Tarcisio says he is ‘absolutely critical’ to Enel’s contract and argues that he is not extended

by Andrea
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SP governor classified the service as ‘extremely bad’ and ‘outdated’; According to him, the two planned performance indicators were easy to reach, as they predicted purges for weather conditions

Pablo Jacob/State Government of SP
For the governor, São Paulo could not accept the extension of the contract, especially in the current scenario

The governor of São Paulo, (Republicans), said on Monday (18), that it is “absolutely critical” to the concession contract, the distribution company that serves 24 municipalities in the metropolitan region of São Paulo. According to Tarcisio, the Federal Government and the National Electric Energy Agency (Aneel) should not extend the partnership. “The company does not make the necessary investments, does not do Capex, does not do Opex. Why? Because that the quality of service will not be recognized in the tariff. And as it is not recognized in the fare, does not generate revenue, and the company does not make the investment,” said Tarcísio. “It is a cash -generating company, a revenue -generating company that doesn’t make the necessary investments.”

The governor classified the service as “extremely bad” and “outdated”. According to him, the two planned performance indicators – equivalent duration of interruption per consumer unit (DEC) and equivalent frequency of interruption per consumer unit (FEC) – were easy to reach, as they predicted purges for weather conditions, and this allowed the company not to make the necessary investments. He noted that the delay in reconnecting the network in extreme situations (blackouts), such as storms and strong winds, is the result of this lack of investments, personnel and, above all, automation. “I would prepare this concession, which is very large, in at least two concessions. And I would establish a contract that would actually tie investments, easements, how it will be charged over time,” continued Tarcisio.

For the governor, São Paulo could not accept the extension of the contract, especially in the current scenario, where the recovery of investment capacity “is fundamental” for public administrations.

*With information from Estadão Content
Posted by Fernando Dias

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