Italy’s Enel is pursuing a negotiated solution with Brazil’s electricity regulator, Aneel, as it seeks to avoid the possible loss of its power distribution concession in São Paulo following years of service disruptions during severe weather.
According to official meeting minutes, Enel met with Aneel last Tuesday after requesting talks aimed at exploring alternatives to the ongoing concession revocation process. The discussions come as Brazilian authorities review whether the company’s operating licence should be withdrawn.
Sources familiar with the matter said Enel floated the possibility of signing a conduct adjustment agreement and increasing investments in its Brazilian operations, although no formal proposal was submitted during the meeting.
The talks signal a change in strategy by Enel, which earlier this year turned to the courts in an attempt to delay regulatory proceedings linked to the potential forfeiture of the concession.
Meeting records showed both sides discussed potential consensus-based solutions to address concerns surrounding the contract and service quality in the concession area.
In a statement, Enel said it remains willing to work with authorities on additional measures and investments aimed at improving electricity services for customers in São Paulo.
The utility has repeatedly maintained that it complies with the terms of its concession agreement and has no intention of relinquishing its operating rights in the state.
Last month, Enel submitted its final defence to Aneel, requesting an independent technical review of disagreements that emerged during the regulatory investigation.
Aneel is currently assessing the company’s arguments before deciding whether to recommend revoking the concession.
Any final decision on the future of Enel’s São Paulo power distribution contract will ultimately be made by the Brazilian government.