Business
Brazil's government summons power distributors to sign 14 concession renewals
Brazil's government summons power distributors to sign 14 concession renewals
About this update from Equatorial S.a.
Brazil's Energy Ministry has summoned power distribution companies to sign renewals of 14 concession contracts, the country's official gazette showed on Monday, which would extend commitments of services to customers for 30 years.The government summoned companies including CPFL BMFBOVESPA:CPFE3, Equatorial BMFBOVESPA:EQTL3, Neoenergia BMFBOVESPA:NEOE3, Energisa BMFBOVESPA:ENGI3, Light BMFBOVESPA:LIGT3 and Portugal's EDP EURONEXT:EDPBrazil's power regulator Aneel will make the contract addendums available to the companies, which are expected to sign the new commitments within 60 daysThe government is seeking to renew up to 19 power distribution concession contracts expiring by 2031 under new rules to demand better service delivery to consumersTwo other new commitments had already been signed with Neoenergia and EDPDecisions are pending on the renewals of three contracts with Italy's Enel MIL:ENEL, which is under scrutiny over failings in services provided in Sao Paulo state