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.
Aneel's board approved unanimously the opening of the caducity procedure against Enel, the first time the agency has initiated such a process. Experts estimate that, if confirmed, the termination would require an initial indemnity of R$ 15 billion to the concessionaire, based on unamortized investments.
Governor Tarcísio de Freitas (Republicanos) and Mayor Ricardo Nunes (MDB) welcomed the decision. "Renewing Enel's contract would be an aggression to São Paulo's population," Tarcísio said, citing failures in energy connections and delays in projects like metro line 6. Nunes stated: "We are exhausted by Enel's inability to provide a decent service."
Enel responded with an official note, expressing full confidence in its legal and technical foundations. "The company will continue working to demonstrate full compliance with all contractual indicators," it declared, demanding due process and impartiality. The current contract runs until 2028, and Enel denies any definitive caducity recommendation by Aneel.
The blackouts affected millions: 2 million properties in 2024 and 4.4 million customers in 2025, blamed on weather events. Possible outcomes include intervention, judicial dispute, or agreement, with the federal government facing political pressure.
