Latest News

Brazil energy regulator opens administrative process versus Enel

Brazilian energy regulator Aneel has actually opened an administrative procedure versus energy group Enel, it stated, that might lead it to suggest the government end the business's concession in the city of Sao Paulo.

WHY IT is necessary

Brazil is one of Enel's largest markets, and Sao Paulo is Latin America's biggest city in regards to population.

ADDITIONAL CONTEXT

Political pressure on Enel in Brazil has actually grown after half a. million customers in Sao Paulo were left without electrical power for. days previously this month following violent winds.

Currently, Aneel had actually fined Enel $33 million in February for a. blackout in Sao Paulo last November.

The procedure Aneel stated on Monday it has actually opened might result in. the regulator recommending Brazil's Mines and Energy ministry. end Enel's concession in Sao Paulo.

However, Mines and Energy Minister Alexandre Silveira, who. would be accountable for the decision, stated last week he. did not see termination as a possibility for now.

SECRET PRICES QUOTE

Aneel stated it opened the procedure after Enel did not comply. with a contingency strategy it had concurred with the regulators after. the blackout last November.

THE RESPONSE

Enel Sao Paulo completely adheres to all contractual and. regulative responsibilities, the company said on Tuesday in response. to a Reuters ask for remark, adding that it will continue. to invest in delivering quality energy and dealing with climate. occasions.

Enel Sao Paulo Chief Executive Guilherme Lencastre told. reporters recently the company has complied with its. contracts and kept quality within regulatory guidelines.

He stated Enel was executing a $1 billion financial investment plan. for the duration 2024-2026 in Sao Paulo state.

(source: Reuters)