Brazil Tightens Rules To Renew Energy Distribution Concessions By Reuters | Old North State Wealth News
Connect with us

Investing

Brazil tightens rules to renew energy distribution concessions By Reuters

Published

on

(Reuters) – The Brazilian government issued on Thursday tighter guidelines for the extension of energy distribution contracts, easing the advanced cancellation of concessions and allowing the country to limit pay out from firms that do not comply with the rules.

The energy ministry has been working since 2022 on the guidelines, which affect international energy groups such as Italy’s Enel (BIT:) and Portugal’s EDP, as they are among the 20 concession contracts expiring by 2031 – the guidelines timeframe.

The new rules are aligned with government hopes that tightening the enforcement for distributors would force companies to provide better services, after climatic events in Brazil left millions of people without power in some big cities in the last few months.

“In case of non-compliance with the contract, we are allowing the early expiration of the concession or an intervention”, energy minister Alexandre Silveira told journalists at an event to present the guidelines in Brasilia.

The launch of the guidelines was delayed about five months from its previous deadline.



Read the full article here

Trending

Copyright © 2024 ONSWM News. Content posted on the Old North State Wealth News page was developed and produced by a third party news aggregation service. Old North State Wealth Management is not affiliated with the news aggregation service. The information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date the articles were published. The information presented is not an offer to buy or sell, or a solicitation of any offer to buy or sell, any of the securities discussed.