Published by Global Banking & Finance Review®
Posted on April 16, 2026
2 min readLast updated: April 16, 2026
Add as preferred source on GoogleKPMG warns nearly €3.34 billion in assets and €595 million in goodwill tied to Enel’s São Paulo concession are at risk after Brazil’s regulator ANEEL kicked off a forfeiture process threatening contract renewal beyond 2028.
By Francesca Landini
MILAN, April 16 (Reuters) - Italian utility Enel has assets worth about 3.34 billion euros ($3.9 billion) and 595 million euros in goodwill tied to a power concession in Brazil which it may lose, its auditors said in the group's annual report.
Brazil's power regulator Aneel decided earlier this month to move forward with a forfeiture process that could ultimately lead to the termination of the power distribution concession held by a local unit of Enel in Sao Paulo, preventing the automatic renewal of its contract, which expires in 2028.
Energy Minister Alexandre Silveira had in December urged Aneel to initiate Enel's termination process after power outages hit more than 2 million customers in the Sao Paulo metropolitan area following extreme weather events.
KPMG said the recoverability of Enel's assets and goodwill related to the concession in Sao Paulo and its potential renewal had been a key matter in auditing the power group's accounts, adding that Enel's 2025 financial statement gave a "true and fair view" of the group's financial position.
The auditor said that while Enel's management had conducted an impairment test of the Sao Paulo business to determine the recoverable amount under different future scenarios, the estimates used were subjective and involved some uncertainty.
Enel has another opportunity to present its defence before the regulator and the federal government decide on the concession.
The head of Aneel recently said that the Sao Paulo unit could be sold to another company to avoid a financial loss.
In presenting its long-term strategy in February, Enel reiterated its interest in the concession, pledging to strengthen its long‑term commitment to Brazil.
($1 = 0.8477 euros)
(Reporting by Francesca Landini; Editing by Joe Bavier, Kirsten Donovan)
Enel's assets and goodwill in Brazil are at risk due to the potential loss of its power concession in Sao Paulo after Brazil's power regulator Aneel began a forfeiture process.
The financial and intangible assets at risk are worth 3.34 billion euros ($3.9 billion), with an additional 595 million euros in goodwill.
KPMG stated that Enel's 2025 financial statement gives a true and fair view but highlighted the recoverability of Brazilian assets and goodwill as a key audit matter.
Enel's power distribution concession in Sao Paulo is due to expire in 2028.
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