So dividends that were not distributed, that’s because they are being reinvested in regulated sectors, creating value to our shareholders. So, we create value either through the cash that we distribute, or the resources we keep in the company to invest and appreciate the company. So of course, these topics are always discussed dividend payout, when the dividend payout will happen, but we do have a large investment program. We understand it is critical to better serve our clients and at the same time remunerating our shareholders. We believe that the current practice 50% of net income plus differential effect of interest on equity allows us to adequately remunerated our shareholders. It enables a remuneration based on capital gain. Also, when we sell an asset, at the same time, resources kept in the company being reinvested creating even more value to shareholders and more results in terms of improved services to clients.
I don’t know Leo whether you want to add to that, but I think that these are the three main topics that were asked in the chat. So they asked about the vestments federalization. Again, we have very little to comment on that. And dividends. I just want to make clear that everything we do aims to create value to our shareholder base, either when we have a dividend payout or when we make investments. All investments aim to create value to the company and to our shareholders.
Leonardo George de Magalhaes : I agree, Reynaldo. I think you spoke very well about dividends. When we look at dividends in 2023 we have capital gains with the sale of some generation assets. They were part of the dividend calculation base. So BRL3.1 billion divided by the recurring operating profit, we are talking about almost 60% payout. So, if we have future additional capital gains with futures sale of assets, this will mean an additional payout which will continue to make the company, now decide one of the best companies in Brazil in terms of dividend payout, a company with consistent results concessions which are very profitable. Our distribution concession was renewed from 2015 to 2045. So we have predictability of results and cash generation for the company. So we understand that we are already one of the most attractive companies in terms of investor and shareholder remuneration.
Carolina Senna: Have a question to our distribution of Vice President, Marney, it is about deck in 2023. The question is, could you comment on the growth on the increase of DEC in 2023? Do you see any OpEx expectation at the disco to maintain that level with a regulating agency now asking for more quality?
Marney Tadeu Antunes : Well, Guillerme, thank you. Indeed, DEC did increase last year, more specifically in Q4, where we had a considerable increase of extreme weather events. You will all follow what happened in the southeast of Brazil. And of course it impacted Minas state. To give you an idea in the previous year we had about 800,000 lightnings in the state of Minas, last year 2.4 million lightnings. And they contributed a lot to the increase in DEC. And also the scheduled DEC we had a lot of these connections done for several works to better serve the market. So that contributed to DEC a little outside the thresholds intended. But I can assure you that in the month of February already, DEC is back within the regulatory threshold in March, again, an expectation to remain below regulatory threshold.
And of course, within with our regulatory OpEx within thresholds. Now, Leonardo will answer two questions regarding share subscription that we will approve in the shareholders meeting of April 2024.
Leonardo George de Magalhaes : As given the profit reserve, exceeding the capital stock, the company will increase the capital using profit reserves capital reserves through the share subscription. We’ve done that in previous years. And we will suggest this 30% new share subscription for our shareholders in the meeting to be held by the end of April. That’s the expectation of the company considering compliance with the as a law of Brazil. So we’ll use the profit reserves to increase the capital stock of the company.
Carolina Senna: And next question regarding the company’s participation in the next transmission auction. I’ll turn the floor to the transmission VP, Thadeu.
Thadeu Carneiro da Silva: Hello. As we had informed before, to the market and the last earnings conference call, we will not be participating in the next auction to be held next week. [Indiscernible] Sao Paulo.
Carolina Senna: Thank you, Thadeu. Next question regarding distributed generation DG, I turn the floor to Reynaldo our CEO.
Reynaldo Passanezi Filho : There are two questions here, Carol, about DG, and another one about actuarial liability. So for DG there was a recent decision by the Federal Court of Accounts in a model of power by subscription. We understand that will comply with absolutely all requirements for CEMIG to participate in the distributed generation market. I have a lot of peace of mind regarding all the shining walls. We have here, there was some comments here. And some comments about my Portuguese I apologize. I will take Portuguese lessons. But we have Chinese walls. The distributions and CEMIG activities are totally shared. There’s no relationship between one area and the other. Of course, they’re all part of the CEMIG Economic Group, where the activities are totally independent, including CEMIG SIM.
And of course, the TCU decision includes a subsidies for distributed generation, which I believe will be analyzed by TCU. The Federal Court of Accounts and other control agencies of the country but specifically regarding CEMIG SIM, we have a lot of peace of mind that we fulfill all the requirements. If there is any debate regarding charges and subsidies of the DG if there is any decision it will not be specific for CEMIG SIM. It will be for the whole sector. Regarding actuarial liabilities, it is public knowledge that we aim to look for structural solutions for the company’s actuarial liabilities. Apart if these issues are at the court, we have to wait for the court decisions.
