Power Struggle: Enel's Response Under Fire After Sao Paulo Blackout

Enel SpA faces criticism after a storm-induced blackout in Sao Paulo leaves 537,000 without power, prompting calls to cancel their operating concession. The company is also under scrutiny in Chile for similar incidents. Enel has been fined 320 million reais since 2018 for service delays.

A violent storm left Sao Paulo, Latin America's largest city, grappling with a blackout affecting half a million consumers, with the power distributor Enel SpA facing criticism and political pressure over the delay in power restoration. Despite deploying their contingency plan, concerns arose over inadequate manpower to address the crisis.

Five people lost their lives as the storm's winds exceeded 100 km/h, damaging infrastructure critically. Regulatory bodies Aneel and Arsesp have expressed dissatisfaction with Enel's response, escalating to potential recommendations to terminate the company's operational contract.

Enel's struggles are echoed in Chile, where similar service failures have provoked governmental inspection. Recent frequent blackouts and the company's ineffective countermeasures have led to substantial fines totaling 320 million reais since 2018. In response, criticism has also targeted federal oversight for shortcomings in ensuring the distributor's accountability.

(With inputs from agencies.)