Haddad Doubts Enel Will Keep Its São Paulo Power Concession

Fernando Haddad, former finance minister and PT candidate for São Paulo governor, has publicly questioned whether Enel will retain its long-standing power distribution concession in the state. Speaking at the ABDIB Fórum Eleições 2026 in São Paulo on August 25, 2026, Haddad stated that he doubts the federal government will renew the contract unless Enel provides an objective, not merely verbal, commitment to increase its investments in the region.

This comes as the Brazilian regulator Aneel weighs whether to terminate the concession entirely due to persistent service failures, including blackouts and slow restoration efforts following storms. Haddad's comments arise as Aneel's regulatory proceedings against Enel Distribuição São Paulo reached their final stages, with the agency denying the company's request for outside expert evidence and granting it ten days to present its final arguments.

If Aneel's board recommends caducity, or contract expiry, the final decision will rest with the Mines and Energy Ministry and the Presidency. Haddad's intervention emphasizes that the outcome of the negotiations will likely shape the outcome of the São Paulo gubernatorial race, with the concession serving as a litmus test for the federal government's commitment to demanding investment from utilities.