Consolidated Financial Statements

30 September 2023

REN – Redes Energéticas Nacionais, SGPS, S.A

INDEX

	3
1.1 RESULTS FOR THE FIRST 9 MONTHS OF 2023	3 7
FOR THE PERIODS FROM 1 JULY TO 30 SEPTEMBER 2023 AND 2022	8
CONSOLIDATED FINANCIAL STATEMENTS	10
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 SEPTEMBER 2023	15
1 GENERAL INFORMATION 2 BASIS OF PRESENTATION 3 MAIN ACCOUNTING POLICIES 4 SEGMENT REPORTING 5 TANGIBLE AND INTANGIBLE ASSETS 6 GOODWILL 7 INVESTMENTS IN ASSOCIATES AND JOIN VENTURES 8 INCOME TAX 9 FINANCIAL ASSETS AND LIABILITIES 10 INVESTMENTS IN EQUITY INSTRUMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME 11 TRADE AND OTHER RECEIVABLES 12 DERIVATIVE FINANCIAL INSTRUMENTS 13 CASH AND CASH EQUIVALENTS 14 EQUITY INSTRUMENTS 15 RESERVES AND RETAINED EARNINGS 16 BORROWINGS 17 POS-EMPLOYMENT BENEFITS AND OTHERS BENEFITS 18 PROVISIONS FOR OTHER RISKS AND CHARGES 19 TRADE AND OTHER PAYABLES 20 SALES AND SERVICES RENDERED 21 REVENUE AND COSTS FOR CONSTRUCTION ACTIVITIES 22 OTHER OPERATING INCOME 23 EXTERNAL SUPPLIES AND SERVICES 24 PERSONNEL COSTS 25 OTHER OPERATING COSTS 26 FINANCIAL COSTS AND FINANCIAL INCOME 27 EXTRAORDINARY CONTRIBUTION OVER THE ENERGY SECTOR 28 EARNINGS PER SHARE 29 DIVIDENDS PER SHARE 30 CONTINGENT ASSETS AND LIABILITIES 31 RELATED PARTIES 32	15 18 18 20 23 25 26 28 32 34 36 37 42 42 43 43 45 47 47 48 48 49 49 50 50 51 51 52 52 52 53
33 SUBSEQUENT EVENTS 34 EXPLANATION ADDED FOR TRANSLATION	57 57
	FINANCIAL PERFORMANCE 1.2 AVERAGE RAB AND CAPEX 1.3 QUARTERLY STATEMENTS OF PROFIT AND LOSS AND COMPREHENSIVE INCOME DECREE-LAW NO. 84-D/2022 – TRANSITORY GAS PRICE STABILIZATION REGIME56

1. FINANCIAL PERFORMANCE

1.1 RESULTS FOR THE FIRST 9 MONTHS OF 2023

In the first 9 months of 2023, REN reported a net income of 96.2 million Euros, a 14.8 million Euros increase (+18.2%) over the same period of the previous year. Net income increased reflecting mainly the increase of 34.6 million Euros in the Group EBITDA (+32.4 million Euros in EBIT), despite the decrease of 9.7 million Euros in financial results (-37.6%) and the increase in taxes of 7.9 million Euros. International activity contributed with 21.9 million Euros to the Group EBITDA, a y.o.y increase of +45.6%.

Similarly to the previous years, the results for 2023 reflect the continuation of the Extraordinary Levy on the Energy Sector (28.1 million Euros in 2023 and 28.0 million Euros in 2022 ).

The Group's investment was 177.1 million Euros, a 40.5% year-on-year growth (+51.1 million Euros) and transfers to RAB decreased 34.1 million Euros (-41.0%) to 49.1 million Euros. Average RAB decreased by 92.4 million Euros (-2.6%), to 3,510.9 million Euros.

The average cost of debt was 2.4%, an increase of 0.7 p.p. over the previous year, and net debt reached 2,464.0 million Euros, a 26.9% increase (+522.5 million Euros) over the same period of the previous year driven essentially by the evolution of REN Trading's tariff deviations. Excluding the effect of tariff deviations, net debt decreased 6.5%.

MAIN INDICATORS (MILLIONS OF EUROS)	September 2023	September 2022	VAR.%
EBITDA	395.5	360.9	9.6%
Financial results2	-35.5	-25.8	-37.6%
Net income1	96.2	81.4	18.2%
Recurrent net income	122.6	107.0	14.6%
Total Capex	177.1	126.0	40.5%
Transfers to RAB3 (at historic costs)	49.1	83.2	-41.0%
Average RAB (at reference costs)	3,510.9	3,603.3	-2.6%
Net debt	2,464.0	1,941.5	26.9%
Net debt (without tariff deviations)	2,290.4	2,450.7	-6.5%
Average cost of debt	2.4%	1.7%	0.7p.p.

3 Includes direct acquisitions (RAB related).

_____________________________________

¹ The full amount of the levy was recorded in the 1st quarter of 2023 and 2022, according to the Portuguese Securities Market Commission (CMVM) recommendations.

² The net costs of 4.4 million Euros in September 2023 and 1.9 million Euros in September 2022 from electricity interconnection capacity auctions between Spain and Portugal – referred to as FTR (Financial Transaction Rights) were reclassified from financial income to Revenue.

Operational results – EBITDA

Domestic Power Transmission and Distribution Business

EBITDA for the domestic business reached 373.6 million Euros in the first 9 months of 2023, a 8.0% (+27.7 million Euros) increase over the same period of the previous year.

EBITDA - TRANSMISSION (MILLIONS OF EUROS)	September 2023	September 2022	VAR.%
1) Revenues from assets	153.8	145.9	5.4%
RAB remuneration	60.4	55.5	8.8%
Lease revenues from hydro protection zone	0.5	0.5	-1.4%
Incentive for improvement of the TSO's technical performance	7.5	5.6	33.3%
Recovery of amortizations (net of investment subsidies)	71.9	70.7	1.7%
Amortization of investment subsidies	13.6	13.6	-0.2%
2) Revenues from Totex	212.1	203.6	4.2%
3) Revenues from Opex	114.2	78.4	45.7%
4) Other revenues	10.7	10.9	-2.4%
5) Own works (capitalised in investment)	18.7	15.9	17.5%
6) Earnings on Construction (excl. own works) – Concession assets	154.9	106.8	45.0%
7) OPEX	135.6	108.0	25.5%
Personnel costs4	45.5	43.2	5.6%
External costs	90.0	64.9	38.7%
8) Construction costs – Concession assets	154.9	106.8	45.0%
9) Provisions/ (reversal)	0.1	0.5	n.m.
10) Impairments	0.3	0.3	0.0%
11) EBITDA (1+2+3+4+5+6-7-8-9-10)	373.6	345.9	8.0%

_____________________________________

⁴ Includes training and seminars costs

The increase in EBITDA resulted mainly from:

The increase in Electricity Transmission Activity regulated revenues (+8.6 million Euros), which is remunerated through a Totex model since 2022, reflecting the increase in the rate of return which was 5.3% in September of 2023, which compares to 4.7% in the same period of the previous year;
The increase of 4.9 million Euros in RAB remuneration⁵ (+8.8%) arising mostly from:
- o Increase of 1.6 million Euros in the remuneration of natural gas transmission regulated assets reflecting the increase in the rate of return from 5.2% in September 2022 to 5.7% in September 2023 – as a result of the positive evolution of the yields of the Portuguese Republic 10Y Treasury Bills; partially offset by the reduction of 45.2 million Euros (-5.2%) in natural gas transmission average RAB;
- o Increase of 2.2 million Euros in the remuneration of natural gas distribution regulated assets reflecting (i) the increase in the rate of return from 5.4% in September 2022 to 5.9% in September 2023 – as a result of the positive evolution of the yields of the Portuguese Republic 10Y Treasury Bills, and (ii) the increase of 6.8 million Euros in natural gas distribution average RAB (+1.4%);
The increase in Revenues from Opex of 35.9 million Euros (+45.7%), reflecting the increase of 30.9 million Euros in pass-through costs, of which +25.1million Euros in Cross Boarder cost.

These effects were partially offset by the increase of 27.5 million Euros in Opex, of which 30.9 million Euros in pass-through costs as previously mentioned (costs not controllable by REN and fully recovered in the regulated tariff). Excluding pass-through costs, the Group domestic Core Opex decreased 3.4 million Euros, driven by the decrease in electricity costs in the LNG Terminal.

With respect to domestic business, it is also important to note that the natural gas distribution business contributed with EBITDA of 38.9 million Euros.

International Business

The EBITDA for international businesses reached 21.9 million Euros in the first 9 months of 2023, a 6.9 million Euros (+45.6%) increase over the same period of the previous year, resulting mainly from:

EBITDA of Transemel an electrical power transmission company in Chile was 12.5 million Euros, a y.o.y. increase of 5.3 million Euros (+74.1%) reflecting essentially the increase of 6.4 million Euros in revenues from the transmission of electricity (+63.6%). It should be noted that, in 2023, the Chilean regulator published the decree with the Valuation of Transmission Systems for the period from 2020 to 2023, with Transemel recording an income of 3.9 million Euros referring to the adjustment of revenues from 2020 to 2022;
The increase of 1.5 million Euros (+19.3%) to 9.4 million Euros in the recognized income from the 42.5% stake held by REN in the Chilean company Electrogas.

EBITDA - INTERNATIONAL (MILLIONS OF EUROS)	September 2023	September 2022	VAR.%
1) Revenues from the Transmission of Electrical Power	15.6	9.8	59.5%
2) Other revenues	9.4	7.9	19.3%
3) Own works (capitalized in investment)	0.8	0.3	219.9%
4) OPEX	3.9	2.9	33.1%
Personnel costs6	0.8	0.5	56.4%
External costs	3.1	2.4	28.2%
5) Provisions/ (reversal)	0.1	0.0	n.m.
6) EBITDA (1+2+3-4-5)	21.9	15.0	45.6%

5 Excludes Electricity Transmission activity (TEE). Includes TEE assets accepted by the regulator as extra Totex model

6 Includes costs with training

_____________________________________

Net income

Overall, the Group's net income for the first 9 months of 2023 reached 96.2 million Euros, a 14.8 million Euros y.o.y. increase (+18.2%).

This increase reflect mostly the following effects:

_____________________________________

i) increase of 34.6 million Euros in the Group EBITDA (+32.4 million Euros in EBIT), impacted by the increase of 27.7 million Euros in the Domestic Power Transmission and Distribution business (+26.3 million Euros in EBIT) and +6.9 million Euros in the contribution of international businesses (+6.1 million Euros in EBIT);
ii) decrease of 9.7 million Euros in financial results (-37.6%) reflecting the increase in net debt and in the average cost of debt from 1.7% to 2.4%. Net debt reached 2,464.0 million Euros, a 26.9% increase (+522.5 million Euros), over the same period of the previous year driven by the evolution of REN Trading's tariff deviations. Excluding the effect of tariff deviations, net debt decreased 6.5%.

Excluding non-recurring items, Net Income for the first 9 months of 2023 increased 15.6 million Euros (+14.6%). Non-recurring items considered in the first 9 months of 2023 and 2022 are as follows:

i) In 2023: i) Extraordinary Levy on the Energy Sector laid down in the State Budget for 2023 (28.1 million Euros) and ii) recovery of income taxes from previous years (1.8 million Euros);
ii) In 2022: i) Extraordinary Levy on the Energy Sector laid down in the State Budget for 2022 (28.0 million Euros) and ii) recovery of income taxes from previous years (2.5 million Euros).

NET INCOME
(MILLIONS OF EUROS)	September 2023	September 2022	VAR.%
EBITDA	395.5	360.9	9.6%
Depreciations and amortizations	188.7	186.5	1.2%
Financial results	-35.5	-25.8	-37.6%
Income tax expenses	46.8	39.1	19.8%
Extraordinary levy on the energy sector7	28.1	28.0	0.4%
Net income	96.2	81.4	18.2%
Non-recurring items	26.4	25.6	3.2%
Recurrent net income	122.6	107.0	14.6%

⁷ The full amount of the levy was recorded in the 1st quarter of 2023 and 2022, according to the Portuguese securities market commission (CMVM) recommendations.

1.2 AVERAGE RAB AND CAPEX

In the first 9 months of 2023, Capex reached 177.1 million Euros, a 40.5% y.o.y. increase (+51.1 million Euros), and transfers to RAB decreased 34.1 million Euros (-41.0%) to 49.1 million Euros.

In electricity, investment was 138.8 million Euros, a 48.3% increase (45.2 million Euros) over the same period of 2022, and Transfers to RAB were 29.9 million Euros, a y.o.y. decrease of 34.1 million Euros. It should be highlighted the investments in the 400kV Ferreira do Alentejo-Ourique-Tavira connection (45.4 million Euros), in power line Palmela-Sines 2 and 3 (7.6 million Euros), in the opening of the 400/220/60 kV Sobrado substation (6.9 million Euros) and in the 400 kV Power line between Ribeira de Pena and Feira (5.4 million Euros).

In natural gas distribution, investment was 17.2 million Euros, a decrease of 3.6 million Euros, 61% for the expansion of the distribution network and 29% for new supply points, and transfers to RAB were 16.8 million Euros, a decrease of 0.9 million Euros y.o.y (-4.9%).

Average RAB was 3,510.9 million Euros, a 92.4 million Euros (-2.6%) y.o.y decrease. In electricity, the average RAB (excluding lands) reached 2,007.7 million Euros (-41.7 million Euros, -2.0%), of which 966.8 million Euros in assets remunerated at a premium rate of return, while lands reached 182.6 million Euros (-12.3 million Euros, -6.3%). In natural gas transmission, the average RAB was 831.7 million Euros (-45.2 million Euros, -5.2%), while in natural gas distribution the average RAB reached 488.9 million Euros (+6.8 million Euros, +1.4%).

1.3 QUARTERLY STATEMENTS OF PROFIT AND LOSS AND COMPREHENSIVE INCOME FOR THE PERIODS FROM 1 JULY TO 30 SEPTEMBER 2023 AND 2022

Consolidated statements of profit and loss (unaudited information)

	Consolidated statements of profit and loss
(unaudited information)
(Amounts expressed in thousands of euros – tEuros)
	01.07.2023 to	01.07.2022 to
	30.09.2023	30.09.2022
Sales	105	36
Services rendered	161,293	146,549
Revenue from construction of concession assets	64,887	46,800
Gains from associates and joint ventures	2,959	3,180
Other operating income	6,442	6,006
Operating income	235,685	202,570
Cost of goods sold	(188)	(228)
Cost with construction of concession assets	(58,497)	(41,084)
External supplies and services	(24,681)	(20,355)
Employee compensation and benefit expense	(14,890)	(14,203)
Depreciation and amortizations	(62,957)	(62,322)
Provisions	(7)	-
Impairments	(94)	(94)
Other expenses	(4,663)	(2,610)
Operating costs	(165,978)	(140,896)
Operating results	69,707	61,674
Financial costs	(23,137)	(15,646)
Financial income	2,218	3,263
Investment income - dividends	17	174
Financial results	(20,902)	(12,209)
Profit before income taxes and ESEC	48,806	49,465

Income tax expense	(15,562)	(13,890)
Extraordinary contribution on energy sector (ESEC)	(33)	(3)
Net profit for the period	33,212	35,572
Attributable to:
Equity holders of the Company	33,212	35,572
Non-controlled interest	-	-
Consolidated profit for the period	33,212	35,572

(Amounts expressed in thousands of euros – tEuros)

Consolidated statements of comprehensive income (unaudited information)

(Amounts expressed in thousands of euros – tEuros)

REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statements of comprehensive income (unaudited information) (Amounts expressed in thousands of euros – tEuros)
	01.07.2023 to 30.09.2023	01.07.2022 to 30.09.2022
Net Profit for the year	33,212	35,572
Items that will not be reclassified subsequently to profit or loss:
Actuarial gains / (losses)	(593)	(1,371)
Tax effect on actuarial gains / (losses)	178	411
Items that will be reclassified subsequently to profit or loss:
Exchange differences on translating foreign operations	(8,779)	14,523
Increase/(decrease) in hedging reserves - cash flow derivatives	(2,773)	28,604
Tax effect on hedging reserves	648	(6,484)
Gain/(loss) in fair value reserve - Investments in equity instruments at
fair value through other comprehensive income	(2,214)	(12,535)
Tax effect on items recorded directly in equity	551	3,071
Other changes in equity	-	-
Comprehensive income for the year	20,229	61,790
Attributable to:
Equity holders of the Company	20,229	61,790
	-	-

2. CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF 30 SEPTEMBER 2023 AND 31 DECEMBER 2022

REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS




2. CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF 30 SEPTEMBER 2023 AND 31 DECEMBER 2022

(Amounts expressed in thousands of Euros – tEuros) (Translation of statements of financial position originally issued in Portuguese - Note 34)

	Notes	Sep 2023	Dec 2022
ASSETS Non-current assets
Property, plant and equipment	5	123,573	127,816
Intangible assets Goodwill	5 6	4,063,564 4,156	4,077,471 4,515
Investments in associates and joint ventures	7	180,150	180,770
Investments in equity instruments at fair value through other comprehensive income Derivative financial instruments	9 and 10 9 and 12	135,263 76,003	145,715 80,564
Other financial assets Trade and other receivables	9 9 and 11	174 353,345	179 55,666
Deferred tax assets	8	49,412	69,803
Current assets		4,985,640	4,742,499
Inventories		5,130	5,134
Trade and other receivables Current income tax recoverable	9 and 11 8 and 9	336,123 2,929	327,764 10,671
Derivative financial instruments Asset related to the transitional gas price stabilization regime - Decree-Law 84-D/2022	9 and 12 9 and 32	1,845 936,514	236 1,000,000
Cash and cash equivalents	9 and 13	39,426	365,292
Total assets	4	1,321,967 6,307,607	1,709,097 6,451,596
EQUITY
Shareholders' equity
Share capital Own shares	14 14	667,191 (10,728)	667,191 (10,728)
Share premium	14	116,809	116,809
Reserves Retained earnings	15	381,368 247,133	396,065 241,987
Other changes in equity Net profit for the period	14	(5,561) 96,242	(5,561) 111,771
Total equity		1,492,454	1,517,534
LIABILITIES Non-current liabilities
Borrowings Liability for retirement benefits and others	9 and 16 17	1,805,903 63,742	1,695,362 64,939
Derivative financial instruments	9 and 12	70,666	73,464
Provisions Trade and other payables	18 9 and 19	9,511 466,521	10,576 450,297
Deferred tax liabilities	8	109,850 2,526,193	115,064 2,409,702
Current liabilities
Borrowings Trade and other payables	9 and 16 9 and 19	631,785 710,508	638,944 885,416
Liability related to the transitional gas price stabilization regime - Decree-Law 84-D/2022 Derivative financial instruments	9 and 32 9 and 12	936,514 10,153	1,000,000 -
		2,288,960	2,524,360
Total liabilities	4	4,815,153	4,934,062
Total equity and liabilities		6,307,607	6,451,596
The accompanying notes form an integral part of the consolidated statement of financial position as of 30 September 2023.

The accompanying notes form an integral part of the consolidated statement of financial position as of 30 September 2023.

CONSOLIDATED STATEMENTS OF PROFIT AND LOSS FOR THE NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2023 AND 2022

REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED STATEMENTS OF PROFIT AND LOSS FOR THE NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2023 AND 2022








(Amounts expressed in thousands of Euros – tEuros)
(Translation of statements of profit and loss originally issued in Portuguese - Note 34)

	Notes	Sep 2023	Sep 2022

Sales	4 and 20	179	96
Services rendered Revenue from construction of concession assets	4 and 20 4 and 21	488,303 173,561	429,640 122,715
Gains/(losses) from associates and joint ventures	7	9,984	8,288
Other operating income	22	22,679	20,698
Operating income		694,706	581,438

Cost of goods sold		(653)	(630)
Costs with construction of concession assets External supplies and services	21 23	(154,867) (75,140)	(106,807) (55,014)
Personnel costs	24	(46,117)	(43,482)
Depreciation and amortizations	5	(188,721)	(186,549)
Provisions	18	(239)	(526)
Impairments	6	(283)	(283)
Other expenses	25	(17,573)	(11,855)
Operating costs		(483,593)	(405,147)
Operating results		211,113	176,291
Financial costs	26	(59,570)	(43,623)
Financial income	26	11,133	7,536
Investment income - dividends	10	8,542	8,338
Financial results		(39,895)	(27,749)

Profit before income tax and ESEC		171,218	148,542
Income tax expense	8	(46,842)	(39,094)
Energy sector extraordinary contribution (ESEC)	27	(28,134)	(28,021)
Consolidated profit for the period		96,242	81,426

Attributable to:
Equity holders of the Company		96,242	81,426
Non-controlled interest Consolidated profit for the period		- 96,242	- 81,426

	28	0.14	0.12

The accompanying notes form an integral part of the consolidated statement of profit and loss for the nine-month period ended 30 September 2023.

CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME FOR THE NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2023 AND 2022

REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS (Amounts expressed in thousands of Euros – tEuros)
CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME FOR THE NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2023 AND 2022






(Translation of statements of other comprehensive income originally issued in Portuguese - Note 34)

	Notes	Sep 2023	Sep 2022
Consolidated Profit for the period		96,242	81,426
Items that will not be reclassified subsequently to profit or loss:
Actuarial gains/(losses) - gross of tax	17	1,454	12,657
Tax effect on actuarial gains/(losses)	8	(436)	(3,797)
Items that may be reclassified subsequently to profit or loss:

Exchange differences on translating foreign operations		(5,429)	28,662
Increase/(decrease) in hedging reserves - cash flow derivatives	12	(8,940)	86,269
Tax effect on hedging reserves	8 and 12	1,996	(19,519)
Gain/(loss) in fair value reserve - Investments in equity instruments at fair
value through other comprehensive income	10	(10,452)	(20,933)
	8 and 10	2,500	5,069
Tax effect on items recorded directly in equity		139	-
Other changes in equity
Comprehensive income for the period		77,072	169,834

Attributable to:
Equity holders of the company		77,072	169,834
Non-controlled interest		- 77,072	- 169,834

The accompanying notes form an integral part of the consolidated statement of comprehensive income for the nine-month period ended 30 September 2023.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2023 AND 2022

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2023 AND 2022 (Amounts expressed in thousands of Euros – tEuros) (Translation of statements of changes in equity originally issued in Portuguese - Note 34) Attributable to shareholders Legal Fair Value Hedging Other Share Share Other Retained Profit for Own shares Reserve reserve reserve changes in Total capital premium reserves earnings the year Changes in the year Notes (Note 15) (Note 10) (Note 12) equity At 1 January 2022 667,191 (10,728) 116,809 130,662 57,758 (12,126) 135,694 (5,561) 232,978 97,153 Net profit of the period and other comprehensive income - - - - (15,864) 66,750 28,662 - 8,860 81,426 Transfer to other reserves - - - 5,040 - - - - 92,113 (97,153) Distribution of dividends 29 - - - - - - - - (102,150) - At 30 September 2022 667,191 (10,728) 116,809 135,702 41,894 54,625 164,356 (5,561) 231,801 81,426 At 1 January 2023 667,191 (10,728) 116,809 135,702 45,117 59,518 155,729 (5,561) 241,987 111,771 Net profit of the period and other comprehensive income - - - - (7,952) (6,944) (5,476) - 1,203 96,242 Transfer to other reserves - - - 5,676 - - - - 106,095 (111,771)				REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS
1,409,830


							169,834
							-
							(102,150)
							1,477,515
							1,517,534
							77,072
Distribution of dividends 29 - - - - - - - - (102,150) - (102,150) At 30 September 2023 667,191 (10,728) 116,809 141,378 37,164 52,574 150,252 (5,561) 247,133 96,242 1,492,454							-

The accompanying notes form an integral part of the consolidated statement of changes in equity for the nine-month period ended 30 September 2023.

CONSOLIDATED STATEMENTS OF CASH FLOW FOR THE NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2023 AND 2022

REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS PERIODS ENDED 30 SEPTEMBER 2023 AND 2022
CONSOLIDATED STATEMENTS OF CASH FLOW FOR THE NINE-MONTH



(Amounts expressed in thousands of Euros – tEuros) (Translation of statements of cash flow originally issued in Portuguese - Note 34)
	Notes	Sep 2023	Sep 2022
Cash flow from operating activities:
Cash receipts from customers		1,455,729 a)	2,585,189 a)
Cash paid to suppliers Cash paid to employees		(1,727,762) a) (59,016)	(1,821,647) a) (55,760)
Income tax received/paid		(17,382)	(63,221)
Other receipts / (payments) relating to operating activities		121,421	(31,203)
Net cash flows from operating activities (1)		(227,010)	613,358
Cash flow from investing activities:
Receipts related to:
Investments in associates Investment grants	7	231 50,705	391 78,999
Dividends	7 and 10	21,006	15,859
Payments related to:
Property, plant and equipment Intangible assets		(3,512) (161,688)	(6,109) (142,549)
Net cash flow used in investing activities (2)		(93,257)	(53,409)
Cash flow from financing activities:
Receipts related to:
Borrowings Interests and other similar income		2,040,500 3,014	915,000 -
Payments related to:
Borrowings		(1,935,154)	(1,254,942)
Interests and other similar expense		(50,905)	(36,638)
Leasings Interests of Leasings		(1,841) (78)	(1,845) (22)
Dividends	29	(59,698)	(102,150)
Net cash from / (used in) financing activities (3)		(4,162)	(480,597)
Net (decrease) / increase in cash and cash equivalents (1)+(2)+(3)		(324,429)	79,353
Effect of exchange rates Cash and cash equivalents at the beginning of the year		(1,437) 365,292	269 398,759
Cash and cash equivalents at the end of the period		39,426	478,381
Detail of cash and cash equivalents
Cash	13	21	24
Bank deposits The transitional gas price stabilization regime - Decree-Law 84-D/2022	13 13	39,405 -	478,357 -
		39,426	478,381

a) These amounts include payments and receipts relating to activities in which the Group acts as agent, income and costs being reversed in the consolidated statement of profit and loss.

The accompanying notes form an integral part of the consolidated statement of cash flow for the nine-month period ended 30 September 2023.

3. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 SEPTEMBER 2023

(Translation of notes originally issued in Portuguese - Note 34)

1 GENERAL INFORMATION

REN – Redes Energéticas Nacionais, SGPS, S.A. (referred to in this document as "REN", "REN SGPS" or "the Company" together with its subsidiaries, referred to as "the Group" or "the REN Group"), with head office in Avenida Estados Unidos da América. 55 – Lisbon, Portugal, resulted from the spin-off of the EDP Group, in accordance with Decree-Law no. 7/91 of 8 January and 131/94 of 19 May, approved by the Shareholders' General Meeting held on 18 August 1994, with the objective of ensuring the overall management of the Public Electric Supply System (PES).

Up to 26 September 2006 the REN Group's operations were concentrated on the electricity business through REN – Rede Eléctrica Nacional, S.A. On 26 September 2006, as a result of the unbundling transaction of the gas business, the Group went through a significant change with the purchase of assets and financial participations relating to the transport, storage and regasification of gas activities, comprising a new business.

In the beginning of 2007, the Company was transformed into a holding company and, renamed, after the transfer of the electricity business to a new company incorporated on 26 September 2006, REN – Serviços de Rede, S.A., which was simultaneously renamed to REN – Rede Eléctrica Nacional, S.A..

The Group presently has two main business segments, Electricity and Gas, and a secondary business of Telecommunications.

The Electricity business includes the following companies:

a) REN – Rede Eléctrica Nacional, S,A,, incorporated on 26 September 2006, whose activities are carried out under a concession contract for a period of 50 years as from 2007 which establishes the overall management of the Public Electricity Supply System (Sistema Eléctrico de Abastecimento Público - SEP);

b) REN Trading, S.A., was incorporated on 13 June 2007, whose main function is the management of Power Purchase Agreements ("PPA") from Turbogás, S.A. and Tejo Energia, S.A., which did not terminate on 30 June 2007, date of the entry into force of the new Contracts for the Maintenance of the Contractual Equilibrium (Contratos para a Manutenção do Equilíbrio Contratual – CMEC). The operations of this company include the trading of electricity produced and of the installed production capacity, to domestic and international distributors;

c) Enondas, Energia das Ondas, S.A. was incorporated on 14 October 2010, its capital being fully owned by REN - Redes Energéticas Nacionais, SGPS, S.A., and has as its activity the management of the concession for the exploration of a pilot area for the production of electric energy from sea waves;

d) Empresa de Transmisión Eléctrica Transemel, S.A. ("Transemel"), was incorporated on 1 October 2019, following the expansion of the electricity business in Chile. The company's activity consists of providing electricity transmission and transformation services and the development, operation and commercialization of transmission systems, allowing free access to the different players in the electricity market in Chile.

The Gas business includes the following companies:

a) REN Gás, S.A. was incorporated on 29 March 2011, with the corporate purpose of promoting, developing and carrying out projects and developments in the gas sector, as well as defining the overall strategy and coordination of the companies in which it has direct interests;

b) REN Gasodutos, S.A., was incorporated on 26 September 2006, whose the capital was paid up through the integration of the gas transport infrastructures (network, connections and compression);

c) REN Armazenagem, S.A., was incorporated on 26 September 2006, whose the capital was paid up through integration into the company of the gas underground storage assets;

d) REN Atlântico, Terminal de GNL, S.A., acquired under the acquisition of the gas business, previously designated as "SGNL – Sociedade Portuguesa de Gás Natural Liquefeito". The operations of this company comprise the supply, reception, storage and re-gasification of liquefied gas through the GNL marine terminal, being responsible for the construction, utilization and maintenance of the necessary infrastructures;

e) REN Portgás Distribuição, S.A. ("REN Portgás"), acquired as part of the expansion of the gas business on 4 October 2017. The company's object is the public service operation of the regional distribution network for natural gas and its substitute gases in 29 municipalities in the northern coastal area of Portugal, in the districts of Porto, Braga, and Viana do Castelo, as well as the construction and maintenance of the respective infrastructures,

The operations of the companies indicated in b) to d) above are developed in accordance with the three concession contracts separately granted for periods of 40 years starting 2006. The company indicated in e) above develops its activities in accordance with one concession contract granted for 40 years starting 2008.

The telecommunications business is managed by RENTELECOM – Comunicações, S.A. ("RENTELECOM") whose activity is the establishment, management and operation of telecommunications infrastructures and systems, the rendering of telecommunications services and optimizing the optical fibre excess capacity of the installations owned by REN Group.

REN SGPS fully owns REN Serviços, S.A., a company whose purpose is the rendering of services in the energetic area and the general services of business development support to group companies and third parties, receiving a fee for the services rendered, as well as the management of financial participations in other companies.

On 10 May 2013, REN Finance, B.V. was incorporated, a company wholly owned by REN SGPS, headquartered in the Netherlands, whose corporate purpose is to participate, finance, collaborate and conduct the management of related companies.

Additionally, on 24 May 2013, together with China Electric Power Research Institute, a State Grid Group company, Centro de Investigação em Energia REN – State Grid, S.A. ("Centro de Investigação") was incorporated under a Joint Venture Agreement on which REN holds 1,500,000 shares representing 50% of the total share capital.

The purpose of this company is to implement a Research and Development centre in Portugal, dedicated to the research, development, innovation and demonstration in the areas of electricity transmission and systems management, the rendering of advisory services and education and training services as part of these activities, as well as performing all related activities and complementary services to its object.

On 14 December 2016, Aério Chile SPA was incorporated, a company fully owned by REN Serviços, S.A., headquartered in Santiago, Chile, whose purpose is to realize investments in assets, shares and rights of companies and associations.

In addition, on 21 November 2018, REN PRO, S.A. was incorporated, a company fully owned by REN, headquartered in Lisbon, whose purpose is to provide support services, namely administrative, logistical, communication and development support of the business, as well as business consulting, in a remunerated manner, either to companies that are in a group relation or to any third party, and IT consulting.

On 17 July 2019, Apolo Chile SPA was incorporated, a company fully owned by REN Serviços, S.A., headquartered in Santiago, Chile, whose purpose is to realize investments in assets, shares and rights of companies and associations of entities essentially related to the electric transmission sector.

As of 30 September 2023 , REN also holds:

a) 42,5% interest in the share capital of the Chilean company, Electrogas, S.A., a provider of gas and other fuels transportation, The participation was acquired on 7 February 2017;

b) 40% interest in the share capital of OMIP - Operador do Mercado Ibérico (Portugal), SGPS, S.A. ("OMIP SGPS"), being its purpose the management of participations in other companies as an indirect way of exercising economic activities;

c) 10% interest in the share capital of OMEL - Operador do Mercado Ibérico de Energia, S.A., the Spanish pole of the Sole Operator;

d) 1% interest in the share capital of Red Eléctrica Corporación, S.A. ("REE"), entity in charge of the electricity network management in Spain;

e) 7,9% interest in the share capital of Coreso, S.A. ("Coreso"), entity that assists the European transmission system operators ("TSO"), in coordination and safety activities to ensure the reliability of Europe's electricity supply;

f) Participations in the share capital of: (i) Hidroeléctrica de Cahora Bassa, S.A. ("HCB"), participation of 7,5%; (ii) MIBGÁS, S.A., participation of 6,67%; and (iii) MIBGÁS Derivatives, S.A., participation of 9,7%.

1.1. Consolidation perimeter

		REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS
1.1. Consolidation perimeter
		The following companies were included in the consolidation perimeter as of 30 September 2023 and 31 December 2022:
Designation / adress	Country	Activity	Sep 2023 % Owned		Dec 2022 % Owned
			Group	Individual	Group	Individual
Parent company: REN - Redes Energéticas Nacionais, SGPS, S.A.	Portugal	Holding company	-	-	-	-
Subsidiaries: REN - Rede Eléctrica Nacional, S.A. Av. Estados Unidos da América, 55 - Lisboa	Portugal	National electricity transmission network operator (high and very high tension)	100%	100%	100%	100%
REN Trading, S.A. Praça de Alvalade, nº7 - 12º Dto, Lisboa	Portugal	Purchase and sale, import and export of electricity and natural gas	100%	100%	100%	100%
Enondas-Energia das Ondas, S.A. Mata do Urso - Guarda Norte - Carriço- Pombal	Portugal	Management of the concession to operate a pilot area for the production of electric energy from ocean waves	100%	100%	100%	100%
RENTELECOM - Comunicações S.A. Av. Estados Unidos da América, 55 - Lisboa	Portugal	Telecommunications network operation	100%	100%	100%	100%
REN - Serviços, S.A. Av. Estados Unidos da América, 55 - Lisboa	Portugal	Back office and management of participations	100%	100%	100%	100%
REN Finance, B.V. De Cuserstraat, 93, 1081 CN Amsterdam	Netherlands	Participate, finance, collaborate, conduct management of companies related to REN Group	100%	100%	100%	100%
REN PRO, S.A. Av. Estados Unidos da América, 55 - Lisboa	Portugal	Communication and Sustainability, Marketing, Business Management, Business Development and Consulting and IT Projects	100%	100%	100%	100%
REN Atlântico , Terminal de GNL, S.A. Terminal de GNL - Sines	Portugal	Liquified Natural Gas Terminal maintenance and regasification operation	100%	100%	100%	100%
Owned by REN Serviços, S.A.: REN Gás, S.A. Av. Estados Unidos da América, 55 -12º - Lisboa	Portugal	Management of projects and ventures in the natural gas sector	100%	-	100%	-
Aério Chile SPA Santiago do Chile	Chile	Investments in assets, shares, companies and associations	100%	-	100%	-
Apolo Chile SPA Santiago do Chile	Chile	Investments in assets, shares, companies and associations	100%	-	100%	-
Owned by REN Gás, S.A.: REN - Armazenagem, S.A. Mata do Urso - Guarda Norte - Carriço- Pombal	Portugal	Underground storage developement, maintenance and operation	100%	-	100%	-
REN - Gasodutos, S.A. Estrada Nacional 116, km 32,25 - Vila de Rei - Bucelas	Portugal	National Natural Gas Transport operator and natural gas overall manager	100%	-	100%	-
REN Portgás Distribuição, S.A. Rua Linhas de Torres, 41 - Porto	Portugal	Distribution of natural gas	100%	-	100%	-
Owned by Apolo Chile SPA (99.99%) and Aerio Chile SPA (<0.001%): Empresa de Transmisión Eléctrica Transemel, S.A. Santiago do Chile	Chile	Transmission and transformation of electricity, allowing free access to different players in the electricity market in Chile	100%	-	100%	-

Changes in the consolidation perimeter

- September 2023

There were no changes to the consolidation perimeter in 2023 compared to that reported on 31 December 2022 and to 30 September 2022.

- December 2022

There were no changes to the consolidation perimeter in 2022 compared to that reported on 31 December 2021.

1.2. Approval of quarterly consolidated financial statements

These interim consolidated financial statements were approved by the Board of Directors at a meeting held on 10 November 2023. The Board of Directors believes that the consolidated financial statements fairly present the financial position of the companies included in the consolidation, the consolidated results of their operations, their consolidated comprehensive income, the consolidated changes in their equity and their consolidated cash flows in accordance with the International Financial Reporting Standards for interim financial statements as endorsed by the European Union (IAS 34).

2 BASIS OF PRESENTATION

The consolidated financial statements for the nine-month period ended 30 September 2023 were prepared in accordance with IAS 34 - Interim Financial Reporting Standards, therefore do not include all information required for annual financial statements so should be read in conjunction with the annual financial statements issued for the year ended 31 December 2022.

The Board of Directors evaluated the Group's going concern capability, based on all the relevant information, facts and circumstances, of financial, commercial and other natures, including subsequent events occurred after the financial statement report date.

In result of this assessment, the Board concludes that the Group has the adequate resources to proceed its activity, not intending to cease its operations in short term, and therefore considers adequate the use of a going concern basis in the preparation of the financial statements.

The consolidated financial statements are presented in thousands of Euros – tEuros. rounded to the thousand closer.

On the present date, and taking into account the above and Note 5 - Main Estimates and Judgments, disclosed in the annex to the 2022 consolidated financial statements, the Group does not foresee any changes in the most relevant estimates, in the case of Provisions, Assumptions Actuarial, Tangible and Intangible Fixed Assets, Impairment, Fair Value of Financial Instruments, Impairment of Goodwill and Tariff deviations.

There were no significant changes in the long-term expectation of recovery of the Group's investments and financial holdings.

3 MAIN ACCOUNTING POLICIES

The consolidated financial statements were prepared for interim financial reporting purposes (IAS 34), on a going concern basis from the books and accounting records of the companies included in the consolidation, maintained in accordance with the accounting standards in force in Portugal, adjusted in the consolidation process so that the financial statements are presented in accordance with interim Financial Reporting Standards as endorsed by the European Union in force for the years beginning as from 1 January 2023.

Such Financial Reporting standards include International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board ("IASB"), International Accounting Standards (IAS), issued by the International Accounting Standards Committee ("IASC") and respective IFRIC and SIC interpretations, issued by the International Financial Reporting Interpretation Committee ("IFRIC") and Standard Interpretation Committee ("SIC"), that have been endorsed by the European Union. The standards and interpretations are hereinafter referred generically to as IFRS.

The accounting policies used to prepare these consolidated financial statements are consistent, in all material respects, with the policies used to prepare the consolidated financial statements for the year ended 31 December 2022, as explained in the notes to the consolidated financial statements for 2022, except for the adoption of new effective standards for periods beginning on or after 1 January 2023.

The Group has not previously adopted any standard, interpretation or amendment that is not yet in force.

The estimates and assumptions with impact on REN's consolidated financial statements are continuously evaluated, representing at each reporting date the Board of Directors best estimates, considering historical performance, past accumulated experience and expectations about future events that, under the circumstances, are believed to be reasonable. There were no changes in the main estimates and judgments presented in relation to the nine-month period ended on 30 September 2023 and compared to the year ended on 31 December 2022.

Adoption of new standards. interpretations. amendments and revisions

The following standards, interpretations, amendments and revisions have been endorsed by the European Union with mandatory application in effective for annual periods beginning on or after 1 January 2023:

IFRS 17 – Insurance Contracts: Initial Application of IFRS 17

IFRS 17 replaces IFRS 4 – "Insurance contracts", the standard that has been in force on an interim basis since 2004. IFRS 17 is applicable to all entities that issue insurance contracts, reinsurance contracts and investment contracts with participation characteristics discretionary. The amendments to IFRS 17 are intended to assist companies in implementing the Standard and to facilitate the explanation of their financial performance. The adoption of this standard does not result in significant impacts on REN's consolidated financial statements.

Amendments to IAS 1 and IFRS Practice Statement 2 – Disclosure of Accounting policies

These amendments aim to change the requirements in IAS 1 with regard to disclosure of accounting policies. An entity discloses its material accounting policies, instead of its significant accounting policies, so there are examples and explanations to identify a material accounting policy. The materiality concept is demonstrated in IFRS Practice Statement 2 through the "four-step materiality process". The adoption of this standard does not result in significant impacts on REN's consolidated financial statements.

Amendments to IAS 8 – Accounting policies. Changes in Accounting Estimates and Erros: Definition of Accounting Estimates

These amendments clarify the definition of accounting estimates. Under the new definition, accounting estimates are "monetary amounts in financial statements that are subject to measurement uncertainty". Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. A change in accounting estimate that results from new information or new developments is not the correction of an error. In addition, the effects of a change of this type used to develop an accounting estimate are changes in accounting estimates if they do not result from the correction of prior period errors. The adoption of this standard does not result in significant impacts on REN's consolidated financial statements.

Amendments to IAS 12 - Deferred Tax Related To Assets And Liabilities Arising From A Single Transaction

These amendments included, essencially, certain transaction where the initial recognition exemption is not applied, namely when its initial recognition gave rise to equal amounts of taxable and deductible temporary differences. The future adoption of this standard is not expected to have significant impacts on REN's consolidated financial statements.

Amendments to IFRS 17 - Insurance Contracts: Initial Application of IFRS 17 and Amendments to IFRS 9 – Comparative Information

The amendment is a transition option relating to comparative information about financial assets presented on initial application of IFRS 17. The amendment is aimed at helping entities to avoid temporary accounting mismatches between financial assets and insurance contract liabilities, and therefore improve the usefulness of comparative information for users of financial statements. The adoption of this standard does not result in significant impacts on REN's consolidated financial statements.

Standards and interpretations. amended or revised. not endorsed by the European Union

The following standards, interpretations, amendments and revisions, with mandatory application in future years, have not, until the date of preparation of these consolidated financial statements, been endorsed by the European Union:

	Applicable for
Standard	financial years	Resume
	beginning
		These amendments aim to promote consistency in applying the requirements by helping companies
		determine whether, in the statement of financial position, debt and other liabilities with an uncertain
Amendments to IAS 1 -		settlement date should be classified as current (due or potentially due to be settled within one year) or
Presentation of Financial Statements:	01/jan/24	non-current. The amendments include clarifying the classification requirements for debt a company might
Classification of Liabilities as Current or Non-current		settle by converting it into equity. The amendments clarify, not change, existing requirements, and so are
		not expected to affect companies' financial statements significantly. However, they could result in
		companies reclassifying some liabilities from current to non-current, and vice versa.
		The proposed amendment specifies requirements for seller-lessees to measure the lease liability in a sale
		and leaseback transaction, after the date it takes place. The amendments establish that when the payments
Amendments to IFRS 16 -	01/jan/24	include variable lease payments there is a risk that a modification or change in the leaseback term could
Leases: Lease Liability in a Sale and Leaseback		result in the seller-lessee recognising a gain on the right of use retained even though no transaction or
		event would have occurred to give rise to that gain.

Amendments to IAS 7 -
Statement of Cash Flows and IFRS 7 Financial Instruments:	01/jan/24	The disclosure requirements in the amendments enhance the current requirements and are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an
Disclosures: Supplier Finance Arrangements (Issued on 25		entity's liabilities, cash flows and exposure to liquidity risk.
May 2023)
Amendments to IAS 12 -
Income taxes: International Tax Reform – Pillar Two Model	01/jan/23	The Amendments introduce a mandatory exception in IAS 12 from recognising and disclosing deferred tax
Rules (issued 23 May 2023)		assets and liabilities related to Pillar Two income taxes.
Amendments to IAS 21 -		The Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates that will require companies to
The Effects of Changes in Foreign Exchange Rates: Lack of	01/jan/25	provide more useful information in their financial statements when a currency cannot be exchanged into
Exchangeability (issued on 15 August 2023)		another currency.

These standards have not yet been endorsed by the European Union and, as such, have not been applied by the Group for the nine-month period ended 30 September 2023 .

4 SEGMENT REPORTING

The Group is organised in two main business segments, Electricity and Gas and one secondary segment. The electricity segment includes the transmission of electricity in very high voltage, overall management of the public electricity system and management of the power purchase agreements (PPA) not terminated on 30 June 2007, the pilot zone for electricity production from sea wave and the transmission and transportation of electricity in Chile. The gas segment includes high pressure gas transmission and overall management of the national natural gas supply system, as well as the operation of regasification at the LNG Terminal, the distribution of natural gas in low and medium pressure and the underground storage of natural gas.

Although the activities of the LNG Terminal and underground storage can be seen as separate from the transport of gas and overall management of the national natural gas supply system, since these operations provide services to the same users and they are complementary services, it was considered that it is subject to the same risks and benefits.

The telecommunications segment is presented separately although it does not qualify for disclosure.

The results by segment for the nine-month period ended 30 September 2023 were as follows:

	REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS











The results by segment for the nine-month period ended 30 September 2023 were as follows:


	Electricity	Gas	Telecommunications	Others	Eliminations	Consolidated

Sales and services provided	320,692	164,189	5,995	30,247	(32,642)	488,482
Inter-segments	1,088	1,555	-	29,999	(32,642)	-
Revenues from external customers	319,605	162,634	5,995	248	-	488,482
Revenue from construction of concession assets	138,781	34,781	-	-	-	173,561

Cost with construction of concession assets	(125,203)	(29,664)	-	-	-	(154,867)
Gains / (losses) from associates and joint ventures	-	-	-	9,984	-	9,984
Personnel costs	(70,150)	(30,162)	(1,921)	(9,227)	36,320	(75,140)
Employee compensation and benefit expense	(15,358)	(9,525)	(243)	(20,990)	-	(46,117)
Other expenses and operating income	8,727	(575)	(64)	44	(3,678)	4,453
Operating cash flow	257,489	129,044	3,767	10,057	-	400,357
Investment income - dividends	-	-	-	8,542	-	8,542

Non reimbursursable expenses
Depreciation and amortizations	(125,248)	(63,328)	(0)	(145)	-	(188,721)
Provisions	(239)	-	-	-	-	(239)
Impairments	-	-	-	(283)	-	(283)

Financial results
Financial income	11,597	4,831	283	102,387	(107,964)	11,133
Financial costs	(29,887)	(21,099)	(3)	(116,546)	107,964	(59,570)
Profit before income tax and ESEC	113,712	49,449	4,046	4,012	-	171,218

Income tax expense	(32,306)	(13,996)	(967)	427	-	(46,842)
Energy sector extraordinary contribution (ESEC)	(17,817)	(10,317)	-	-	-	(28,134)
Profit for the period	63,589	25,135	3,079	4,439	-	96,242




The results by segment for the nine-month period ended 30 September 2022 were as follows:


	Electricity	Gas	Telecommunications	Others	Eliminations	Consolidated
Sales and services provided	270,430	156,308	5,858	29,869	(32,730)	429,736
Inter-segments	901	2,983	-	28,846	(32,730)	-

Revenues from external customers	269,530	153,325	5,858	1,023	-	429,736
Revenue from construction of concession assets	93,564	29,151	-	-	-	122,715
	(82,026)	(24,781)	-	-	-	(106,807)
	-	-
			-	8,288	-	8,288
Cost with construction of concession assets Gains / (losses) from associates and joint ventures Personnel costs	(41,417)	(39,765)	(1,900)	(9,167)	37,235	(55,014)
Employee compensation and benefit expense	(14,211)	(8,992)	(234)	(20,044)	-	(43,482)

Other expenses and operating income	13,328	(506)	(43)	(62)	(4,505)	8,212
Operating cash flow	239,668	111,415	3,681	8,885	-	363,648

The results by segment for the nine-month period ended 30 September 2022 were as follows:












Investment income - dividends	-	-	-	8,338	-	8,338

		(63,108)	(11)	(124)	-	(186,549)
Depreciation and amortizations	(123,307)
Non reimbursursable expenses Provisions	(526)	-	-	-	-	(526)
Impairments	-	-	-	(283)	-	(283)

Financial income	2,896	3,416	22	88,209	(87,006)	7,536
Financial results Financial costs	(19,916)	(13,433)	(4)	(97,276)	87,006	(43,623)
Profit before income tax and ESEC	98,814	38,290	3,688	7,749	-	148,542

Income tax expense Energy sector extraordinary contribution (ESEC)	(26,583) (17,590)	(11,831) (10,431)	(862) -	182 -	- -	(39,094) (28,021)

REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS







Assets and liabilities by segment as well as capital expenditures for the nine-month period ended 30 September 2023 were as
follows:


	Electricity	Gas	Telecommunications	Others	Eliminations	Consolidated

Segment assets
Group investments held	-	893.338	-	2.309.991	(3.203.330)	-
Property, plant and equipment and intangible assets	2.723.952	1.462.902	1	281	-	4.187.137
Other assets	755.704	1.308.482	18.161	5.257.935	(5.219.812)	2.120.471
Total assets	3.479.656	3.664.722	18.162	7.568.208	(8.423.141)	6.307.607

Total liabilities	2.541.474	2.134.639	10.357	5.348.493	(5.219.812)	4.815.153

Capital expenditure - total	142.315	34.781	-	-	-	177.095
Capital expenditure - property, plant and equipment (Note 5)	3.534	-	-	-	-	3.534
Capital expenditure - other intangible assets (Note 5)	-	-	-	-	-	-
Capital expenditure - intangible assets (Note 5)	138.781	34.781	-	-	-	173.561

Investments in associates (Note 7)	-	-	-	177.399	-	177.399
Investments in joint ventures (Note 7)	-	-	-	2.751	-	2.751







Assets and liabilities by segment at 31 December 2022 as well as investments on tangible assets and intangible assets were
as follows:



	Electricity	Gas	Telecommunications	Others	Eliminations	Consolidated

Segment assets
Group investments held	-	895,643	-	2,274,773	(3,170,415)	-
Property, plant and equipment and intangible assets	2,713,459	1,491,461	2	365	-	4,205,287
Other assets	872,841	1,397,657	18,166	6,371,555	(6,413,910)	2,246,309
	3,586,300	3,784,761	18,168	8,646,692	(9,584,325)	6,451,596

	2,679,398	2,253,343	10,442	6,404,788	(6,413,910)	4,934,062

	158,353	43,113	51	22	-	201,540
Total assets Total liabilities Capital expenditure - total

Capital expenditure - property, plant and equipment (Note 5)	3.534	-	-	-	-	3.534
Capital expenditure - other intangible assets (Note 5)	-	-	-	-	-	-
Capital expenditure - intangible assets (Note 5)	138.781	34.781	-	-	-	173.561
Investments in associates (Note 7)	-	-	-	177.399	-	177.399
Investments in joint ventures (Note 7)	-	-	-	2.751	-	2.751
Assets and liabilities by segment at 31 December 2022 as well as investments on tangible assets and intangible assets were
as follows:

Segment assets






Capital expenditure - property, plant and equipment (Note 5)	4,046	-	51	22	-	4,120
Capital expenditure - other intangible assets (Note 5)	-	-	-	-	-	-
Capital expenditure - intangible assets (Note 5)	154,307	43,113	-	-	-	197,420
Investments in associates (Note 7)	-	-	-	178,048	-	178,048

The liabilities included in the segment "Others" are essentially related to external borrowings obtained directly by REN SGPS, S.A. and REN Finance, BV for financing the several activities of the Group.

The captions of the statement of financial position and profit and loss for each segment result of the amounts considered directly in the individual financial statements of each company that belongs to the Group included in the perimeter of each segment, corrected with the eliminations of the inter-segment transactions.

5 TANGIBLE AND INTANGIBLE ASSETS

	REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS






5 TANGIBLE AND INTANGIBLE ASSETS

During the nine-month period ended 30 September 2023, the changes in tangible and intangible assets were as follows:

			Property, plant and equipment						Intangible assets
									Other
	Transmission and electronic	Transport equipment	Office equipment	Property, plant and equipment	Assets in progress	Total	Concession assets	Concession assets in	intangible assets	Intangible assets in	Total
	equipment							progress		progress
Cost: At 1 January 2023	121,130	802	846	1,212		14,784 138,775	8,783,321	155,175	59,078	-	8,997,573
Additions	118	79	12	-	3,325	3,534	3,626	169,935	-	-	173,561
Disposals, write-offs, impairments and
other reclassifications	-	(74)	(6)	-	-	(80)	(1,368)	-	-	-	(1,368)
Transfers	340	-	-	79	(418)	-	45,866	(45,866)	-	-	-
Exchange rate differences	(4,851)	-	(9)	-	(552)	(5,412)	-	-	(2,107)	-	(2,107)
At 30 September 2023	116,736	806	844	1,291		17,139 136,817	8,831,445	279,244	56,971	-	9,167,659
Accumulated depreciation:
At 1 January 2023	(9,939)	(516)	(488)	(13)		- (10,957)	(4,919,468)	-	(634)		- (4,920,103)
Depreciation charge	(3,214)	(128)	(44)	(2)	-	(3,387)	(185,027)	-	(307)	-	(185,334)
Depreciation of disposals, impairments, write-offs and other	-	58	6	-	-	64	1,291	-	-	-	1,291
reclassifications
Exchange rate differences	1,031	-	6	-	-	1,037	-	-	50	-	50
At 30 September 2023	(12,123)	(586)	(520)	(15)		- (13,244)	(5,103,204)	-	(891)		- (5,104,096)
Net book value:
At 1 January 2023	111,190	286	358	1,199		14,784 127,816	3,863,853	155,175	58,443	-	4,077,471
At 30 September 2023	104,614	220	324	1,276		17,139 123,573	3,728,240	279,244	56,080	-	4,063,564


The changes in tangible and intangible assets in the in the year ended 31 December 2022 were as follows:



			Property, plant and equipment	Property, plant					Intangible assets Other
	Transmission and electronic	Transport	Office equipment		Assets in progress	Total	Concession assets	Concession assets in		Intangible assets in	Total
	equipment	equipment		and equipment in progress				progress	intangible assets	progress
Cost:
At 1 January 2022	92,949	782	903	1,212		29,947 125,793	8,631,076	121,959	55,268		- 8,808,304
Additions	-	134	119	-	3,866	4,120	5,024	192,396	-		- 197,420
Disposals, write-offs and impairments Transfers	(33) 20,947	(115) -	(192) -	- -	- (21,035)	(339) (87)	(11,959) 159,180	- (159,180)	- 88		- (11,959) - 87
Exchange rate differences	7,266	1	16	-	2,006	9,289	-	-	3,722		- 3,722
	121,130	802	846	1,212		14,784 138,775	8,783,321	155,175	59,078		- 8,997,573


At 31 December 2022 Accumulated depreciation:
At 1 January 2022 Depreciation charge	(5,236) (3,402)	(466) (164)	(527) (66)	(13) -	- -	(6,241) (3,632)	(4,685,010) (245,273)	- -	(225) (371)		- (4,685,235) - (245,644)

Accumulated depreciation:


Depreciation of disposals,
impairments, write-offs and other	-	58	6	-	-	64	1,291	-	-	-	1,291
reclassifications







The changes in tangible and intangible assets in the in the year ended 31 December 2022 were as follows:


				Property, plant					Other
	Transmission and electronic	Transport	Office equipment		Assets in progress		Concession assets	Concession assets in		Intangible assets in
						Total					Total
		equipment
	equipment			and equipment in progress				progress	intangible assets	progress
Cost:
At 1 January 2022	92,949	782	903	1,212		29,947 125,793	8,631,076	121,959	55,268	-	8,808,304
Additions	-	134	119	-	3,866	4,120	5,024	192,396	-	-	197,420
Disposals, write-offs and impairments	(33)	(115)	(192)	-	-	(339)	(11,959)	-	-	-	(11,959)
Transfers	20,947	-	-	-	(21,035)	(87)	159,180	(159,180)	88	-	87
Exchange rate differences	7,266	1	16	-	2,006	9,289	-	-	3,722	-	3,722
At 31 December 2022	121,130	802	846	1,212		14,784 138,775	8,783,321	155,175	59,078	-	8,997,573
Accumulated depreciation:

At 1 January 2022	(5,236)	(466)	(527)	(13)	-	(6,241)	(4,685,010)	-	(225)		- (4,685,235)
Depreciation charge	(3,402)	(164)	(66)	-	-	(3,632)	(245,273)	-	(371)	-	(245,644)
Depreciation of disposals,
impairments, write-offs and other	33	114	117	-	-	264	10,815	-	-	-	10,815
reclassifications
Exchange rate differences	(1,334)	(1)	(13)	-	-	(1,348)	-	-	(38)	-	(38)
At 31 December 2022	(9,939)	(516)	(488)	(13)		- (10,957)	(4,919,468)	-	(634)		- (4,920,103)
Net book value:
At 1 January 2022	87,713	316	377	1,199		29,947 119,551	3,946,067	121,959	55,043	-	4,123,069
At 31 December 2022	111,190	286	358	1,199		14,784 127,816	3,863,853	155,175	58,443	-	4,077,471

REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS













The main additions verified in the periods ended 30 September 2023 and 31 December 2022 are made up as follows:

	Sep 2023	Dec 2022
Electricity segment:
Power line construction (220 KV, 150 KV and others)	18,352	28,162
Power line construction (400 KV)	59,515	56,958
Construction of new substations	7,231	1,831
Substation Expansion	35,713	48,659
Other renovations in substations	2,823	4,247
Telecommunications and information system	3,665	7,014
Pilot zone construction - wave energy	137	179
Buildings related to concession	3,446	1,463
Transmission and transformation of electricity in Chile	3,451	3,881
Other assets	7,898	5,794
Gas segment:
Expansion and improvements to gas transmission network	10,185	10,041
Construction project of cavity underground storage of gas in Pombal	494	1,604
Construction project and operating upgrade - LNG facilities	6,921	2,838
Gas distribution projects	17,181	28,630
Others segments:
Other assets	83	239
Total of additions	177,095	201,540

The main additions verified in the periods ended 30 September 2023 and 31 December 2022 are made up as follows:

The main transfers that were concluded and began activity during the periods ended 30 September 2023 and 31 December 2022 are made up as follows:

Gas segment:







The main transfers that were concluded and began activity during the periods ended 30 September 2023 and 31 December

Electricity segment:

Power line construction (220 KV, 150 KV and others)	1,064	55,083
Power line construction (400 KV)	-	18,033
Substation Expansion	20,564	35,321
Other renovations in substations	2,364	3,452
Telecommunications and information system	45	6,594
Buildings related to concession	2,791	887
Transmission and transformation of electricity in Chile	419	21,035
Other assets under concession Gas segment:	268	4,160
Expansion and improvements to gas transmission network	594	7,422
Construction project of cavity underground storage of gas in Pombal	71	1,305
Construction project and operating upgrade - LNG facilities	1,202	2,022
Gas distribution projects	16,902	24,904

		REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS













The tangible and intangible assets in progress at 30 September 2023 and 31 December 2022 are as follows:
					Sep 2023	Dec 2022
Electricity segment:
Power line construction (400 KV, 220 KV, 150 KV and others)					162,779	86,178
Substation Expansion					50,938	36,282
New substations projects					11,303	3,807
Buildings related to concession					5,404	4,749
Transmission and transformation of electricity in Chile					16,983	14,783
Other projects					12,164	2,648
Gas segment:
Expansion and improvements to natural gas transmission network					19,215	9,945
Construction project of cavity underground storage of gas in Pombal					3,522	3,141
Construction project and operating upgrade - LNG facilities					7,026	1,426
Gas distribution projects					7,049	6,997

			Total of assets in progress		296,383	169,959

Borrowing costs capitalized on intangible assets in progress in the period ended 30 September 2023 amounted to 3,506 thousand Euros (2,788 thousand Euros as of 31 December 2022). while overhead and management costs capitalized amounted to 15,189 thousand Euros (19,536 thousand Euros as of 31 December 2022) (Note 21). The average rate of the financial costs

The net book value of the property, plant and equipment and intangible assets, related with transport equipements, acquired through finance lease contracts at 30 September 2023 and 31 December 2022 was as follows:

		Sep 2023			Dec 2022
		Accumulated			Accumulated
	Cost	depreciation and	Net book value	Cost	depreciation and	Net book value
		amortization			amortization
	8,195	(4,519)	3,677	9,309	(4,453)	4,856
	2,318	-	2,318	1,847		- 1,847
Initial value Additions			(113)	(2,961)	1,979	(982)

The tangible and intangible assets in progress at 30 September 2023 and 31 December 2022 are as follows:

thousand Euros (2,788 thousand Euros as of 31 December 2022). while overhead and management costs capitalized amounted to 15,189 thousand Euros (19,536 thousand Euros as of 31 December 2022) (Note 21). The average rate of the financial costs capitalized was of 0.16%. The net book value of the property, plant and equipment and intangible assets, related with transport equipements, acquired through finance lease contracts at 30 September 2023 and 31 December 2022 was as follows:
		Sep 2023			Dec 2022
		Accumulated			Accumulated
	Cost	depreciation and amortization	Net book value	Cost	depreciation and amortization	Net book value
Initial value	8,195	(4,519)	3,677	9,309		(4,453)	4,856
Additions	2,318	-	2,318	1,847		-	1,847
Disposals and write-offs	(2,081)	1,968	(113)	(2,961)		1,979	(982)
Depreciation charge	-	(1,441)	(1,441)	-		(2,045)	(2,045)
Final value	8,431	(3,992)	4,440	8,195		(4,519)	3,677
6 GOODWILL

6 GOODWILL

		Accumulated			Accumulated
	Cost	depreciation and			depreciation and	Net book value
		amortization			amortization







Goodwill represents the difference between the amount paid for the acquisition and the net assets fair value of the companies acquired, with reference to the acquisition date, and at 30 September 2023 and 31 December 2022 is detailed as follows:
		Year of	Acquisition	%	Sep 2023	Dec 2022
Subsidiaries		acquisition	cost
REN Atlântico, Terminal de GNL, S.A.		2006	32,580	100%	849	1,133
REN Portgás Distribuição, S.A.		2017	503,015	100%	1,235	1,235
Empresa de Transmisión Eléctrica		2019	155,482	100%	2,072	2,147
Transemel, S.A.					4,156	4,515

	REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS
	The movement for the periods ended 30 September 2023 and 31 December 2022 was: At 1 January			Exchange	At 31			Exchange	At 30
Subsidiaries	2022	Increases	Decreases	rate differences	December 2022	Increases	Decreases	rate differences	September 2023
REN Atlântico, Terminal de GNL, S.A.	1,510	-	(377)	-	1,133	-	(283)	-	849
REN Portgás Distribuição, S.A.	1,235	-	-	-	1,235	-	-	-	1,235
Empresa de Transmisión Eléctrica	2,012	-	-	136	2,147	-	-	(74)	2,072
Transemel, S.A.

7 INVESTMENTS IN ASSOCIATES AND JOIN VENTURES

Subsidiaries	At 1 January 2022				Exchange rate differences		At 31 December 2022					Exchange rate differences	At 30 September 2023


Empresa de Transmisión Eléctrica Transemel, S.A.

7 INVESTMENTS IN ASSOCIATES AND JOIN VENTURES At 30 September 2023 and 31 December 2022. the financial information regarding the financial interest held is as follows:					30 September 2023
	Activity	Head office	Share capital	Current assets	Non-current assets	Current liabilities	Non-current liabilities	Revenues	Net profit/(loss)	Share capital	%	Carrying amount	Group share of profit / (loss)
Equity method: Associate: OMIP - Operador do Mercado Ibérico (Portugal), SGPS, S.A. (i)	Holding company	Lisbon	2,610	555	29,568	188	-	1,536	1,265	29,934	40	11,724	514
Electrogas, S.A.	Gas Transportation	Chile	20,074	11,755	26,907	3,540	5,462	36,968	22,202	26,660	42.5	165,675	9,436
Joint venture: Centro de Investigação em Energia REN - STATE GRID, S.A.	Research & Development	Lisbon	3,000	5,940	70	486	16	1,324	68	5,509	50	177,399 2,751	9,950 34
(i) Financial Statements at 31 December 2022, subject to audit review.												180,150	9,984

					31 December 2022
	Activity	Head office	Share	Current	Non-current	Current	Non-current	Revenues	Net	Share	%	Carrying	Group share of
			capital	assets	assets	liabilities	liabilities		profit/(loss)	capital		amount	profit / (loss)
								1,314	645	29,118	40	11,440	255
Equity method: Associate: OMIP - Operador do Mercado Ibérico (Portugal), SGPS, S.A.	Holding company	Lisbon	2,610	331	29,017	230	-
Electrogas, S.A.	Gas Transportation	Chile	19,938	16,858	31,226	5,247	6,692	46,283	27,181	36,145	42.5	166,608	11,552
Joint venture: Centro de Investigação em Energia REN - STATE GRID, S.A.	Research & Development	Lisbon	3,000	6,201	96	827	20	1,740	10	5,450	50	178,048 2,722	11,807 5

			31 December 2022
	Share	Current	Non-current	Current	Non-current	Net	Share	Carrying	Group share of
	capital	assets	assets	liabilities	liabilities	profit/(loss)	capital	amount	profit / (loss)






Centro de Investigação em Energia						Revenues		%

Associates

The changes in the caption "Investments in associates" during the periods ended 30 September 2023 and 31 December 2022 was as follows:

REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS







The changes in the caption "Investments in associates" during the periods ended 30 September 2023 and 31 December 2022

Investments in associates

At 1 de january de 2022	166,541
Effect of applying the equity method - Net Profit	11,807
Currency Translation Reserves	9,539
Dividends of Electrogas	(9,358)
Receipt of Supplementary Obligations of OMIP	(391)
Other changes in equity	(89)
At 31 December 2022	178,048
Effect of applying the equity method - Net Profit	9,950
Currency Translation Reserves	1,069
Dividends of Electrogas	(11,436)
Receipt of Supplementary Obligations of OMIP	(231)
At 30 September 2023	177,399
The proportional value of the OMIP, SGPS includes the effect of the adjustment resulting of changes to the Financial Statement
The movement in the caption "Investments in joint ventures" during the periods ended 30 September 2023 and 31 December
Investments in joint ventures
At 1 January 2022	2,742
Effect of applying the equity method	5
Dividends distribution	(25)
At 31 December 2022	2,722
Effect of applying the equity method	34
Dividends distribution	(5)

The proportional value of the OMIP, SGPS includes the effect of the adjustment resulting of changes to the Financial Statement of the previous year, made after the equity method application.

Joint ventures

The movement in the caption "Investments in joint ventures" during the periods ended 30 September 2023 and 31 December 2022 was as follows:

Effect of applying the equity method - Net Profit	9,950






Investments in joint ventures
At 1 January 2022	2,742
Effect of applying the equity method	5
Dividends distribution	(25)
At 31 December 2022	2,722
Effect of applying the equity method	34
Dividends distribution	(5)

Following a joint agreement of technology partnership between REN – Redes Energéticas Nacionais and the State Grid International Development (SGID), in May 2013 an R&D centre in Portugal dedicated to power systems designed – Centro de Investigação em Energia REN – STATE GRID, S.A. ("Centro de Investigação") was incorporated, being jointly controlled by the above mentioned two entities.

The Research Centre aims to become a platform for international knowledge, a catalyst for innovative solutions and tools, applied to the planning and operation of transmission power.

	REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS



At 30 September 2023 and 31 December 2022, the financial information of the joint venture was as follows:
			30 September 2023
	Cash and cash equivalents	Current financial liabilities	Non-current financial liabilities	Depreciations and amortizations	Financial costs	Income tax- (cost) / income
Joint venture:

Centro de Investigação em Energia
REN - STATE GRID, S.A.	5,021	7	16	(32)	(2)	(3)
			31 December 2022
	Cash and cash	Current financial	Non-current financial	Depreciations and		Income tax- (cost) /
	equivalents	liabilities	liabilities	amortizations	Financial costs	income
Joint venture:
Centro de Investigação em Energia
REN - STATE GRID, S.A.	5,257	2	20	(65)	(3)	(2)



8 INCOME TAX

8 INCOME TAX

REN is taxed based on the special regime for the taxation of group companies. which includes all companies located in Portugal that REN detains directly or indirectly ate least 75% of the share capital, which should give at more than 50% of the voting rights, and comply with the conditions of the article 69º of the Corporate Income Tax law.

In accordance with current legislation, tax returns are subject to review and correction by the tax authorities for a period of four years (five years for social security), except when there are tax losses, tax benefits granted or tax inspections, claims or appeals in progress, in which case the period can be extended or suspended, depending on the circumstances. Consequently, the Company's tax returns for the years from 2019 to 2022 are still subject to review.

The Company's Board of Directors understands that possible corrections to the tax returns resulting from tax reviews /inspections carried out by the tax authorities will not have a significant effect on the financial statements as of 30 September 2023 and 31 December 2022.

In the nine-month period ended 30 September 2023, the Group is subject to Corporate Income Tax, at an average rate, taking into account the base rate of 21%, which will be increased by a municipal surcharge of up to a maximum of 1.5% on taxable income, and a state surcharge of (i) 3% of taxable profit between 1.500 thousand Euros and 7.500 thousand Euros; (ii) of 5% over the taxable profit in excess of 7,500 thousand Euros and up to 35,000 thousand Euros; and (iii) 9% for taxable profits in excess of 35,000 thousand Euros, which results in a maximum aggregate tax rate of 31.5%.

The tax rate used in the valuation of temporary taxable and deductible differences as of 30 September 2023, was updated for each Company included in the consolidation perimeter, using the average tax rate expected in accordance with future perspective of taxable profits of each company recoverable in the next periods.

Income tax registered in the periods ended 30 September 2023 and 2022 was as follows:

	Sep 2023	Sep 2022
Current income tax	28,390	39,496
Adjustments of income tax from previous years	(1,329)	(2,429)
Deferred income tax	19,782	2,026
Income tax	46,842	39,094

Reconciliation between tax calculated at the nominal tax rate and tax recorded in the consolidated statement of profit and loss is as follows:

REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS








Reconciliation between tax calculated at the nominal tax rate and tax recorded in the consolidated statement of profit and loss

	Sep 2023	Sep 2022
Consolidated profit before income tax	171,218	148,542

Permanent differences:
Non deductible/taxable costs/income	2,452	(2,618)
Timing differences:
Tariff deviations	(79,416)	(20,252)
Provisions and impairment	(1,367)	(102)
Revaluations	(4,448)	2,692
Pension, helthcare assistence and life insurance plans	469	(853)
Derivative financial instruments	635	(1,288)
Others Taxable income	944 90,487	840 126,962

Income tax	19,039	27,934
State surcharge tax	8,643	8,782
Municipal surcharge	227	2,135
Autonomous taxation	482	645
Current income tax	28,390	39,496
Deferred income tax	19,782	2,026

Adjustments of income tax from previous years	(1,329)	(2,429)
Income tax	46,842	39,094

Effective tax rate	27.4%	26.3%


The caption "Income tax" payable and receivable at 30 September 2023 and 31 December 2022 is made up as follows:

	Sep 2023	Dec 2022
Income tax:
Corporate income tax - estimated tax Corporate income tax - payments on account	(28,390) 28,762	(48,447) 57,331
	2,439	1,793

Income withholding tax by third parties Income recoverable / (payable)	118	(7)

Income tax

The caption "Income tax" payable and receivable at 30 September 2023 and 31 December 2022 is made up as follows:

Income tax:

Deferred taxes

Sep 2023 Dec 2022 (20,214) (15,001) 432 6,108 (19,782) (8,892) (176) (11,870) 4,781 (13,601) 4,605 (25,471) (15,177) (34,363)
Impact on the statement of profit and loss: Deferred tax assets Deferred tax liabilities Impact on equity: Deferred tax assets Deferred tax liabilities Net impact of deferred taxes


REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS The effect of the changes in the deferred tax captions in the years presented was as follows:

























	Pensions	Tariff deviations
Provisions and Derivative financial Impairments

Change in deferred tax assets – September 2023

	Impact on the statement of profit and loss:




	Impact on equity:


				4,605		(25,471)




	The changes in deferred tax by nature were as follows:
	Change in deferred tax assets – September 2023

	Provisions and			Derivative financial
	Impairments	Pensions	Tariff deviations	instruments	Revalued assets	Others	Total
At 1 January 2023	3,130	19,454	32,587	(2,457)	12,986	4,100	69,803
Increase/decrease through reserves	-	(436)	-	-	-	260	(176)
Reversal through profit and loss	(315)	-	(17,351)	(67)	(1,439)	(1,403)	(20,575)
Increase through profit and loss	-	77	286	-	-	-	363
Change in the period	(315)	(359)	(17,065)	(67)	(1,439)	(1,143)	(20,388)
At 30 September 2023	2,815	19,095	15,522	(2,524)	11,547	2,957	49,412


	Change in deferred tax assets – December 2022


	Provisions and Impairments	Pensions	Tariff deviations	Derivative financial instruments	Revalued assets	Others	Total
At 1 January 2022	2,834	28,200	46,433	1,542	15,054	2,607	96,673
Increase/decrease through reserves	-	(8,175)	-	(3,837)	-	142	(11,870)
Reversal through profit and loss	-	(571)	(14,192)	(162)	(2,068)	(43)	(17,036)
Increase through profit and loss	296	-	346	-	-	1,394	2,036
Change in the period	296	(8,746)	(13,846)	(3,999)	(2,068)	1,493	(26,870)

At 31 December 2022	3,130	19,454	32,587	(2,457)	12,986	4,100	69,803

Change in deferred tax assets – December 2022

	Provisions and






Change in deferred tax assets – December 2022
	Impairments	Pensions	Tariff deviations	Derivative financial instruments	Revalued assets	Others	Total
At 1 January 2022	2,834	28,200	46,433	1,542	15,054	2,607	96,673
Increase/decrease through reserves	-	(8,175)	-	(3,837)	-	142	(11,870)
Reversal through profit and loss	-	(571)	(14,192)	(162)	(2,068)	(43)	(17,036)
Increase through profit and loss	296	-	346	-	-	1,394	2,036
Change in the period	296	(8,746)	(13,846)	(3,999)	(2,068)	1,493	(26,870)

Evolution of deferred tax liabilities – September 2023

			REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS
		Evolution of deferred tax liabilities – September 2023		Investments in equity
	Tariff deviations	Revaluations	Fair value	instruments at fair value through other comprehensive income	Derivative financial instruments	Others	Total
At 1 January 2023	27,775	15,937	46,860	8,669	17,179	(1,355)	115,064
Increase/decrease through equity Reversal trough profit and loss Increase through profit and loss	- - 3,295	- (991) -	- (1,513) -	(2,500) - -	(1,996) - -	15 (1,223) -	(4,481) (3,727) 3,295
Exchange rate differences Change in the period	- 3,295	- (991)	- (1,513)	- (2,500)	- (1,996)	(300) (1,508)	(300) (5,213)
At 30 September 2023	31,070	14,946	45,347	6,169	15,183	(2,863)	109,850
	Tariff deviations	Evolution of deferred tax liabilities – December 2022 Revaluations	Fair value	Investments in equity instruments at fair value through other comprehensive income	Derivative financial instruments	Others	Total
At 1 January 2022	29,765	17,274	48,685	13,037		- (1,190)	107,569
Increase/decrease through equity Reversal trough profit and loss Increase through profit and loss	- (1,990) -	- (1,337) -	- (1,825) -	(4,368)	17,179 - -	- (13) - (1,044) - 89	12,798 (6,196) 89
Exchange rate differences	-	-	-		-	- 803	803

Evolution of deferred tax liabilities – December 2022

		Evolution of deferred tax liabilities – December 2022
	Tariff deviations	Revaluations	Fair value	Investments in equity instruments at fair value through other comprehensive income	Derivative financial instruments	Others	Total
At 1 January 2022	29,765	17,274	48,685	13,037	- -	(1,190)	107,569
Increase/decrease through equity	-	-	-	(4,368)	17,179	(13)	12,798
Reversal trough profit and loss	(1,990)	(1,337)	(1,825)	-	-	(1,044)	(6,196)
Increase through profit and loss	-	-	-	-	-	89	89
Exchange rate differences	-	-	-	-	-	803	803
Change in the period	(1,990)	(1,337)	(1,825)	(4,368)	17,179	(165)	7,494
At 31 December 2022	27,775	15,937	46,860	8,669	17,179	(1,355)	115,064

		the assets considered cost at the time of the transition to IFRS).		Deferred tax liabilities relating to revaluations result from revaluations made in preceding years under legislation. The effect of these deferred taxes reflects the non-tax deductibility of 40% of future depreciation of the revaluation component (included in
		The legal documents that establish these revaluations were the following:
			Legislation (revaluation)
		Electricity segment	Gas segment
		Decree-Law nº 430/78	Decree-Law nº 140/2006
		Decree-Law nº 399-G/81	Decree-Law nº 66/2016
		Decree-Law nº 219/82
		Decree-Law nº 171/85
		Decree-Law nº 118-B/86
		Decree-Law nº 111/88
		Decree-Law nº 7/91

	Legislation (revaluation)



Decree-Law nº 219/82
Decree-Law nº 171/85
Decree-Law nº 118-B/86
Decree-Law nº 111/88
Decree-Law nº 7/91
Decree-Law nº 49/91
Decree-Law nº 264/92

9 FINANCIAL ASSETS AND LIABILITIES

- September 2023

			REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS

9			FINANCIAL ASSETS AND LIABILITIES
financial assets and liabilities:			The accounting policies for financial instruments in accordance with the IFRS 9 categories have been applied to the following
- September 2023
	Notes	Financial assets at amortized cost	Financial assets at fair value - Equity instruments through other comprehensive income	Financial assets/liabilities at fair value - Profit for the year	Other financial assets/liabilities	Total carrying amount	Fair value
Assets
Cash and cash equivalents Trade and other receivables	13 11	- 689,468	- -	- -	39,426 -	39,426 689,468	39,426 689,468
Other financial assets		-	-	-	174	174	174
Investments in equity instruments at fair value	10	-	135,263	-	-	135,263	135,263
through other comprehensive income Income tax receivable		2,929	-	-	-	2,929	2,929
Derivative financial instruments	12	-	76,054	1,795	-	77,849	77,849
Assets related to the transitional gas price stabilization regime - Decree-Law 84-D/2022	32	-	-	-	936,514	936,514	936,514
		692,397	211,317	1,795	976,114	1,881,623	1,881,623
Liabilities
Borrowings Trade and other payables	16 19	- -	- -	- -	2,437,688 761,044	2,437,688 761,044	2,412,595 761,044
Drivative financial instruments	12	-	80,819	-	-	80,819	80,819
Liability related to the transitional gas price
stabilization regime - Decree-Law 84-D/2022	32	- -	- 80,819	- -	936,514 4,135,245	936,514 4,216,064	936,514 4,190,971

- December 2022
	Notes	Financial assets at amortized cost	Financial assets at fair value - Equity instruments through other comprehensive income	Financial assets/liabilities at fair value - Profit for the year	Other financial assets/liabilities	Total carrying amount	Fair value
Assets
Cash and cash equivalents	13	-	-	-	365,292	365,292	365,292
Trade and other receivables Other financial assets	11	383,430 -	- -	- -	- 179	383,430 179	383,430 179
Investments in equity instruments at fair value	10	-	145,715	-	-	145,715	145,715
through other comprehensive income

- December 2022

Investments in equity instruments at fair value through other comprehensive income
















		-	80,819	-	4,135,245	4,216,064	4,190,971
	Notes	Financial assets at amortized cost	Financial assets at fair value - Equity instruments through other comprehensive income	Financial assets/liabilities at fair value - Profit for the year	Other financial assets/liabilities	Total carrying amount	Fair value

Assets
Cash and cash equivalents	13	-	-	-	365,292	365,292	365,292
Trade and other receivables	11	383,430	-	-	-	383,430	383,430
Other financial assets		-	-	-	179	179	179
Investments in equity instruments at fair value	10	-	145,715	-	-	145,715	145,715
through other comprehensive income
Income tax receivable		10,671	-	-	-	10,671	10,671
Derivative financial instruments	12	-	-	80,799	-	80,799	80,799
Assets related to the transitional gas price
stabilization regime - Decree-Law 84-D/2022	32	-	-	-	1,000,000	1,000,000	1,000,000
		394,101	145,715	80,799	1,365,472	1,986,087	1,986,087
Liabilities
Borrowings	16	-	-	-	2,334,306	2,334,306	2,289,200
Trade and other payables	19	-	-	-	964,968	964,968	964,968
Drivative financial instruments	12	-	-	73,464	-	73,464	73,464
Liability related to the transitional gas price
stabilization regime - Decree-Law 84-D/2022	32	-	-	-	1,000,000	1,000,000	1,000,000
		-	-	73,464	4,299,274	4,372,738	4,327,632

Loans obtained, as referred to in Note 3.6 of the annual consolidated financial statements, for the year ended 31 December 2022, are measured upon initial recognition at fair value and subsequently at amortized cost. except those for which a derivative has been contracted fair value coverage (Note 12), in which case they are revalued at fair value. Nevertheless. REN proceeds to the disclosure of the fair value of the caption Borrowings, based on a set of relevant observable data, which fall within Level 2 of the fair value hierarchy.

The fair value of borrowings and derivatives are calculated by the method of discounted cash flows. using the curve of interest rate on the date of the statement of financial position in accordance with the characteristics of each loan.

The range of market rates used to calculate the fair value ranges between 3.8800% and 3.3104% (maturities of one day and nine years, respectively).

Estimated fair value – assets and liabilities measured at fair value

Level 1: the fair value of financial instruments is based on net market prices as of the date of the statement of financial position;
Level 2: the fair value of financial instruments is not determined based on active market quotes but using valuation models. The main inputs of the models are observable in the market. in relation to derivative finantial instruments;
Level 3: the fair value of financial instruments is not determined based on active market quotes. but using valuation models. whose main inputs are not observable in the market.

The fair value of borrowings contracted by the Group at 30 September 2023 is 2,412,595 thousand Euros (at 31 December
2022 was 2,289,200 thousand Euros), of which 534,287 thousand Euros are partially recorded at amortized cost, and contains an element recorded at fair value resulting from movements in the interest rate (at 31 December 2022 the amount recorded was 527,116 thousand Euros).
Estimated fair value – assets and liabilities measured at fair value
The following table presents the Group's assets and liabilities measured at fair value at 30 September 2023 in accordance with the following hierarchy levels of fair value:
 Level 1: the fair value of financial instruments is based on net market prices as of the date of the statement of financial position;

 Level 2: the fair value of financial instruments is not determined based on active market quotes but using valuation models. The main inputs of the models are observable in the market. in relation to derivative finantial instruments;
 Level 3: the fair value of financial instruments is not determined based on active market quotes. but using valuation models. whose main inputs are not observable in the market.
During the nine-month period ended 30 September 2023, there was no transfer of financial assets and liabilities between fair
value hierarchy levels.
			Sep 2023				Dec 2022
		Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Assets: Investments in equity instruments at fair value	Shares	80,653	-	51,013	131,667	88,045	-	54,074	142,119
through other comprehensive income Financial assets at fair value	Cash flow hedge derivatives	-	76,054	-	76,054	-	78,735	-	78,735
Financial assets at fair value through profit and loss	Negotiable derivatives	-	1,795	-	1,795	-	2,064	-	2,064
		80,653	77,849	51,013	209,516	88,045	80,799	54,074	222,918
Liabilities:
Financial liabilities at fair value	Loans	-	534,287	-	534,287	-	527,116	-	527,116
Financial liabilities at fair value	Cash flow hedge derivatives	-	10,153	-	10,153	-	901	-	901
Financial liabilities at fair value	Fair value hedge derivatives	- -	70,666 615,106	- -	70,666 615,106	- -	72,563 600,580	- -	72,563 600,580

During the nine-month period ended 30 September 2023, REN proceeded to a valuation of the financial interests held Hidroeléctrica de Cahora Bassa, S.A., which is classified as Investments in equity instruments at fair value through other comprehensive income (Note 10). The fair value of this asset reflects the price at which the asset would be sold in an orderly transaction.

For this purpose, REN has opted for a revenue approach, which reflects current market expectations regarding future amounts. The fair value of the investment amounted to 51,013 thousand Euros for the nine-month period ended on 30 September 2023.

With respect to the current receivables and payables balances, its carrying amount corresponds to a reasonable approximation of its fair value.

The non-current accounts receivable and accounts payable refers. Essentially, to tariff deviations which amounts are communicated by ERSE, being its carrying amount a reasonable approximation of its fair value, given that they include the time value of money, being incorporated in the next two years tariffs.

Financial risk management

Up until 30 September 2023, there were no significant changes regarding the financial risk management of the Company compared to the risks disclosed in the consolidated financial statements as of 31 December 2022. A description of the risks can be found in Section 4 - Financial Risk Management of the consolidated financial statements for the year ended 31 December 2022.

10 INVESTMENTS IN EQUITY INSTRUMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

OTHER COMPREHENSIVE INCOME	REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS
10 INVESTMENTS IN EQUITY INSTRUMENTS AT FAIR VALUE THROUGH







The assets recognised in this caption at 30 September 2023 and 31 December 2022 corresponds to equity interests held on strategic entities for the Group, which can be detailed as follows:

				Head office			Book value
			City	Country	% owned	Sep 2023		Dec 2022

OMEL - Operador del Mercado Ibérico de Energia (Pólo Espanhol)			Madrid	Spain	10.00%		3,167	3,167
Red Eléctrica Corporación, S.A. ("REE")			Madrid	Spain	1.00%		80,653	88,045
Hidroeléctrica de Cahora Bassa ("HCB")			Maputo	Mozambique	7.50%		51,013	54,074
Coreso, S.A.			Brussels	Belgium	7.90%		164	164
MIBGAS, S.A.			Madrid	Spain	6.67%		202	202
MIBGÁS Derivatives, S.A.			Madrid	Spain	9.70%		49	49
	Association HyLab - Green Hydrogen Collaborative Laboratory		Sines	Portugal	15.00%		15	15
							135,263	145,715




						MIBGÁS
	OMEL	HCB	REE	Coreso	MIBGÁS	Derivatives	HyLab	Total

At 1 January 2022	3,167	56,111	103,017	164	202	48	15	162,724
The changes in this caption were as follows: Fair value adjustments	-	(2,037)	(14,972)	-	-	-	-	(17,009)
At 31 December 2022	3,167	54,074	88,045	164	202	48	15	145,715

At 1 January 2023	3,167	54,074	88,045	164	202	48	15	145,715
Fair value adjustments At 30 September 2023	- 3,167	(3,061) 51,013	(7,391) 80,654	- 164	- 202	- 48	- 15	(10,452) 135,263

			MIBGÁS

REN holds 2,060,661,943 shares representing 7.5% of the stock capital and voting rights of Hidroeléctrica de Cahora Bassa, SA. a company incorporated under Mozambican law, at the HCB. as a result of fulfilling the conditions of the contract entered into on April 9, 2012, between REN, Parpública - Participações Públicas, SGPS, SA, CEZA - Companhia Eléctrica do Zambeze, SA and EDM - Electricidade de Moçambique, EP. This participation was initially recorded at its acquisition cost (38,400 thousand Euros) and subsequently adjusted to its fair value (Note 9).

REN Company holds a financial stake in the Coreso's share capital, a Company which is also hold by other important European TSO's which, as initiative of the Coordination of Regional Security (CRS), assists the TSO's in the safely supply of electricity in Europe. In this context, Coreso develops and executes operational planning activities that involve the analysis and coordination of the European regional electricity network, with a focus on the coordination of services, ranging from coordination several days in advance to close to real time.

On 30 September 2023, REN also holds a 6.67% financial interest in the share capital of MIBGÁS, SA, acquired during the first half of 2016, a company in charge of the development of the natural gas wholesale market operator in the Iberian Peninsula.

As part of the process of creating the Single Operator of the Iberian Electricity Market (Operador Único do Mercado Ibérico de Eletricidade – OMI) in 2011 and in accordance with the provisions of the agreement between the Portuguese Republic and the Kingdom of Spain on the establishment of an Iberian electricity market, the Company acquired 10% of the capital stock of OMEL, Operador del Mercado Iberico de Energia, SA, a Spanish operator of the sole operator, for a total value of 3,167 thousand Euros.

On 30 September 2023, REN also holds a 9.7% financial interest,acquired for the amount of 48 thousand Euros, of the share capital of MIBGÁS Derivatives, SA, the management company of the organized futures market natural gas, spot products of liquefied natural gas and spot products in underground storage in the Iberian Peninsula.

On 30 September 2023, REN also holds 15 Founder Participation Units in the HyLab – Green Hydrogen Collaborative Laboratory Association, acquired for the amount of 15 thousand Euros. This is a non-profit association governed by private law, whose object is the scientific and technological development of Green Hydrogen, covering the various components of the value chain, namely production, transport, distribution, storage and end uses.

These investments (OMEL, MIBGÁS, MIBGÁS Derivatives, Coreso and HyLab) are recognised at fair value through other comprehensive income, however, as there are no available market price for these investments and as it is not possible to determine the fair value of the period using comparable transactions. these investments are recorded at acquisition value, and there is no indicator at this date that this value is not representative of the fair value. as describe in Note 3.6 - Financial Assets and Liabilities of the consolidated financial statements for the year ended 2022.

REN understands that there is no evidence of impairment loss regarding the investments of OMEL, Coreso, MIBGÁ, MIBGÁS Derivatives and HyLab at 30 September 2023.

REN Portgás holds other financial interests, which are recorded at the acquisition cost in the amount of 14 thousand Euros, deducted of impairment losses, with a net value of zero Euros.

The adjustments to investments in equity instruments at fair value through other comprehensive are recognised in the equity caption "Fair value reserve". This caption at 30 September 2023 and 31 December 2022 is made up as follows:

These investments (OMEL, MIBGÁS, MIBGÁS Derivatives, Coreso and HyLab) are recognised at fair value through other comprehensive income, however, as there are no available market price for these investments and as it is not possible to determine the fair value of the period using comparable transactions. these investments are recorded at acquisition value, and there is no indicator at this date that this value is not representative of the fair value. as describe in Note 3.6 - Financial Assets and Liabilities of the consolidated financial statements for the year ended 2022.
REN understands that there is no evidence of impairment loss regarding the investments of OMEL, Coreso, MIBGÁ, MIBGÁS Derivatives and HyLab at 30 September 2023.
REN Portgás holds other financial interests, which are recorded at the acquisition cost in the amount of 14 thousand Euros, deducted of impairment losses, with a net value of zero Euros.
Name
AMPORTO - Área Metropolitana do Porto
AREA ALTO MINHO - Ag. Reg. Energia e Amb. Alto Minho
ADEPORTO - Agência de Energia do Porto
The adjustments to investments in equity instruments at fair value through other comprehensive are recognised in the equity caption "Fair value reserve". This caption at 30 September 2023 and 31 December 2022 is made up as follows:	Fair value reserve
	(Note 15)
1 January 2022 Changes in fair value	57,758 (17,009)
Tax effect	4,368
31 December 2022	45,116

1 January 2023	45,116
Changes in fair value	(10,452)
Tax effect	2,500
30 September 2023	37,164

The amount of 8,542 thousand Euros recognized in the consolidated statement of profit and loss, in the nine-month period ended 30 September 2023, is relative to associated companies' dividends. The detail of dividends by entity, in the nine-month period ended 30 September 2023 and 2022, is presented in the following
	Sep 2023	Sep 2022
Red Electrica Corporación, S.A. ("REE")	3,938	3,938
	4,534	4,356
Hidroeléctrica de Cahora Bassa, S.A ("HCB")
OMEL - Operador del Mercado Ibérico de Energia (Pólo Espanhol)	70 8,542	43 8,338

The amount of 8,542 thousand Euros recognized in the consolidated statement of profit and loss, in the nine-month period ended 30 September 2023, is relative to associated companies' dividends.

The detail of dividends by entity, in the nine-month period ended 30 September 2023 and 2022, is presented in the following table:

		Fair value reserve
		(Note 15)








	The amount of 8,542 thousand Euros recognized in the consolidated statement of profit and loss, in the nine-month period ended 30 September 2023, is relative to associated companies' dividends. The detail of dividends by entity, in the nine-month period ended 30 September 2023 and 2022, is presented in the following
Red Electrica Corporación, S.A. ("REE")		Sep 2023 3,938	Sep 2022 3,938
Hidroeléctrica de Cahora Bassa, S.A ("HCB")		4,534	4,356
	OMEL - Operador del Mercado Ibérico de Energia (Pólo Espanhol)	70	43
		8,542	8,338

11 TRADE AND OTHER RECEIVABLES

		REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS










11 TRADE AND OTHER RECEIVABLES

Trade and other receivables at 30 September 2023 and 31 December 2022 are made up as follows:

		Sep 2023			Dec 2022
	Current	Non-current	Total	Current	Non-current	Total

Trade receivables	276,847	2,292	279,139	229,678	3,275	232,952
Impairment of trade receivables	(2,905)	-	(2,905)	(2,905)	-	(2,905)
Trade receivables net	273,942	2,292	276,234	226,773	3,275	230,047

Tariff deviations	9,266	351,053	360,319	45,451	52,391	97,842
State and Other Public Entities	52,915	-	52,915	55,540	-	55,540

The most relevant balances included in the trade and other receivables caption as of 30 September 2023 are: (i) the receivable of E-Redes Distribuição de Eletricidade, SA in the amount of 29,953 thousand Euros (32,125 thousand Euros at 31 December 2022), (ii) the receivable of Galp Gás Natural, S.A., in the amount of 7,045 thousand Euros (5,760 thousand Euros at 31 December 2022), (iii) the receivable of EDP – Gestão da Produção de Energia, S.A.. in the amount of 214 thousand Euros (7,112 thousand Euros at 31 December 2022), (iv) the receivable of EDP – Energias de Portugal, S.A., in the amount of 1,047 thousand Euros (15,829 thousand Euros at 31 December 2022), (v) the receivable of Endesa Generación, S.A., in the amount of 9,616 thousand Euros (10,295 thousand Euros at 31 December 2022) and (vi) the amount of 88,974 thousands Euros regarding Social Tariff, not yet invoiced at 30 September 2023. Sep 2023 Dec 2022 Begining balance (2,905) (2,947) Reclassifications - 123 Increases - (81) Ending balance (2,905) (2,905)

In the trade and other receivables at 30 September 2023, also stands out the amounts not yet invoiced of the activity of the Market Manager (MIBEL – Mercado Ibérico de Electricidade), in the amount of 58,258 thousand Euros (54,758 thousand Euros at 31 December 2022), the amount to invoice to EDP – Distribuição de Energia, S.A., of 7,040 thousand Euros (5,885 thousand Euros at 31 December 2022) regarding the CMEC, also reflected in the caption "Suppliers and other accounts payable" (Note 19).

This transaction is set up as an "Agent" transaction, being off set in the consolidated income statement.

Changes to the impairment losses for trade receivable and other accounts receivable are made up as follows:

	Sep 2023	Dec 2022
Begining balance	(2,905)	(2,947)
Reclassifications		123
Increases		(81)
Ending balance	(2,905)	(2,905)

12 DERIVATIVE FINANCIAL INSTRUMENTS

REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS




12 DERIVATIVE FINANCIAL INSTRUMENTS

At 30 September 2023 and 31 December 2022, the REN Group had the following derivative financial instruments contracted:
			30 September 2023
			Assets		Liabilities
	Notional	Current	Non-current	Current	Non-current
Derivatives designated as cash flow hedges Interest rate swaps	900,000 TEUR	-	76,003	-	-
Currency and interest rate swaps	10,000,000 TJPY	-	-	10,153	-
Non-Deliverable Forward	1,5900,000 TEUR	50	-	-	-
		50	76,003	10,153	-
Derivatives designated as fair value hedges
Interest rate swaps	600,000 TEUR	-	-	-	70,666
		-	-	-	70,666
Trading derivatives Trading derivatives	60,000 TEUR	1,795	-	-	-
		1,795	-	-	-

Derivative financial instruments		1,845	76,003	10,153	70,666

			31 December 2022
			Assets	Liabilities
Derivatives designated as cash flow hedges	Notional	Current	Non-current	Current	Non-current
Interest rate swaps	900,000 TEUR	-	78,500	-	-
Currency and interest rate swaps	10,000,000 TJPY	-	-	-	901
Non-Deliverable Forward	3,180,000 TEUR	236	-	-	-
		236	78,500	-	901
Derivatives designated as fair value hedges
Interest rate swaps	600,000 TEUR	-	-	-	72,563
		-	-	-	72,563
Trading derivatives Trading derivatives	60,000 TEUR	-	2,064	-	-
			2,064		-

		-		-

Currency and interest rate swaps	10,000,000 TJPY	-	-	10,153	-
Non-Deliverable Forward	1,5900,000 TEUR	50	-	-	-
		50	76,003	10,153	-
Derivatives designated as fair value hedges

		-	-	-	70,666
Trading derivatives

		1,795	-	-	-

			31 December 2022


Derivatives designated as cash flow hedges

Currency and interest rate swaps	10,000,000 TJPY	-	-	-	901
Non-Deliverable Forward	3,180,000 TEUR	236	-	-	-
		236	78,500	-	901
Derivatives designated as fair value hedges
Interest rate swaps	600,000 TEUR	-	-	-	72,563
		-	-	-	72,563
Trading derivatives
		60,000 TEUR - 2,064 - - - 2,064 - - 236 80,564 - 73,464
Trading derivatives

eleven interest rate swap contracts negotiated by REN SGPS to hedge the interest rate fluctuation risk;
a cross currency swap contract negotiated by REN SGPS to hedge the exchange rate fluctuation risk;
a global non-deliverable forward contract negotiated by REN Serviços, with the objective of covering the exchange rate risk of exposure to the Chilean Peso of sales denominated in the same currency by Transemel.

Counterparties to derivative contracts are international financial institutions with a solid credit rating and first-rate national institutions.

For the purpose of the effectiveness tests of the designated hedging relationships, REN applies the "Dollar offset method" and the linear regression statistical method as methodologies. The effectiveness ratio is given by comparing the changes in fair value of the hedging instrument with the changes in fair value of the hedged item (or hypothetical derivative instrument simulating the conditions of the hedged item).

For the purpose of calculating ineffectiveness, the total change in fair value of the hedging instruments is considered.

REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS




The disclosed amount includes receivable or payable accrued interest, at 30 September 2023 related to these financial
instruments, in the net amount payable of 1,284 thousand Euros (at 31 December 2022 it was 577 thousand Euros payable).

The characteristics of the derivative financial instruments negotiated at 30 September 2023 and 31 December 2022 were as
follows:
						Fair value at
	Notional	Currency	REN pays	REN receives	Maturity	Sep 2023	Dec 2022
Cash flow hedge: Interest rate swaps	900,000 TEuros	EUR	[0.75%;1.266%]	[Euribor 3m; Euribor 6m]	[dec-2024;feb-2025]	76,003	78,500
Currency ans interest rate swaps	10,000,000 TJPY	EUR/JPY	[Euribor 6m; + 1.9%]	[2.71%]	[jun-2024]	(10,153)	(901)
Non-Deliverable Forward	1,590,000 TCLP	EUR/CLP	[854,4 to 893,1 CLP]	[854,4 to 893,1 EUR]	[jul-2021;dec-2023]	50	236
Fair value hedge:						65,900	77,835
Interest rate swaps	300,000 TEuros	EUR	[Euribor 6m]	[0.611%; 0.6285%]	[feb-2025]	(13,531)	(15,582)
Interest rate swaps	300,000 TEuros	EUR	[Euribor 6m]	[-0.095%]	[apr-2029]	(57,134) (70,666)	(56,981) (72,563)
Trading:
Interest rate swaps	60,000 Teuros	EUR	[0.99%]	[Euribor 6m]	[jun-2024]	1,795 1,795	2,064 2,064

					Total	(2,970)	7,336

The periodicity of the cash flows, paid and received, from the derivative financial instruments portfolio is monthly, quarterly,
semiannual and annual for cash flow hedging contracts, semiannual and annual for fair value hedging contracts and semiannual
for the trading derivative.
The breakdown of the notional of derivatives on 30 September 2023 is presented in the following table:

		2023	2024	2025	2026 2027	Following	Total
						years
Interest rate swap (cash flow hedge)			- 300,000	300,000	-	- 300,000	900,000
			- 72,899	-	-	- -	72,899
Currency and interest rate swap (cash flow hedge)			893 -	-	-	- -	893
Non Deliverable Forward (cash flow hedge)			- -	300,000	-	- 300,000	600,000
Interest rate swap (fair value hedge)			- 60,000 893 432,899	- 600,000	- -	- - - 600,000	60,000 1,633,792
Interest rate swap (trading)
	Total




The breakdown of the notional of derivatives on 31 December 2022 is presented in the following table:		2023	2024	2025	2026 2027	Following	Total
						years
Interest rate swap (cash flow hedge)			- 300,000	300,000	-	- 300,000	900,000
Currency and interest rate swap (cash flow hedge)			- 72,899	-	-	- -	72,899
Non Deliverable Forward (cash flow hedge)			3,604 -	-	-	- -	3,604
Interest rate swap (fair value hedge) Interest rate swap (trading)			- - - 60,000	300,000 -	- -	- 300,000 - -	600,000 60,000

The periodicity of the cash flows, paid and received, from the derivative financial instruments portfolio is monthly, quarterly, semiannual and annual for cash flow hedging contracts, semiannual and annual for fair value hedging contracts and semiannual for the trading derivative.
The breakdown of the notional of derivatives on 30 September 2023 is presented in the following table:
						Following years	Total







The breakdown of the notional of derivatives on 31 December 2022 is presented in the following table:						Following	Total
						years
Interest rate swap (cash flow hedge)	-	300,000	300,000	-	-	300,000	900,000
Currency and interest rate swap (cash flow hedge)	-	72,899	-	-	-	-	72,899
Non Deliverable Forward (cash flow hedge)	3,604	-	-	-	-	-	3,604
Interest rate swap (fair value hedge)	-	-	300,000	-	-	300,000	600,000
Interest rate swap (trading)	-	60,000	-	-	-	-	60,000

			Following years	Total

Swaps:

Cash Flow Hedge - Interest Rate Swaps

The Group hedges the interest rate risk associated with the fluctuation of the market interest rate index (Euribor) on a portion of future debt interest payments through the designation of interest rate swaps, in order to transform floating rate payments into fixed rate payments.

At 30 September 2023, the Group has a total of six cash flow hedging interest rate swap contracts for a total amount of 900,000 thousand Euros (as of 31 December 2022 it was 900,000 thousand Euros). The hedged risk is the variable rate index associated to the interest payments of the loans Credit risk is not being hedged.

REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS The fair value of the interest rate swaps, at 30 September 2023, is positive 76,003 thousand Euros (at 31 December 2022 it was positive 78,500 thousand Euros). Of the derivatives described above, two contracts in a total amount of 600,000 thousand Euros (at 31 December 2022 it was 600,000 thousand Euros) are designated to hedge an aggregated exposure composed by the net effect of floating rate debt and interest rate swaps designated as fair value hedging instruments. The amount recognised in reserves, relating to the cash flow hedges referred to above, was 71,628 thousand Euros (at 31 December 2022 it was 78,316 thousand Euros). The hedged instruments of cash flow hedging relationships present the following conditions: Hedged carrying Hedged carrying Maturity Hedged notional Interest rate Note amount - Sep 2023 amount - Dec 2022 Cash flow hedging instruments

Cash Flow Hedge – Interest and Exchange Rate Swaps

The Group hedged the exchange rate risk of the 10,000 million yen bond issued through a cross currency swap with the main characteristics similar to the bond with regard to exchange rate risk. Credit risk is not hedged.

The fair value of the cross currency swap at 30 September 2023 is negative 10,153 thousand Euros (at 31 December 2022 it was positive 901 thousand Euros).

Changes in the fair value of the hedging instrument are also being recognized in equity hedging reserves, with exception of:

the offsetting of the exchange rate effect of the spot revaluation of the hedged item (bond issue in yen) at each reference date, arising from the hedging of the exchange rate risk⁸ ;
the ineffective effect of the hedge arising from the accounting designation made (REN contracted a trading derivative to economically hedge this ineffectiveness - see Trading Derivative)⁹ . This inefficiency is caused by the change in the interest profile of the hedging instrument, which pays a variable rate in the period from 2019 to 2024.

Cash Flow Hedge – Non Deliverable forward

_____________________________________

In May 2021, the Group hedged the exchange rate risk of sales denominated in Chilean Pesos by Transemel, in a total amount of 7,950,000 thousand Chilean Pesos (CLP), through the contracting of a structure of thirty monthly non deliverable forwards on the monthly average of the EUR/CLP exchange rate with maturity between 2021 and 2023.

⁸The currency effect of the underlying (loan), as at 30 September 2023, was favorable in the amount of 7,842 thousand Euros, and was offset, in the same amount, by the unfavourable effect of the hedging instrument in the income statement for the year (as of 30 September 2022 was favorable in 5,782 thousand Euros).

⁹The ineffective cash flow hedge component of the exchange rate risk recognised in the income statement, was positive 1,487 thousand Euros which was offset by the effect of the trading derivative negotiated in negative 724 thousand Euros (as of 30 September 2022 it was negative 3,725 thousand Euros against positive 3,459 thousand Euros of the effect of the trading derivative). Therefore, the net effect on the income statement for the nine-month period ended on 30 September 2023 amounted to positive 764 thousand Euros (as of 30 September 2022 was negative 266 thousand Euros).

Integral Income:

- September 2023

As at 30 September 2023, the Group has a total of three active non-deliverable forwards contracts denominated as cash flow hedging instruments in the global amount of 893 thousand Euros. The hedged risk corresponds to the foreign exchange exposure of sales made in CLP at the time of the consolidation of the Group entity, Transemel. Credit risk is not covered. The fair value of non deliverable forwards, as of 30 September 2023, is positive 50 thousand Euros (at 31 December 2022 it

was positive 236 thousand Euros). The amount recorded in reserves, referring to the cash flow hedges mentioned above, as at 30 September 2023, is 314 thousand Euros (at 31 December 2022 it was 346 thousand Euros). Additionally, an amount of 116 thousand Euros was recorded as a hedging cost in the income statement, which corresponds to the forward points of the hedging instruments that are not designated as part of the hedging relationship (at 30 September 2022 it was 59 thousand Euros). The hedged instrument of the cash flow hedge corresponds to a proportion of total sales denominated in CLP, corresponding to a monthly sales amount of 265,000 thousand Chilean Pesos.
Integral Income:
The movements recorded in the statement of comprehensive income through the application of cash flow hedges were as follows:
- September 2023
Cash flow hedging instruments	Change in the fair value of hedging instruments (*)	Of which: effective amount recorded in hedge reserves	Hedging inefficiency recorded in profit for the year	Coverage reserve reclassifications to results for the year
Swaps of interest rate	(6,688)	(6,688)	-	-
Swaps of exchange rate and interest rate	(8,537)	(2,182)	1,487	(7,842)
Non-Deliverable Forward	50	314	-	(264)
	(15,175)	(8,556)	1,487	(8,106)
(*) Includes accrued interest and hedging inefficiency.

	Change in the fair	Of which: effective	Hedging inefficiency	Coverage reserve

Cash flow hedging instruments	value of hedging	amount recorded in hedge	recorded in profit for	reclassifications to
- September 2022	instruments (*)	reserves	the year	results for the year
Swaps of interest rate	84,110	84,110	-	-
Swaps of exchange rate and interest rate	(6,865)	2,642	(3,725)	5,782
Non-Deliverable Forward	519	607	-	(88)

- September 2022

Change in the fair value of hedging instruments (*)	Of which: effective amount recorded in hedge reserves	Hedging inefficiency recorded in profit for the year	Coverage reserve reclassifications to results for the year



77,764	87,359	(3,725)	5,694

Hedging Reserve:

The movements recognised in the hedging reserve (Note 15) were as follows:

	(15,175)	(8,556)	1,487		(8,106)
(*) Includes accrued interest and hedging inefficiency.

	Change in the fair	Of which: effective	Hedging inefficiency	Coverage reserve
Cash flow hedging instruments	value of hedging	amount recorded in hedge	recorded in profit for	reclassifications to
	instruments (*)	reserves	the year	results for the year



	77,764	87,359	(3,725)		5,694

(*) Includes accrued interest and hedging inefficiency. The movements recognised in the hedging reserve (Note 15) were as follows:
	Fair value	Deferred taxes	Hedging reserves
		impact	(Note 15)
1 January 2022	(15,962)		3,837	(12,126)
Changes in fair value and ineffectiveness		92,660	(21,016)	71,644

31 December 2022		76,698	(17,179)	59,518
1 January 2023		76,698	(17,179)	59,518

Changes in fair value and ineffectiveness 30 September 2023		(8,940) 67,758	1,996 (15,183)	(6,944) 52,575

Fair Value Hedge

- September 2023

Fair value hedging instruments Bond Issue (Euro Medium Term Notes)	Maturity 12/02/2025	Hedged notional 300,000 TEuros	Interest rate 2.50%	Carrying amount 290,873	Accumulated Fair value adjustment 13,437	Variation of the year-end 2023 (3,547)	Note 16


- September 2023
Changes in the fair value of hedged items arising from interest rate risk are recognised in the income statement in order to offset changes in the fair value of the hedging instrument, which are also recognised in the income statement. The hedged items of fair value hedging relationships have the following conditions:
At 30 September 2023, the Group has a total of four fair value hedging derivative contracts amounting to 600,000 thousand Euros (as of 31 December 2022 it was 600,000 thousand Euros). The hedged risk corresponds to the change in fair value of debt issues attributable to movements in the market interest rate index (Euribor). Credit risk is not being hedged. At 30 September 2023, the fair value of interest rate swaps designated as fair value hedging instruments was negative 70,666 thousand Euros (as of 31 December 2022 it was negative 72,563 thousand Euros).
The Group hedges the interest rate risk associated with the fluctuation of the market interest rate index (Euribor) on the fair value of interest payments on fixed-rate debt by negotiating interest rate swaps where it pays a variable rate and receives a fixed rate in order to convert fixed-rate debt payments into variable-rate payments.

Fair Value Hedge

- September 2022

Changes in the fair value of hedged items arising from interest rate risk are recognised in the income statement in order to offset changes in the fair value of the hedging instrument, which are also recognised in the income statement.
The hedged items of fair value hedging relationships have the following conditions:
- September 2023
	Maturity	Hedged notional	Interest rate	Carrying amount	Accumulated Fair value adjustment	Variation of the year-end 2023	Note
Fair value hedging instruments


					65,713	(7,171)
- September 2022
					Accumulated
	Maturity	Hedged notional	Interest rate	Carrying amount	Fair value	Variation of the year-end 2022	Note
					adjustment
Fair value hedging instruments
Bond Issue (Euro Medium Term Notes)	12/02/2025	300,000 TEuros	2.50%	272,793	15,415	22,461	16
Bond Issue (Euro Medium Term Notes)	16/04/2029	300,000 TEuros	0.50%	249,821	54,989	49,489	16
					70,404	71,950
As of 30 September 2023, the change in fair value of the debt related to interest rate risk recognized in the income statement was negative 7,171 thousand Euros (at 30 September 2022 it was positive 71,950 thousand Euros), resulting in an ineffective component, after considering the effect of the hedged items in the income statement, of approximately negative 635 thousand Euros (at 30 September 2022 it was positive 1,288 thousand Euros). The ineffectiveness recognized is related to the effect of the fixed leg spread of the hedging instruments that is not reflected in the hedged item. Integral Income: The movements recorded in the statement of comprehensive income through the application of fair value hedges were as
follows: - September 2023

				Hedging inefficiency
	Fair value hedging instruments			recorded in profit for
	Swaps of interest rate			the year	(635)

Integral Income:

- September 2023

	Hedging inefficiency
Fair value hedging instruments	recorded in profit for
	the year

September 2022

REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS








	Hedging inefficiency
Fair value hedging instruments	recorded in profit for the year

Trading Derivative

The Group negotiated an interest rate swap, with a starting date in 2019 and maturity in 2024, which pays fixed rate and receives variable rate. This instrument, although not designated as hedge accounting considering IFRS 9 criteria, is currently hedging the effect of the ineffectiveness of the cash flow hedge of the interest and exchange rate risks of the bond issue in Yen, relative to the fluctuation of interest rates for the hedging period (see Cash Flow Hedge – Interest and Exchange Rate Swaps).

The notional amount of this trading derivative is 60,000 thousand Euros as of 30 September 2023 (at 31 December 2022 it was 60,000 thousand Euros). Credit risk is not being hedged. The fair value of the trading derivative, on 30 September 2023, is positive 1,795 thousand Euros (on 31 December 2022 it was positive 2,064 thousand Euros).

Changes in the fair value of the trading derivative are recorded directly in the income statement. The impact in the income statement, as of 30 September 2023, related to the effect of the fair value of the trading derivative was negative 724 thousand Euros (as of 30 September 2022 it was 3,459 thousand Euros positive).

13 CASH AND CASH EQUIVALENTS

The amounts considered as cash and cash equivalents in the consolidated statements of cash flows for the periods ended 30 September 2023 and 31 December 2022 are made up as follows:

The Group negotiated an interest rate swap, with a starting date in 2019 and maturity in 2024, which pays fixed rate and receives variable rate. This instrument, although not designated as hedge accounting considering IFRS 9 criteria, is currently hedging the effect of the ineffectiveness of the cash flow hedge of the interest and exchange rate risks of the bond issue in Yen, relative to the fluctuation of interest rates for the hedging period (see Cash Flow Hedge – Interest and Exchange Rate Swaps).
The notional amount of this trading derivative is 60,000 thousand Euros as of 30 September 2023 (at 31 December 2022 it was 60,000 thousand Euros). Credit risk is not being hedged. The fair value of the trading derivative, on 30 September 2023, is positive 1,795 thousand Euros (on 31 December 2022 it was positive 2,064 thousand Euros).
Changes in the fair value of the trading derivative are recorded directly in the income statement. The impact in the income statement, as of 30 September 2023, related to the effect of the fair value of the trading derivative was negative 724 thousand Euros (as of 30 September 2022 it was 3,459 thousand Euros positive).
13 CASH AND CASH EQUIVALENTS The amounts considered as cash and cash equivalents in the consolidated statements of cash flows for the periods ended 30
September 2023 and 31 December 2022 are made up as follows:
				Sep 2023	Dec 2022
Cash				21	1
				39,405	365,291
Bank deposits				39,426	365,292
Cash and cash equivalents in the statement of financial position
The transitional gas price stabilization regime - Decree-Law 84-D/2022 (Note 32)				-	-
Cash and cash equivalents in cash flow statement				39,426	365,292



In the periods ended 30 September 2023 and 31 December 2022, there are no cash and cash equivalents that are not available 14 EQUITY INSTRUMENTS

As of 30 September 2023 and 31 December 2022, REN's subscribed and paid up share capital is made up of 667,191,262	Sep 2023		Dec 2022
	Number of shares	Share capital	Number of shares	Share capital
Share Capital	667,191,262	667,191	667,191,262		667,191

In the periods ended 30 September 2023 and 31 December 2022, there are no cash and cash equivalents that are not available for the group to use.

14 EQUITY INSTRUMENTS

As of 30 September 2023 and 31 December 2022, REN's subscribed and paid up share capital is made up of 667,191,262 shares of 1 euro each.

	Sep 2023		Dec 2022
			Number of shares Share capital Number of shares	Share capital
Share Capital	667,191,262	667,191	667,191,262	667.191

The caption "Other changes in equity" in the period ended 30 September 2023 amounted to 5,561 thousand Euros.

Additionally, and following the share capital increase in 2017, the caption "Share Premium" in the period ended 30 September 2023 amounted to 116,809 thousand Euros.

At 30 September 2023 and 31 December 2022, REN SGPS had the following own shares:

	REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS




	Number of	Proportion	Amount
	shares
Own shares	3,881,374	0.6%	(10,728)


	In accordance with the Commercial Company Code (Código das Sociedades Comerciais) REN SGPS must at all times ensure

No own shares were acquired or sold in the period ended 30 September 2023.

In accordance with the Commercial Company Code (Código das Sociedades Comerciais) REN SGPS must at all times ensure that there are sufficient Equity Reserves to cover the value of own shares, in order to limit the amount of reserves available for distribution.

15 RESERVES AND RETAINED EARNINGS

The caption "Reserves" in the amount of 381,368 thousand Euros includes:

Legal reserve: The Commercial Company Code in place requires that at least 5% of the net profit must be transferred to this reserve until it has reached 20% of the share capital. This reserve can only be used to cover losses or to increase capital. At 30 September 2023 this caption amounts to 141,378 thousand Euros;
Fair value reserve: includes changes in the fair value of available for sale financial assets (37,164 thousand Euros positive), as detailed in Note 10;
Hedging reserve: includes changes in the fair value of hedging derivative financial instruments when cash flow hedge is effective (positive 52,574 thousand Euros) as detailed in Note 12; and
Other reserves: This caption is changed by (i) application of the results of previous years. being available for distribution to shareholders; except for the limitation set by the Companies Code in respect of own shares (Note 14); (ii) exchange rate changes associated to the financial investment whose functional currency is Dollar; (iii) exchange variation of assets and liabilities of financial investments in subsidiaries, namely the exchange rate effect of converting Chilean Peso to Euro and (iv) changes in equity of associates recorded under the equity method. On 30 September 2023, this caption amounts to 150,252 thousand Euros.

In accordance with the Portuguese legislation: (i) increases in equity as a result of the incorporation of positive fair value (fair value reserves and hedging reserves) can only be distributed to shareholders when the correspondent assets have been sold, exercised, extinct, settled or used; and (ii) income and other positive equity changes recognized as a result of the equity method can only be distributed to shareholders when paid-up. Portuguese legislation establishes that the difference between the equity method income and the amount of paid or deliberated dividends is equivalent to legal reserve.

16 BORROWINGS

The segregation of borrowings between current and non-current and by nature, at 30 September 2023 and 31 December 2022 was as follows:

Hedging reserve: includes changes in the fair value of hedging derivative financial instruments when cash flow hedge is effective (positive 52,574 thousand Euros) as detailed in Note 12; and 150,252 thousand Euros. method income and the amount of paid or deliberated dividends is equivalent to legal reserve. Sep 2023 Dec 2022	Fair value reserve: includes changes in the fair value of available for sale financial assets (37,164 thousand Euros positive), as detailed in Note 10;
Other reserves: This caption is changed by (i) application of the results of previous years. being available for distribution to shareholders; except for the limitation set by the Companies Code in respect of own shares (Note 14); (ii) exchange rate changes associated to the financial investment whose functional currency is Dollar; (iii) exchange variation of assets and liabilities of financial investments in subsidiaries, namely the exchange rate effect of converting Chilean Peso to Euro and (iv) changes in equity of associates recorded under the equity method. On 30 September 2023, this caption amounts to
In accordance with the Portuguese legislation: (i) increases in equity as a result of the incorporation of positive fair value (fair value reserves and hedging reserves) can only be distributed to shareholders when the correspondent assets have been sold, exercised, extinct, settled or used; and (ii) income and other positive equity changes recognized as a result of the equity method can only be distributed to shareholders when paid-up. Portuguese legislation establishes that the difference between the equity The segregation of borrowings between current and non-current and by nature, at 30 September 2023 and 31 December 2022



		Current	Non-current	Total	Current	Non-current	Total
63,251 1,033,524 1,096,775 550,000 1,097,002 1,647,002	Bonds
68,548 288,381 356,929 68,283 348,300 416,583	Bank Borrowings
481,000 484,000 965,000 - 250,000 250,000	Commercial Paper
1,554 2,764 4,319 1,432 2,418 3,850	Leases
614,353 1,808,669 2,423,023 619,715 1,697,720 2,317,436
19,812 - 19,812 23,667 - 23,667	Accrued interest
(2,380) (2,767) (5,147) (4,438) (2,359) (6,797) 631,785 1,805,903 2,437,688 638,944 1,695,362 2,334,306	Prepaid interest Borrowings

			REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS




		The borrowings settlement plan was as follows:

Debt - Non current	2023 -	2024 19,098	2025 570,702	2026 524,516	2027 69,789	Following years 624,565	Total 1,808,669
Debt - Current	349,868	264,485	-	-	-	-	614,353

		REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS





	The borrowings settlement plan was as follows:




349,868	283,583	570,702	524,516	69,789	624,565	2,423,023
		Detailed information regarding bond issues as of 30 September 2023 is as follows:
			30 September 2023
Issue date	Maturity	Inicial amount	Outstanding amount	Interest rate	Periodicity of interest payment
	'Euro Medium Term Notes' programme emissions
26/06/2009	26/06/2024	TJPY 10,000,000 (i) (ii)	TJPY 10,000,000	Fixed rate	Semi-Annual
12/02/2015	12/02/2025	TEUR 300,000 (ii)	TEUR 500,000	Fixed rate EUR 2.50%	Annual
18/01/2018	18/01/2028	TEUR 300,000	TEUR 300,000	Fixed rate EUR 1.75%	Annual
16/04/2021	16/04/2029	TEUR 300,000 (ii)	TEUR 300,000	Fixed rate EUR 0.50%	Annual

	(i) These issues correspond to private placements.	(ii) These issues have interest currency rate swaps associated

As of 30 September 2023, the Group has twelve commercial paper programs in the amount of 2,175,000 thousand Euros, of which 1,210,000 thousand Euros are available for utilization. Of the total amount 900,000 thousand Euros have a guaranteed placement. As of September 30, 2023, an amount of 366,000 thousand Euros is available (600,000 thousand Euros were available as of December 31, 2022).

In 2023, a bond issue in the total amount of 550,000 thousands Euros reached its maturity.

In 2023, the Group renegotiated a Revolving Credit Facility with the Bank of China, for wich purpose 10,000 thousand Euros, which at that date had been issued, were disbursed. The new financing line, in the amount of 250,000 thousand Euros, was not disbursed.

REN SGPS signed, with the European Investment Bank (EIB), new long term financing in the amount of 150,000 thousand Euros, was not disbursed.

Bank loans are mostly composed of loans contracted with the European Investment Bank (EIB), which at 30 September 2023 amounted to 321,929 thousand Euros (at 31 December 2022 it was 371,583 thousand Euros).

The Group also has credit lines negotiated and not used in the amount of 80,000 thousand Euros, maturing up to one year, which are automatically renewable periodically (if they are not resigned in the contractually specified period for that purpose).

As of 30 September 2023, the balance of the caption Prepaid interest no longer includes amounts related with the refinancing of bonds through an exchange offer completed in 2016.

As a result of the fair value hedge related to the debt emission in the amount of 600,000 thousand Euros, fair value changes concerning interest rate risk were recognized directly in statement of profit and loss, in an amount of 7,171 thousand Euros (negative) (at 30 September 2022 was 71,950 thousand Euros (positive)).

The Company's financial liabilities have the following main types of covenants: Cross default, Pari Passu, Negative Pledge and Gearing.

The bank loans with BEI include also covenants related with rating and other financial ratios in which the Group may be called upon to present an acceptable guarantee in the event of rating and financial ratios below the established values.

As of 30 September 2023, the group complies with all the covenants to which it is contractually bound.

Group and its subsidiaries are a part of certain financing agreements and debt issues, which include change in control clauses typical in this type of transactions (including, though not so expressed, changes in control as a result of takeover bids) and essential to the realization of such transactions on the appropriate market context. In any case, the practical application of these clauses is limited to considering the legal ownership of shares of REN restrictions.

Following the legal standards and usual market practices. contractual terms and free market competition. establish that neither REN nor its counterparts in borrowing agreements are authorized to disclose further information regarding the content of these financing agreements.

The effect of the foreign exchange rate exposure was not considered as this exposure is totally covered by hedge derivate in place.

The average interest rates for borrowings including commissions and other expenses were 2.43% in 30 September 2023 and 1.81% in 31 December 2022.

Leases

Minimal payments regarding lease contacts and the carrying amount of the finance lease liabilities as of 30 September 2023 and 31 December 2022 are made up as follows:

Group and its subsidiaries are a part of certain financing agreements and debt issues, which include change in control clauses typical in this type of transactions (including, though not so expressed, changes in control as a result of takeover bids) and essential to the realization of such transactions on the appropriate market context. In any case, the practical application of these clauses is limited to considering the legal ownership of shares of REN restrictions.
Following the legal standards and usual market practices. contractual terms and free market competition. establish that neither REN nor its counterparts in borrowing agreements are authorized to disclose further information regarding the content of these
The effect of the foreign exchange rate exposure was not considered as this exposure is totally covered by hedge derivate in
The average interest rates for borrowings including commissions and other expenses were 2.43% in 30 September 2023 and

Minimal payments regarding lease contacts and the carrying amount of the finance lease liabilities as of 30 September 2023
	Sep 2023	Dec 2022
Lease liabilities - minimum lease payments
No later than 1 year	1,694	1,450
Later than 1 year and no later than 5 years	2,957	2,435
	4,651	3,885
Future finance charges on leases	(332)	(35)
Present value of lease liabilities	4,319	3,850

	Sep 2023	Dec 2022
The present value of lease liabilities is as follows
No later than 1 year	1,554	1,432
Later than 1 year and no later than 5 years	2,764	2,418

	4,319	3,850


17 POS-EMPLOYMENT BENEFITS AND OTHERS BENEFITS

REN – Rede Eléctrica Nacional, S.A. grants supplementary retirement. early-retirement and survivor pensions (hereinafter






	Sep 2023	Dec 2022
referred to as Pension Plan), provides its retirees and pensioners with a health care plan on a similar basis to that of its serving personnel, and grants other benefits such as long service award, retirement award and a death subsidy (referred to as "Other At 30 September 2023 and 31 December 2022. the Group had the following amounts recorded relating to liabilities for retirement Liability on statement of financial position
Pension plan	30,912	32,551
Healthcare plan and other benefits	32,830	32,388

17 POS-EMPLOYMENT BENEFITS AND OTHERS BENEFITS

REN – Rede Eléctrica Nacional, S.A. grants supplementary retirement. early-retirement and survivor pensions (hereinafter referred to as Pension Plan), provides its retirees and pensioners with a health care plan on a similar basis to that of its serving personnel, and grants other benefits such as long service award, retirement award and a death subsidy (referred to as "Other benefits"). The long service award is applicable to all Group companies.

At 30 September 2023 and 31 December 2022. the Group had the following amounts recorded relating to liabilities for retirement and other benefits:

Liability on statement of financial position


	63,742	64,939

The reconciliation of the remeasurement of the net benefit liability is as follows:

REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS










Sep 2023	Dec 2022
64,939	94,109
	3,749
-	(157)
(1,454)	(27,254)
(2,908)	(5,508)
63,742	64,939



	During the nine-month periods ended 30 September 2023 and 2022, the following operating expenses were recorded regarding

Sep 2023	Sep 2022

2,039 1,126	2,018 809
	Current service costs and Net interest on net defined benefit liability3,165

Charges to the statement of profit and loss (Note 28)


	3,165	2,827

	Charges to the statement of profit and loss (Note 28)


		3,165	2,827

Annual discount rate	made on 30 June 2022, considering the significant changes verified at inflation and interest rate. The actuarial assumptions used to calculate the post-employment benefits are considered by the REN Group and the entity specialized in the actuarial valuation reports to be those that best meet the commitments established in the Pension plan, and related retirement benefit liabilities. and are as follows:	Dec 2022 Full Yield Curve (single rate equivalent: 3.87%)	Jun 2022 Full Yield Curve (single rate equivalent:
	Expected percentage of serving employees elegíble for early retirement	20.00%
	(more than 60 years of age and 36 years in service) - by Collective work agreement Expected percentage of serving employees elegible for early retirement - by Management act	10.00%
considering the estimated salaries for 2023. The amount reported at 30 September 2022 results from the actuarial valuation		4.50% by 2023
Rate of salary increase		2.80% from 2024
Pension increase		3.50% by 2023 2.30% from 2024
		3.50% by 2023
	Future increases of Social Security Pension amount	2.30% from 2024
Inflation rate		2.30%
Medical trend		2.30%
Management costs (per employee/year)		€282
Expenses medical trend Retirement age (number of years)		2.30% 66

18 PROVISIONS FOR OTHER RISKS AND CHARGES

	Sep 2023	Dec 2022
Begining balance	10,576	8,872
Reclassifications	711	-
Increases	239	2,576
Reversing	-	(346)
Utilization	(2,014)	(526)

19 TRADE AND OTHER PAYABLES

18 PROVISIONS FOR OTHER RISKS AND CHARGES The changes in provisions for other risks and charges in the periods ended 30 September 2023 and 31 December 2022 were as follows:





	Begining balance		10,576	8,872
	Reclassifications		711	-
	Increases		239	2,576
	Reversing		-	(346)
	Utilization		(2,014)	(526)
	Ending balance		9,511	10,576
19 TRADE AND OTHER PAYABLES
The caption "Trade and other payables" at 30 September 2023 and 31 December 2022 was made up as follows:
		Sep 2023			Dec 2022
Trade payables	Current	Non current	Total	Current	Non current	Total
Current suppliers (Note 9)	414,116	-	414,116	219,141	-	219,141
Other creditors
Other creditors (Note 9)	44,425	33,207	77,632	28,369	34,815	63,184
Tariff deviations (Note 9)	132,789	53,979	186,769	523,570	73,646	597,217
Fixed assets suppliers (Note 9)	58,106	-	58,106	59,887	-	59,887
Tax payables (Note 9) (i)	19,416	-	19,416	19,629	-	19,629
Deferred income
Grants related to assets	19,877	255,755	275,633	19,346	252,847	272,194
Bilateral agreements - Grants	-	121,754	121,754	-	86,967	86,967
Others	14,332	1,825	16,157	9,563	2,021	11,584
Accrued costs
Holidays and holidays subsidies (Note 9)	7,446	-	7,446	5,909	-	5,909

The caption "Trade and other payables" includes: (i) the amount of 127,262 thousand Euros, regarding the management of CAEs from Turbogás and Tejo Energia (40,521 thousand Euros at 31 December 2022); (ii) the amount of 13,259 thousand Euros of investment projects not yet invoiced (23,195 thousand Euros at 31 December 2022); (iii) the amount of 58,258 thousand Euros (54,758 thousand Euros at 31 December 2022) from the activity of the Market Manager (MIBEL – Mercado Ibérico de Electricidade); (iv) the amount of 7,040 thousand Euros of "CMEC – Custo para a Manutenção do Equilíbrio Contratual" to be invoiced by EDP – Gestão da Produção de Energia, S.A. (5,885 thousand Euros at 31 December 2022), also reflected in the caption "Trade receivables" (Note 11) and (v) the amount of 108,011 thousands Euros from of E-Redes Distribuição de Eletricidade, SA (28,292 thousands Euros at 31 December 2022).

This transaction related to "CMEC" sets a pass-through in the consolidated income statement of REN, fact for which it is compensated in that statement.

The caption "Other creditors" includes: (i) the amount of 4,537 thousand Euros (1,078 thousand Euros at 31 December 2022) related with the Efficiency Promotion Plan on Energy Consumption ("PPEC"), which aims to financially support initiatives that promote efficiency and reduce electricity consumption, which should be used to finance energy efficiency projects, according to the evaluation metrics defined by ERSE and (ii) the responsibility for the extraordinary contribution on the energy sector in the amount of 28,101 thousand Euros (Note 27) (at 30 September 2022 was 28,018 thousand Euros). Sep 2023 Sep 2022

20 SALES AND SERVICES RENDERED

Sales and services rendered recognized in the consolidated statement of profit and loss for the nine-month period ended 30 September 2023 and 2022 is made up as follows:

REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS

The caption "Other creditors" includes: (i) the amount of 4,537 thousand Euros (1,078 thousand Euros at 31 December 2022) related with the Efficiency Promotion Plan on Energy Consumption ("PPEC"), which aims to financially support initiatives that promote efficiency and reduce electricity consumption, which should be used to finance energy efficiency projects, according to the evaluation metrics defined by ERSE and (ii) the responsibility for the extraordinary contribution on the energy sector in the amount of 28,101 thousand Euros (Note 27) (at 30 September 2022 was 28,018 thousand Euros).

Sales and services rendered recognized in the consolidated statement of profit and loss for the nine-month period ended 30
	Sep 2023	Sep 2022
Goods: Domestic market	179	96
	179	96
Services - Domestic market:
Electricity transmission and overall systems management	303,382	259,158
Gas transmission	50,581	62,614
Regasification	48,015	43,816
Gas distribution	42,677	33,465
Underground gas storage	21,360	13,429
Telecommunications network	5,817	5,762
Trading	716	548
Others	135	1,062
Services - External market (Chile):
Transmission and transformation of electricity	15,620	9,785
	488,303	429,640
Total sales and services rendered	488,482	429,736


21 REVENUE AND COSTS FOR CONSTRUCTION ACTIVITIES
As part of the concession contracts treated under IFRIC 12, the construction activity is subcontracted to specialized suppliers. Therefore the Group obtains no margin in the construction of these assets. The detail of the revenue and expenses with the acquisition of concession assets as of 30 September 2023 and 2022 were made up as follows:
	Sep 2023	Sep 2022
Revenue from construction of concession assets
Acquisitions	154,867	106,807
Own work capitalised :
Financial expenses (Note 5)	3,506	1,906
Overhead and management costs (Note 5)	15,189	14,001
	173,561	122,715

21 REVENUE AND COSTS FOR CONSTRUCTION ACTIVITIES

As part of the concession contracts treated under IFRIC 12, the construction activity is subcontracted to specialized suppliers. Therefore the Group obtains no margin in the construction of these assets. The detail of the revenue and expenses with the acquisition of concession assets as of 30 September 2023 and 2022 were made up as follows:

Services - External market (Chile):
Transmission and transformation of electricity	15,620	9,785
	488,303	429,640




	Sep 2023	Sep 2022
Revenue from construction of concession assets
Acquisitions	154,867	106,807
Own work capitalised :
21 REVENUE AND COSTS FOR CONSTRUCTION ACTIVITIES As part of the concession contracts treated under IFRIC 12, the construction activity is subcontracted to specialized suppliers. Therefore the Group obtains no margin in the construction of these assets. The detail of the revenue and expenses with the acquisition of concession assets as of 30 September 2023 and 2022 were made up as follows: Financial expenses (Note 5)	3,506	1,906
Overhead and management costs (Note 5)	15,189	14,001
	173,561	122,715
Cost of construction of concession assets
Acquisitions	154,867	106,807

22 OTHER OPERATING INCOME

The caption "Other operating income" loss for the nine-month period ended 30 September 2023 and 2022 is made up as follows:

REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS


The caption "Other operating income" loss for the nine-month period ended 30 September 2023 and 2022 is made up as follows:
	Sep 2023	Sep 2022
Recognition of investment subsidies in profit and loss	13,584	13,613
	4,776	4,087
		1,096
Underground occupancy tax
Disposal of unused materials	1,077
Supplementary income Others	1,165 2,078	1,053 849
	22,679	20,698




The caption "External supplies and services" for the nine-month period ended 30 September 2023 and 2022 is made up as
	Sep 2023	Sep 2022
Cross border interconnection costs i)	31,753	6,669
Fees relating to external entities ii)	13,160	10,014
Maintenance costs	10,018	9,669
Gas transport subcontracts	4,554	4,630

23 EXTERNAL SUPPLIES AND SERVICES

The caption "External supplies and services" for the nine-month period ended 30 September 2023 and 2022 is made up as follows:

The caption "External supplies and services" for the nine-month period ended 30 September 2023 and 2022 is made up as
	Sep 2023	Sep 2022
Cross border interconnection costs i)	31,753	6,669
Fees relating to external entities ii)	13,160	10,014
Maintenance costs	10,018	9,669
Gas transport subcontracts	4,554	4,630
Electric energy costs	4,645	14,074
Insurance costs	3,780	3,647
Security and surveillance	1,732	1,677
Travel and transportation costs	1,139	683
Advertising and communication costs	564	480
Other	3,796	3,471

i) The cross border interconnection costs refer to the cost assumed on cross-border trade in electricity. fully offset in the caption "Sales and services rendered"

ii) The fees paid to external entities refer to specialized work and fees paid by REN for contracted services and specialized studies.

24 PERSONNEL COSTS

Personnel costs for the nine-month period ended 30 September 2023 and 2022 are made up as follows:

REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS







Personnel costs for the nine-month period ended 30 September 2023 and 2022 are made up as follows:

Remuneration:	Sep 2023		Sep 2022
Board of directors		2,284	2,699
Personnel		32,182	29,824
		34,466	32,523
Social charges and other expenses:
Social security costs		6,700	6,378
Post-employement and other benefits cost (Note 17)		3,165	2,827
Social support costs		1,575	1,535
Other		210	219
		11,651	10,959

Total personnel costs		46,117	43,482

The Corporate bodies' remuneration includes remunerations paid to the Board of Directors as well as the General Shareholders meeting attendance.

25 OTHER OPERATING COSTS

Other operating costs for the nine-month period ended 30 September 2023 and 2022 are made up as follows:

17,573	11,855

i) The caption "ERSE operating costs" corresponds to ERSE's operating costs. to be recovered through electricity and gas tariffs.

26 FINANCIAL COSTS AND FINANCIAL INCOME

Financial costs and financial income for the nine-month period ended 30 September 2023 and 2022 are made up as follows:

REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS










Financial costs and financial income for the nine-month period ended 30 September 2023 and 2022 are made up as follows:

	Sep 2023	Sep 2022

Financial costs
Interest on bonds issued	22,531	28,496
Other borrowing interests	12,194	4,420
Interest on commercial paper issued	12,208	3,234
Derivative financial instruments	443	3,722

Exchange rate differences	1,100	99
Other financing expenditure	11,095	3,652
	59,570	43,623
Financial income
Interest income	4,873	3,459
Other financial investments	6,129	2,718
Exchange rate differences	60	438
Derivative financial instruments	72 11,133	921 7,536

27 EXTRAORDINARY CONTRIBUTION OVER THE ENERGY SECTOR

Law no. 83-C / 2013 of 31 December introduced a specific contribution of entities operating in the energy sector, called Extraordinary Contribution over the Energy Sector ("ECES"), that was extended by Law no. 82-B / 2014, of 31 December, Law no. 7-A / 2016, of 30 March, Law no. 114/2017, of 29 December, Law no. 71/2018, 31 December, Law no. 2/2020, of 31 March, Law no. 75-B/2020, of 31 December, Law no. 99/2021, of 31 December and Law no. 24-D/2022, of 31 December.

The regime introduced is aimed at financing mechanisms that promote systemic sustainability of the sector through the setting up of a fund with the main objective of reducing the tariff deficit. The entities subject to this regime are, among others, entities that are dealers of transport activities or distribution of electricity and natural gas.

The calculation of the ECES is levied on the value of the assets with reference to the first day of the financial year 2023 (1 January 2023) that include cumulatively, the tangible fixed assets. intangible assets, with the exception of industrial property elements, and financial assets related with regulated activities. In the case of regulated activities, the ECES is levied on the value of regulated assets (i.e. the amount recognized by ERSE in the calculation of the allowed income with reference to 1 January 2023) if it is greater than the value of those assets, over which the rate of 0.85% is applied.

To the extent that it is a present obligation whose facts originating already occurred, with timing and amounts certain or ascertainable. REN recorded liabilities in the amount of 28,101 thousand Euros (Note 19) (for the nine-month period ended 30 September 2022 was 28,021 thousand Euros) against a cost in the statement of profit and loss.

The ECES line of the income statement, amounting to 28,134 thousand Euros (28,021 thousand Euros at 30 September 2022), for the nine-month period ended 30 September 2023 includes the amount of 33 thousand Euros, related to the regularization of ECES from previous years.

28 EARNINGS PER SHARE

Earnings per share were calculated as follows:

The basic earnings per share are the same as the diluted earnings as there are no situations that could origin dilution effects.

29 DIVIDENDS PER SHARE

On 28 April 2022, the General Meeting approved the distribution of dividends to shareholders, based on the result for the 2021 financial year, in the amount of 102,747 thousand Euros (0.154 Euros per share), including the dividend attributable to own shares in the amount of 597 thousand Euros, with the amount of 102,150 thousand Euros having been paid to shareholders.

The strategic plan announced by the Company on 14 May 2021, the Board of Directors of REN – Redes Energéticas Nacionais, SGPS, S.A. approved, on 30 November 2022, the payment of dividends, as an advance on profits, in the amount of 0.064 Euros per share, in the amount of 42,452 thousand Euros.

On 27 April 2023, the General Meeting approved the distribution of dividends to shareholders, based on the result for the 2022 financial year, in the amount of 102,747 thousand Euros (0.154 Euros per share), including the dividend attributable to own shares in the amount of 597 thousand Euros, with the amount of 102,150 thousand Euros having been paid to shareholders (the amount of 42,452 thousand Euros paid in 2022, as an advance on profits, and the amount of 59,698 thousand Euros in 2023).

30 CONTINGENT ASSETS AND LIABILITIES

30.1. Contingent liabilities

Tejo Energia - Produção e Distribuição de Energia Eléctrica, SA ("Tejo Energia") and Turbogás – Produtora Energética S.A. ("Turbogás") have announced to REN - Rede Eléctrica Nacional, SA ("REN Eléctrica") and REN Trading SA ("REN Trading") its intention to renegotiate the Energy Acquisition Agreement (CAE), in order to reflect in the amounts payable to this producer the costs, which in its opinion would be due, incurred with (i) financing of the social tariff and (ii) with the tax on petroleum products and energy and with the rate of carbon. Also, these two entities stated its intention to renegotiate the CAE, in order to reflect in the amounts payable the costs incurred with the financing of ECES.

According to the CAE, Tejo Energia and Turbogás act as producers and sellers and REN Trading as purchaser of the energy produced in power plants. REN Eléctrica is jointly and severally liable with REN Trading, regarding the execution of the CAE with Tejo Energia and Turbogás. According to the information received, the total costs incurred by these companies until 30 September 2023 amounts to, approximately, 107 million Euros.

REN Trading and REN Elétrica consider that, with the existing legal framework, this possibility depends on the recognition that the associated charges can be considered as general costs of the national electricity system, the only way to guarantee the economic neutrality of REN Trading's contractual position.

All of these disputes were brought by Tejo Energia and Turbogás and contested by REN Eléctrica and REN Trading, and the outcome is pending resolution.

30.2. Guarantees given

	REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS





30.2. Guarantees given

At 30 September 2023 and 31 December 2022. the REN Group had given the following bank guarantees:

Beneficiary		Scope			Sep 2023	Dec 2022
European Investment Bank (EIB)	To guarantee loans				193,996	216,338
Tax Authority and Customs	Ensure the suspension of tax enforcement proceedings				24,315	25,881
General Directorate of Energy and Geology	To guarantee compliance with the contract relating to the public service concession				24,028	24,028
Judge of District Court	Guarantee for expropriation processes				17,278	6,141
Mibgás	To guarantee the liabilities incurred from the participation in the gas organized market				4,000	4,000
Municipal Council of Seixal	Guarantee for litigation				3,133	3,133
Portuguese State	Guarantee for litigation				2,514	2,232
Municipal Council of Maia	Guarantee for litigation				1,564	1,564
Municipal Council of Odivelas	Guarantee for litigation				1,119	1,119
Infraestruturas de Portugal	Guarantee for litigation				727	603
Municipal Council of Porto Municipal Council of Silves	Guarantee for litigation Guarantee for expropriation processes				368 352	368 352

NORSCUT - Concessionária de Auto-estradasTo guarantee prompt payment of liabilities assumed by REN in the contract ceding	utilization				200	200
EDP - Gestão da Produção de Energia, S.A.	Guarantee obligations assumed by the Payer in the contract for the Provision of				123	123
	Communications Services
Lisbon Maritime Customs	Constitution of possible customs debts				115	-
Others (loss then 100 thousand Euros)	Guarantee for litigation				270	270
					274,103	286,354


31 RELATED PARTIES


Main shareholders

At 30 September 2023 and 31 December 2022, the shareholder structure of Group REN was as follows:
		Sep 2023		Dec 2022

		Number of		Number of
		shares	%	shares	%
		166,797,815	25.0%	166,797,815	25.0%
State Grid Corporation of China		80,100,000	12.0%	80,100,000	12.0%
Pontegadea Inversiones S.L.
Lazard Asset Management LLC		50,953,911	7.7%	49,568,307	7.0%
Fidelidade - Companhia de Seguros, S.A.		35,496,424	5.3%	35,496,424	5.3%
Red Eléctrica Internacional, S.A.U.		33,359,563	5.0%	33,359,563	5.0%

31 RELATED PARTIES

Main shareholders

NORSCUT - Concessionária de Auto-estradasTo guarantee prompt payment of liabilities assumed by REN in the contract ceding	utilization				200	200
EDP - Gestão da Produção de Energia, S.A.	Communications Services	Guarantee obligations assumed by the Payer in the contract for the Provision of			123	123



31 RELATED PARTIES

At 30 September 2023 and 31 December 2022, the shareholder structure of Group REN was as follows:
		Sep 2023 Number of		Dec 2022 Number of
		shares	%
State Grid Corporation of China		166,797,815	25.0%	166,797,815	25.0%
Pontegadea Inversiones S.L.		80,100,000	12.0%	80,100,000	12.0%
Lazard Asset Management LLC		50,953,911	7.7%	49,568,307	7.0%
Fidelidade - Companhia de Seguros, S.A.		35,496,424	5.3%	35,496,424	5.3%
Red Eléctrica Internacional, S.A.U.		33,359,563	5.0%	33,359,563	5.0%
Own shares		3,881,374	0.6%	3,881,374	0.6%
Others		296,602,175	44.4%	297,987,779	44.7%

Management remuneration

The Board of Directors of REN, SGPS was considered, in accordance with IAS 24, to be the only key members in the Management of the Group.

REN has not established any specific retirement benefit system for the Board of Directors.

Remuneration of the Board of Directors of REN, SGPS in the nine-month period ended 30 September 2023 amounted to 1,999 thousand Euros (2,424 thousand Euros at 30 September 2022 ), as shown in the following table:

REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS










The Board of Directors of REN, SGPS was considered, in accordance with IAS 24, to be the only key members in the Remuneration of the Board of Directors of REN, SGPS in the nine-month period ended 30 September 2023 amounted to 1,999

	Sep 2023	Sep 2022
Remuneration and other short term benefits	1,239	1,274
Management bonuses (estimate)	761	1,150

Transaction of shares by the members of the Board of Directors

During the nine-month period ended 30 September 2023, there were no transactions carried out by members of the corporate bodies.

Transactions with group or dominated companies

In its activity, REN maintains transactions with Group entities or with dominated parties. The terms in which these transactions are held are substantially identical to those practiced between independent parties in similar operations.

In the consolidation process, the amounts related to such transactions or open balances are eliminated (Note 3.2) in the financial statements.

The main transactions held between Group companies were: (i) borrowings and shareholders loans; and (ii) shared services namely, legal services, administrative services and informatics.

Balances and transactions held with shareholders. associates and other related parties

During the nine-month periods ended 30 September 2023 and 2022, Group REN carried out the following transactions with reference shareholders, qualified shareholders and related parties:

Revenue

Transaction of shares by the members of the Board of Directors
During the nine-month period ended 30 September 2023, there were no transactions carried out by members of the corporate
Transactions with group or dominated companies
In its activity, REN maintains transactions with Group entities or with dominated parties. The terms in which these transactions are held are substantially identical to those practiced between independent parties in similar operations.
In the consolidation process, the amounts related to such transactions or open balances are eliminated (Note 3.2) in the financial
The main transactions held between Group companies were: (i) borrowings and shareholders loans; and (ii) shared services namely, legal services, administrative services and informatics.


Balances and transactions held with shareholders. associates and other related parties During the nine-month periods ended 30 September 2023 and 2022, Group REN carried out the following transactions with reference shareholders, qualified shareholders and related parties:	Sep 2023	Sep 2022

Sales and services provided
Invoicing issued - REE Invoicing issued - Centro de Investigação em Energia REN - State Grid	4,244 96	1,773 77
Other operating income
Invoicing issued - OMIP	24	-
Dividends received
Electrogas (Note 7)	11,436	3,668
REE (Note 1)	3,938	3,938

Expenses

REPORT & ACCOUNTS SEPTEMBER'23 CONSOLIDATED FINANCIAL STATEMENTS














	Sep 2023	Sep 2022

External supplies and services and others expenses
Invoicing received - OMIP	127	114
Invoicing received - REE	5	616
Invoicing received - Centro de Investigação em Energia REN - State Grid	76	105
Invoicing received - CMS Rui Pena & Arnaut10	59	140

	268	975



The balances at 30 September 2023 and 31 December 2022 resulting from transactions with related parties were as follows:
	Sep 2023	Dec 2022

Trade and other receivables REE - Dividends	-	1.477
Centro de Investigação em Energia REN - State Grid - Other receivables	74	145
REE - Trade receivables	-	119
	74	1.740
Trade and other payables Centro de Investigação em Energia REN - State Grid - Other payables	178	102

Balance

The balances at 30 September 2023 and 31 December 2022 resulting from transactions with related parties were as follows:

External supplies and services and others expenses




Invoicing received - CMS Rui Pena & Arnaut10	59	140
	268	975
The balances at 30 September 2023 and 31 December 2022 resulting from transactions with related parties were as follows:
	Sep 2023	Dec 2022

Trade and other receivables
REE - Dividends	-	1.477
Centro de Investigação em Energia REN - State Grid - Other receivables	74	145
REE - Trade receivables	- 74	119 1.740

Trade and other payables
Centro de Investigação em Energia REN - State Grid - Other payables	178	102
OMIP - Trade payables	26	16
CMS - Rui Pena & Arnaut - Trade payables 10 SPECO - Shandong Power Equipment CO - Trade payables 11	7 251	4 375

¹⁰ Entity related to the Administrator José Luís Arnaut. During 2023, the contract for the provision of legal advisory services in the area of law and public procurement. approved by the Board of Directors of the company REN Serviços, SA and awarded to the law firm CMS Rui Pena and Arnaut, an entity related to the Director José Luís Arnaut, remained in force. The contract was signed in 2020, for a period of three years.

¹¹ Subsidiary entity of the shareholder State Grid Europe Limited. The operations with this entity are related to acquisitions of concession assets in progress.

32 DECREE-LAW NO. 84-D/2022 – TRANSITORY GAS PRICE STABILIZATION REGIME

The Portuguese State, through Decree-Law no. 84-D/2022, of 9 December 2022, established a transitional regime to stabilize the price of natural gas for consumption carried out in 2023, through the discount on the price of natural gas, equivalent to the difference between the price of the energy component, shown on the invoice, and its reference value, as provided for in article 3 of this decree-law.

The beneficiaries of the transitional price stabilization regime are legally constituted legal persons, consumers of high, medium and low pressure gas at delivery points with annual consumption greater than 10,000 m3, with the exception of the entities referred to in number 2 of article 2.th.

The discount is applied directly by the suppliers in the month following the billing of the respective consumption, once the invoice has been paid by the customer, and the discount must be expressly identified on the invoice in which it is reflected.

Suppliers inform, on the first working day of each week, the Global Technical Manager of the National Gas System ("GTG") regarding the quantities and discount values to be applied to the billing issued in the previous week, including the total consumption of their portfolio from clients. Based on the information transmitted, the GTG transfers, within 10 days to the suppliers, the amounts referring to the support to be granted for each identified billing cycle.

As mentioned in the aforementioned Decree-Law, more precisely in Article 7, it is the responsibility of REN Gasodutos, as Global Technical Manager of the National Gas System, to interact with suppliers in order to operationalize the application of this decree- law. It is REN Gasodutos' responsibility to transfer the funds provided by the Portuguese State for the purposes of this decree-law, and such amounts cannot be used for other purposes. The amount transferred by the Government is deposited in a dedicated bank account, with accounting separation in relation to other activities carried out by the Company.

On 29 December 2022, the Company received the amount of 1,000,000 thousand Euros, recorded under the caption Transitory gas price stabilization regime - Decree-Law no. 84-D/2022, both in assets and in liabilities, taking into account the need for accounting separation in relation to the other activities carried out by the Company, as mentioned above and mentioned in paragraph 3 of article 7 of the aforementioned decree-law.

Payments of the amounts corresponding to natural gas consumption billed in 2023 begin in February of the same year and can be settled by the end of January 2024. If the amount transferred under this decree-law is not exhausted, REN transfers the respective remainder in favor of the Portuguese State, as referred to in paragraph 5 of article 7 of the referred Decree-Law.

As of 30 September 2023, the Company has already made payments in accordance with the aforementioned Decree-Law, as such the amount recorded in "Transitional gas price stabilization regime - Decree-Law 84-D/2022", both in assets and in liabilities, is 936,514 thousand Euros.

33 SUBSEQUENT EVENTS

On October 20, 2023, Order no. 10727/2023 was published in the Official Journal of the Republic, according to which REN Gasodutos must return to the State coffers the amount of 700,000 thousand Euros of unused capital in its custody, including the respective financial compensation arising from the availability of unused capital between the transfer date by the Portuguese State and the respective return by the Global Technical Manager of the National Gas System. The amount must be transferred to the State treasury, to the budget revenue account of the Portuguese Treasury and Debt Management Agency.

34 EXPLANATION ADDED FOR TRANSLATION

These consolidated financial statements are a translation of financial statements originally issued in Portuguese in accordance with IAS 34 – Interim Financial Reporting. In the event of discrepancies, the Portuguese language version prevails.

The Accountant

Pedro Mateus

The Board of Directors

Rodrigo Costa	Ana da Cunha Barros
(Chairman of the Board of Directors and Chief Executive Officer)	(Member of the Board of Directors)
João Faria Conceição	Jorge Magalhães Correia
(Member of the Board of Directors and Chief Operational Officer)	(Member of the Board of Directors)
Gonçalo Morais Soares	Maria Estela Barbot
(Member of the Board of Directors and Chief Financial Officer)	(Member of the Board of Directors)
Guangchao Zhu	José Luis Arnaut
(Vice-President of the Board of Directors designated by State Grid International Development Limited)	(Member of the Board of Directors)
Houyun Shi	Manuel Sebastião
(Member of the Board of Directors)	(Member of the Board of Directors and Chairman of the Audit Committee)
Yang Qu	Rosa Freitas Soares
(Member of the Board of Directors)	(Member of the Board of Directors and of the Audit Committee)
Ana Pinho	Gonçalo Gil Mata

(Member of the Board of Directors)

(Member of the Board of Directors and of the Audit Committee)

Note – The remaining pages of this Report & Accounts were initialled by the members of the Executive Committee and by the Certified Accountant. Pedro Mateus.

AI Terminal

REN-Redes Energeticas Nacionais

1903_10-q_2023-11-10_92a303a6-d2f2-471e-8ce6-2977f58a368d.pdf

Consolidated Financial Statements

INDEX

1. FINANCIAL PERFORMANCE

1.1 RESULTS FOR THE FIRST 9 MONTHS OF 2023

Operational results – EBITDA

Domestic Power Transmission and Distribution Business

International Business

Net income

1.2 AVERAGE RAB AND CAPEX

1.3 QUARTERLY STATEMENTS OF PROFIT AND LOSS AND COMPREHENSIVE INCOME FOR THE PERIODS FROM 1 JULY TO 30 SEPTEMBER 2023 AND 2022

Consolidated statements of profit and loss (unaudited information)

(Amounts expressed in thousands of euros – tEuros)

Consolidated statements of comprehensive income (unaudited information)

(Amounts expressed in thousands of euros – tEuros)

2. CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF 30 SEPTEMBER 2023 AND 31 DECEMBER 2022

CONSOLIDATED STATEMENTS OF PROFIT AND LOSS FOR THE NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2023 AND 2022

CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME FOR THE NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2023 AND 2022

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2023 AND 2022

CONSOLIDATED STATEMENTS OF CASH FLOW FOR THE NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2023 AND 2022

3. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 SEPTEMBER 2023

1 GENERAL INFORMATION

1.1. Consolidation perimeter

Changes in the consolidation perimeter

- September 2023

- December 2022

1.2. Approval of quarterly consolidated financial statements

2 BASIS OF PRESENTATION

3 MAIN ACCOUNTING POLICIES

Adoption of new standards. interpretations. amendments and revisions

IFRS 17 – Insurance Contracts: Initial Application of IFRS 17

Amendments to IAS 1 and IFRS Practice Statement 2 – Disclosure of Accounting policies

Amendments to IAS 8 – Accounting policies. Changes in Accounting Estimates and Erros: Definition of Accounting Estimates

Amendments to IAS 12 - Deferred Tax Related To Assets And Liabilities Arising From A Single Transaction

Amendments to IFRS 17 - Insurance Contracts: Initial Application of IFRS 17 and Amendments to IFRS 9 – Comparative Information

Standards and interpretations. amended or revised. not endorsed by the European Union

4 SEGMENT REPORTING

The results by segment for the nine-month period ended 30 September 2023 were as follows:

5 TANGIBLE AND INTANGIBLE ASSETS

6 GOODWILL

7 INVESTMENTS IN ASSOCIATES AND JOIN VENTURES

Associates

Joint ventures

8 INCOME TAX

Income tax

Deferred taxes

Change in deferred tax assets – September 2023

Change in deferred tax assets – December 2022

Evolution of deferred tax liabilities – September 2023

Evolution of deferred tax liabilities – December 2022

9 FINANCIAL ASSETS AND LIABILITIES

- September 2023

- December 2022

Estimated fair value – assets and liabilities measured at fair value

Financial risk management

10 INVESTMENTS IN EQUITY INSTRUMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

11 TRADE AND OTHER RECEIVABLES

12 DERIVATIVE FINANCIAL INSTRUMENTS

Swaps:

Cash Flow Hedge - Interest Rate Swaps

Cash Flow Hedge – Interest and Exchange Rate Swaps

Cash Flow Hedge – Non Deliverable forward

Integral Income:

- September 2023

- September 2022

Hedging Reserve:

Fair Value Hedge

- September 2023

- September 2022

Integral Income:

- September 2023

Trading Derivative

13 CASH AND CASH EQUIVALENTS

14 EQUITY INSTRUMENTS

15 RESERVES AND RETAINED EARNINGS

16 BORROWINGS

Leases