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Politics & Regulation

INEL files suit against the TCU against the renewal of the concession of defaulting distributors

The Institute points out that the decision to allow concession extensions without paying off debts violates legal principles.

Canal-Solar - INEL takes legal action against the renewal of concessions of defaulting distributors 

Photo: TCU/Disclosure

INEL (National Institute of Clean Energy) filed, this Thursday (14), with the TCU (Federal Court of Auditors) a representation requesting the suspension of the renewal of concessions of electricity distributors that accumulate unpaid fines and administrative penalties, totaling approximately R$ 944 million.

Most of these penalties arise from poor quality of service provided, recurring failures in serving the population and failure to meet contractual targets. 

According to the document, the decision by the MME (Ministry of Mines and Energy) to allow the extension of concessions for another 30 years without prior settlement of these debts violates legal principles, compromises administrative morality and contradicts Federal Decree No. 12.068/2024, which makes renewal conditional on proof of “adequate service” and sustainable economic and financial management of the concessionaires.

Among the companies with outstanding debts, Enel São Paulo stands out, accounting for more than R$500 million of the total. According to INEL president Heber Galarce, granting new contracts to defaulting companies poses a risk to the economic and financial stability of the electricity sector, potentially damaging public assets, and jeopardizing tariff affordability.

"We're talking about companies that fail to fulfill their contractual obligations, harm consumers, and even want another 30 years of concession without paying what they owe. This practice is unacceptable and harms public assets. Our goal with this action at the TCU is to ensure that the law is complied with, that citizens are respected, and that the electricity sector is managed responsibly," he states.

The request to the TCU includes:

  • Immediate suspension of renewals already made with defaulting distributors;
  • Review of administrative acts that have authorized renewals under these conditions;
  • Interruption of new extension processes until debts are fully paid off;

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Ericka Araújo
About the Author
Ericka Araújo

Communications Manager of Canal Solar. Host of Papo Solar. Since 2020, he has been following the renewable energy market. He has experience in producing podcasts, interview programs and writing journalistic articles. In 2019, he received the 2019 Tropical Journalist Award from SBMT and the FEAC Journalism Award.

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