CENTRAIS ELETRICAS BRASILEIRAS S/A

CNPJ: 00.001.180/0001-26 PUBLIC TRADED COMPANY

Centrais Elétricas Brasileiras S/A ("Company" or "Eletrobras"),

- -

- nia S.A - CERON; Boa Vista Energia S.A; and Amazonas Distribuidora de Energia S.A, hereinafter referred to as "distribution companies", as approved by the 165th Extraordinary General Meeting shall take place associated with the bid process of the distribution concessions under

§1ª-A of Article 8 of Law 12,783/2013 with the new wording given by Provisional Measure 735, of June 22, 2016.

Because these are federal state owned companies, the transfer of the shareholding control of these distribution companies must observe the rules of the National Privatization Plan ("PND"), in particular the Law No. 9,491 of September 9, 1997, being incumbent upon the National Privatization Council ("CND") to approve the operational mode to be applied to each privatization.

Eletrobras also informs that the distribution companies were included in the Investment Partnership Program ("PPI"), created by Provisional Measure No. 727/2016, in order to facilitate the privatization.

On August 3, 2016, were issued the Ordinances of the Ministry of Mines and Energy numbers 420, 421, 422, 423, 424 and 425, naming respectively the distribution companies Amazonas Distribuidora de Energia -

nia S.A -

- - CEAL and Boa Vista Energia S.A, responsible for providing public services of electric energy distribution, temporarily, in order to ensure the continuity of the service, in accordance with Article 9, first paragraph, of Law No. 12,783, of January 11, 2016.

According to mentioned Ordinances, until the transfer of the shareholding control of the distribution companies or until December 31, 2017, whichever occurs first, the distribution companies will provide such distribution services, on a temporary basis, upon receipt of adequate remuneration in accordance with the MME Ordinance No. 388 of July 26, 2016 and Article 9 of Law No. 12,783/2016, as approved by the 165th Extraordinary General Meeting.

The tariff adjustments of the distribution companies will occur in the ordinary way on an annual basis, except in the years in which occurs the respective Tariff Review, which are expected to occur, according to the mentioned Ordinances, on August 31 2017.

According to the fourth paragraph of Article 9 of Law No. 12,783/2016, the distribution companies, during the period to provide such distribution services, on a temporary basis, may apply the approved results of the reviews and tariff adjustments, as well as to contract and receive resurces from the Fuel Consumption Account - CCC, Energy Development Account - CDE and Global Reversion Reserve - RGR, as defined by Aneel.

Without prejudice to the decision of the 165th Extraordinary General Meeting, in the sense that Eletrobras can not invest resources, in any capacity, in distribution companies during the period to provide such distribution services, on a temporary basis, Eletrobras, as the controlling shareholder, will continue consolidating those Distribution Companies in its Financial Statements in accordance with accounting rules, until the details of the transfer of the mentioned shareholding control are defined in accordance with the rules of the PND.

Rio de Janeiro, August 8, 2016.

Armando Casado de Araujo

CFO and Investor Relations Officer

Eletrobrás - Centrais Elétricas Brasileiras SA published this content on 08 August 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 08 August 2016 23:27:06 UTC.

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