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Aneel Rejects Enel Rio’s Debt Refinancing, Orders Probe and Notifies CVM as Concession Scrutiny Intensifies

Federal oversight has already questioned Enel’s performance in São Paulo and paused an early renewal, signaling potential sanctions and even intervention.

Overview

  • Brazil’s power regulator denied Enel RJ’s request to refinance roughly R$5.8 billion in intragroup loans, citing leverage above prudential limits and risks to the concession’s financial sustainability.
  • Aneel directed a supervisory action to examine possible loans executed without prior authorization and to verify whether market disclosures matched regulatory reality, and it will inform the CVM about a potentially misleading maturity disclosure.
  • The board unanimously rejected Enel’s bid to remove director Fernando Mosna from cases involving the group, calling the attempt an improper effort to manufacture an impediment to the relator.
  • The TCU ordered Aneel to detail failures by Enel-SP, warned that early renewal could be inadmissible, and noted outages that hit more than 3.1 million properties with documented losses and impacts on essential services.
  • A federal court in São Paulo suspended Enel-SP’s early renewal process on October 9 at the city’s request, and a separate complaint by Inel asks TCU and CGU to scrutinize automatic renewals, citing Energisa Sergipe.