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Enel Seeks Deal Amid Brazil Contract Threat
4 Jun
Summary
- Enel met with Brazil's power regulator to avoid contract revocation.
- Outages during heavy rains led to the revocation consideration.
- Enel proposed increased investments and service improvements.
Italian energy company Enel met with Brazil's power regulator, Aneel, last week to explore resolutions for its Sao Paulo concession. Authorities had been considering revoking Enel's approval following numerous power outages that occurred during recent heavy rains.
Enel requested the meeting to seek alternatives to the contract forfeiture process. Sources indicate the company discussed committing to improved conduct and increasing its investments in Brazil. This meeting represents a shift for Enel, which had previously pursued legal action to delay the regulator's potential contract termination.
Aneel is currently analyzing Enel's defense before deciding whether to recommend revoking the concession, with a final decision resting with the government. Enel stated it is available to discuss complementary measures and additional investments to enhance service quality within its concession area.
