By Brazil Stock Guide – Brazil’s electricity regulator upheld a R$59.5 million ($10.3 million) penalty against Neoenergia Coelba, the Bahia-based utility controlled by Neoenergia SA (NEOE3), after rejecting the company’s appeal during a public meeting on Tuesday, Dec. 2.
The National Electric Energy Agency (Aneel) said inspections found widespread failures in meeting regulatory deadlines tied to power-supply requests that required infrastructure works. Auditors identified 11,415 pending service requests, of which 7,990 — about 70% — were overdue.
Aneel reported delays far beyond allowed limits. In one category, projects averaged 295 days late, more than six times the permitted 60-day window. In another, the delay stretched to 598 days, nearly five times the maximum 120-day limit. Regulators also deemed Neoenergia Coelba’s 2022–2023 performance plan “unsatisfactory,” noting that the violations remained unresolved.
Neoenergia Coelba is one of 19 electricity distributors in Brazil whose concession contracts expire by 2031 and have formally requested renewal. In October 2025, the Minister of Mines and Energy signaled that the company’s concession will indeed be renewed, suggesting a favorable position from the Federal Government.
If approved under the terms currently being discussed, the new agreement could extend Coelba’s contract for an additional 30 years. The renewal process also involves negotiating stricter service-quality rules and performance standards, designed to ensure more reliable and consistent service for consumers.
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