Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 (6-k)
17 November 2021 - 12:06PM
Edgar (US Regulatory)
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of November, 2021
Commission File Number 1-34129
CENTRAIS ELÉTRICAS BRASILEIRAS S.A.
- ELETROBRÁS
(Exact name of registrant as specified in its
charter)
BRAZILIAN ELECTRIC POWER COMPANY
(Translation of Registrant's name into English)
Rua da Quitanda, 196 – 24th floor,
Centro, CEP 20091-005,
Rio de Janeiro, RJ, Brazil
(Address of principal executive office)
Indicate by check mark whether the registrant
files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form 40-F _______
Indicate by check mark whether the registrant
by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule
12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No___X____
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, in light of evolution of decisions rendered in the award calculation and
execution phase of lawsuits related to credits arising from the Compulsory Loan on Electric Energy (“ECE lawsuits”), the Company
revised its provision for the ECE lawsuits for the third quarter of 2021.
Based on the development of case law related
to the ECE lawsuits, the Company reviewed its provision estimates for ECE lawsuits, resulting in an increase of approximately R$ 8,926
million in 3Q21. This amount contemplates, amongst others, (i) R$ 5,253 million related to the reclassification, from remote to probable,
of the risk of losing disputes in which parties disputed the initial term of the statutory period applicable to the collection of reflexive
compensatory interests, and (ii) R$ 2,180 million resulting from altering the moment in which, in compliance with final judgements that
went against the Company’s position, and with unfavorable calculations approved by courts, the Company would supplement the provision
for disputed amounts. Considering other constituted provisions and the reversal of ECE lawsuits, the final result was a total provision
of R$ 9,059 million for the third quarter of 2021.
We have revised our provision as part of our
ongoing assessment of the dynamic legal landscape with respect to compulsory loan disputes. The adjustment seeks to align the Company’s
provisions to its expectations regarding its payment obligations. It is worth stressing that the Company continues to fight for its legal
thesis to ensure that they are recognized in ECE lawsuits, regardless of the classification of risk applied to them.
Detailed information regarding this matter can
be found in the Company’s Quarterly Information of this year’s third quarter, published today by Company.
The Company will keep the market informed about
the matter now addressed by this Relevant Fact.
Rio de Janeiro, November 16, 2021
Elvira Cavalcanti Presta
CFO and Investor Relations Officer
This document may contain estimates
and forecasts that are not statements of fact that occurred in the past but reflect our management beliefs and expectations and may constitute
future events' forecasts and estimates under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
and Exchange Act of 1934, as amended. The words "believe", "may", "estimate", "continue", "anticipate",
"intend", "expect" and related words are intended to identify estimates that necessarily involve risks and uncertainties,
known or unknown . Known risks and uncertainties include, but are not limited to: general economic, regulatory, political and commercial
conditions in Brazil and abroad, changes in interest rates, inflation and value of the Real, changes in volumes and the pattern of use
of electricity by consumer, competitive conditions, our level of indebtedness, the possibility of receiving payments related to our receivables,
changes in rainfall and water levels in the reservoirs used to operate our hydroelectric plants, our financing and capital investment
plans, existing and future government regulations , and other risks described in our annual report and other documents filed with CVM
and SEC. Estimates and forecasts refer only to the date they were expressed and we assume no obligation to update any of these estimates
or forecasts due to the occurrence of new information or future events. Future results of the Company's operations and initiatives may
differ from current expectations and the investor should not rely solely on the information contained herein. This material contains calculations
that may not reflect accurate results due to rounding.
SIGNATURE
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
Date: November 17, 2021
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CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS
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By:
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/S/ Elvira
Baracuhy Cavalcanti Presta
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Elvira Baracuhy Cavalcanti Presta
CFO and Investor Relations Officer
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FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements.
These statements are statements that are not historical facts, and are based on management's current view and estimates offuture
economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes",
"estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended
to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal
operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends
affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect
the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected
events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic
and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual
results to differ materially from current expectations.
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