MPTCU states that the lack of preventive measures and investments on the part of the concessionaire to avoid interruption in energy supply is evidence of “serious failures in the provision of public services”
The Public Prosecutor’s Office at the Federal Audit Court () asked the President of the Court on Friday (12) to suspend any administrative act related to the renewal of the concession of until the technical, economic and operational conditions of the concessionaire are analyzed.
The representation, signed by Deputy Attorney General Lucas Rocha Furtado, states that windstorms like the one last week, which left thousands of people without power in São Paulo, although they are impactful, cannot be considered unpredictable, especially in regions like São Paulo, which historically face intense rains, strong winds and hail.
“The predictability of these climate phenomena requires public service concessionaires, such as Enel Distribuição São Paulo, to carry out robust planning and adequate investments to mitigate the impacts and guarantee continuity of service”, wrote Furtado.
According to Furtado, the lack of preventive measures and sufficient investments on the part of the concessionaire is evidence of “serious failures in the provision of the public electricity distribution service, which goes against the fundamental principles that govern the concession of public services”.
He cites article 6 of Law No. 8,987/1995, which establishes that the provision of adequate service is the concessionaire’s obligation, and says it is essential that the TCU adopts measures to avoid the perpetuation of concessions that do not meet the standards required by law.
“In view of the imminent renewal of the Enel Distribuição São Paulo concession, it is imperative that the TCU determines, on a precautionary basis, the suspension of any administrative act aimed at renewing the concession. This preventive measure is necessary so that the technical, economic and operational conditions of the concessionaire can be analyzed in detail”, writes Furtado in representation.
The MPTCU defends the division of Enel’s concession into smaller parts, , (Republicans). Furtado argues that the fragmentation of the concession can encourage competition in the electricity distribution sector, encouraging the entry of new players into the market and ensuring that consumers have access to more efficient and reliable services.
“The suggestion to divide the concession into smaller parts is not only an isolated proposal, but also a recommendation from the governor of the state of São Paulo himself. This position reinforces the need to rethink the current concession model, considering that fragmentation can bring significant benefits to the population, such as greater efficiency in service provision and greater capacity to respond to adverse weather events.”
*With information from Estadão Conteúdo
