The Government publishes the decree with the guidelines for the renewal of 20 energy distribution concessions

The Government publishes the decree with the guidelines for the renewal of 20 energy distribution concessions

The government published this Friday in the Official Journal of the Union the decree with the guidelines for the renewal of 20 electricity distribution concessions expiring between 2025 and 2031.

The rules were presented the day before by the Ministry of Mines and Energy, after a long discussion process with companies in the distribution sector and other operators in the electricity sector.

The new contracts for 20 dealers, representing more than 60% of the Brazilian energy distribution market, include stricter rules relating to the quality of service provided to consumers, with tougher penalties for companies for non-compliance.

Concessionaires who do not reach, for two consecutive years, the regulatory levels of quality of energy supply and economic-financial management could enter into a process of contractual expiry, an alternative which is currently difficult to implement.

Distributors who fail to meet their regulatory indicators may also have their dividend and capital interest payments restricted by regulatory agency Aneel, meeting legal minimum limits.

Rules have also been included in the new contracts which adapt the calculation of regulatory indicators to the reality of the concession for distributors who operate in areas considered complex and with limitations on the operation of teams for safety reasons, such as Light and Enel Rio.

Source: Terra

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