Consumer Protection Agency Fines ENEL R$10 Million, Alleging Abusive Practices

RIO DE JANEIRO, BRAZIL – PROCON (Consumer Protection Agency) fined ENEL São Paulo, the public utility providing electrical power to the state, the amount of R$10.2 (US$2) million, claiming it provided poor service and violated the federal Consumer Protection Code.

According to the inspection agency, between July 1st and 7th alone, over 21,000 complaints were lodged against ENEL related to the collection of high amounts in electricity bills during the pandemic period.

In April, the company suspended the in-person reading of meters, to prevent contamination of its staff, offering two options for charging during the pandemic: either self-reading or payiing the average consumption bills of the past 12 months. However, these methods have created much confusion among consumers, particularly with regard to the amounts being charged after the reinstatement of in-person meter readings.

According to PROCON-SP, collection using last year’s average led to incorrect billing and inconvenience to consumers. “In addition, for consumers who chose to pay in installments in order to avoid a suspension of service, ENEL demanded the signing of a confession of debt. For this reason, the company has engaged in abusive practices,” the agency stated.

In a note, ENEL states that “the difference, either higher or lower, between the amount invoiced based on the average in recent months and the real energy consumed in the period is being incorporated into the electricity bills issued after the reinstatement of readings,” with the option of dividing this amount into up to ten instalment payments on invoices, or 12 times on credit cards.

According to the company, the in-person reading was reestablished in 80 percent of properties in the month of June, and it expects that the service will be fully reinstated by the end of July.