Fiesp and CNI challenge R$ 515 billion energy auction at TCU

Fiesp and CNI requested to join as amicus curiae in a TCU case over the energy auction that contracted R$ 515 billion. The entities oppose the bidding due to rising costs, low discounts and prioritization of polluting sources.

Fiesp and CNI asked to join as interested parties in the TCU process on the government energy megauction. They cite issues such as a review that doubled the cost in three days, a low discount of about 5% and contracts for gas and coal thermal plants.

CNI estimates the contracts could generate costs up to R$ 800 billion and calls for suspension of adjudication and homologation steps. Fiesp stated that power reserve contracting is essential but requires transparency, affordable tariffs and broad competition.

Aneel removed the homologation from its agenda, originally set for next Tuesday. Director Fernando Mosna recommended waiting for a judicial decision. The March auction contracted 19 GW of capacity for 15 years, with at least a 10% impact on electricity bills.

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Illustration depicting Enel executive challenging Aneel regulator over São Paulo power concession dispute.
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Enel contests Aneel and seeks reconsideration in São Paulo concession process

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Power distributor Enel sent a letter to Aneel challenging the caducidade process for its São Paulo concession. The company requests suspension of the decision's effects pending appeal review and claims discriminatory treatment. Aneel did not respond to comment requests.

TCU subprosecutor-general Lucas Rocha Furtado requested on Wednesday the suspension of the results from Brazil's largest energy auction of 2026, held on March 18. The request raises concerns over companies like Evolution Power Partners and process irregularities. The court is now reviewing the precautionary measure.

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Brazil's National Electric Energy Agency (Aneel) decided on Tuesday (7) to open an administrative process to terminate the concession contract of distributor Enel in the São Paulo metropolitan region. The company has 30 days to defend itself before the agency issues an opinion to the Ministry of Mines and Energy, which has the final say. The action follows repeated blackouts caused by storms since late 2023.

Brazil's ANP released on Thursday (2) a list of five companies that joined the first phase of the diesel subsidy program, excluding major distributors Vibra, Ipiranga, and Raízen. President Luiz Inácio Lula da Silva's government is discussing technical adjustments to attract them, as they handle half of private imports. The program aims to cushion the war in Iran's effects on fuel prices.

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José Antonio Kast's government issued decrees tweaking the Mepco, allowing historic gasoline and diesel price hikes starting March 26. The move addresses surging oil prices from the Iran war and fiscal tightness, with relief for paraffin and transporters. Congress approved the bill after negotiations exempting SMEs from higher taxes.

Eskom has confirmed an internal investigation into possible irregularities in its procurement of diesel fuel for the Ankerlig power station near Cape Town. The probe covers a five-year contract worth around R21 billion awarded to five suppliers in late 2024. Questions have been raised about prepayments, bidder qualifications and due diligence processes.

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Spain's National Commission on Markets and Competition (CNMC) approved on Tuesday a proposal setting remuneration methodology for natural gas distribution networks for 2027-2032, keeping base levels steady with a 2% improvement. It rejects industry calls for 2020 cut compensation and adds incentives for biomethane injection and digitalization. The plan enters public consultation today.

 

 

 

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