(Alliance News) - The renewal of the power distribution concession in Sao Paulo, Enel's primary operation in Brazil, is weighing on the group's 2025 financial outlook. At stake, as reported by Milano Finanza, are approximately EUR3.9 billion in assets, which have come under scrutiny by auditor KPMG due to the risk of revocation raised by the regulator Aneel.
Despite an initially positive process, an appeal by the Municipality of Sao Paulo regarding the management of climate emergencies in 2024-25 has suspended the procedure. KPMG has included the matter among the key audit matters, while nevertheless validating the asset valuation: according to impairment tests, expected cash flows exceed the carrying value, ruling out immediate write-downs.
Even if the renewal is not granted in 2028, Enel would be entitled to compensation for unrecovered investments. Meanwhile, the group is focusing heavily on Italy, with the potential hiring of one thousand employees in 2026 for e-Distribuzione, as part of a three-year plan that allocates 55% of total investment to national networks.
By Michele Cirulli, Alliance News reporter
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