By Brazil Stock Guide – Brazil’s electricity regulator Aneel has unanimously approved the opening of a proceeding to evaluate the potential termination of the concession contract held by Enel São Paulo, a unit of Enel SpA (ENEL IM), giving the company 30 days to present its defense.
The decision, reported by Broadcast, was taken on Tuesday (7) by the agency’s board, which appointed director Agnes da Costa as rapporteur for the case. She will review the company’s arguments before submitting the matter for a final vote by the collegiate board.
Under the procedure, Costa may request additional information or technical reviews before concluding her analysis. The process represents a formal step toward a possible declaration of caducity, the most severe penalty under concession agreements, which can lead to contract termination.
During the meeting, Aneel Director-General Sandoval Feitosa advocated for the preparation of a contingency plan for a potential administrative intervention in Enel SP’s concession area. The proposal called for the agency’s technical staff to develop the plan within 60 days.
The majority of the board rejected the proposal, opting instead to proceed solely with the caducity assessment process without prior intervention planning.
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