Government and regulatory bodies

Supplier management

At the end of 2019, we had 307 suppliers, of which 280 were hired in the year. Of this amount, 17 represented significant investment contracts (asset investment contracts that are approved by the Executive Board), with 100% of them having human rights clauses.

Our supply chain is mainly formed by service providers, manufacturers of electromechanical equipment and electrical materials, telecommunications and information technology, contractors, consultancy, surveillance, cleaning and conservation.

The selection of suppliers is aligned with the Supply Logistics Policy, that guides business by internationally recognized management practices. Additionally, since April 2018, all contracts and acquisitions of Eletrobras companies have been formalized based on the new Bids and Contracts Regulation.

Information technology management

Digital transformation

The Eletrobras Digital program for digitalization actions is also being developed. These initiatives will be guided by the Eletrobras Companies Information Security Policy, the General Data Protection Law (LGPD) and the Regulations for the Integrated Management of Information Technology Demands by Eletrobras Companies.

The main actions of 2019 in the digital transformation area were the implementation of SAP ERP in all companies; the implementation of integrated management of information technology demands across Eletrobras; and the specification of a joint purchase of integrated solutions for selling energy, legal solutions, data storage (cloud), corporate mobility for travel and expenses, among others.

Cybersecutrity

Combating the dangers associated with information security is a priority for risk management in Eletrobras companies, which is a process conducted pursuant to the Risk Management Policy and the Information Security Policy. The Company also adopts the NIST Cybersecurity Framework, a material developed by the National Institute of Standards and Technology, in partnership with the private sector, as a management guide.

Eletrosul has been contributing, through a representative, to the group created in 2019 by Eletrobras, aiming to define the management model in its companies. We already have controls for managing the associated risks, but we must meet the standards intended by the Holding and the regulatory body. In parallel, we are investing in information technology, having spent approximately R$ 8 million in 2019 on contract renewals and the acquisition of data center resources (data processing center).

For 2020, we intend to comply with the PDTA, updating our entire technology site and use licenses. We expect to achieve 100% replacement of the firewalls (information traffic blockers, according to security rules) of the corporate network, finish the technological security planning for the operating network and start the process of deviations analysis and treatment.

Cost management

As a mixed-capital company, Eletrosul follows the accounting rules applicable to Brazilian Corporations, established by Act No. 6,404/76 and subsequent amendments, as well as the Accounting Pronouncements and other guidelines, approved by relevant bodies. As a participant in the electricity sector, it also complies with the standards issued by the National Electricity Agency (Aneel).

In accordance with these standards, we have developed internal controls, which are determined by means of accounting records, as well as by means of accounting accounts defined by the Accounting Manual for the Electric Sector, established by Aneel.

The result is presented in the Financial Statements (DFs), in an Explanatory Note, with the segregation of information by business segment. To learn more about cost management in the Company, please refer to our DFs and our Annual Accounts Process.

Budget management

The methodology for calculating the legal budget is established by the Coordination and Governance Department of State Companies of the Ministry of Planning, Development and Management, and differs, in some aspects, from the rules of Corporate Accounting. In 2019, we made R$ 1,774 million in Current Expenses, R$ 731 million in Capital Expenditure and R$ 2,777 million in Total Resources.

With regard to the Pluriannual Plan (PPA), programs and actions were carried out in line with the Company’s Strategic Plan, which are described in Annex I of complete Annual Report 2019, available for download in this hotsite.

Leadership remuneration

According to Brazilian law, the wages of Administrative or Fiscal Advisors in public companies and federal mixed-capital companies cannot exceed the average monthly compensation of directors by 10%. The Administrative Advisors do not receive any additional compensation for participating in Advisory Committees or Commissions of the Board.

The 2019 Annual Variable Compensation Program (RVA) of 2019 can add up to 3 fees plus a bonus of 1.5 fees, if the established criteria are met and is structured based on business goals, agreed between the Administrative Council and the Executive Board and, subsequently formalized with Sest.

The 2019 RVA indicators are as follows:

Profile of employees and diversity

Eletrosul concluded 2019 with 1,058 employees, 6% less compared to the previous year. This variation was mainly due to the adhesion to the Consensual Dismissal Plan (PDC), for which 57 people were dismissed. The plan was implemented by all Eletrobras companies, according to the Holding’s strategic orientation, with the objective of adapting the staff, generating efficiency in the processes, balance between the teams and a sustainable profile for business and people development in the coming years.

One hundred percent of our employees are covered by collective bargaining agreements and have an indefinite contract.

Health and safety at work

Among the goals of the Business and Management Plan for 2019, the one related to improving the accident frequency rate in the company stands out. As a result, we recorded the lowest rate in our history – 1.9 –, compared to 6.13 in 2018. Thus, we concentrate efforts mainly on the registration and disclosure of incidents.

Our actions in this regard are in accordance with the guidelines of the People Management Policy of Eletrobras Companies, which determines the continuous maintenance of good working conditions and well-being of employees and, in turn, are aligned with the Eletrobras Companies Sustainability Policy. Our Occupational Health and Workplace Safety Management is defined in the Workplace Safety and Occupational Health Management Standards and in the Eletrosul’s Occupational Safety, Occupational Health and Social Support Plan (PESSOAS). Among the various programs endeavored by PESSOAS, the following stand out:

  • Environmental Risk Prevention Program (PPRA) and the Technical Report on Environmental Working Conditions (LTCAT);
  • Occupational Health Medical Control Program (PCMSO);
  • Quality of Life Program;
  • Eletrosul’s Emergency Response Plan (PASE);
  • Disability Assistance Program (PAPD);
  • Alcohol and/or Other Drug Dependence Prevention Program;
  • Third of First Program (3D1);
  • Retirement Orientation Program (POPA);
  • Organizational Atmosphere Management Program; and
  • Follow-up Program for Employees Away from Work due to Occupational Illness and/or Accident.