Copel renews Compagas concession and paves the way for the sale of the gas distributor

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Copel renews Compagas concession and paves the way for the sale of the gas distributor

The gas distributor Compagas signed with the government of Paraná the renewal of its concession for another 30 years, in an important step for its parent company, the electric company Copel, to be able to divest the asset.

According to a press release issued by Copel on Tuesday night (27), the renewal of the Compagas contract has as its main guidelines the adoption of the regulatory model of a ceiling tariff, replacing the current “cost plus” model; remuneration based on the weighted average cost of capital (WACC), initially at 9.125% pa; and an initial Net Regulatory Remuneration Base (BRRL) of R$647.8 million.

The process requires the payment of a grant bonus of R$ 508 million in favor of the State of Paraná. Investments (Capex) of R$ 2.5 billion are expected to be made over the 30 years of the concession.

With a network of more than 860 km in length, the distributor serves customers in the industrial, commercial, residential, transport and electricity generation segments in Paraná. Its more than 53,000 customers consume around 1 million cubic meters of natural gas daily.

Owner of 51% of Compagas, Copel has plans to sell its entire stake in the asset, which is not part of its “core business”. Also shareholders in the distributor are Mitsui, with 24.5%, and Commit Gás, from Cosan, with 24.5%.

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