The measure responds to a request made at the end of September, as part of a public civil lawsuit that the Municipality has filed since August before the Federal Court against the company, the union and Aneel
THE suspension of the administrative procedure for early extension of the concession contract for Enel “reinforces the importance of ensuring transparency, efficiency and security in the provision of services electricity to the population of São Paulo”, stated the Attorney General of the Municipality, Luciana Nardi. The decision of the Federal Court responded to the request for Sao Paulo City Hallfearful about processing a trial in National Electricity Agency (Aneel) by the company in charge of electricity distribution in the city.
In a note sent to EstadaoEnel states that it has confidence in the rites established for contract renewal (see the full note at the end of the text). Also wanted by EstadaoAneel stated that he had not yet been officially notified and the Ministry of Mines and Energy did not respond until the report was published.
According to the Attorney General, the municipality seeks to ensure that the public interest and the continuity of essential services come first. Luciana Nardi claims that an automatic renewal without adjustments does not take into account the defects already recognized by the population and the control bodies.
The decision responds to the appeal presented by the Municipal Attorney General (PGM) at the end of September, as part of the Public Civil Action that the Municipality has brought since August before the Federal Court against Enel, the Unit and Aneel, due to the new energy shortage problems recorded in the city.
On September 29th Federal Public Ministry (MPF) in São Paulo they had already expressed themselves in favor of the public civil action proposed by the municipality. The opinion requires Aneel to wait for the conclusion of the administrative procedure investigating the possible expiration of the concession (started in October 2024) before making any decision on the contractual renewal.
As demonstrated by Station/Broadcasta technical-instructive note from Aneel indicated compliance with the requirements for the renewal of Enel SP. The preliminary document will however remain under consideration by the agency’s board of directors.
On Tuesday 7th, the general director of Aneel, Sandoval Feitosa, confirmed the existence of an interdependence between the process with the request for early renewal by Enel SP and the process relating to possible defaults and transgressions by the concessionaire, in parallel proceedings. This latter, in the extreme, could lead to the expiration of the concession.
In a conversation with journalists he explained that the process that could lead to the termination of the contract is still instructive. In other words, the deadline itself is not yet under discussion and, at the moment, is only one of the possibilities after the analysis progresses.
The Agency issued a Term Intimation (TI) in October 2024 due to the distributor’s failure to comply with an adequate emergency plan and “reliance on unsatisfactory service to consumers in emergency situations”, such as the extreme weather event in the second half of last year. It is this deadline that could ultimately lead to expiration.
Sandoval Feitosa reiterated that he does not see the possibility that the analysis of the renewal of the company, in the collegiate council, takes place before the vote on this other process. Both facts are reported, by connection, by the director Agnes da Costa. The Aneel board of directors will evaluate the elements brought by the distributor in its press release and decide whether it is appropriate to recommend the expiration of the concession.
The Municipality will move against Enel from 2023
Since 2023 the municipality has already sent two letters to the Federal Audit Office (TCU) and two others to Aneel asking for effective measures against the concessionaire, including that the municipality can monitor the concession contract. Mayor Ricardo Nunes also asked the regulatory agency to cancel the concession contract.
In 2024, Nunes was with the Minister of Mines and Energy, Alessandro Silveirain Brasilia, to take care of sending a decree to Chamber of Deputies with proposals for improvements to electricity concession contracts.
He also delivered to the then President of the Chamber of Deputies, Arthur Liraa proposal to amend the law on concessions so that municipalities have greater autonomy in choosing and controlling electricity concessionaires. Legal action was also taken against the company by the Municipality.
What Enel says
Wanted by Estadaothe company defended itself from the Municipality’s statements with the following note:
Enel has a long-term commitment to the country, translated into massive investments in technology, network renewal, and staff hiring and training. The company expresses its confidence in the renewal rites established by the regulatory agents, which guarantee security for the company’s present and future investments and emphasizes strict compliance with all clauses established in its concession agreement.
Source: Terra
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