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Brazil's power regulator, Aneel, has officially initiated a process that could lead to the termination of Enel's operating concession in Sao Paulo. The regulatory move effectively blocks the automatic renewal of the Italian utility company's contract in the region, signaling a significant escalation. This forfeiture process typically follows concerns regarding service delivery and regulatory compliance within Brazil's largest metropolitan area. The decision places Enel's long-term operations in South America's biggest economy at substantial risk. Analysts suggest that the potential loss of this major concession represents a significant financial and operational blow to the group. Consequently, the news is expected to weigh heavily on Enel's shares in Milan (ENEL.MI) and its local Brazilian entities (ELPL3.SA).
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