Brazil regulator rejects Enel appeal, contract termination case proceeds

Brazil's energy regulator has rejected an appeal by Italian company Enel, moving forward with a process that could terminate its electricity distribution contract in São Paulo state. The National Electric Energy Agency (Aneel) dismissed Enel's argument that the regulator had made contradictory statements regarding the company's management during extreme weather events that caused widespread blackouts.

Enel had requested the definitive closure of the case, but Aneel denied this, stating that the contract termination process will continue. The decision on whether to revoke the concession ultimately rests with the Ministry of Mines and Energy. Aneel recently gave Enel ten days to present its final arguments, marking one of the final stages of the procedure.

The regulatory body initiated this process following prolonged power outages in São Paulo, which affected millions of consumers after severe storms in 2023, 2024, and 2025. The concession in question covers Enel's service to over 8 million consumers across 24 municipalities in the state. Previously, the Minister of Mines and Energy, Alexandre Silveira, suggested that Enel had lost the reputational standing to continue managing the concession in Brazil's wealthiest and most industrialized state.

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Enel had lost, from a reputational point of view, the conditions to continue at the forefront of the concession service in São Paulo.