MME promises decree on renewal of concessions for next week

Minister said he will demand investments from Enel to improve the quality of service in its three concessions
3 minute(s) of reading
MME promete para próxima semana decreto sobre renovação das concessões
MME informed that new contracts will be more rigorous. Photo: Disclosure

The Minister of Mines and Energy, Alexandre Silveira, promised that in the next week the long awaited will be published decree with new rules for renewing around 20 concession contracts of distributors in several states.

Silveira spoke to journalists this past Tuesday (21), at the Brasília air base, moments before boarding for Rio Grande do Sul with 50 specialists in substations and network high voltage distribution areas.

The minister once again said that current contracts are very lenient. He said that he is absolutely sure that the new contracts will be stricterat least very better suited to current challenges and futures of distribution sector.

“We are establishing much richer mechanisms for demanding quality in the provision of energy distribution services in Brazil,” he declared. He also criticized the outsourcing of labor in the distribution business.

“The highly specialized electricians we had in the past migrated to the private market, many became unemployed and others retired. We need to strengthen the Brazilian electricity sector again to ensure that the quality of service, a commitment of the distributors, is maintained”, said Silveira.

“We will even establish this clearly in contracts, ensuring that those who do not fulfill their social and contractual commitments signed with the granting authority can have their contracts questioned and, more quickly, suffer forfeiture or intervention, allowing the government mechanisms of more agile operations”, he added. 

According to him, Oold contracts have few mechanisms so that the government can act rigorous way in cases of events such as the one that occurred in last November in São Paulo, when Millions of people were without power for almost a week

The minister said he has talked a lot about the case of Enel and informed that the concessionaire that manages three regions (São Paulo, Ceará and Rio de Janeiro) will have to prove, in full, that is really willing to make the necessary investments to improve the quality of services

“If this is not the case, we will use all regulatory instruments with the maximum rigor possible so that others can take control and provide a quality service to energy consumers in Brazil's largest metropolis, São Paulo. We will not give in on this point. The company must prove that it will change, and we are taking advantage of the renewal moment to demand adherence to the new rules. Otherwise, it will have to leave the Brazilian market.”

The Canal Solar report reached out to Enel to comment on the minister's statements, but no response was received by the time the report was completed. If the company responds, the article will be updated with the positioning.

All content on 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 some of our material, we ask that you contact us via email: [email protected].

Picture of Wagner Freire
Wagner Freire
Wagner Freire is a journalist graduated from FMU. He worked as a reporter for Jornal da Energia, Canal Energia and Agência Estado. He has covered the electricity sector since 2011. He has experience in covering events, such as energy auctions, conventions, lectures, fairs, congresses and seminars.

Leave a Reply

Your email address will not be published. Required fields are marked *

Receive the latest news

Subscribe to our weekly newsletter