By Brazil Stock Guide – Brazil’s electricity regulator ANEEL has approved a R$ 498.8 million (US$ 88 million) compensation to Cesp, controlled by Auren Energia (AURE3), for unamortized reversible assets in four hydroelectric plants whose concessions have expired — Jupiá, Ilha Solteira, Paraibuna, and Jaguari. The decision concludes a regulatory process launched in 2022 and marks a financial recovery milestone for the São Paulo-based group.
Four plants, one ruling
ANEEL’s 2nd Ordinary Public Deliberative Session, held on October 14, 2025, recognized the compensation based on the Net Regulatory Asset Base (Base de Remuneração Regulatória – BRR) of the investments linked to the plants. The largest portions correspond to Jupiá (R$ 230.8 million) and Ilha Solteira (R$ 213.3 million), followed by Paraibuna (R$ 30.6 million) and Jaguari (R$ 24.1 million).
After publication in the Federal Official Gazette, the case will be forwarded to the Ministry of Mines and Energy (MME), which will determine the payment method, monetary adjustment factor, and disbursement schedule.
Sector signal
The decision reinforces how Brazil’s power companies are still recovering investments made before the 2013 power-sector reform, which allowed concession renewals without full asset compensation. For Auren, the recognition strengthens its regulatory asset base and provides visibility for balance-sheet management amid its ongoing expansion in power generation and trading.
The case may also set a precedent for similar claims by other legacy concessionaires awaiting regulatory settlements from ANEEL and the MME — an issue that continues to shape the financial landscape of Brazil’s privatized energy sector.
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