The Federal Court suspended the process of early extension of the concession between the Union and Enel in São Paulo.
Enel is the company responsible for distributing electricity in the capital of São Paulo.
The City of São Paulo took action to prevent the concessionaire’s early extension of the contract after successive episodes of failures in the energy supply and deficiencies in serving the population.
“I partially grant the urgent protection requested by the Municipality of São Paulo to determine the immediate suspension of the administrative process of early extension of the ENEL concession contract until a definitive decision in the process that may result in the expiration of the current contract, as well as assessment of satisfactory compliance with the imposed supervisory and sanctioning measures”, says the decision of the substitute federal judge Maurilio Freitas Maia de Queiroz, of the 12th Federal Civil Court of São Paulo. Paul.
In the decision, the Federal Court also ordered the Union to evaluate alternative concession scenariosconsidering efficiency, reasonable tariffs, maintaining the balance between quality, financial sustainability and fair price for the user, modernization of infrastructure and quality of service provided.
In a note, the concessionaire said that it has made significant investments and that it strictly complies with the concession contract.
“Enel has a long-term commitment to the country, translated into massive investments in technology, renewal of networks and hiring and training of personnel. The Company expresses its confidence in the renewal rites established by regulatory agents, which provide security for the company’s present and future investments and reinforces that it strictly complies with all the clauses established in its concession contract.”
