Aneel calls on Light to present a new recovery plan – 07/06/2023 – Market

Aneel (National Electric Energy Agency) said this Wednesday (5) that the results plan presented by the energy distributor Light did not bring sufficient conditions to ensure the sustainability of its concession.

With that, the agency summoned the company to inform, within 15 days, whether it will present a new recovery plan for its economic-financial framework or a transfer of corporate control plan, as authorized by law.

With operations in Rio de Janeiro, Light is facing a judicial recovery process. In a note sent to Sheetthe company said it will forward the clarifications to Aneel within 15 days.

“The Recovery or Transfer Plan must ensure the economic and financial sustainability of the concession, with a schedule of actions to be taken, which will be analyzed by Aneel”, said the regulatory body.

According to the agency, the subpoena occurred because the results plan initially presented by the energy distributor “did not contain actions to ensure, unequivocally, an improvement in performance that would guarantee the recovery of the economic and financial sustainability of the concession”.

The agency pondered that Light is still in compliance with its intrasectoral obligations, which include distributor contracts with power generators, transmission companies and payment of charges.

According to Aneel, obligations with service providers, equipment and employees are also fully preserved at the moment.

The agency also promised that it will continue to adopt the necessary measures to ensure the “adequate provision” of Light’s distribution service, regardless of the discussions made within the scope of the judicial recovery process.

“Light naturally received Aneel’s request for additional clarifications, and will forward them within the due period of 15 days”, stated the company.

“As the agency pointed out, Light is fully compliant with its regulatory, intrasectoral obligations, with suppliers and employees”, he added.

The company said it pointed out an imbalance in its concession contract and that there is a process already under analysis by Aneel. The company also recalls that it recently sent a request to the Ministry of Mines and Energy to extend its concession.

The Light group filed for judicial recovery in May, claiming the need to seek a solution for debts of around R$ 11 billion.

The Justice of Rio de Janeiro accepted the request in the same month, granting an injunction –a kind of injunction– to suspend the financial debts under discussion.

The debts are concentrated in the distributor, but the request was presented by the holding company to circumvent legal limitations. Energy distributors are prohibited by law from entering into judicial recovery.

Light serves 4.5 million consumers in more than 30 municipalities in Rio de Janeiro. However, part of the coverage area is in areas dominated by drug trafficking and armed militia control. The company is impacted by the loss of revenue from energy theft.