EBR.B Centrais Eletricas Brasileiras SA Eletrobras

RELEVANT FACT

CENTRAIS ELÉTRICAS BRASILEIRAS S/A

CNPJ: 00.001.180/0001-26 | NIRE: 533.0000085-9

PUBLIC COMPANY

Centrais Elétricas Brasileiras S/A (“Company” or “Eletrobras”) (B3: ELET3, ELET5 & ELET6; NYSE: EBR & EBR.B; LATIBEX: XELT.O & XELT.B) hereby informs its shareholders and the market in general that, on this date, the National Electric Energy Agency - Aneel recognized, by decision of its collegiate board, the following:

(i)           the right to receive credits from the Fuel Consumption Account - CCC to Centrais Elétricas de Rondônia (“Ceron”), in the amount of R$ 1,904,055,165.07 (at July 2019 prices), related to inspection of the benefits due in the period from July 30, 2009 to June 30, 2016, considered as the first period of the inspection process (“First Inspection Period”), credits assigned to Eletrobras on the occasion of the privatization of said distributor; and

(ii)          the right to receive credits from the Fuel Consumption Account - CCC to Companhia de Eletricidade do Acre (“Eletroacre”), in the amount of R$ 191,610,318.04 (at July 2019 prices), referring to the inspection of the benefits due in the period from July 30, 2009 to June 30, 2016, credits also assigned to Eletrobras on the occasion of the privatization of said distributor.

These amounts recognized by Aneel are in accordance with the amounts registered in the Company's Financial Statements on September 30, 2019, for the First Inspection Period, with the existing difference attributed to the inflation adjustment by the IPCA, due to the difference in the base date considered. The other amounts assigned by Ceron and Eletroacre to Eletrobras and recorded in its Balance Sheet refer to claims that will still be submitted to Aneel's Board of Directors after the conclusion of the second inspection period that covers the period from July 1, 2016 to April 30, 2017 (“Second Inspection Period”). On September 30, 2019, Eletrobras maintained in its Financial Statements receivable credits, assigned by Ceron and Eletroacre, referring to the First and Second Inspection Period, in the order of R$ 3.2 billion.

Aneel's Executive Board also approved, on this date, the obligation to return R$ 2,061,360,021.40 (at March 2019 prices), referring to the CCC's monthly inspection and reprocessing process paid to Amazonas Distribuidora de Energia S.A. (“Amazonas Energia”), from July 2016 to April 2017, referring to the Second Inspection Period. With this decision, Amazonas Energia had completed its entire inspection process, since Aneel's Board of Directors had already decided, on March 19, 2019, the result of the First Inspection Period for CCC reimbursements to Amazonas Energia, with the company having the right to receive a credit of approximately R$ 1,591,670,950.13 (at September 2018 prices), to be offset against credits to be returned.

In addition, still in the process of the First Inspection Period of Amazonas Energia, Aneel quantified the right to receive from Amazonas Energia the amounts equivalent to the disallowances of the CCC resulting from the criteria of economic and energy efficiency, a right recognized by Law 13,299/2016, in the amount of R$ 1,357,794,977.30 (historical value) and to be paid by the National Treasury.

All of the aforementioned amounts of Amazonas Energia were also assigned to Eletrobras, in the privatization process of said distributor, and are considered in the Company's Financial Statements on September 30, 2019, with the difference attributed to the inflation adjustment by the IPCA, due to difference in the base date considered, with regard to the First and Second Inspection Period of the CCC, and the updating by Selic of the credits owed by the National Treasury regarding the disallowances of the CCC resulting from the criteria of economic and energy efficiency. On September 30, 2019, Eletrobras maintained in its Financial Statements net receivables, granted by Amazonas Energia, in the order of R$ 2.4 billion.

Finally, we highlight that Aneel has not yet completed the inspection processes for CCC refunds for the First and Second Period of Boa Vista Energia, also assigned to Eletrobras and recorded, on September 30, 2019, at approximately R$ 190 million.

Only after the final decision of all inspections of the Second Period of Ceron and Eletroacre and of the First and Second Period of Boa Vista Energia by Aneel's Board of Directors, will the final balance of credits assigned by the distributors cited to Eletrobras begin to be paid, by CDE Fund, according to the availability of funds from the Sectorial Fund. The amounts owed by the National Treasury also depend on budget availability.

The Company will keep the market informed on the matter.

Rio de Janeiro, March 10, 2020

Elvira Cavalcanti Presta

CFO and Investor Relations Officer