The decision responded to a request from the City of São Paulo, which contests the renewal of the Italian company’s contract, whose current concession expires in 2028
The Federal Court ordered the interruption of the process of early extension of the granting of responsible for supplying electricity in the capital of São Paulo. The decision responded to a request from the City of São Paulo, which contests the renewal of the Italian company’s contract, whose current concession expires in 2028. According to the court order, the Union and Aneel must carry out a regulatory impact analysis before any decision on the renewal.
The court highlighted that this analysis must consider efficiency, reasonable tariffs, financial sustainability, modernization of infrastructure and quality of service provided, in order to guarantee a fair price to the consumer. Since 2023, after heavy rains that caused blackouts and power outages in several regions of Greater São Paulo, Enel has been the target of criticism from City Hall and the state government. Governor Tarcísio de Freitas even stated that he intends to “sweep Enel out of the State”, in reference to recurring failures in the energy supply.
In a statement, Enel stated that it has a “long-term commitment to the country”, highlighting investments in technology, network renewal and staff training. While the legal impasse continues, the company continues its operations normally, but the extension of the concession remains suspended until further decision.
