Italian utility Enel faces a regulatory challenge in Brazil that could end its power distribution concession in São Paulo. The contract serves 24 municipalities. Brazil’s energy regulator, Aneel, opened a forfeiture process to assess whether to revoke it after widespread criticism of Enel’s performance.
Severe outages following extreme weather events in recent years affected millions of customers. Aneel’s investigation found that Enel SP failed to meet performance standards, with ongoing service problems and long emergency response times.
In early September 2026, Enel submitted its final defense and asked Aneel to cancel the proceedings. The regulator is now set to decide whether to recommend terminating the contract to the Ministry of Mines and Energy. Enel’s contract is scheduled to expire in June 2028.