Head of Aneel votes for loss of Enel's contract in SP, but majority decides on more time
The head of Brazil's National Electric Energy Agency (Aneel) voted for the cancellation of Enel's distribution contract in São Paulo, but the majority opted for extending the timeframe to evaluate the case further.
On October 24, 2023, Sandoval Feitosa, the general director of Aneel, voted to recommend the cancellation of the energy distribution contract held by Enel in São Paulo due to ongoing issues with energy distribution. Despite his recommendation, the majority of the board decided to extend the timeframe for evaluating the situation, reflecting a complex landscape of political tensions surrounding the energy provider.
The ongoing difficulties in energy distribution within São Paulo have led to a blame game among various authorities, with the federal government pitted against the state and municipal administrations. In recent discussions, President Lula (PT) engaged with São Paulo's Governor Tarcísio de Freitas (Republicanos) and Mayor Ricardo Nunes (MDB) to address the situation, and he mandated the Attorney General's Office (AGU) to monitor the developments related to Enel's contract.
Tensions were palpable during the Aneel meeting, with calls for more serious approaches and changes in the rhetoric used during discussions. Directors expressed their frustration over the management of the situation, highlighting the urgent need for clarity and accountability as they navigate the future of energy distribution in Brazil's largest city.