Eletropaulo's concession area comprises 24 cities in São Paulo state, with 4,526 km2. Although it controls 33% of power supply in São Paulo state and 9.3% of the entire country's electricity consumption, watchdog Aneel's annual continuity performance indicator showed the firm ranked only 28 out of 33 companies with over 400,000 consumers analyzed on 2017.
According to Aneel, the main complaint of Eletropaulo clients is linked to power supply interruptions. From May 2017 to April 2018, the company paid 39.8mn reais (US$10.2mn) in compensations related to such problems.
With the acquisition by Enel, which received final authorization on June 11, the company now hopes to change this scenario. Analyses by rating firms confirm the expectation. Fitch and Standard & Poor's have put Eletropaulo's ratings on revision and said the merger will be positive for the company's indicators.
"We believe that Brazil-based electric power distribution company Eletropaulo could benefit from the support of its new indirect controlling shareholder, Enel Americas, once the transaction is concluded," S&P said in a statement issued before the sale was completed.
Project Risk Analytics
Tracking project performance
By providing a top-down analysis of the timeliness and costs of current Latin American projects, BNamericas provides a new tool to the industry, allowing it to learn from past events and improve planning for future projects.
- Analytics report analyzing key statistics
- Consider the risks of changes in project schedules
- Instant view of project status
- Benchmark your portfolios and new projects