Mines and Energy Minister Alexandre Silveira announced on Monday that he would instruct Brazil’s federal energy regulator, Aneel, to open disciplinary proceedings against Enel, the Italian multinational in charge of power distribution in the state of São Paulo, after several blackouts affected the country’s most populated city.
“Today I am taking a very severe, very rigorous action. I am ordering Aneel to open disciplinary proceedings, proceedings that will investigate Enel’s repeated transgressions with the population of São Paulo, which could even lead Enel to a process of expiration [losing the contract],” Mr. Silveira said in a live TV interview.
Two weeks ago, São Paulo Mayor Ricardo Nunes filed a new complaint against Enel after a blackout in the central part of Brazil’s largest city lasted more than 60 hours. Since Enel’s contract is under federal jurisdiction, the mayor’s options are limited.
In late 2023, millions in the city were left without electricity for several days after a massive storm, demonstrating how ill-prepared the country’s largest and most developed urban center is to deal with extreme climate events.
At the time, Mr. Nunes said the situation had become untenable. “Enel can no longer stay here in São Paulo. It is unacceptable to have a company like this that hasn’t a drop of respect for the population and has left people without electricity for almost a week,” Mr. Nunes said.
Enel won a public tender in 2018 to take over Eletropaulo, a now-defunct state-owned electricity company. At the time, Eletropaulo was already under the control of a private company, the U.S.-based AES, which sold its stake.
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