The company operates in three reportable business segments: generation, transmission, and distribution. The generation segment supplies electricity to end customers using lines and substations owned by transmission and distribution companies. It operates in a competitive market, selling energy to unregulated customers, other generation companies, and distribution companies under various contract types. The transmission segment owns high-voltage lines and substations (above 23 kV) that transport electricity from generators to consumption or distribution centers. This segment functions as a natural monopoly with regulated tariffs and provides open, non-discriminatory access. The distribution segment supplies electricity to end customers through infrastructure below 23 kV and is also a natural monopoly with regulated tariffs and open access. Distribution companies are required to provide electricity to regulated customers within their concession areas at regulated prices and, since 2021, are restricted from entering new contracts with unregulated customers. Hydroelectric generation requires a concession granted by authorities, whereas other generation technologies do not. Distribution concessions are granted for undefined periods and include obligations to supply all customers within concession areas and maintain service quality standards. Customers are classified as regulated or unregulated based on connected capacity, with specific rules governing category selection and duration. All segments operate under antitrust legislation and industry regulations designed to ensure coordination, quality, security, and cost-effectiveness in electricity supply.
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