By Brazil Stock Guide – Brazil’s Energy Minister Alexandre Silveira criticized São Paulo Governor Tarcísio de Freitas for what he described as “populist” remarks against Enel SpA (ENEL.MI), escalating tensions over the renewal of electricity distribution concessions in Latin America’s largest economy.
Speaking at the Liquid Gas Week in Rio de Janeiro on Wednesday, Silveira told reporters he hopes the governor will not engage in rhetoric he sees as politically charged. “I prefer to believe that Governor Tarcísio will not use this language, because it seems much more populist than the language of a statesman who wants to make public policy,” Silveira said, according to Poder360. He added that concession decisions should follow “technical and objective criteria,” reviewed by the national regulator Aneel and the Federal Audit Court.
On Tuesday, Tarcísio ramped up his criticism, saying he would “fight with all his strength to sweep this bad concessionaire out of our state.” The governor compared Enel’s response to recent storms in São Paulo with CPFL Energia SA (CPFE3.SA), which restored power more swiftly. He also opposed the prospect of an early contract renewal, calling it “nonsensical” for the Energy Ministry to even consider the move.
Silveira’s remarks follow his own clashes with Aneel earlier this month. On Sept. 16, the minister urged the regulator to accelerate the review of concessions, warning there was no room for “politicking.” That prompted immediate pushback: Aneel director Fernando Mosna withdrew a renewal proposal for Energisa (ENGI11.SA) in Sergipe, while agency head Sandoval Feitosa rejected the suggestion that the regulator engaged in politics.
The federal government is weighing the renewal of 19 electricity distribution contracts for another 30 years. The first was signed with EDP Espírito Santo, a unit of EDP-Energias de Portugal SA (EDP.LS). Nine others have been cleared for extension, but the future of Enel’s São Paulo concession remains unresolved. Other pending cases include Light SA (LIGT3.SA), Neoenergia’s Coelba (NEOE3.SA), CPFL Paulista, and Equatorial Energia SA (EQTL3.SA).
Enel said in a statement it had restored electricity to 97% of customers affected by this week’s storms, mobilizing more than 1,300 teams. The utility highlighted structural investments such as expanded field crews, a larger generator fleet, and preventive tree-trimming. It also noted its São Paulo operation serves 20 times more customers per kilometer of grid than the national average, complicating direct comparisons with other distributors.
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