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November 11, 2024
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Brazil Sues Italy’s Enel for Over $200mn in Power Outage Damages

The Brazilian government has filed a lawsuit against Italy’s Enel for compensation related to October’s prolonged power outage in São Paulo. The legal action demands collective reparations of $45.12 million, alongside individual compensation for customers affected by the extended blackout, potentially pushing the total claim to over $200 million.
Brazil Sues Italy’s Enel for Over $200mn in Power Outage Damages
Ian Taimacs - Unsplash

Brazil’s solicitor general’s office announced Friday that it is suing Italian energy company Enel for over 260 million reais ($45.12 million) in collective damages following last month’s massive power outage in São Paulo, South America’s largest city. The lawsuit also seeks individual compensation for affected households, which could push the total claims above 1 billion reais.

The outage, triggered by a severe storm that damaged power lines, left millions without electricity—many for several days. Brazilian energy regulator Aneel had already initiated an administrative investigation into Enel following the incident.

The solicitor general’s office requested individual compensation of at least 500 reais per day for each household affected by outages lasting over 24 hours, to be provided as a bill discount.

Enel stated its commitment to enhancing customer service in Brazil, adding that it has ramped up its investment plans for 2024-2026 to around 2 billion reais annually, focusing on modernizing power networks, automating systems, and expanding customer communication.

Enel has become one of Brazil’s largest utility operators since entering the market, but recent disruptions highlight ongoing challenges in service reliability amidst volatile weather and growing demand.

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