Enel eyes agreement with Brazil regulator over Sao Paulo power contract
Italy's Enel (ENEI.MI), opens new tab met with Brazil's power regulator last week, according to official minutes of the meeting, which occurred amid a spat over the firm's concession in Sao Paulo, with authorities considering revoking the approval due to a series of outages in recent years during heavy rains.
Enel requested the meeting, which took place last Tuesday, to seek alternatives to the revocation process, two sources familiar with the matter told Reuters, News.az reports, citing Reuters.
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Although no formal proposal was presented, Enel in the meeting discussed committing to a "conduct adjustment," or increasing its investments in Brazil, the sources said.
The meeting with Brazil's power watchdog, known as Aneel, marks a shift in Enel's approach, as the company went to court earlier this year in an attempt to stall the regulator's possible forfeiture of the contract.
The subject of the meeting was the discussion of "possible consensus-based solutions" for the concession, the minutes showed.
In a statement, Enel said that it has made itself available to authorities to evaluate complementary measures, and make additional investments, focusing on the improvement of the service provided in its concession area.
The company, which has said it complies with the contract obligations and it does not intend to give up the concession, submitted its final defense in the case last month, requesting a technical expert's examination into disagreements that emerged with the regulator.
Aneel is analyzing Enel's arguments before deciding whether to propose revoking the concession. A final decision rests with the government.
By Faig Mahmudov
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