In a letter to Aneel, the government mentions the possibility of canceling Enel’s contract and asks for a rigorous investigation

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Cancellation would occur due to ‘poor performance in the provision of the electricity distribution service. Minister mentions blackout at the end of 2023 and recent outages in the center of SP. Excerpt from the letter sent by minister Alexandre Silveira to Aneel about the situation of Enel SP Reproduçõa/MME The Minister of Mines and Energy, Alexandre Silveira, sent a letter to the National Electric Energy Agency (Aneel) this Monday (1⁰) in which cites the possibility of canceling the Enel SP contract due to failures in the provision of the energy distribution service. In the letter, Silveira mentions the blackout in November 2023 and the recent power outages in the center of São Paulo. “The compliance [cumprimento] The concessionaire’s contractual agreement must be rigorously evaluated and, in the event of non-compliance as characterized by Aneel, sanctions must be imposed, possibly including a declaration of expiry. [extinção do contrato]”, says the document obtained by g1. The Minister of Mines and Energy anticipated, in an interview with GloboNews, in the morning, that he would contact Aneel in an “unprecedented” way to request this type of investigation. The letter was sent afterwards. Alexandre Silveira says that Enel’s failures in São Paulo will be investigated In the interview with GloboNews, the minister said that he ordered the agency to open a disciplinary process to “investigate Enel’s repeated transgressions with the population of São Paulo, which could even lead to a expiry process”. The expiry of a concession is recommended by Aneel, after verifying that the company has failed to comply with contractual obligations and is unable to maintain the provision of services to the population. However, the decision whether or not to cancel the contract is up to the Ministry of Mines and Energy Requests In the document sent to Aneel, Silveira asks Aneel to verify whether: the provision of services by Aneel is being carried out in an “inadequate or inefficient” manner; the company has failed to comply with contract clauses; the company “lost the technical or operational conditions to maintain adequate service provision”; and Enel failed to comply with Aneel’s determination to regularize energy supply. According to Silveira, in the agency’s inspection that resulted in the imposition of a fine in February, “there were several findings that denote low performance.” The minister says that the average time to restore services is worse than that of other distributors, “worsening in recent years”. Furthermore, Silveira states that there is a “considerable increase in the number of interruptions” and the number of customers affected. In the letter, he also says that Enel’s average service time is 95% longer than the average of other distributors in the state of São Paulo in the years 2022 and 2023.

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