By Brazil Stock Guide – Brazil’s electricity regulator Aneel has rejected a request by Enel Distribuição São Paulo for an independent expert review in an administrative proceeding that could ultimately lead to the termination of its power-distribution concession in the country’s largest metropolitan area.
The decision, taken on Monday, August 24, effectively closes the evidentiary phase of the case. Enel now has 10 days to submit its final arguments, the last procedural step before Aneel’s board considers whether to recommend that the concession be revoked.
Aneel itself does not have the final say on terminating the contract. If the regulator recommends revocation, the case would be sent to Brazil’s Ministry of Mines and Energy, which has the authority to make the final decision.
Enel had sought an independent expert assessment, arguing that the proceeding involves highly complex technical issues, including meteorological, operational, statistical and regulatory matters. The company said an external review was needed to reassess assumptions used by inspectors and clarify disputed points related to its performance during the severe weather event of December 2025.
The utility also challenged the impartiality of the process, arguing that Aneel simultaneously acts as regulator, investigator and decision-maker and should therefore not rely solely on technical assessments prepared by its own staff.
Aneel rejected that argument, saying the combination of supervisory, investigative and adjudicatory functions is inherent to Brazil’s regulatory-agency framework. It said reports, technical notes and legal opinions prepared by its specialist staff are legitimate instruments for supporting administrative decisions.
The regulator also concluded that no additional expert examination was necessary because the case file already contains sufficient technical evidence. Aneel said the key issue is not the severity of the December 2025 weather event, which is not in dispute, but whether Enel had adequate operational capacity to prepare for the event, respond to it and restore electricity service.
The concession-review proceeding was opened after the regulator concluded that Enel had failed to permanently address deficiencies previously identified by inspectors. Aneel has cited shortcomings in the company’s response to extreme weather events in 2023, 2024 and 2025, when prolonged outages affected millions of customers across São Paulo’s metropolitan region.
Enel has sought to challenge the process as it moved forward. Earlier in August, Aneel also rejected a request by the company to suspend the proceeding, allowing the review of a possible concession revocation to continue.
With the latest ruling, the case now moves into its final administrative stage. Once Enel files its closing arguments, Aneel’s board will be in a position to decide whether to recommend that the federal government terminate the company’s São Paulo distribution concession.
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