(Alliance News) - As reported by Reuters, the Brazilian energy regulatory authority has decided to initiate a revocation procedure that could lead to the termination of the concession held by a local subsidiary of the Italian energy company Enel in São Paulo, preventing the automatic renewal of the contract.
In December, the news agency continues, Energy Minister Alexandre Silveira had urged Aneel to start the revocation process against Enel after power outages affected over 2 million consumers in the São Paulo metropolitan area following extreme weather events.
The case now enters a new phase, and the change in the process prevents the automatic renewal of Enel São Paulo's concession contract, which expires in 2028.
According to Reuters, this would complicate a potential sale of the concession, the primary option previously used by companies facing similar situations in the electricity sector.
Enel, however, has publicly stated that it has no intention of selling the asset.
By Claudia Cavaliere, Alliance News reporter
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