Brazil's AGU Upholds Process That Could Cancel Enel São Paulo Power Concession

The Federal Attorney General’s Office (AGU), through its Federal Prosecutor at the National Electric Energy Agency (Aneel), rejected the arguments presented by Enel São Paulo. The agency said the company’s complaints about the methodology used to measure post‑blackout restoration rates are technical disputes, not legal defects, and therefore the administrative process to assess possible caducity of its electricity distribution concession will continue.

The process, launched in April after Enel asked for reconsideration, examines a range of shortcomings identified since the 2023‑2025 blackouts in the São Paulo metropolitan area, including long emergency‑response times, a high number of customers left without power for more than 24 hours, inadequate contingency plans and aging infrastructure. If Aneel confirms the findings, it will recommend termination of the concession to the Ministry of Mines and Energy, with the final decision resting with the federal government.

Enel has said it will cooperate with the authorities and demonstrate full compliance with contractual targets, noting a 50 % reduction in emergency‑response time and an 88 % drop in long‑duration interruptions. The company also announced it will continue to invest in service improvements for its more than 8.5 million customers.

Potential buyers such as Equatorial Energia, Neoenergia, CPFL and others are reportedly evaluating the asset, but Enel maintains it has no intention to sell the concession at this stage.