Centrais Eletricas Brasileiras : Market Announcement - 08.09.16 - CERR.pdf

CNPJ: 00.001.180/0001-26 COMPANHIA ABERTA

Centrais Elétricas Brasileiras SA - Eletrobras ("Company" or "Eletrobras"), further to the Market Announcement of August 8, 2016, hereby informs its shareholders and the market in general that, through the Dispatch of the Ministry of Mines and Energy - MME, of August 3, 2016, the Companhia Energética de Roraima ("CERR"), a state owned company belong to state of Roraima, had rejected its application for renewal of the concession of electric energy distribution services, granted through MME Ordinance No. 920, of November 5, 2016.

Thus, pursuant to Article 9, first paragraph, of Law 12,783/2013, the Ministry of Mines and Energy appointed the subsidiary of Eletrobras, Boa Vista Energia S.A ("Boa Vista"), as responsible for providing the electric energy distribution public services, of the area that was concession of CERR in the state of Roraima until this concession be assumed by a new concessionaire in a bidding process to be held or by December 31, 2017, whichever occurs first.

According to the Law 12,783/2013, the designation of an entity of the Federal Government, until the new bidding process of the concession is completed, is intended to ensure the continuity of the service.

Eletrobras clarifies that the responsibility for providing the mentioned services does not mean acquisition of the shareholding control of CERR by Eletrobras or Boa Vista, which remains under control of the state of Roraima, while the Boa Vista is responsible for providing the electric energy distribution public services:

• To provide the services in accordance with the MME Ordinance No. 388/2016;

• To receive adequate remuneration, due to the activities performed in the period of the temporary provision of electric energy distribution public services;

• To conduct the temporary employment of personnel necessary to provide the electric energy distribution public service, until the new bidding process of the concession is completed;

• To receive financial support to ensure the continuity and the adequate provision of electric energy distribution public service;

• To apply the approved results of the reviews and tariff adjustments, as well as, to contract and receive funds of the Fuel Consumption Account - CCC, Energy Development Account - CDE and Global Reversion Reserve - RGR, as defined by Aneel.

The obligations contracted by Boa Vista in the temporary provision of the service will be assumed by the new concessionaire, in accordance with bid notice to be released by the Granting Authority, not being responsibility of Eletrobras or Boa Vista, during the provision of the temporary services, making any injection of funds in CERR, even for maintenance or operation of the distribution of energy services.

Rio de Janeiro, August 9, 2016.

Armando Casado de Araujo