especially regarding possible reflections in the Balance Sheet and Income Statement of the company, we hereby clarify the following:
First, it is important to differentiate the nature of existing debts among Petrobras Distribuidora S.A. and Distribution Companies of Eletrobras, more specifically " Amazonas Energia S.A. ("Amazonas Energia"), Centrais Elétricas de Rondônia S.A. ("Ceron"), Companhia de Eletricidade do Acre ("Eletroacre ") and Boa Vista Energia S.A. (" Boa Vista ").
The Fuel Consumption Account ("CCC"), regulated by Law 12,111 of December 9, 2009, aimed the proportional division of the costs relating to the fuel consumption used in the generation of energy through thermoelectric units in the isolated systems, especially in northern region.
According to Law 12,783/2013, the Energy Development Account ("CDE") is responsible for
funding of the CCC expenditures, and others.
The purpose of this subsidy is to allow consumers in those regions may have an electricity tariff similar to that practiced for consumers located in the National Interconnected System, supplied mostly by hydroelectric generation. Thus, the CCC pays the amount equivalent to the difference between the total cost of energy generation, relating to the Isolated Systems, and the value of the average energy price traded on the Regulated Market - ACR of the National interconnected System - SIN (ACR-medium).
Values for reimbursement by the CCC are set annually by ANEEL for each distribution concessionaire, depending on your market and can vary according to the need of use of thermoelectric plants.
The balance in the cost of fuel not covered by the CCC is responsibility of the distribution companies.
Thereby, we clarify that the mentioned Distribution Companies are combining debt with Petrobras Distribuidora S.A. in the total amount of approximately R$ 4.9 billion, on base date of July 2014, to be paid with own funds and resources arising from the CCC.
The amount of R$ 3.2 billion are being negotiated with Petrobras Distribuidora S.A., and the amount of R$ 452 million will be paid up front and the balance in installments. The mentioned installment payment depends on approval by the respective contractual agreements by companies involved.
Regarding the part of the debt to be paid up front , we hereby inform that the Board of Directors of Eletrobras approved today the financing agreements among Eletrobras and the distribution companies Amazonas Energia and Eletroacre, amounting to R$ 400 million and R$
52 million respectively, seeking the transfer of funds for the payment. The granting of such resources by Eletrobras to their distribution companies will follow the same financial conditions from those obtained by Eletrobras in its last fundraising.

ELET3 & ELET6



EBR & EBR.B

LISTED

NYSE

MARKET ANNOUNCEMENT


The aforementioned debt is recorded in the Financial Statements of the Distribution Companies of Eletrobras.

Rio de Janeiro, August 18, 2014.

Armando Casado de Araújo

CFO and Investor Relations Director ELET3 & ELET6



EBR & EBR.B

LISTED

NYSE

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