Aneel approves new energy distribution contract to extend concession of 19 companies

The board of the National Electric Energy Agency (Aneel) approved this Tuesday the new format of the energy distribution contract that will be valid for the provision of services by almost 20 companies in the electricity sector, which serve millions of consumers and invest billions in electricity networks in the country.

The addendum is based on criteria defined by the Ministry of Mines and Energy to adapt the performance of distributors to a new reality in the electricity sector, in which the perception of energy consumers takes on greater prominence.

The text defines conditions for the provision of services by concessionaires, their obligations and charges, penalties in the event of failure to meet targets, forms of remuneration for distributors, among other points.

The contract also includes recognition of the situation of companies operating in "areas with severe operational restrictions" (ASROs), where company teams are unable to enter to cut irregular connections and collect retroactive invoices. This is the case of Light and Enel Rio, which suffer from high non-technical losses (energy theft), with a major impact on billed revenue.

The approval allows the Union to move forward with the process of renewing contracts for 19 energy distributors with concessions expiring between this year and 2031.

This group includes companies that have come under the government's radar for underperforming after severe storms since 2023, leaving millions of consumers without power for several days, such as Enel in São Paulo.

Also included in this wave of concession renewals are CPFL, Equatorial, Energisa and Neoenergia.

The contract extension is not automatic, and depends on the government and Aneel's assessment of the companies' performance to date and future conditions so that they can effectively assume new commitments for another 30 years.

The first company to sign the new contract will be the Portuguese electricity company EDP, whose concession in Espírito Santo expires in July this year.

After EDP, the next distributors with concessions expiring are Light, in June 2026, and Enel Rio, in December 2026. Enel will also undergo contract renewals in the following years in São Paulo and Ceará.

DISTRIBUTORS' CLAIMS

The board of directors of the agency decided not to accept some of the requests made by the distributors during discussions on the addendum in recent months.

Aneel rejected the proposal to recalibrate non-technical losses and irrecoverable revenues of distributors operating in areas with severe operational restrictions (ASROs) more immediately, and after presenting a plan to combat losses, as had been requested by companies in this situation, which face economic and financial imbalance.

The approved text foresees that this should occur from the 1st tariff review after the signing of the term by the companies, which would set the deadline for 2027 for Light and 2028 for Enel Rio.

The regulator also decided not to expressly include in the text a deadline for investments made by distributors to begin to be recognized annually in tariffs.

This proposal has been defended by concessionaires as a way to speed up contributions to expand and make networks more resilient -- according to current regulations, investments made are included in the calculation of the tariff that pays distributors in reviews that occur every four or five years.

Aneel also removed the condition that distributors waive legal action and pay outstanding fines before extending their concessions. The approved text maintained a more limited provision on this topic than previously discussed, determining that companies must drop legal action and waive the right to question the terms of the signed addendum or the decree on contract extensions published by the Ministry of Mines and Energy.