Enel, the Italian energy group operating in Brazil, has formally asked the national electricity regulator Aneel to cancel regulatory proceedings that could culminate in the termination of its Sao Paulo distribution concession. In its filing, the company argues that Aneel did not adequately evaluate the consequences for consumers when initiating the review process.
Aneel confirmed receipt of Enel's submission on Thursday. The regulator's acknowledgment indicates that the filing constitutes Enel's final defense before Aneel chooses whether to advance a recommendation to the federal government to end the concession.
Earlier, Aneel had concluded that Enel's Sao Paulo distribution unit exhibited structural failures. The regulator pointed specifically to poor performance during extreme weather events in 2023, 2024 and 2025, citing instances when millions of customers endured extended power outages.
Enel, in its response, reiterated that it satisfied the two formal service-quality indicators which could underpin a recommendation for termination. The company described the December 2025 incident as unprecedented and extraordinary, and it said Aneel is discounting the operational improvements the utility has implemented since 2023.
The company also renewed a request for an independent technical audit of the distribution unit's performance and operations. Aneel previously rejected that request in August, after members of the regulator's board criticized the proposed audit.
Summary
Enel asked Aneel to cancel proceedings that might terminate its Sao Paulo distribution concession, arguing the regulator did not properly analyze impacts on consumers. Aneel confirmed it received the filing on Thursday; the submission is Enel's final defense before the regulator decides whether to recommend ending the concession to the federal government. Aneel had found structural failures and cited poor performance during extreme weather events in 2023, 2024 and 2025. Enel says it met the two official service-quality criteria and characterizes the December 2025 event as unprecedented and extraordinary. It also repeated its request for an independent technical audit, a request Aneel rejected in August.
Key points
- Enel submitted a formal petition asking Aneel to cancel the review proceedings that could end its Sao Paulo concession.
- Aneel has identified structural failures and linked poor performance to extreme weather events in 2023, 2024 and 2025, when extended outages affected millions of customers.
- Enel asserts it met the two service-quality measures relevant to a termination decision and is seeking an independent audit that Aneel previously rejected in August.
Risks and uncertainties
- The regulator may still recommend terminating the concession to the federal government, which would have material implications for the utility sector and consumers in Sao Paulo.
- Disagreement between Enel and Aneel over the adequacy of service-quality assessments and the refusal of an independent audit creates continued regulatory uncertainty for the concession.
Observers will watch Aneel's next steps closely, as the regulator's recommendation is the immediate determinant of whether the federal government will be asked to consider termination. Until Aneel makes that recommendation, the matter remains unresolved.