São Paulo City Hall asks TCU to terminate contract with Enel

A São Paulo City Hall entered with action, this Wednesday (31), at the TCU (Federal Audit Court) to request the immediate termination of the contract with Enel, concessionaire responsible for the electricity distribution service in the city.

O order he was made due to “successive failures in the provision of the service” by the distributor, including on November 3, 2023 and January 8 of this year, when thousands of properties were left without access to electricity due to storms that hit the capital and nearby cities. 

Read more:

• Storm in São Paulo: blackout lasts almost 70 hours;

• Lack of energy generates losses of R$ 126 million for commerce in São Paulo;

• Heavy rains once again leave residents of SP without access to energy.

“The chaos, however, was not a direct consequence of the rain itself, but of the abrupt interruption of electricity, which paralyzed essential services and the daily activities of millions of people. Electricity was only actually restored a week later”, claims the City Hall, in the document sent to the TCU.  

In the letter, the municipal administration demonstrates total dissatisfaction with the services provided by the concessionaire, in addition to concern about the lack of a contingency plan, which he classifies as an “omission by the federal concessionaire” for trying to escape responsibility for its actions. 

“In the view that Enel has publicly expressed, power cuts are the fault of summer rains – always characterized as exceptional events, despite their constancy and regularity – and the city's trees, which – in the concessionaire's view – 'stubborn' falling on electricity networks during rain, as if the concessionaire had no responsibility for the management of trees entangled by energized wiring”, says the document. 

A City Hall criticized still to lack of responses to the population and municipal administration. “The events of that day also made sadly clear the lack of communication channels between the concessionaire and consumers and the Government, in addition to the absolute inefficiency of any contingency plans of the concessionaire to deal with more acute weather events in the city of São Paulo."

Furthermore, the document highlights what, although Enel has legal authorization to manage urban trees that cause interference in the electricity grid, the company continues to classify blackouts as “extraordinary events”, in which a considerable portion of the population “suddenly find themselves in the dark, without electricity, for long periods of time”. 

Sought by the Canal Solar report, the Enel said he will not comment on the statements.

ANEEL was contacted

Before reaching the body, the City of São Paulo reported that it had asked ANEEL (National Electric Energy Agency) to cancel the city's concession contract with Enel. “However, to date, there has been no news of any measures aimed at inspection”, informed the municipal management. 

In a statement, ANEEL stated that it has worked to improve the distribution segment's response to highly severe weather events, with meetings with mayors, state government and distributors to coordinate actions to be taken.

The Agency also said that it initiated an inspection process with Enel and that it is analyzing the distributor's statement to apply the appropriate sanctions. “The Agency, therefore, has taken all measures within the scope of regulation and supervision so that the electricity sector responds to the challenges posed by highly severe climate events”.