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Home / News / Policy and Regulation / The São Paulo state government and the Ministry of Mines and Energy are pushing for the termination of the Enel contract.

The São Paulo state government and the Ministry of Mines and Energy are pushing for the termination of the Enel contract.

State and ministry charge ANEEL to evaluate the process of terminating the company's concession.
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  • Photo by Antonio Carlos Sil Antonio Carlos Sil
  • December 17, 2025, at 08:47 AM
4 min 1 sec read
The São Paulo state government and the Ministry of Mines and Energy are pushing for the termination of the Enel contract.
Photo: Rovena Rosa/Agência Brasil

The situation at Enel São Paulo has entered a new phase of regulatory tension after the Ministry of Mines and Energy (MME) announced that it will request... ANEEL (National Electric Energy Agency) the opening of the process that could lead to the termination of the distributor's concession.

The measure, considered the most severe stipulated in the contract, comes amid technical assessments that point to repeated failures in service delivery, structural difficulties in responding to extreme weather events, and a series of pending decisions within the regulatory agency itself.

The announcement by the MME, released on Tuesday night (16), reinforces a recommendation recently anticipated by the TCU (Federal Court of Accounts) and is the result of a convergence of factors.

In recent weeks, the board of directors of ANEEL The court proceeded to debate, under urgent procedure, three interconnected processes. These included a request for early renewal of the concession, an analysis of the notification process that could result in intervention, and, ultimately, an analysis of the contract's expiration.

The agency's director-general, Sandoval Feitosa, requested that the topic be included as a matter of urgency on the agenda of the agency's extraordinary board meeting scheduled to take place tomorrow, Thursday (18), but there is no certainty that this will happen.

Procedures to further analyze the performance of the agency are still underway. Enel SP In light of the events recorded on December 10th and 11th, a period in which new storms hit the state.

The concern of ANEEL The goal is to verify whether the improvements observed after the issuance of a recent subpoena – still considered provisional – are sustained in real-world network stress situations.

Emergency measures

Meanwhile, distributors in São Paulo and Rio de Janeiro were notified by the Agency to reinforce their contingency plans, given the forecast of new severe weather events.

The technical team's warning includes mobilizing extra teams, reviewing emergency protocols, and coordinating directly with local authorities. Failure to comply with these measures may result in additional inspections and even formal recommendations for the loss of the concession.

At the same time that the ANEEL While attempts are underway to move forward with the regulatory process, a legal dispute is stalling the analysis of the renewal of Enel São Paulo's concession. A preliminary injunction obtained by the São Paulo city government has temporarily suspended the proceedings, arguing that the agency must first decide whether or not to recommend termination.

A ANEEL The company appealed, but there has not yet been a final court decision. This impasse keeps the company in uncertainty, intensifying the pressure for it to demonstrate its operational recovery capacity.

State and city government put pressure

As the technical debate deepens, so does the political weight of the issue. The Federal Government, the São Paulo state government, and the city hall of the capital have been holding joint meetings with the Ministry of Mines and Energy and... ANEELexchanging information about recurring service failures and discussing possible next steps.

The social dimension of supply disruptions, especially in a highly urbanized city repeatedly hit by storms, has become a determining factor in accelerating decisions.

Governor Tarcísio de Freitas stated that the situation has reached an "unsustainable" point, emphasizing that the distributor "is no longer able to provide the service" and that repeated failures justify considering the termination of the contract.

Mayor Ricardo Nunes highlighted that recent weather events have reinforced the perception that the company does not have the adequate structure to meet the demands of the country's largest metropolis. Both advocated for a swift solution.

In contrast, this Tuesday (17), during a meeting at Palácio dos Bandeirantes, there were tense moments, with the Minister of Mines and Energy Alexandre Silveira criticizing Nunes for not having given the necessary attention to cutting down condemned trees, one of the main problems of interference in the metropolitan electricity network of São Paulo during storms.

Silveira, at the end of the meeting with Nunes and Freitas, reinforced, however, that the Federal Government, state and municipality are working in a coordinated manner to conduct a rigorous process.

According to him, given the climate emergency and the concessionaire's recent history, Enel São Paulo "has lost the conditions to continue leading the concession service in São Paulo."

If the ANEEL It remains to be seen whether the option will be for termination, intervention, or conditional renewal.

Experts see intervention by Enel São Paulo as unlikely.

all the content of Canal Solar is protected by copyright law, and partial or total reproduction of this site in any medium is expressly prohibited. If you are interested in collaborating or reusing part of our material, please contact us by email: redacao@canalsolar.com.br.

storage course Enel São Paulo lack of energy Government of São Paulo
Photo by Antonio Carlos Sil
Antonio Carlos Sil
Antonio Carlos Sil is a journalist graduated from FMU/FIAM. He worked as a reporter for Brasil Energia, in addition to providing services to Agência Estado, Exame and Canal Energy. Worked in communications consultancies for CPFL Energia, CESP and AES Tietê. Has covered the electricity sector since 2000. Has experience covering events such as energy auctions, conventions, lectures, fairs, congresses and seminars.
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