Good afternoon, everyone. Please be welcome to the earnings conference call of the first quarter of 2023 of Energisa. We inform that this video conference is being recorded and will be available at the company's IR website, where the current presentation is also available. We highlight that who may ever need simultaneous translation, we have this tool available at the globe icon written interpretation located at the bottom area of your screen. By selecting it, choose your preferred language, Portuguese or English. For those listening to video conference in English, there is the option to mute the original audio in Portuguese by clicking Mute Original Audio. For a Q&A, question and answer session, we guide you that you send the questions via the Q&A icon located also at the bottom area of your screen.
By dynamics, your name will then be announced so that you can ask your questions live. At this moment, a request to activate your microphone will show up on your screen. Considering that some of the panelists are remotely, some instability may occur on the video conference, impacting on the answering time, especially during the question and answering session. We count on your comprehension. We highlight the informations available in this presentation and eventual statements that can be done during this video conference related to business perspectives, projections, and operational goals and financial goals of Energisa, the constitutional beliefs and premises of the administration of the company, such as information that are currently available. Future statements are not proof of performance. They involve risks, uncertainties and premises because they refer to future events, so they depend on circumstances that may or not occur.
Investors must comprehend that these economical conditions, market conditions, and other operational factors can affect the future performance of Energisa and conduct results that defer materially though from those expressed in such statements. I would like to pass the word to Mauricio Botelho, financial director and investor relations of the company, so that we can start our presentation. Mauricio, please go ahead. Just a small change here, Ricardo will start the presentation. Okay? Thank you, operator. Good afternoon to everyone. I'd like to thank the presence of everyone on this presentation on the 1st quarter of 2023. Participating in this event with their respective teams, the following executives: Mauricio Botelho, CFO of the company, Fernando Maya, Regulations Vice President, Gioreli de Sousa Filho, Network Vice President, Daniele Salomão, Vice President of People, Roberta Godoi, Energisa Vice President, and Investor Relations team.
First, I kindly ask that you might be pay attention to any warrants that we have on the slide before any decision-taking on investments on the company. By starting the presentation on this quarter, I would like to highlight some events that mark the results on this quarter. March thirty-first of 2023, the company won an auction on the privatization and acquiring 100% of the capital of the gas company, the state of Espírito Santo, ES Gás, in charge of exploring the source of the gas, channeled gas, and for activities correlated to the state of Espírito Santo by the amount of BRL 1.4 million. CADE approved yesterday this acquisition, and we're still waiting for the regulatory standards to be okay in 13 days. If everything works nice in this time, this decision will be made definitive.
We'll be waiting to start in this company, and we hope it waits with all these steps being worked out. We expect this works after the month of June. This diversifying all of these, of this business, and it gives us a new avenue of being working on developments, and we expect to bring more solutions, energetic solutions, energy solutions with the transitions that the Group already has. On the consolidated, the Group, the EBITDA indicator adjusted recurring, which excludes the accountability of VNR and the EBITDA of Cherry, and it adds the regulatory EBITDA of this transmission segment at a growth of 19.4%, totaling 1.64 billion BRL. This result was flex mostly of evolution of the segments of transmission of and Energisa that had a relevant growth comparing the quarters.
We're gonna be giving more details ahead. Next slide, please. Energisa, a branch of the group that represents the non-regulated groups, had a growth of 170% on installed capacity of distributed generation, reaching 211 MW peak of installed potency and 59 power plants operating at the end of the quarter. With this, I end my highlights here, and please give the word back to Mauricio to be presenting the main results of the 1st quarter of 2023. Mauricio, please go ahead.
Good afternoon to everyone. I appreciate the presence of all of you on another presentation of Energisa Group. Mostly, I'd like to inform, continuing the representation of the financial demonstrations, as we showed on the last quarter, last year. We also represent on this quarter, 2022, showing the best comparison between the quarters.
In return to the highlights here, the recurring EBITDA, as Ricardo told us, had a growth of 19.4%, totaling BRL 1.64 billion. The conventional EBITDA had a growth of 12.6% and reached a mark of BRL 1.86 billion on the quarter. Talking about operational costs of PMSO, we had an increment of approximately 20% comparing between the quarters, being mostly with the personal and third-party associate parts to support the growth of transmission, generation, and distribution, and aggregated services. Adding on this, we had a growth on the distribution segment to be adequately to the next quality standards and resolutions of ANEEL. These measures, besides being a really improvement to the guests and reduce the expense that we have on regulatory services.
With more details that we have here about the personal, we had a growth of more than BRL 70 million in salaries and monies of the growth of the employees in collaboration with the salary readjustments that had on 2022. Third-party services, we had an increase of BRL 25 million in expenses with maintenance, cleaning and maintenance and conservation of equipment, around almost BRL 40 million. Expenses with current inspection and Reenergy. To the next slide, please. We're gonna be talking about the net profit. The consolidated had a growth of 6.4% compared to the first quarter of 2022 and reached a mark of BRL 509 million. The recurring just net income, taking the marking of the options of bonus and subscription and accounting of VNR being adjusted with the results of transmission.
It had a decrease of 33.2% of BRL 430 million- BRL 287 million, comparing between the first quarter of 2022 and the first quarter of 2023. This decrease can be explained by most part with the financial results that we had. We had an expense of BRL 771 million, 37% bigger, impacting mostly by the interest rates in Brazil that influenced the costs of the endowment of the company between the trimesters. Next slide, please. Talking about investments. The investments of the group had a reduction comparing the quarters, being influenced mostly by investments on the transmission segments that in the first quarter, they were being constructed by Energisa concession to continue as transmitter that got 100% in the beginning of 2023.
Still, in the first quarter of 2022, we were also constructing the solar complex Rio do Peixe that started operating September 2022. The generation segment moves fastly at a growth of 74%, totaling BRL 163 million at the quarter. On the next slide, please. Here, despite the challenging market with interest rates like high enough, the leverage shows up that we fall below the level of covenants, 4.25 of the debts of EBITDA just in covenants. Besides reduction of the liquid debt, our cash flow in the company closed the quarter with BRL 7 billion, based in the BRL 6.1 billion at December 2022. Comparing December 2022, we had a decrease of 0.1 times, reaching a level 2.9 of the liquid debt of EBITDA.
Here, follow some highlights on the distribution segment. On the first quarter of 2023, the energy consumption of the market kept stable comparing to the same period of last year, despite the reduction. As we can see at AM, at ES and MG, we must highlight the great performance of distributors located in North and Northeast that balanced the result of the group. The main positive influences came from residential, industrial classes, mostly on foods, beverages, and metals. The growth of consumption was motivated by the high temperature on North. Back of the calendar of the positive growth in some distributors and growth and activity in the industrial classes. Minerals, non-metallics, fertilizers and food. On the next slide, we're talking about losses. The total losses. We had Just comparing to the last quarter.
On the first quarter 2023, we got 0.68 percentage points below the limit. Being more specific on this quarter. The first quarter in Rondônia, they presented a reduction of 1.33 percentage points related to the same period last year, and a reduction of 0.27 percentage points related to the last quarter. In Acre, it became 4.88 percentage points below the regulatory referential. In comparing Rondônia and Acre with the values of December 2018 when they were privatization, we have a reduction of 5.44 percentage points and 4.69 percentage points respectively. These results, they show the success of the strategies fighting against the losses applied in all distributors of the group, especially on the companies that we acquired in 2018. The following year, the analysis of the following indicators.
The distributors of the group, they have excellent performance on the quarter, with a lot of distributors reaching the historical minimum, the DEC and FEC. Being these ones, Sergipe, Mato Grosso, Mato Grosso do Sul and Acre. The group, with the turnaround groups, with Acre and Rondonia, show the good turnaround and the good management of investments here. Showing that we can transform everything and moving it. No indicators that we have here. With all the investments that we have made, it was not like lucky, but it was a virtue of the company. Now we're talking about Default, yeah. We had a default in the last 12 months, 1.24%, showing an improvement of 0.09 percentage points related to the same period last year.
Financially speaking, it was a reduction of BRL 41 million between the quarters, totaling 88.6 quarters for quarter two 2023. It could be mostly of a low tension about, meaning about residential, commercial, industrial worry, that they got the biggest share of clients of the energy user that contributed to this default tax rates. Just a small highlight here about the fusion of the corporation of the subsidiary purses of Paraíba that happened. Now we are a joint company, it's possible to reduce the expense, operational expenses and bringing benefits in regulatory aspects, operational aspects, regulatory losses. It was highlighted as well that was this joint, the concession contract of Boa Viagem that was up to 2030, was extended to 2021.
This slide, we can show results of how it we working at March 2023. Now following about transmission. We follow up with four confections in construction. These projects, they add up to BRL 116 million of RAP and eight operational transmitters, totaling BRL 665.5 million of RAP, including a share of optical fiber. The Energisa Amazonas project, according to the rules of the ruling, allows to some addings to the project that are being concluded with some defined goals to the commitment and sequence of phases. Energisa Amazonas has a schedule of investments by phases. Today, we received 30% of RAP in our respective, and we expect to get at the end of 2024, 50% total of the RAP.
We expect to finish it in 2027, when we will have all the operational lines available. We're gonna be talking about energy user. We had an advance of 205% comparing the quarters with the photovoltaic energy, and Brazil had a growth of only 80%. This growth reflected on the great performance. Three times more of sales that we had on 2022, with an increase of 69% on net revenue, totaling BRL 99.8 million, and 55% of improvement on EBITDA, reaching BRL 11 billion. The first quarter also invested BRL 163 million on and adding 23 MW peak of capacity. Closing the quarter with 211.3 MW bonuses peak installed. A growth of 169% comparing the period, same period in 2022.
With this, we avoid 42,000 tons of CO2 in the atmosphere. I'm talking about the free market. We had an improvement on the EBITDA indicators, and profits much basically happens on the increase of our market value. Functions of the anticipated sales of new contracts and structural decreases of the prices at medium long terms, bringing a positive result of BRL 81.5 billion. In the quarter, we closed some deals with new clients six times above the registered in the first quarter of 2022, and the medium term contracts ranging two to five years. On the aggregated value segment, comparing the quarters, we had a 17.6% growth in expecting lines and the maintenance of lines to tension substation high maintenance. To close your presentation, we are open to the question and answer session.
Now we are gonna be starting the Q&A session. We kindly ask that you ask all your question once. Pause once, waiting the answer of the company. Reminding that to make these questions, we guide you that send these questions via the Q&A icon located at the bottom area of your screen. By dynamic, your names will then be announced so that you can ask your question live. At this moment, a request to activate your microphone will appear on your screen. Please wait while we collect your questions. Reminding that if you want to make questions, you can send them via the Q&A icon located at the bottom area of your screen, and then your name will then be announced so that you can ask your question live. Let's start with our 1st question. It comes from Guilherme Lima , Sell-Side Analyst from Santander.
Guilherme Lima, we will now open your audio so that you can ask your question. Please go ahead.
Good afternoon. Thanks for the question. I have two questions here. First, can you talk about the development of the companies? If you can give us an update on how it is working out with the government. What do you expect to happen about the proposition consulting with the companies and financing all the investments that may have? If you could, we are gonna be having a lot of discussion about this. If you have anything more close up to negotiate and about the updates on ES Gás. If you can give us an update on how the process is going on and what do you think about the growth here? Thanks for the question.
I'm gonna try to answer first the last question about ES Gás. We have the update of CADE allowing the recovery of the company while taking control over everything. It may happen maybe up to the end of June. After this, we will be able to give more details about the process about growth for the company. As you can see this, as we start over, after concluding the process of CADE, et cetera. I believe it is, this must be an aspect that we'll be able to talk better after the conclusion of this. Talking about the renewal of the concessions. I would like to say that it's really efficient in here. We have a lot of income, a lot of benefits available that we can talk about it, about the process.
Despite the extension of this process as well, happened in 2015, 2017, about a concessions that didn't get through this part. The contract that got applied in 2015, it's been working nicely. We'll be able to work with everything nice. We have a lot of costs to the customers, a lot of qualities, a lot of indexes, the numbers to show up. Under the effort that we had on the last years. It's going on this process. That we must consider like a risk. And it will show balance on our concessions. It will be good to look for the future. Not talking only about the consumers, but about the whole chain. We have certain investments that will bring, that can bring some losses to the country here.
We defend the extension contract as we did in 2017, because with this role model, it works. The same model works, the CEO approved this, and they gave a lot of benefits to what we've been working on with the contracts that we have here. They capture the essence of what the consumers need and as we work on. It makes it easier to be working with the companies, comparing the companies that we have here. This is a model that the efficiency on it. In talking about the guidelines that we must have about the consumers as we work on it. The government already works with it and, simulates it, and we are on with them working with it.
Sometimes we redirect these rules to the consumers about the renewal on each concession and the additional responsibilities that we have here working on developing it with the card interaction, following up with the customers. In any city that have here available in the country as we work with. We execute with this public policy with them as we develop it.
Perfect. Got it. Thank you.
Just a reminder that if you wanna make any question, please send them via the Q&A icon located at the bottom area of your screen. By dynamics, your names will be announced so that you can ask your question live. Our next question comes from Daniel, Senior Equity Analyst from Banco Safra. We are gonna open your mic so that you can ask your question live. Daniel, please go ahead.
Hi, good night. How are you? I have a couple questions in here. First question, it was a compliment on the question about the concessions and we have here. I would like to understand if it's already defined the way that's gonna be working on the public consultation about the renewal of the concessions, and what level we are, if you can share with us. What will be proposed about the contributions. The second question about the appetites for investments. Our appetite for investments. About the gas, looking about the opportunities that we may have in Greenfield or Brownfield as well. That may be on the market. Thank you. you know. Well, the first question, this process isn't defined yet. That's what we defined here about the process. About the renewal and extension of the concessions in here.
We expect good will from them, such as the companies, such as the government. Something that may be good for everyone. We believe that it must happen soon here. We must look at the schedule and what happens. About the gas. Aristides will talk about the after location.
Hi, Daniel. About the appetite, as you said, our focus in here with this approval, the CADE, that will be completed in the next 15 day. A big focus on transforming on that concession with speed of time. But investments that we have here available, allocated, it's not expressive. It's not like something like so demanded. We always want more. We're gonna be discussing with regulators what they have available and work with the project.
That being said, we keep always looking about the market opportunities available that we have here in such as greenfield and brownfield. What about generation? Today, the market conditions that we have on the market, they aren't not adequate to the market. To new projects. It depends on what should be available. We are gonna be walking, look about the option that we have here and see if we can obtain anything profitable to be working with.
Thank you. Our next question comes from Luiza Quintão, sell-side analyst from Vita. Luiza, we are gonna be opening your audio so that you can ask your question live. Luiza, please go ahead. Hi, can you listen? Perfectly. Thank you.
My question is mostly about the new methodology of costs on regulatory levels that have been discussed for a long time. What's your perspective about the conclusion on this distribution, this theme, and what tax reviews do you expect that this to be incorporated by this new methodology? Thank you. Good afternoon. Really, we've been discussing this for a long time. We must consider that ANEEL, it passed through a restructuring process this month. They were doing work in this. They were involved, the company that was working with this department. The teams, they are practically the same. Take some time to close up some points. I don't believe there's gonna be any round anymore on the process.
We believe that this ANEEL will be published by something like, or maybe in the middle of the 2nd semester about the reviews that we have. Probably maybe October on this year. We're not expecting like big changes from what has been discussed already at the moment.
Thank you. A reminder, if you wanna make any questions, we recommend that you send them via the Q&A icon located at the bottom area of your screen. By Dynamics, your names will then be announced so that you can ask your question live. Let's go for our next question. Comes from Gabriel Fonseca , buy-side analyst from Equitas. Gabriel, we're gonna be opening your audio so that you can ask your question live. Gabriel, please go ahead. Hi. Gabriel, your audio was really weak, but we received your question. I'm gonna repeat your question.
Could you detail the reason of the reduction of projection of investments? Could you break the ex-reduction between GD and GC, generation centralized and distribution? As we explained on the relevant fact, the conditions of prices at market On the free market, that fell really through since our plan started. We started like in 2021. Until December 2021 with Energisa, and there we had our projections. What we aspired to be adding up on the renewable energy ever since. We had, like, many changes on the environment. About award and start as well. The changes that work there are super, like, favorable for us. On center energy that's been working on, and it threw the price down. This was the main reason. That's the Greenfield project. They presented as like a profitable aspect, like low.
The second part of your question, what, the reduction that we had here. Basically, about the center energy, we had a plan of 530 MW peak to be distributed. Basically what took it off was the center generation. Basically what turned it off, was taken off.
Thank you. Reminder that if you wanna make any questions, please send them via the Q&A icon located at the bottom area of your screen. Your names will then be announced so that you can ask your question live. Our next question comes from Miguel Rodriguez, sell-side analyst from Morgan Stanley. We're gonna be opening your audio so that you can ask your question. Miguel, please go ahead.
Good afternoon. Thanks for the call.
About the evolution of PMSO, especially about services and people, I would like to know if it's possible that part of this cost may consider like temporary and even if they are permanent. About like the expenses to be adapting to the regulatory demands that you guys explained. From Miguel. I can't like give you like 100% sure on which part we can be working on. You're able to work correct. A part is temporary, you are right. Like for example, about the distributed generation. When you start preparing the sales and everything, the connection is bigger with the salesman. It doesn't repeat in the next following months. The consumption is a little bit elevated in the beginning. It has a decrease by time and about the quality and resolution. This is also a little bit temporary.
As any third company that's going to be performing these services for you, as it can be said, we have been working on it full with the rules that we have, regulatory rules that we have. You can have an overstatement on the teams that are being formed and prepared and in fact working on it. It's another like level to be thinking of about distribution.
Thank you. Thanks for your question for the answer. Our next question comes from Daniel Almeida, Sell-Side Analyst from BTG Pactual . Daniel, we're going to be opening your audio so that you can ask your question. Daniel, please go ahead. Do you listen? Perfectly.
I'd like to understand, with the free market, opening of the free market on high tension 2004, I would like to understand what's the perspective on the number of customers based on the company hope that will be migrating to the free market. About the hiring, and what you expect about the deals, all the sectorial solutions for these problems that we may face.
Thank you. Thank you, Daniel. Starting January 2004, we're gonna be beginning with this concession of the high tension customers. The only thing that's missing, it's only about below the 500 MW, we can work with it. KW, sorry. To be working with like the salesman, the representative, talking with them, closing it.
Probably the speed of migration with this, it may not be like as fast. Even in the other sectors that we have here already free, not even everybody has migrated with the mass migration that we had here. Relate about the over-hiring, and this over-hiring is not. It's involuntary. It happens on the maximum effort. We'll be working with this over-hiring, but it's not gonna bring any like impact to the company. It was really clear. Not having any more questions, we close the Q&A session. The earnings conference call referring the first quarter of 2003 is closed. The Department of Investor Relations is available to answer the following and next questions that you may have. Thank you for everyone, and have a good afternoon.