Brazil’s power regulator, Aneel, has suspended its recommendation on whether to end Enel São Paulo’s concession after director Gentil Nogueira requested more time to review the case. The request pauses a vote that stood at two of five directors in favor of sending a termination recommendation to the federal government, with up to 60 days before the matter returns to the agenda.¹

The case for termination, led by rapporteur Agnes Maria de Aragão da Costa and backed by director Ludimila Lima da Silva, centers on recurring power failures across Greater São Paulo in 2023, 2024 and 2025. Costa argued that Enel remains responsible for serving customers even during exceptional weather, saying the distributor had proved unable to take all feasible steps to limit the impact. She also said opening a termination procedure was not an abrupt step, but part of an established regulatory path after earlier penalties failed to improve performance.¹

A contrasting concern is the cost of an abrupt transition. The Federal Court of Accounts has asked Aneel and the Mines and Energy Ministry to examine alternatives that would limit consequences for the roughly 8.5 million consumer units affected. Any recommendation from Aneel would still go to the ministry, which holds the final authority over the concession.²

Enel disputes the prospect of termination. It says it has taken steps to improve service and attributes part of the failures to extreme weather, while questioning Aneel’s assessment criteria. Regulators, however, say their analysis extends beyond the severity of storms to the company’s preparation, operational response and ability to restore supply. A storm last December left about 4.2 million properties without electricity, with some areas waiting three days for power to return.²

The pause therefore leaves both arguments unresolved: whether repeated failures justify the strongest available sanction, and whether ending the concession can be managed without adding risk for customers.