Enel Seeks Annulment of Concession Expiration Process from Aneel

Enel has submitted final arguments to the National Electric Energy Agency (Aneel) requesting the annulment of a process that could lead to the expiration of its electricity distribution concession in São Paulo. The company describes the potential expiration as disproportionate and argues that the process contains technical controversies and vices. Aneel initiated the procedure after identifying recurring grave failures in service, including prolonged power outages and poor planning for extreme weather events between 2023 and 2025.

Enel contends that it has complied with the official regulatory indicators for service quality, specifically the DEC and FEC metrics. The company claims that Aneel created and altered criteria during the process, such as a goal to restore power to 80 percent of consumers within 24 hours, which Enel argues was not a previously defined objective metric. Furthermore, Enel asserts that there has been no conclusive study on the costs, tariff impacts, and risks to service continuity for approximately 20 million people that would result from replacing the current operator.

During the proceedings, Enel requested an independent technical expert analysis, which Aneel's board rejected. The agency's rapporteur, Agnes da Costa, stated the request was unnecessary under federal administrative law. Aneel has now declared the instruction phase closed and is reviewing the final allegations. While Aneel will provide a recommendation, the final decision to terminate the contract rests with the Ministry of Mines and Energy. The process began in late 2025 and could potentially extend until 2027 due to possible appeals.