A video conference at the divulgation of those Eletrobras Q2 Earnings Call. Let me introduce the Eletrobras team. Mr. Wilson Ferreira Jr., Eletrobras CEO, Ms. Elvira Presta, VP of Finance and Investor Relations, Mr. Élio Wolff, VP of Strategy and Business Development, Mr. Rodrigo Limp, VP of Regulation and Institutional Relations, Mr. Renato Costa Santos Carreira, VP Procurement and Services, and Mr. Marcelo de Siqueira Freitas from the Executive Legal Vice Presidency, are here with us today. This earnings call is being recorded and will be made available at the company's IR website, where you can also find the presentation in both languages. If you need simultaneous translation services, this has been made available. Just click on the globe icon at the bottom of the screen. When you click on the icon, choose your preferred language.
If you're listening to the conference in English, you can mute the audio in Portuguese by clicking in on Mute Original Audio. For the Q&A session, please press the Q&A icon also at the bottom of your screen. Your names will be stated, and then you can ask your questions. A request to unmute your mic will be shown on the screen. If you don't want to speak into the mic, just write down, "No mic, please," and the operator will be reading your questions. Before proceeding, we'd like to clarify that any statements that may be made during the teleconference regarding the company's businesses, outlook, projections, operational and financial goals, are based on beliefs and assumption of the Eletrobras management, as well as information currently available to the company.
These future considerations are not a guarantee of performance, because they involve risks and uncertainties, and they depend on circumstances that may or may not occur. Investors should understand the general economic conditions and other operational factors can influence the results expressed in these remarks. I'd like to turn the floor over to Mr. Wilson Ferreira, Eletrobras CEO. You may proceed now, sir. Thank you. I would like to welcome all of you. Can you please show the slides? I'd like to welcome analysts, investors. Thank you for attending our earnings call for the second quarter. Let me start. Please, move on to the next slide, please. We'll have a summary of six segments. That's how we broke down the company's highlights. An overview of the number one managerial indicator, which is PMSO, operational performance, generation, transmission, financial performance.
Elvira will take over at this point in time, and then I'll come back for the investments and next steps segments. Let me start with the highlights for the quarter. Next slide, please. Next one, please. Another one. Yes. These are the highlights for Q2. First, collections and operations in the financial front have been concluded. Given the exposure we had to the U.S. dollar, the hedging for the bonuses in yet another operation, that accounts for almost 96% have been covered, and we'll be completing that in the next quarter. There won't be any FX exposure from now on. On to liability management operations. Let me start with the ones that have already been approved and implemented at Eletronorte, BRL 1.9 billion. The goal is the same, to lower costs and extend the profile.
Costs are 2.2% above CDI. We have been able to extend that debt profile. We'll be detailing that shortly. Elvira will be doing that. We paid BRL 1.2 billion in dividends. The average cost is CDI plus 2.5%. Amongst those operations, I would like to highlight though, that one on the right, BRL 680 million, the first credit note for exports. One of the important covenants is the debt contract with the commitment to sustainability. Our number 1 goal here is the clean energy percentage. We are at 97. Our commitment is to bring that down. We are at 97, the original commitment was 96. That's a very important highlight because we are now introducing our second voluntary separation program. We had 1,473 that have applied.
BRL 513 million will be saved. We'll be breaking that down for both the first VSP, early last year, and this second VSP, we have already concluded the application phase now in the 2Q. We believe it's important to share a couple of events for the second half of the year, because they are really important to the company. First, liability management operations that are currently underway, and we were able to announce them through a market note. We had the fourth debentures issuing of BRL 7 billion and BRL 3.5 billion in Furnas, and the fourth issuing of debentures, BRL 250 million at CGT Eletrosul. All these operations aim at addressing the liability management strategy, always aiming at lowering costs and extending the debt profile. The second important action was the annual readjustment of RAP for 2023, 2024.
There is an ANEEL resolution that increased our RAP by 30%, with BRL 17.5 billion for the 2022-2023 cycle. We've also received authorization to be the trade agent of electric energy at CCEE. This will be allowing us to use some of the tax credits we have for the trading activities. We've also received the announcement of our restructuring for the unprecedented net zero for any energy company by 2030. That's gonna be a pioneering effort. That's why we have a sales structuring of our process of all our assets related to thermal, both using gas and non-gas. We use coal, we have gas, thermal plants, and a combination of both. These are the main highlights for the quarter, the second quarter of 2023. On to the next slide, please.
We have an overview of our PMSO: People, Materials, Services, and Third Parties, and other. Next slide, please. The first PDV 1, the first voluntary termination or separation program. BRL 1.2 billion is the expected savings on an annual basis within 11-month payback. The first thing we can see on the top chart is that we expect expenses reaching 2,494 people. People are leaving the company at a slower pace than expected for a couple of reasons. Number one, we were very careful, earlier this year. Let me remind you, we had those uncomfortable events as to the crumbling of a couple of towers, and we decided to be extra careful so that we could better manage that situation at that point in time. We expect to have new people coming in.
They are, again, at a slower pace than expected. For that reason, our curve is the green is the best estimate we can get, not the blue one. That will entail less savings for the year. Our estimate was BRL 790 million. Originally, it would be BRL 890 million of savings. As of next year, as a result of this activity alone, we'll be bringing costs down by BRL 1.2 billion a year. The payback would be about 11 months. There was that delay. We are focused on taking good care of the company, especially its operations. We believe that this BRL 100 million can, of course, be offset by far by the credibility of our operations, because now we can be sure that we'll be reaping that result next year as about BRL 2.2 billion, as I said.
The same assessment of the VSP number two that we introduced last year. Given the collective bargaining we had, our estimate was of about 1,475. The expectation was 1,574. We had 1,475, a little less than expected, as most of it have been terminated by July. On August 31st, over 500 employees will have left the company. This program is somewhat quick because some employees could not join our VSP number 1. That's why the process is now faster. Again, according to our board, we have been very conservative to maintain the company's operations and of course, its credibility, to maintain that credibility intact despite these adjustments.
This VSP has a cost of $513 million, savings of $688 million on an annualized base, a better payback than that of first, about nine months. That, of course, is consistent with what we said before during the Eletrobras Day. We're reducing our personnel costs. That was $4.6 billion in 2022, and we expect to reach $2.6 billion, reduction of almost 42% by 2026. Just to give you more color, these two voluntary separation programs, we're firing another 800 people. Our staff started out with 10,500. In Q2, we are at 8,432. We'll be reaching 7,727 by year's end.
With new professionals coming in the company throughout the country, and we expect to reach, in the second half of 2024, 7,250. As to this main activity to bring costs down, these two voluntary separation programs have already been implemented, and we are bringing costs down gradually. To the next slide, other activities related to PMSO. Our expectation. We had about BRL 4.1 billion worth of costs in PMSO in 2022. We expected BRL 200 million savings for the year. We're actually moving ahead. We're even moving that faster. We had additional savings of BRL 100 million, given the realization of the plan by June. We expected BRL 1.9 billion. We exceeded our projections in BRL 100 million. This is a whole set of activities.
Number one is OBZ. Let me point out that the number one activity and the number one driver that brings costs down is to centralize our hiring process for all the companies, then we can better estimate costs to have better services and materials synergies. We can better manage inventories through that centralized purchasing, which would give us more bargaining power. Centralization of contracts for both insurance and facilities, we brought costs down by over 40%. That's the first time we did that. We're expecting additional results for 2024. Let me remind you that now, the second half, we're now starting the centralization of the four centralized or shared services in Recife. Throughout the second half, we'll be concluding that centralization effort.
We'll be able to expand cost reductions throughout the year of 2024 as a result of this centralization effort I mentioned. Our estimates are on the left. We are, of course, working to bring that number by 42%, starting at BRL 41 billion, BRL 4.1 rather, bringing that number down to BRL 2.5 in 2026. These are the two main actions, two managerial actions, that will mobilize the entire management team, and we have been able to show very positive results up to now. Moving on. These are the financial highlights of Q2. These are very promising results. Net profit was up by 4%, reaching BRL 9,246,000. For the second quarter, our EBITDA was reaching BRL 6,595,000,000.
Results shows net profit BRL 1.619 billion, a 16% increase when compared to last year. At the bottom, you have the adjusted numbers, let me point out the following. In the reported number, we have a very relevant effect, which is the consolidation of Santo Antonio Energia. This operation occurred after the privatization in the third quarter. We have effects bringing in BRL 949 million, the additional BRL 449 million of revenue through that consolidation. On top of that, we had a reduction of contractual results in IFRS for transmission systems. Let me remind you that this revenue is booked based on economic indicators. IPCA is the most important one. In the second half of last year, with higher inflation rates, we had 3.18. It's almost half now for the second quarter.
That brings a reduction of BRL 101 million. We had another BRL 674 million or BRL 764 million for Transmission revenue due to regulatory changes in the period. We had a reduction in recurring PMSO, excluding PMSO of SAESA. Despite that negative impact, we had more salary increases of 2.13%. With CT seventy-three, we did that last year, another 4.18%, another BRL 15 million. We still have, as a relevant for the quarter, CDE, PMSO reduction of six, or rather, an increase of BRL 76 million for PMSO in SAESA, and BRL 332 million for costs and operational expenses. These two figures have been included to those numbers, and Elvira will be explaining that in further detail. The quarter was very positive as compulsory loans.
We reduced our remainder of over BRL 2 billion and about BRL 1.477 billion, because of settlements. It was a very important quarter. On the other hand, privatization took place in June last year. Since then, we incurred privatization costs. They amount to BRL 1.5 billion by quarter. They are referring to amortization of CDEs and other funds, BRL 397 million of amortization, and an additional BRL 1.2 billion for those obligations I just mentioned. Of course, you have more revenue. It's almost the cost of that transaction. It goes up as we move away from that stake when we compare quarter-on-quarter. Non-recurring highlights.
We provisioned the second voluntary separation program, the second one introduced in July, so it includes BRL 513 million for coverage of costs of 1,475 applications that will take place throughout time. Over a third has already been completed in August alone. On the other hand, we had an increase of consulting services in the transformation office, so that all these transformation receive the necessary support, not only on the technology front, but also in the quality of consulting services, so that they could be implemented smoothly. These are a one-off, but BRL 54 million for the quarter.
Now we can talk about our operating performance. This entails Generation and Transmission. We ended this quarter with these numbers, we went beyond 43,000 megawatts, representing 22% of Generation in Brazil. This is 20% of our installed capacity in Brazil, but actually 25% of the Generation in this quarter. 38,827 gigawatts hour is what we generated, which is important if we think about our economy. What is also very relevant is that we were able to generate that with 97% of clean energy sources. To your right, we see our PLG in each one of the sub-markets. We see increases compared to last year, this happens because of our costs with the voluntary dismissal plan. It also includes Itaipu. Below, we see the GSF curve. We see numbers for 2021, 2022, and 2023.
Our GSF is important because we need to hedge for it in our operations. We see information regarding costs and volumes for the trading of energy. Analysis is important. We basically have four products for sale in the free market. First, we have our quotas. We had a reduction in the volume or in the stakes of our company. This happens because we are reducing our stake. This is something we are doing as we work on fundraising. This 29% reduction represents only 7% of reduction in revenue from these products. Of course, this is also connected to inflation. This is something that we see for this quarter. We go from 67.3 megawatt hour to 78. The second important product is the regulated market. We see not only effects of its growth, but also the consolidation of SAESA.
Our energy volume in the regulated market grew 78% because of this consolidation. We saw 46% of growth in the average tariffs for this market. Usually for SAESA, we had lower tariffs compared to other plants in our Eletrobras group. We are still talking about a very relevant volume, around 3,800 GWh, BRL 23.78. For the third project or product, which is very promising for the future of our company, is the volume that we're trading in the free market. This includes not only the reduction of stake, which we mentioned before, but the volume that we have for SAESA. We had a 14% reduction in volume and a 14% reduction in revenue from this market. In this quarter, we had BRL 198 for this.
As I was saying, it's around 14% of increase compared to the previous year. The volumes that are not traded here are settled at the CCEE. This is this, the lowest volume, as you can see in the chart. The total energy that we, we sold this year, and this represents an increase of 8% year-over-year. When we see the total revenue for this company, we see a growth that is actually 23%, not 8%. We go from BRL 5.2 billion to BRL 6.4 billion. If we look at the product, electricity sold by Eletrobras, that leads us to BRL 211 per megawatt hour. This is relevant. This is good performance in this quarter.
It takes into account the capitalization process, which allows for increase in volume, but also better pricing for the products that Eletrobras is offering, both in the free and regulated markets. We have something that we'd like to clarify for analysts. It's an important disclaimer. This is how our company works. We have our resources for the second quarter, and as you may recall, we have a few clients under Law 13,182. It would be possible for some of these clients to be decommissioned. In the third row, we see the volumes of decommissioning. We have a minimum term for the decommissioning period. We go from 160-270.
This is added to our resources, and now this is going to be made available to the market, and they will be sold according to the prices that this, that the company can achieve. You can see the numbers here. We start with 9,571, and we get to 4,424 in 2027. Compared to the first quarter, we see growing numbers. This means that we're selling more quarter by quarter. We sold 8,875 gigawatts hour for 2023, and in this quarter, we sold another 9,571. The variation or the fluctuation in sales is shown in green. Now, in blue, at the bottom, we see information based not only on volume, which we see at the top, but also on hedging.
This is why it is important for us to report on our GSF and our forecasts. We can't just be caught off guard with a higher GSF. This is why we have a very structured process. In the first quarter for 2023, we had 18% or actually 11% of decommissioning, and for this quarter, we have only 6%, so from 11 to 6. For every quarter, we have these products for sale up until 2027. The volumes that are not sold in the second quarter are not as high as the ones that we had in the first quarter, which shows that we are getting to effective sales for every year for which products are available. We also have average contract prices of BRL 206. We even get to BRL 207 by 2027.
This is something we're monitoring weekly with my team so that we see the evolution of sales. We want to get the positive results, of course. We're also taking into account delinquency fees or delinquency rates. There's something else that we could have added here. The company ends up having a good perspective on the clients that we have. We already have 162 customers. These are different industries, different companies, so we're working hard on acquiring new clients. We're working on sales contracts for our subsidiaries. We're making products available. We have sub-markets for each of the subsidiaries, and we're working with the sales team so that we can better that. In the past, people would come to us, clients would come to us, but now we're going to customers, and we're making an energy offering based on our product portfolio.
We even want to diversify our product portfolio. I'm really happy with everything we're doing regarding energy trading. Now we can talk about Transmission. One of the highlights is the 30% growth in Transmission. Of course, we can think about inflation, we can think about IPCA at BRL 479 million. We added more assets, BRL 173 million. We had reinforcements and improvements, BRL 123 million. We had BRL -76 million for other adjustments, and we had BRL 3,320 million with the new profile for our PSC. For the 2023, 2024 cycle, we're going to see growth revenue of around 30% compared to 2022, 2023. Please remember that Eletrobras has 73,000 kilometers. That leads to a 38% stake in the Brazilian market.
In the Eletrobras Day, we talked about a CapEx that has been approved of 174 big scale endeavors, $5.9 billion until 2027. As of 2027, this leads to 846, but 132 will be realized in 2023. Now, next, we have the financial performance. Elvira will be talking about this. She'll go into details regarding revenue and how we manage expenditures, EBITDA, and our net income.
Thank you, Wilson. Good afternoon. Now we're going to talk about our balance. We always talk about this every quarter. To your left, you see the IFRS information. As he was saying, we had a 59% increase in our EBITDA, 16% increase in our net income, and to your right, still in the same table, we see our recurring basis.
We see that the EBITDA was basically the same, but the net results were below our results year-over-year. Now, let me tell you why this is happening. In previous quarters, we would always, always show the recurring results, but we would exclude our provisions, especially for compulsory loans. In prior periods, before we started this work, this would increase provisions, therefore reducing results. If we use the same criteria, the reversals of these provisions, which, which are positive, are non-recurring. This is why our EBITDA is kept at the same level, but we have a reduction in our net income. We have a few highlights to your right. Wilson mentioned some of them. We had around 4% growth in revenue. This has to do with Santo Antonio Energia and its consolidation.
This is the last quarter where we still have to explain the effects of Santo Antonio. As of the next quarter, Santo Antonio will have been at the same base as the previous year. We will no longer need to explain these effects, because in the second quarter of last year, Santo Antonio had not been consolidated yet. This is why we've been explaining these effects. It represented BRL 1.1 billion. In the next slide, we're going to talk about IFRS compared to our regulatory perspective. For the PMSO, we had a very positive quarter with a reduction of BRL 144 million. We're also excluding Santo Antonio, which adds BRL 62 million. This is the fruit of our initiatives, not only with the voluntary dismissal program, but also other items in PMSO. This also has to do with collective bargaining agreements.
For costs and operating expenses, Santo Antonio Energia adds revenue, it also adds costs. We see this impact of BRL 332 million. For construction, we are building transmission lines, we have expenditures for that. For depreciation and repayments, once again, we see the consolidation of Santo Antonio with BRL 204 million, we have the impact of concessions or grants, which were renewed when we went private, BRL 193 million. For financial results, which we'll go into details later, if we have a comparison quarter-over-quarter, we have a BRL 1.8 million reduction. This is mainly due to two things. First, Santo Antonio. As we consolidated, we have a financial expense related to interests, BRL 741 million. The biggest impact here is related to our obligations regarding the privatization of Eletrobras.
We have to pay fees over our CDE. We also have our projects related to basins and to renewable sources for the decarbonization of the Amazon, the legal Amazon. As we mentioned before, we were working with foreign exchange. We swapped to CDI because we don't have revenue in dollar, and we invested our cash in CDI. This brought us a non-cash effect at BRL 458 million real. When it comes to changes in foreign exchange, we had positive results. In the previous period from last year, we didn't have protections. The dollar went up and we had negative results last year. Since this didn't happen now, when we compare it year-over-year, we get to these positive results related to foreign exchange rates. We can talk about our gross revenue. We had a 4% growth, as previously said.
I've already mentioned Santo Antônio, which is the green column related to Generation. With Transmission to your right, it is important to say that with the IFRS, revenue gets updated. The balance of our assets gets updated according to the IPCA rate, meaning inflation. Since it changed, and it used to be over three last year, but it's over one this year, we had a reduction here, BRL 1,134,000. This was mitigated by our changes in OEM, O&M, adding BRL 408 million, and also our construction assets, adding BRL 338 million. This is why we have minus BRL 388 million here, not BRL 1.1 million or BRL 1.1 billion, actually. This year, we're no longer responsible for Procel, so we don't have the revenue that we had in the previous quarter, around BRL 400.
Around BRL 40 million. We had both costs and revenues related to this, and we're no longer responsible for Procel.
We'll now see the breakdown of PMSO. On the left, top left, that's IFRS, and at the bottom, the recurring view with the adjustments. 2 major adjustments, basically. Number one, the second VSP provision, BRL 500 million, that we have already mentioned, and the Santo Antônio consolidation effect in the IFRS view is 1% increase. When we consider we did not have Santo Antônio Energia last year, and the VSP 2 provision is a one-off event. In comparable basis, we had a 7% reduction, as you can see on the bottom chart, at BRL 144 million reduction. On the right, these are the highlights.
In staff, BRL 134 million, an 11% reduction, which is significant, especially when we consider that we do not have ASP increases of 12% last year and 4% for the year, and new people that have been hired. As to services in blue, non-recurring, has to do with the transformation office effort, in others, we had legal cases as a result of the work conducted by the legal department. There's another important activity. Wilson has mentioned that in the NSO strategy, which is centralizing the insurance hiring. We have managed to reduce costs by BRL 23 million. These are the highlights for the PMSO. Now on to provisions. On the right, you see a summarized table, some provisions for the same period last year when compared to this year.
In 2022, we had BRL 2.2 billion in provisions, a reversal of BRL 1.7 billion. Last year, let me remind you of that, as far as compulsory loans, was BRL 242 million. This year, almost BRL 1.5 billion. For cases that are not compulsory, last year, we were at BRL 475 million, an increase, and this year, a reversal of BRL 184 million. This is one of the initiatives we mentioned during Eletrobras Day. Just like we have been negotiating compulsory contracts, our VP, Marcelo, is already heading that process for other cases to review risks, and we have been able to review that risk mitigation. That's why we had that positive impact onto investments. The second half of or second quarter of last year, we had to account the losses for Santo Antonio Energia.
We have reversed that with the consolidation and the PECLD, Amazonas Energia last year. These were the highlights. In the quarter, we had BRL 1.7 billion as positive effect, improving results by reversing our provisions. Let me break that down as far as the compulsory loans are concerned. Ever since we started that plan in Q3 of last year, on the right, you can see the table of provision inventory for compulsory was almost BRL 26 billion, BRL 25.8 billion to be exact, and we're now at BRL 22.1 billion. That reduction amount for BRL 3.7 million, or BRL 3.7 billion rather, for these quarters. In the current quarter, we had an inclusion of BRL 1.4 billion, just like I explained in the previous slide.
When we take into account other agreements or other settlements that have been negotiated, we're just waiting for the final ratification of those settlements. They haven't been booked in the quarter. We had an additional $1.7 billion, we expect a reduction of, from $22 billion to about $20 billion. For the year, it will amount to a $5.4 billion reduction, almost 20% reduction. In red, let me point that out, the monetary adjustment, given our interest rates. As our inventory of provisions comes down, we also reduce the monetary impact for the quarter. The last two highlights on your right. Since our negotiation strategy involves all compulsory processes or cases they have against us, we reduce off-balance contingencies. That is $1.9 billion off-balance, and a release of $1.3 billion of connected cases, those that were used as guarantees.
These are judicial deposits that amount to BRL 1.3 billion. On to the EBITDA variation. In IFRS, we had a 59% increase, but we deal these reverses as non-recurring. In adjusted basis, our EBITDA was along the lines of the number we had last year. On to the next slide. This is the net profit assessment. Since we removed compulsory events as non-recurring, that's why our net profit is reduced, therefore. Let me point out a couple of things. The financial results, the column in red, BRL 1.8 billion, this is impacted. It's on the right. We have some important events. Number one, the privatization obligations, regional funds, CDE, amounting to BRL 1.1 billion. We had the hedge issue. I tried to break that down. Let me remind you of what we did.
We had two bonds. One is $500 million maturing in 2025, and another $759 million for 2030. When we signed that operation in late May, FX was 5.54, and swapped that to CDI. The series is for 2025. It's now 94%, 97.4% of CDI, and for the 2030, was CDI plus 1.7. These are the relevant information we would like to convey to you. These are cheap debts when we compare to prices today. We wouldn't be able to leverage that loan at this cost. We're moving away from that foreign exchange risk because we're protected by CDI, and that effect of $467 million, which is a non-cash effect, is the result of the differences of these flows.
Once we concluded the operation, FX came down and our CDI was high. For depreciation and amortization, another column in red, BRL 400 million. The number one reason behind it is due to the new concession contracts we have been depreciating ever since the privatization, and again, the consolidation of Santo Antonio Energia. Moving on to the end of my presentation, on to the next slide. This is the net debt-adjusted EBITDA ratio according to our financial discipline. We have been able to maintain our 2 x indebtedness level, as you can see on the left, and on the right, you can see detailed information of our debt profile, BRL 57 billion. Consolidated cash was BRL 18.6 billion. Net debt is about BRL 38 billion. Let me point out what I wrote at the bottom on your right.
According to our explanation notes, in late June, we converted BRL 4.1 billion through AFAC and intercompany debentures. As of July, we'll be able to see the results of the fiscal savings of that operation. We expect BRL 180 million savings for the year. Since this year, we only have half of the year, we'll be achieving half of that amount. I have my final slide of investments. Then I'll turn over the presentation to Wilson. As we show every quarter, we show you the investment curve. In blue, investments by June, amounting BRL 2.5 billion. In green, the same period of last year, not including Santo Antônio allocations for the CapEx, was BRL 1 billion. We have this major increase. On the right, two highlights. We have that impact of construction in Coxilha Negra.
Investments amounted to BRL 279 million. Also, here, the SPEs, we resumed Transnorte Energia, a very important project to connect Roraima, the state of Roraima. We had another or an extra BRL 29 million of allocations there. These are the highlights for the quarter. I'll turn it over back to Wilson.
Thank you, Elvira. Let's move on to the next slide, please. Let me point out a couple of investments we made. We announced that right after Eletrobras Day, BRL 17 billion in contracted investments for the period 2023-2027. BRL 6.7 billion in Transmission assets. We were talking about that these are assets for improvements that have been now approved by ANEEL, which is, have a guaranteed revenue.
We also have for improvements, a set of mills or plants operating in the Proinfa system with an additional BRL 4.6 billion there, BRL 2.9 billion for infrastructure and environment. The first BRL 1 billion is related to environmental investments. A little over BRL 500 million for the social environment programs that have already been commissioned for Santo Antônio, and BRL 1.9 billion for infrastructure. These are optimization efforts of our costs that can be ranked as operational investments, but they're actually necessary investments through automation, robotization of a couple of processes with intelligent networks, AI, BRL 2.4 billion for Generation assets with new sources of revenue that have been commissioned. Edvard mentioned, that's the wind process in Coxilha Negra, and BRL 0.7 billion in contracted M&As. Teles Pires, Baguari, Retiro Baixo, SAESA, and Baguari Energia.
These are assets will incur in cash outflow of BRL 0.9 million. That's not all. We have the outlook for growth. We have additional firepower. These are alternative sources of growth. Number one is the Transmission auctions, several auctions that are scheduled for this year and next year, BRL 35 billion in total. The company was very competitive, the only company that was present for every lot. This is an important growth avenue that is interesting for the company. We do have M&A operations, not only for that, the reversal of cross-ownership. We had that goal, and that has to go through that reversal, just like Neoenergia, but also M&A operations. We are considering renewable sources, transmission, assets with the analysis of Élio's team, and another BRL 10 billion, addition of investments to improve transmission system.
We had BRL 6 billion that have been approved in the previous slide. An additional BRL 10 billion that would bring in an additional BRL 1.2 billion of revenue. Ítalo will be leading the effort, analyzing the quality of the asset in partnership with Varejão. We are, of course, focusing our efforts to submit that for ANEEL's approval. Every single investment will have to be subjected to that risk-return assessment submitted by our committees, and our board, and everyone, of course, using the services of a rating company, so that we can generate value from that asset, because the rate of return has to be above that cost of capital. On to the next steps. This is our final message to you. We're going through a transformation phase. This is the third quarter I'm reporting.
My team has been working for almost a quarter together, but we're making a difference already. First one is the reverse of cross-ownership strategy. Our goal is to reach 31 SPEs. We had 74 earlier this year. We are at 68 now. We're working towards that goal as early as the beginning of next year. A second effort, we are advancing compulsory loans negotiations. We have BRL 400 million in there under negotiation. BRL 1.7 billion have been commissioned. We had BRL 22 billion of provisions. Early last year, we were at BRL 26 billion. By this effort alone, we'll be able to bring those number down by BRL 20 billion. We'll be reducing or completing or eliminating the FX exposure. We are speeding up our tax strategy. We do have credits above BRL 13 billion.
There are several activities that have been shared since Eletrobras Day, almost about $1 billion in four years. It can be even more. We had a trading strategy. Once we have that trading company, we better structuring our sales teams. We also have a trading desk. We do have all the elements in place so that we can become a very good company in trading effort, too. We are boosting the number of customers, and people are coming to look for our products, and we're also developing new products so that we can become even more competitive in this new market. Of course, our focus is on PMSO savings. That's the number one asset that can be managed, that can deliver results on a short-term basis. A $990 million savings for this year alone. 39% has been realized already.
Second half, this is even more heated, if I can put it that way. Renato Carreira is leading this next activity. We have a whole set of real estate assets. They cost money, operational and maintenance, tax-related costs. We have a team looking at this issue so that we can bring an additional BRL 450 million by next year. These are some of the activities that are already beginning to show some results, compulsory loans, among others. I remain optimistic about these initiatives, and we'll be able to deliver very good results in the next quarters. I just would like to conclude by thank for all the awards we have, and I speak on behalf of the board. The best CEO, the best CFO team, the best IR professionals. Paula, thank you very much for your effort.
This is yet another incentive to help us keep working harder and harder under Elvira’s and myself leadership. Let’s get started with the Q&A session.
Now we're going to start the Q&A session. Please ask your questions at once. Should you have a question, please send them to us through the Q&A button at the bottom bar. We'll call your name, and you'll be able to ask your question live. That's when you'll see a prompt to turn your microphone on. If you prefer not to speak live, at the end of your question, add a comment saying, "No microphone," so that our operator can read it aloud. Our first question is from Andre Sampaio, from Santander. Please go ahead, Mr. Sampaio.
Hi, good afternoon. I have two questions. Let's start with Angra... We saw a number of articles this week regarding whether or not the government is moving ahead with this project. Could you please comment on your expectations regarding including this in the growth acceleration program?
Let's say this project is not built, what would be the impact for Eletrobras?
Thank you for your questions, Andre. Let me start answering regarding Angra. Of course, this is a part of our fundraising process. We're always working on the assumption that since this project is important for Brazil, they will move ahead with it. This is what we expect to see. We've seen speculation, but just a while ago, I was seeing the opposite. I was seeing that, yes, this project will most likely be included in the growth acceleration program. We have to wait and see, of course, but we need to remember that moving ahead with this project does not really depend on the growth acceleration program.
Of course, we were waiting for the BNDES, the Brazilian Development Bank, to finish its studies, its research. After they're done with their research, they'll think about the continuity of this project. We are working on the assumption that they are going to move ahead with this project. This is our hypothesis, because this is the subject matter of this act. We don't necessarily think that it needs to be a part of the growth acceleration program for them to move ahead with it. Regarding the option you mentioned, let me hand it over to Limp and to Élio, because they may have comments. Let's talk about your option, which is not ours. Thank you, Wilson. Well said. Indeed, the articles that we saw in the last couple of weeks were not even regarding whether or not Angra 3 will continue or not.
They were talking about the growth acceleration program, these things are not linked. This is a part of this act. It is a part of the PPI, the CNPE, the privatization program, the separation program for electricity and nuclear. Right now, we are doing everything, and we are seeing everything be done as intended. For example, they are finishing their research, and they are working on the CNPE. Now, should they stop working on Angra, Eletrobras as a shareholder, in the case of financing, we are the guarantors of this debt, around BRL 6 billion, but we are not the main debtor. These responsibilities goes to Eletronuclear, and it goes up to shareholders, depending on the circumstances. In the case of their debt, we are providing the collateral for that. It's possible that we'd have to reimburse it.
We do not believe that they're not going to move ahead with Angra Three, but should that happen, we'd definitely make an assessment of all potential impacts for Eletrobras. We do believe they are going to move ahead with it. All right, thank you. By the way, let me stress something. We've been working according to the privatization rules. According to these rules, not only do they talk about moving ahead with Angra Three, but they also talk about governance rules for Eletronuclear. Their CFO, two board members, members from the auditing committee, members from COANGRA, which is the committee responsible for overseeing Angra Three works. All of them are aware of it, so we're close to them, and this has to do with the management of the Eletronuclear.
Of course, they are taking into account everything that is in their best interest, both for the company and the shareholders. Yes, here we have Mr. Élio Wolff and Ms. Camila Araujo, who are representing us. Eletrobras really values this topic. We have two VPs working on it. All right. Thank you. Thank you, Andre.
Our next question is from Mr. Daniel Almeida, from Butte Investimentos. Mr. Almeida, you'll be able to unmute now.
Hi, can you hear me? Yes, we can. Here's my question. Regarding your next issuances, what would the rate be? Do you expect to reduce your capital cost? This is our goal. Not only do we want to make it longer, but also to reduce costs. What happened with Eletronorte is something that teaches us, even though we need to think about the debt scenario that we have right now.
Somebody else may have a comment like Elvira, I think it is important to talk about what we're doing. Yes, unfortunately, Daniel, we can't convey any information about this because we cannot, legally speaking. We issued a material fact, this is regulated by the Brazilian Securities Commission, this is only the beginning of their proceedings, we're unable to share any preliminary information. We need to wait for the Securities Commission to do their work, to do their job, then we'll be able to talk about it. This is regarding Eletronorte, as reported in June. Thank you. Thank you, Daniel. Our next question is from Mr. Daniel Travitzky from Safra. Please go ahead and unmute yourself. Hello, everyone. Good afternoon. Thank you for answering my question. I actually have two questions. First, I have a question regarding energy trading.
We saw implicit prices for trading in 2023. They were very high, BRL 179, which is above the spot price, and it's even above the price curves that you showed us. How did you get to these results? Could you please talk about the rationale behind your strategy? My second question is related to capital allocation. Wilson, you mentioned Transmission auctions to be held soon. If we think about direct currents, we have an auction for that in December, what kind of opportunity do we see there? What do you think about the competition? What would be your technology challenges to put this project together? Thank you, Daniel. Let's talk about trading first. When it comes to these implicit numbers, these are the result of a strategy that we actually deployed last year. Trading is something that requires planning.
It requires a specific view. We have a strategy committee to work on that. They think about the evolution of demand and the potential scenarios that we may see in this system. Additionally, they also think about deliverables from assets with more or less flexibility vis-a-vis the electricity system. All these three factors have an impact on pricing. If you look at these prices one year ago, you have a more favorable scenario, but the economy is not as dynamic, so you sell forward. This is what happened with Eletrobras. The first answer is, to get to these prices, we actually designed this strategy last year, and we sold forward. As I was saying, we were successful. It's important to highlight that this is not the only strategy to get to higher prices in the case of Eletrobras.
Eletrobras is one of the few companies with energy volumes that could be traded not only in the short term, but also in the long term. We retain our rights over these volumes over 30 years. We are one of the few companies who are able to do that, to offer different offerings to customers in the long term, with different propositions regarding curves or flexibility. With our volumes, we definitely have more flexibility to customize our supply to specific customers, which we believe is important. Number three, we changed our strategy compared to last year. We were basically operating based on generators and traders. The open market right now is 10,000-12,000 customers. They are what we call the A group, the high voltage group, 32% of volumes.
This market will be extended as of January 2024, with over 100,000 customers becoming a part of it. We are customizing this B2B market with all of its specificities. We have advisory services behind us. We are working with very smart people who are trying to prepare us so that we have the right tools in our trading table in order to create more value and offer offerings that stand out and add value to customers. For the numbers we have for this year, they are definitely the result of a strategy that we started deploying last year, which was really successful. As I was saying, we made a few improvements this year as well, especially when it comes to our sales team. They've been looking for customers instead of waiting to be approached.
Regarding capital allocation, Élio Wolff is going to add something to this, but I'd like to say something about Transmissions. We clearly see advantages because we are scattered all over the country. We have a structure in every state in the country, and that's a perk. We were a very large company in the past. There was too much, but now, oftentimes we're able to purchase equipment at a bigger scale. We also see how important it is to look at our operation structure from up close. If we have an asset in the Northeast, of course, people from Chesf is going to be on top of it, because this is going to be a better utilization of this asset. It'll be easier for us to hire third parties at a better scale for this kind of operation through this kind of approach.
If you look at results from the previous auction, we were very competitive, and at the time, the team had been on it for under three months. I'm really hopeful that we'll keep on making progress here. I believe we'll be even more competitive in the next auction. Now, regarding direct currents. We could talk about a technology upgrade, and we'll need it in Brazil, and we're ready for it. We have partnerships with the State Grid for Belo Monte, with ISA CTEEP for the Madeira River. We are the operators of the direct current coming from Itaipu, so we need to increase the reliability of our system and to reduce losses, and this is the technology that will be used. Élio may have something to add to it. Our team is looking for this kind of partnership so that we're very competitive. I agree. Let me add something.
I think the last auction was just the beginning. We're working on it, and we're studying. We're doing our research for December. In December, they're going to focus on a batch of around BRL 18 billion-BRL 19 billion. There was a change recently. You may have seen it. Looking for a better competitiveness, the regulator decided to have bids split into four sub-batches. We have the converter with the main batch and four sub-batches. Well, this bid is going to happen in December. As Wilson said, we've been talking to partnerships and suppliers. We have an ongoing conversation with them. We also have preliminary research trying to identify routes and the best paths. We're also trying to figure out the best structure as far as cabling goes.
We're getting ready for this auction, not only for the big batch split into four, but the other batches as well, batches two and three. For December, we are proactively preparing ourselves to send our bids. Thank you, Élio. Next?
Our next question is from Mr. Henrique Peretti from JP Morgan. Please go ahead and unmute.
You'll see a request on your screen to unmute your mic. You can go ahead and ask your question. Mr. Junqueira asks the next question.
Hello, can you hear me? Go ahead. You can ask your question. Thank you for taking my question. Let me talk about Angra 3. Part of the reason why this discussion comes up-
It's a recurring topic. The market is very fearful of this topic. If it is decommissioned, the company would be losing BRL 10 billion, BRL 12 billion, BRL 14 billion. You hear that kind of comment left and right. I may be completely wrong, but I have the impression that is due to a communication problem. Once again, I would like to take this opportunity to ask your opinion. If there is a decommissioning happening, what is your take on those debt? Eletronuclear would default two debts, BRL 6 billion. That seems to be a very radical or extreme result. Could you explain how these costs would be broken down, how they were calculated, if it happens? Along the same lines, can the company provide any kind of guarantee, or would Eletrobras would have to collect or increase its capital? Would the company have to do that, too?
We know it is mandatory in the case of the construction portion of the project. I think it would be interesting so that we could all share the same opinion, because that volatility, volatility is not helpful to anyone. I'm positive you are right, and would like to take this opportunity to clarify this issue. Despite the importance of this asset, the basic scenario is that of continuity. Let me remind you of two things. The controller of the company is the Brazilian state, the ENBPar. They have an almost 70% of common stock. Eletrobras has a bigger stake of the capital. It has less than 40% of the common stock. Well, this company, when we operated it, it was a company that ran at a loss. It's no longer the case with Angra 1 and T2.
The EBITDA is robust and positive, it can cover for any adverse effects. We'll be able to clearly withstand all those negative effects. Limp and Elvira, you can also provide more detail about the financing. According to the law, based on the agreement we signed. I was trying to unmute myself. Well, well, on to the debt, $6 billion, Eletrobras is the guarantor of that debt. If they cannot cover, Eletrobras can become sued. Legally speaking, we are entitled to look for compensation from Eletronuclear if we are executed. As to the demobilization cost, there's no direct guarantee from Eletrobras. It's up to Eletronuclear. If Eletronuclear is not able to cover for that cost, that can reach shareholders, but not Eletrobras alone. That is also valid for the controller.
If you increase the capital, we would have to make an assessment, but that would involve the entire legislation of Eletrobras. As a shareholder, I wouldn't be able to tell you whether Eletrobras would be forced to allocate resources there if it's not re-related to the construction part. We have to take a deeper dive to better understand this topic. There are no exact answers. You cannot quantify the impact in numbers. It's not a recipe. Given the current situation, we are the guarantors, but we can find compensation. All the other costs are Eletronuclear, but there's a direct guarantee, as you said. If Eletronuclear is not able to do that, that can impact shareholders, not only Electro. When you say impacting shareholders, would that mean the equity? Your equity at Eletronuclear would be worth less.
If you increase capital to decommission, would you have to follow the 36% rule, or that's not the case? Well, we do not have that answer. We have to analyze the scenario, because that's not the scenario we're working with. We have to take a deeper analysis if that's the case. You cannot guarantee anything. You'll not be purchasing equipment, the commissioning costs, X debt. The company is not-- We're not creditors, no. That decision of decommissioning is not taken by Eletrobras. That would be the burden of those that make the decision. In such a case, this is going to be assessed by the controller as a controller itself. We'll be answering according to our participation. Eletronuclear has a debt net EBITDA about 3, 3- odds, the entire debt is from under three. Yeah, the rest is net cash.
It's a very solid company, generating EBITDA. It's a 3 x budget. It's a company owned by the state, but you're talking about the state defaulting a debt, state that would be BRL 1 trillion with the debt. It would default the debt? I think the stress is due to lack of information. That's not your base scenario, but I think it's worth further explaining it on a step-by-step basis so that everyone would speak the same language. You're right. You're right. We're working in that direction, Junqueira. The board will be addressing that issue. Thank you. That was my only question. Thank you.
Thank you. Mr. Marcelo Sá, Itaú BBA, asks the next question. Thank you. Could you please elaborate on the CapEx? You break that down by segment, but out of this commission CapEx, what, what part of it does not generate revenue?
It's BRL 1.5 worth of revenue generation, but there was an additional CapEx that is non-recurring, but should we consider that BRL 1.5 billion for maintenance purposes, that wouldn't be generating revenue necessarily. Competitors are not looking for a hydro-only solution. What's your take on this next auction? Are there any projects willing to take part? What would be the amount available, and what is your estimate as far as capacity hiring is concerned? I'll turn it over to Élio Wolff, then Limp can jump in to talk about CapEx and the capacity auction. Over to you, Élio. Hello, Marcelo. The first block is related to revenue, and I mean Transmission.
The second block, the maintenance CapEx. This should be regarded as recurring CapEx that is non-revenue generating. It's BRL 1.5 billion or BRL 0.75 billion in three years. That's the maintenance recurring CapEx. This is the non-revenue generating, right? Yes, exactly. The BRL 3 billion is a mix. Part of it should generate revenue from improvements. There's a part from modernizing equipment. I think it's important to speed up that process of MSO. This is a one-off event. As far as the environment is, most of it coming from size, these obligations would be dwindling as years go by. These are non-revenue generating. There's a progressive phasing out of that process. There's Coxilha. Coxilha is a new asset. Then there's M&As.
In essence, as far as modeling is concerned, BRL 1.5 is non-recurring, rather, is recurring, non-revenue generating. This is the best answer I can give you for your model. For the auction? Let me clarify one thing about CapEx. As you're showing, you said that non-recurring for Generation, there's a little bit of improvements, but in 30 years, would there be any leaps or modernization efforts that would be outside those BRL 1.5 billion? Are there any surprises looking ahead? No, there are no relevant surprises further down the road. If we detect any opportunities to modernize or maybe repower our units, that could generate important revenue, of course, we'll take that into consideration. We don't envision any of those surprises as we speak. On to the auctions, we have projects of renewable sources.
As far as thermal plants, we are divesting or divesting from those operations. It's currently underway. There's a teaser in the marketplace about it, so we are divesting in those areas. Of course, we'll be addressing the capacity depending on how EPE designs it. We'll be looking for opportunities not only to sell energy, but also to come up with new projects to make that opportunity possible for the group to grow even further. We have no volumes set aside specifically for the auction. We have to learn how the government will be defining that auction, the types of modalities, a direct participation, whether it's a possibility, hybrid services. These are possibilities we have to take into consideration so that we can define how we are going to be part of that auction. Thank you. Thank you.
Yuri Gullard from Trilha Investments is asking the next question: Can you elaborate on your interest in the capacity auction for next year? That's the question we have just answered. I think he read Marcelo's mind. Would you like to say anything else, Limp? No, that's it. We have to better learn about the premises and how the rules will be detailed, just like the previous auction, only for thermal plants. That would be completely the opposite of our directions today.
Thank you. We turn over the floor to Mr. Wilson Ferreira for his final remarks.
Well, thank you for attending our Q2 earnings call. I'm very pleased, as well as the team is, as to the start of the realization of the results after the privatization process. Some benefits are evident. We're talking about more revenue from the free market.
This is the result of that decommissioning, and we have better benefits to extract once we have the trading company set in place. Last year, the company was reduced due to a series of voluntary termination program. We have had two of these programs. We are hiring new people. Some people are leaving the company, and we do have to have a mix in place that can provide more productivity and cost reductions, and being more productive in the marketplace. We have a very experienced team as far as MSO, head or led by Renato Carreira. He has a lot of experience, even abroad, but we brought in several people from or to Renato's team to be able to better negotiate materials, third-party services, inventory. We have 95 warehouses. We have seven data centers, four shared services centers.
We have been working hard to optimize these assets. These are currently underway. Once again, we have advanced significantly our liability management strategies. We'll be able to show those results in the near future. We've done that at Eletronorte. This is just the beginning of that effort. We still have a lot of homework to do as far as tax and fiscal optimization. That's our focus. This is our priority. Absolutely, we not only have to operate efficiently and with safety, but also remaining competitive and focusing our opportunities on Transmission. I'd say it's a need for the country. That's exactly where we can contribute substantially and also generating value and being competitive. Our reversal of cross-ownership, especially taking opportunity of M&A opportunities in the marketplace. I'm certain we are heading in the right direction.
We've been here only for three quarters. For the first time, we have a clear vision of the entire team. I'd like to thank the entire team. I failed to mention the non-recurring of compulsory loans. We have managed to evolve dramatically after six, seven months. At an effort led by Paula and Marcelo Siqueira, I think there's important whole road ahead of us. Over 20% of provisions have been brought down in record times. We're gaining traction. Processes are better structured. There's no other company in the energy industry with our size, with our possibility to reduce costs and generate value, reducing financial costs, and at the same time, creating value to optimize our tax expenses and also have the possibility to grow. No other company can do that.
It's a unique asset at a time in, in which our target price is much bigger. The upside is very relevant. It's important to mention that the team is committed to realize those possibilities, and we'll be seeing those results coming in, in the near future. Once again, thank you for attending our earnings call. I wish everyone a great day.
This concludes Eletrobras' earnings call. Thank you for attending. Have a good afternoon.