BRAZIL Law and Practice Contributed by: Débora Yanasse, Bruno Salzano, Luisa Tortolano Barreto and Julia Braga, Tauil & Chequer Advogados in association with Mayer Brown
equipment over 230 kV is maintained by pow- er distribution companies and called “Other Transmission Facilities” ( Demais Instalações de Transmissão or DITs). There are 105 distribution companies in Brazil, composed of 53 conces- sionaires and 52 permissionaires. The permissionaires are mainly power distribu- tion co-operatives in rural areas. Of the conces- sionaires, 48 out of 53 are controlled by private capital and the remaining five are controlled by states and municipalities. In 2016, CELG D was privatised and sold to Enel, and in 2018, Eletrobras’s six distribution concessionaires in the north and north-east regions were also privatised and sold to Energisa, Equatorial, Oliveira Energia and Atem. In 2020, CEB and CEEE-D were privatised and sold to Neoenergia and Equatorial, respectively. In 2021, CEA and CELG D (currently EDP Goiás) were privatised and sold to Equatorial and EDP, respectively. In 2023, COPEL was privatised by public offer of its shares. 5.2 Regulatory Process for Obtaining Approvals to Construct and Operate Electricity Distribution Facilities The existing concessionaires and permission- aires have monopoly rights over the totality of the geographical territory of Brazil, and they have the right and the obligation to construct and operate distribution facilities within their concession or permission areas. 5.3 Terms and Conditions Imposed in Approvals to Construct and Operate Electric Distribution Facilities Concession and permission agreements provide several obligations for concessionaires and per- missionaires regarding the regularity, continuity, safety, efficiency and quality of the public ser- vices provided, as well as the universalisation or
accessibility rights of consumers, and the afford- ability of tariffs. Power distribution concessionaires and permis- sionaires are subject to regulations established by ANEEL. The quality and continuity of the services are regulated by the Procedures for Distribution of Electricity in the National Electri- cal System ( Procedimentos de Distribuição de Energia Elétrica no Sistema Elétrico Nacional or “PRODIST”) approved by ANEEL Normative Resolution No 956/2021. Interruptions in the power supply are assessed by two indicators called the “ DEC ” (Duração Equivalente de Inter- rupção por Unidade Consumidora) and“ FEC” ( Frequência Equivalente de Interrupção por Uni- dade Consumidora ), which measure the duration and frequency of the interruptions, respectively. ANEEL Normative Resolution No 1,000/2021 establishes the directives related to the general conditions of the supply of power to consumers by distribution companies. 5.4 Eminent Domain, Condemnation or Expropriation Rights to Construct and Operate Electricity Distribution Facilities Similarly, in relation to power generation and transmission facilities, if the proponent fails to reach an amicable agreement with landown- ers over compensation for the construction and operation of power distribution facilities on their land, the proponent may request the issue of a DUP by ANEEL, in accordance with ANEEL Normative Resolution No 919/2021, which enti- tles the proponent to easement or expropriation rights over the land. Based on the DUP, the pro- ponent may judicially obtain injunctions against landowners to access the land, and the court will define the fair compensation due to landowners, usually based on market value.
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