SAO PAULO, Dec 21 (Reuters) - Brazil's National Energy Policy Council (CNPE) is set to meet on Tuesday to decide on new license prices for state-controlled power company Eletrobras to operate hydroelectric power plants after its privatization.

Eletrobras said in a securities filing that federal audit court TCU had decided to update the concession prices, a step required to proceed with the privatization process, prompting the CNPE meeting.

The concession contracts represent how much Centrais Eletricas Brasileiras SA, as the company is formally known, would need to pay the government for the right to continue operating its hydroelectric dams after the privatization, which is expected to happen by mid-2022.

The payments were initially estimated at 23.2 billion reais ($4 billion), but TCU's judge Aroldo Cedraz presented new figures during a court session last week and said the value should be updated to 20.3 billion reais.

The added value of the concession contracts, Cedraz noted, would drop to 56.8 billion reais from 62.4 billion reais after the adjustments proposed by the court.

According to Eletrobras, Brazil's Mining and Energy Ministry has agreed to update the figures. The company, however, did not provide details on it.

($1 = 5.7420 reais) (Reporting by Roberto Samora and Gabriel Araujo Editing by Mark Potter)