Good afternoon, ladies and gentlemen. Welcome to the conference call to discuss the 4th quarter of 2020 of Energiza. All participants will be connected in listen only mode during the company's presentation. Then we are going to start the question We would like to inform that this conference call will be conducted in Portuguese by the company's management and the English is being held through simultaneous translation. This event is also being simultaneously broadcast on the Internet through a webcast.
Before continuing, we'd like to say that forward looking statements made during this conference call regarding the company's operational and financial projections and goals are beliefs and assumptions of the company's management. They are based on information currently available to the company. Forward looking statements are not guarantees of performance because they involve risks, uncertainties and assumptions that refer to future events and therefore depend on circumstances that may or may not occur. Investors should understand that overall economic conditions, industry conditions and other operating factors may affect the future performance of the company and may lead to results that will be materially different from those expressed in such forward looking statements. Now I would like to turn the conference over to Mr.
Ricardo Boteleo, who is going to start. Mr. Boteleo, please you may start. Thank you all very much. Good afternoon.
I thank each and every one of you for attending our conference call for the Q4 of 2020. Today with us in this conference call, we have Mauricio Botello, CFO and IRO Giordelli Gisosa, Distribution Vice President Alejandro Ferreira, Regulation Vice President Daniel Yarraujo, People and Management VP Antonio Carlos Tovar, Corporate Finance Officer, Milton Santos, Revenue Protection Officer and the entire Investor Relations company, an entire Investor Relations team of the company. Before starting the presentation, I would like to praise the dedication of our leadership and our almost 20,000 employees, our own and contracted to deal with extremely challenging scenario, which has been the COVID-nineteen pandemic, which has produced devastating, unprecedented effects over the human lives and severe consequences on the economy as a whole. In spite of this very adverse scenario, our team has been able to build before and a net income of R1.6 billion dollars Starting our presentation, first of all, I would like to kindly request you to look at slide number 2, where there is an important notice because this slide must be read with attention before you make any decision to invest in our company. Now moving to Slide number 3, we'll be presenting the operating highlights of the quarter, which include the energy market, energy losses, quality indicators, CIDI and SAIFI, the full rate or delinquency rate and collection rate.
Then Mauricio Botelho is going to present the financial highlights, investments, the advancements in the transmission segment and subsequent events. And lastly, we are going to open for questions and answers. So starting with the highlights. In this quarter, you can go to Slides 45, showing the performance in the energy market, which has grown 5.2% considering the build market as compared to Q4 2019, the largest of the past 3 years. When we look at these results and we compare them to the 2nd quarter when the market shrunk 4.9% and the beginning of its recovery on the 3rd quarter with a growth of 0 point 6%, we can say that the market recovery profile was V shaped in our concession areas.
Thanks to the good diversity of our portfolio and intrinsic economic and climatic features of these regions. All our areas of consumption have grown except for Energiza Sergipe affected by the commercial and government segments, but especially by the manufacturing segment. Energiza Rondonia presented the largest growth as a effect especially of residential rural manufacturing segments with an increase of 20.7%, 9% and 7% respectively. The manufacturing segment had a positive impact of non metal mining activities and food industry. You should highlight the investment in expansion and availability and quality of the networks has made it possible to expand new loads, which were pent up throughout the state when we assumed the company in 2018.
About 40% of the increase in segment of 50 gigawatt hour were to the connections of 122 new loads of Group A in Rondonia. The other highlights were Mato Grosso, Toquentines, Acre, Borborema and Minas Gerais, with a positive impact by the residential, rural and industrial segments. By the way, the residential segment has grown in all concessions of Groupe Energiza and the rural and manufacturing segments have grown in 9 out of 11 concessions. These 3 segments have assured a positive result by most of the companies. The growth in the residential segment of 12.3% was the highest in Q4 since 'five because of the high temperatures in most of the country.
The rural segment had its peak since the Q4 of 'seven with a highlight for soybean growing and processing, especially in Mato Grosso and Mato Grosso do Sul and a little bit in Rodonia. Higher temperatures and the dry weather in the quarter demanded a more intensive use of energy for irrigation. The manufacturing segment in contrast recorded its highest growth in the 4th quarter since Q4 2017. Manufacturing activities on income because of consumption of the emergency allowance and the valuation of the commodities exported. On Slide 6, you can see the energy market year to date numbers.
I consider this result of a growth of 0.9% comparing 2020 to 2019 because we are dealing with a lot of economic difficulties and income difficulties by the Brazilian population. Overall, the consumption of energy in Brazil went down by 1.6 percent in Brazil. Keeping its history in the last 12 months, this differential was on average 2.25% points a year, considering that in the last 11 out of these 12 years, the growth in have grown 3.7% 1.4%, accounting for 42.3% of the total consumption of distribution companies. If we include Rondonia, which grew 3.8%, this percentage goes to 51.5%. The areas that have suffered the most Sergipe and Nova Fibburgo account for 7.8% and 0.9% of the total consumption of the group respectively.
As 2 consumption segments, the residential segment presented its peak since 2019 with a growth of 7.1%, accounting for 39% of total consumptions, the highest. Its performance was strongly impacted by the effects of temperature and COVID considering that families were staying longer in their homes. Residential consumption accounts for 83% of the total of the segment, whereas low income accounts for 16.4%. The Rural segment has also had a significant impact in the group's performance with a growth of 9.9% accounting for 10.5% in total consumption. Lastly, the manufacturing segment, which accounts for 20% of our total consumption has dropped 0.2% in the year, a result, as I said before, which is better than expected, considering the economic crisis during the whole year of 2020.
Without a major manufacturing customer in Sergipe, this class would have grown by 1.1% and 1.2% in the total market as compared to 0.9% that we are reporting. Now moving to Slide number 7, you can see energy losses. Here we are presenting total losses of the group and its performance in the last 12 months in 2020 with improvement in the curve that we reported in December when compared to September June that year. We recovered 42.7 gigawatt hour this quarter, the largest reduction reported as compared to other quarters in the year as a consequence of the recovery of our loss fighting actions, which were affected in quarters 2 and 3 because of the resolutions of the Brazilian government. We still suffer the effect of the restrictions arising from the pandemic, which is not over yet, with a reduction of build energy for manufacturing consumers, government services, free and commercial customers, we have reduced the market, which generates what we call the base impact effect, increasing the percentage losses.
In spite of all adversities, we are able to recover significant amount of energy. About the evolution of this indicator along the year, December, if we look at the last 12 months, presented 4 concessions above regulatory losses, Paraiba, Mato Grosso, Mato Grosso do Sul and Rondonia, with a recovery of the concessions in Sergipe and Minas Gerais, which were above the regulatory limit in the last 2 quarters 3 quarters respectively. Now I would like to highlight 2 companies that account for 42.6% of the total losses of the group. Energy is amato Grosso, accounted or presented rather its indicator lower than the regulatory last three quarters, it already shows an indication of a 77% reduction in the speed of growth between the 4th and third quarters last year. Mato Grosso do Sul was below the regulatory limit in the 3rd quarter, but went up again in the 4th quarter due to the growth now of technical losses because of a thermal plant had to be we stopped it.
It was located in a region close to the center of load, which made us use the energy from farther away points As compared to 2019 December, the impact attributed to the increase in technical losses was 0.2% points, but it was partially offset by the reduction in non technical losses, which has been presenting a downward trajectory since September 2019 and was practically in line as compared to 2020. On Slide 8, 9 of our 11 distribution companies remained within regulatory limits for the indicator of Cairi, with a highlight for our star companies, Boborema, Susu, Destin, Mato Grosso and Tocantins, which have presented historical lows. Energizanovapiburgu was slightly above its regulatory limit because of systemic failure that was major and took place in October in system of its supplier. Energiza Minas Gerais was also affected by the same failure. But we're taking the dual legal measures for these effects to be taken out from the indicators of these two companies.
And as a last minute piece of news, today we became aware that the legal provision for these effects not to be computed has been accepted, and therefore, they will not affect Anil's quality ranking for Energizamine Energiras. As to Saifi, all our 11 distribution companies were below their regulatory limits with a highlight for Energy's Acre, which was acquired in 2018 and presented its historical low in the 4th quarter. Delinquency and billing or collection. The consolidated collection rate of Energiza Group in December 2020 for 12 months of 96.6 21% as compared to the total build in the period, a reduction of 0.3% points as compared to December 2019 and very close to the indicator of the month of September 2020, which reached 96.67%. This reduction of 0.3% points as compared to December 2019 was impacted by the socioeconomic crisis caused by COVID-nineteen and by the measures of Resolution 878, which limited the cutting of our low income customers from March 24, 2020 until December 31, the same year.
As to other segments, this restriction lasted until August 2020. The impact of these limitations accounted for 0.25 percent points of the drop that we are reporting. On the right hand side, you can see monthly collection amounts as a proportion of the total collections. As you can note, the worst month was November. So the reduction was the highest in October.
And as a consequence, because of increase in family consumption. In the months of November December as a result of our efforts, we were again close to 100 percent collection, but the challenge is still there. In the year, we have reached 34,000 transaction of payment when installment with credit card, which was implemented in August, in addition to other measures such as robots for tele collection and other actions that we had already used intensified along the second half of the year. This quarter, we go on also reporting a reduction in bad debt, the provision for bad debt amounting to 8 point 9 million dollars totaling R38.5 million dollars in the second half of twenty twenty. We closed the year with R380.4 million dollars in provisions for bad debt in contrast with R212.5 million dollars in 20.19.
This difference of R160 7.9 RBL can be and of it we may say that RBL150 1,000,000 approx. Is a result of the mutations caused by the pandemic. And in this slide, now I'll give the floor to Mauricio Botelho, who's going now to present the financial highlights of the quarter. Thank you very much, Ricardo. Good afternoon, ladies and gentlemen.
Now could you please refer now to Slide 11? And we are going to talk about PMSO in the quarter and in the year. So the manageable PMSO costs in Q4 2020 totaled R836 million dollars a reduction of R91 million dollars as compared to Q4 2019. We closed the year with a significant reduction of R219 $1,000,000 or 11% below the year before as a result of our fast work in holding expenses and a more intensive application of automation and digitalization of our operational processes. In spite of all these actions to adapt to the new scenario, I can say that we did not affect the provision of essential services to our customers.
We should also highlight the companies that have contributed the most for this reduction in the comparison of Q4 were Energizer Rondonia with a reduction of R57.9 million followed by Sul Soudes with a drop of R19.4 million and ACRE with a low of BRL 6,100,000. In a year, all distribution companies of the group have presented a reduction with a highlight of Energizer Rondon with the amount of R146,200,000 then Mato Grosso with a reduction of BRL52,900,000 which together had a drop in their manageable expenses of R135,800,000. It's important to highlight that what helped in cost reduction were some changes in the habits of our customers during the pandemic and the effect, especially in the digital channels, have reached 66% of the flow of the request for services from our customers, which represented a growth in 10% points in a share as compared to the pre pandemic period. Example, as this reinforce the process that Energizer had already started even before the pandemic of digitalizing our operational processes. Now moving to Slide number 12, you can see the EBITDA of the 4th quarter with an increase of 15.7 percent or BRL152 million as compared to Q4 2019.
This performance explained especially because of an increase of the B parcel of the distribution companies. Additionally, we also had a reduction of the cost in PMSO in 8 of the 11 distribution companies of the company. Year to date numbers, EBITDA has grown BRL 431,000,000 as a result of the significant growth of the residential segment, which is the segment with the highest margin and also the rural segment, in addition to a significant reduction of 11% in the MSO costs. The EBITDA without the non cash and non recurring effects in 2020 as compared to 2019 had a growth of 53.6% in the quarter and 20.6% in the last 12 months. Now moving to Slide 13, here you can see the details of the effects of reduction of operational costs, year to date numbers for every quarter and their share as compared to EBITDA.
Note here please that the EBITDA of the last 12 months that ended in the Q1 has grown from R3.52 billion dollars to R3.93 billion dollars. PMSO went down from R2.73 billion dollars to R2.59 billion dollars In this manner, the ratio between PMSO over EBITDA went from 77.6 percent down to 65.8%. According to the guidance that management gave when we reviewed the budget and announced it to the market, there was an 11% reduction in PMSO. It has exceeded our initial expectations that we had said it was going to be between 5% 7%, which positions us with the biggest reductions in PNSO in the electric power distribution industry in Brazil. Now on Slide 14, you can see the net income.
So the net income in this quarter of $192,000,000 compared to R353,000,000 in Q4 2019 and R1.6 billion as compared to R527 million in the 12 months of 2019, excluding the effects marking to market of subscription bonuses, which had different effects in the period in addition to non recurring non cash effects, we are reporting a significant growth in both periods, meaning 87.2 percent or BRL 145,900,000 between quarters 93.8 or R546.8 million if we compare 2020 to 2019. Now if we go to Slide number 15 to see the net debt, so the net debt was about 13 point 6,000,000,000 in line, same amount since September 2020. In the year, we conducted 56 operations considering the rolling and longer terms and long term financings, which totaled R6.1 billion dollars We ended the year with a robust cash position of R6.6 billion dollars as compared to R3 billion dollars in 2019. And the average time for the gross debt is 4.3 years with the average cost of 4.50 4% per year compared to 4.17% in September 2020. Our main index is the CDI with 68.5 percent of the debt.
The leverage indicator net debt over adjusted EBITDA closed the year with 3.1 times as compared to 3.6 times in 2019. So this year it was much smaller than last year. We should make it clear that the covenant limit for net debt over EBITDA for the year 2020 is 4 point 25 times and for 2021 slightly down, this limit will be 4 times, meaning we are at a very comfortable situation with this indicator. 1617, and this is a result of our budget revision to adapt to the environment of the pandemic. The investments have presented a reduction of 32.1% in the last quarter and 14.5% in the year, totaling BRL2.7 billion invested in 2020.
Considering distribution companies only, the amount invested was BRL544 1,000,000 in the 4th quarter 2020 and BRL2.3 billion for the whole year. On Slide 16, you can see historical evolution of investments since 2015 and going from a level of BRL1.6 billion to BRL2.7 billion. Now on Slide 18, we can talk about the investments that we are planning for 2021, amounting to R3.9 billion dollars of which 71 point 6% will be directed to distribution companies with a highlight to Rondonia Mato Grosso and Mato Grosso do Sul, which altogether will add up to BRL 1,800,000,000 or 46% Of the total considered for special obligations, BRL 763 million or 53 percent will be invested in Rondonia concession and 14.5% in Mato Grosso. Of the investments estimated for 2021 in our transmission segment with 21.5 percent of the total amount invested by the group. This amount includes projects in Tocantin with BRL 389,700,000 or 46.7 percent.
Also, the concession in Amazon has recently acquired in the auction December last year was R318,600,000, 38.2 percent, Para 2 with R100 and R20 million dollars or 14.4 percent. Now taking the opportunity and since we are talking about transmission, we go to Slide 19. Here, we are presenting our 5 transmission undertakings, which account for R261.8 million dollars of our PAR, our permitted annual revenue. So Amazon has a PAR of R63,000,000 and a new investment of BRL882 1,000,000. This project is different from the others because in addition to new assets, it also includes incorporation of existing assets that belongs to Amazonas GT, also the revamping and the replacement of existing substations.
As to existing assets, we are going to disperse to Amazon's GT R257 million, which is already part of the total annual CapEx. Considering and because of these aspects, this transmission company is going to start receiving 30% of the PAR this year 2021 after this we signed a contract in March 31, 2021. We're expecting an average anticipation of the day when it's going to start its operations will increase the reliability of the distribution system in the region, the metropolitan region of Manaus and Presidente de Fidere, both in the state of the Amazonas. We are very confident with the technical features, environmental features and also because they provide us a benefit for the construction and operational management of this project. We are also to finance the project, we are going to assess the issuance of the infrastructure, the benches and access to the Banco, of the Amazonian bank, which are widely used alternatives and have been widely used by Energizer and other projects.
As to Para 2, we have energized in February 2021 a distance of 72.3 kilometers out of 139 kilometers. We have invested in this space RMB8 1,000,000 of an estimated total of RMB340 1,000,000. The PAR is R3.1 million, R8.6 million of total revenues of this venture. I end now my presentation and I'm available to you to make any comments and to ask any questions you may want. Now please, operator?
Thank you. We're now going to start our questions and Our first question comes from Carolina Carneiro from Credit Suisse. Please Carolina. Good afternoon. Thank you very much for the call.
I have two questions. Number 1, other businesses other than distribution, although the share of distribution is still small, but it's been growing more and more. And we've seen other revenues of the marketing company. So could you give us some more color, especially with the highlights of that you mentioned in your press release of also. And so what are your plans for 2021?
And a second question regarding the provision for bad debt. You highlighted that in spite of the crisis, we are at a provision for bad debt level. There is under strict control, but at the end of the year, no the restrictions for the suspension of supply to customers was lifted. So in the 1st month of the year, did you note any difference in the behavior of accounts payment with a slight deterioration of income as compared to what we saw late last year? So Ricardo, so can you please answer the first part?
And then we can Milton can answer. Good afternoon. This is Ricardo. About the other business lines of the company, we have been announcing to the market that we are going to intensify our strategy to offer new products and services related to energy and also some verticals such as, for example, the FinTech. All of this is part of the strategy of positioning ourselves as a platform based on local presence and our popularity of 20,000,000 people that we serve, 8,000,000 consumers throughout Brazil.
And this process, it's going to advance. For example, Alfaol acquired in 2019, so today has a growing portfolio within the modality it operates on, which is the lease of solar quotas and solar farms. It closed at approximately 27 Megawatts last year in terms of the whole farm and solar quotas. And this year, it has already built 15 new solar farms totally at the end of 2021 about 76 Megawatts Hour peak in terms of projects for the lease on solar quotas. But this company does much more than that and has projects in many other such as solar mobility and these are projects that are being developed for the market.
And we think that these products will contribute with additional revenue. And we cannot yet estimate everything because these products are still undergoing experimentation. We are testing them. We do not yet have any significant revenue. And as the commercial company, they are constituted and consolidated companies in the market.
And Energiza, the sales company has reached the 23rd position in marketed energy in our Brazilian ranking. And it was a progress as compared to 2019. This unit, the sales company has been in operation for quite a few years. And Energiza Solu Soi has a quite diversified portfolio, which is very much related to this wave of digitalization, specialized energy services that we call 4 gs. So this is an overview of what we are doing and what we are talking about this year as compared to last year and our expectations with this consolidated investment company and other companies also within their historical perspective.
Milton, could you answer Carol, please? Good afternoon, everyone. Good afternoon, Carol. Really, the provision for bad debt was a challenge last year and it still is a significant challenge. We were able to have a good performance last quarter, but the initial performance of our cut processes starting last year, we will be able we've been able to cut low income, delinquent customers.
Unfortunately, we cannot yet give you or publish the numbers for 2021, not yet. But we see a trend of keeping a reduction trend over the next few years, especially depending on the effects of the pandemic and what we've been seeing of the pandemic over the past few days and what will be its effect in our delinquency rates and our collection strategies. But we started the year with a possibility of being able to cut in the results that we are seeing with the projections. Thank you. There is a question in the chat and it's been addressed here.
And when we were talking about delinquency rates and there's a part. What about PMSO looking into 2021? Can we expect a growth in line with the IPCA year on year? And in answering this part, yes, we do expect a recovery in expenses in line with PCA. And as a reminder, that part of the reduction of operational costs in 20 20 was because of the delay of certain services that were not done in the year considering the slightly peculiar demand that we had in the year.
So saying that it's going to IBCA plus something was a little bit more, sounds reasonable. Now let's move to the next question. Marcelo wants to ask a question. Okay. Our next question comes from Marcelo Sa from Banco Itau.
Mr. Sa, please. Good afternoon. Thank you for your call. I have a question about your PMSO methodology that Anil has reported.
So there were some significant questions of including the second dimension in terms of losses and also in terms of labor penalties that are part of these numbers that led some segments of energies to lose efficiency comparatively. Last time we talked there were some inconsistencies. And I would like to understand how have been your discussions with Anil evolving, whether there is any significant change of our public agency. I think in Mato Drosso do Sul, there was a significant impact of those changes. Thank you.
I am going to more give the floor to Alexandre Nogueira, our regulation officer to answer the question. About the public consultation that opened recently, what I can tell you, I mean, analyzing all the contributions that request anneal to review its database. So the information that was used to draft the proposal needs to be improved. And this update is very relevant because it changes completely the parameters of the ranking. So this is a discussion that is going to go on along the year.
And this is a work of updating the database and we regard that as necessary. I'm not really sure whether we'll have a new phase to discuss that, but we think that in the second half of the year, if there isn't any definition, it will be in the second half of the year. And the companies that are related to that. There's a lot of improvements to be made and many suggestions for improvements, many opportunities for improvement on the issue of losses and quality being addressed as input, not as an output as Anil used to deal with it. So this has driven Anil to have the methodology today in effect as an output with a negative end or output.
That's good. Thank you. I have another question from the time. Anil said they were going to review the cost basis every 4 or 5 years according to the methodology and today it's every 2 years. And my question is more what about companies that are undergoing a turnaround process?
Because if we take very old numbers, it will not capture all the improvements on the company and more it doesn't affect the distribution companies that you have purchased or acquired and how could it have a negative impact? So there was an increase in the 2 years? The specific point here is doesn't regard the ranking of efficiency. It regards the fact and for a larger period. So on Anil's site, I think it would be worthwhile checking our specific contribution.
It is very complex, especially in terms of updating information and also in terms of the contribution. And this we work very much on salaries to try to define the process and work on that with it. So that with this aspect, there was a strong subsidy so that we could adopt and the measurement of costs. Good, it's great. And if you allow me and continuing the previous question about delinquency rates.
So there is a monthly delinquency number. And I think that the number of December was about 30% and January went up to 9%. And this really scared many people thinking that delinquency rates in the industry had gone up. And could you comment this number that is published by NME or if really the delinquency rates have gone up? So Alexandre de Genova, again, what do you want to relate between the ministry that were accounted?
What the numbers of the ministry take into account delinquency flows in a period. It doesn't take into account the calculations or the accounts that were in years, but that have been renegotiated. So we also take into account these numbers and what it considers what we can receive or not. It's a different I understood that it's a different system or method for calculation. But my question is not about specific or absolute numbers, but more about of the trend of a sharp increase in delinquency rates from between December January?
Just a minute, please. Marcelo, So you understood Milton's answer and he mentioned our outlook for 2021, right? Milton, would you like to say something else? Yes. Good afternoon again.
Overall, I knew in the Ministry of Mines and Energy. So it's usually better than the industry specific moving average and it's very normal to have short term delinquency rates, they vary. Sometimes it's a little bit more here or there and it goes up and then down. So usually the ministry have an industry specific average. So our benchmark for the industry and Energiza has been systematically outperforming those numbers and we cannot yet confirm the numbers for January.
Our next question comes from Andre Sampaio from Santander. Mr. Sampaio, please. Good afternoon. I would like to ask a question about another regulatory theme.
So can we go into a potential discussion about Cayimi in this year? And it sounds like that this is going to be rolled over for 2022. Is there any movement in the new in terms of you're going back to that matter or it's going to be postponed to 2020 2 or what? Well, we do not yet know when this is going to be reviewed. So this is going to be it's not in the reading the agenda for the next 6 months.
If you allow me to ask another question about the 7th submission. Always everything the same, but they are not really indicating anything. So nothing has come up. BNDES is still thinking about that, obviously, as a public manager, But we haven't seen any formality in terms of what they're going to do with the subscription bonuses. Good.
Thank you. Thank you. Now I would like to give the floor back to Mr. Mauricio Botelho for his closing remarks. Please, Mr.
Botelho. Well, I thank everyone for your presence at our conference call. As Ricardo said in the beginning of our presentation, the year was very challenging. But in spite of that, I think that Energies with discipline and tradition was able to turn around its position with the sustainability of the industry. So we are here.
We are happy with the results and we are confident that we will continue evolving. I thank you all very much. Thank you. The conference call to discuss the results of Energizer has now ended. We kindly request you to disconnect your line and have a good afternoon.