Governor Demands Federal Action on Italy’s Enel Service Failures in São Paulo

Governor Tarcísio de Freitas of São Paulo has declared that Enel, the electricity distributor, is unable to serve the state adequately.

He has sought support from the Federal Court of Accounts (TCU) for federal government intervention in the company. Over 200,000 homes in São Paulo remain without power following a rainstorm last Friday.

The governor stated that Enel has not improved its additional personnel hiring or implemented its contingency plan. Freitas expressed his frustration after meeting with TCU President Augusto Nardes and 16 mayors from the São Paulo metropolitan area.

He emphasized that multiple attempts to address the issue with Enel’s management and global executive president have been unsuccessful.

The governor believes the current concession model for energy distributors needs revision, as it allows companies to easily circumvent regulations if they lack interest in carrying out necessary works.

TCU President Nardes has demanded documents from the National Electric Energy Agency (Aneel) regarding its oversight of Enel.

While not ruling out the possibility of intervention, Nardes stressed that such action falls under federal government jurisdiction. He warned that if the federal government fails to act, it too will be held accountable for the situation.

Governor’s Criticism of Enel

Freitas revealed he has repeatedly urged Aneel to take action against Enel. He described the company as incompetent and stated that it forced them to deal with its inadequate service.

The governor’s office has reached out to Enel for comment, but no immediate response has been received. Last year, Aneel imposed its largest fine ever on Enel, amounting to R$165 million ($29 million) for another power outage in São Paulo.

This fine, along with a second one of over R$90 million ($16 million), remains unpaid as the distributor has appealed in court.

The Federation of Commerce of the State of São Paulo (FecomercioSP) estimates that the current blackout has already caused at least R$1.65 billion in losses.

These losses, equivalent to $294 million, have affected the retail and service sectors in the state capital. This situation highlights the need for improved infrastructure and more reliable energy distribution in São Paulo.