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customer segmentation

Cemig’s market is divided into captive and free customers.

Captive customers are those maintaining a commercial relationship with the Company, with tariffs regulated by  the National Electric Energy Agency (Aneel).  In the captive market, power is supplied solely by the local distributor.

By order of Aneel Resolution no. 414, this market is segmented by consumer class and voltage supply level.

With the objective of strengthening its commercial relationship with customers, Cemig is doing an in-depth study of the captive market’s segmentation, in accordance with the characteristics of the groups, value of the products and the customers’ needs, and thus structure its market:

Segment I – Low Voltage Customers
Segment II – Medium Voltage Customers
Segment III – Relationships with public authorities.

Grouping by distinctive segments helps in customized and equal service, accommodating the expectations and needs of each group, as well as providing customized products and services, affording customers greater satisfaction.

On the other hand free customers negotiate their purchases by means of two processes: the Regulated Contract Environment (ACR) and the Free Trade Environment (ACL).

In the Regulated Contract Environment (ACR), trade is formalized by means of regulated contracts, entered into between sales agents (retail sales companies, generating companies, independent producing undertakings or self-producers) and buyers (distributors) that take part at auctions buying and selling power, led by the Ministry of Mines and Energy (MME).

Cemig is involved in the Regulated Contract Environment (ACR) by buying and selling power at the auctions led by the Ministry of Mines and Energy – MME.  The deals are formalized through regulated bilateral contracts, entered into between selling and buying agents taking part in the auctions.

In the Free Trade Environment (ACL), there is free trading between generating agents, retail sellers, free consumers, importer and exporters of electric energy, and agreement to buy and sell electric energy are made through bilateral contracts. Furthermore, the consumers can choose their power supplier, freely negotiating a set of variables such as contract duration, prices, price variation over time, among others.
 
Cemig’s share in the ACL comes to 25% of the power marketed in Brazil, which makes it the absolute leader in the free market. At the end of 2011, there were 217 customers (just the free ones) from the most varied sectors of the economy and a volume of 2,409 MW average of electric energy sold. 

This result was obtained based on the Company’s ability to attract and maintain its customers, by promoting practices to help the customer manage power efficiently and orientation regarding renewable energies.

The outcome of its good relationship with its customers and partners, service and distinct commercial structure are the long term contracts entered into.

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