Decision of the federal agency complies a public civil action filed by the City of São Paulo against the concessionaire and also against Aneel
The Federal Public Prosecution Service (MPF) has favorably expressed the immediate suspension of the early extension process of the concession agreement that has it with the municipality of. The decision of the federal agency upholds a public civil action filed by the City of São Paulo against the concessionaire and also against the National Electric Energy Agency (Aneel).
Enel’s current contract ends only in 2028, but the company has shown interest in renewing the concession for another 30 years. The request of the City of São Paulo is that, before any early renewal process, there is a reformulation in the evaluation criteria of the services provided by the company. The action is based on recent and recurring poor quality episodes of the services offered. One of the most recent events cited took place last week, when a thunderstorm left at least 580,000 properties without electricity. The interruption of supply has impaired essential services such as schools and hospitals.
MPF position and criticism
The Federal Public Prosecution Service maintains that Aneel cannot continue the request for renewal while proceeding with an administrative proceeding that may result in the expiration of the company’s granting. The MPF argues that Aneel’s conduct violates a federal decree that regulates the conditions of extension and bidding of the concessions, determining the suspension of extension recommendations if there is an administrative process of expiry in progress.
Enel has been the target of various criticism for failures in the power supply, both by the mayor and the governor of São Paulo, who even used the term “sweeping the enel of São Paulo”. The city points out that the flaws already accumulate more than R $ 320 million in fines.
Enel’s response
In a statement, Enel states that it fulfills all the criteria established in the Federal Decree for the early extension of the concession. The company also reported that it is expected to invest more than $ 10 billion in its services between 2025 and 2027.
*With information from Danúbia Braga
*Report produced with the aid of AI
