JPMC Utilities Daily 28 May: SSE, IBE, RWE, ENGI, ENEL

Research evidence excerpt

JPMC Utilities Daily 28 May: SSE, IBE, RWE, ENGI, ENEL

Javier Garrido AC Europe Equity Research

(34-91) 516-1557 28 May 2026 J P M O R G A N

javier.x.garrido@jpmorgan.com

forfeiture. According to the company, this would be the only process in the electricity sector

based exclusively on alleged failures in the quality of the distribution service, without loss

of the concessionaire’s economic and financial conditions. The defense cites a technical

report from the Federal Court of Accounts (TCU) according to which noncompliance with

the DEC indicators – which measures the average time that the consumer was without power

– and FEC, which measures the number of times there was an interruption in the period

analyzed, would not have been found. The company argues that there is no formal metric in

the concession contract or in Aneel’s regulations for restoring service after extreme weather

events. Enel SP claims to be the only distributor subject to specific Emergency Average

Response Time (TMAE) targets and that its TMAE is measured monthly, while other

concessionaires have annual targets or quarterly monitoring. The defense alleges a violation

of the principle of isonomy, regulatory treatment different from that applied to other

distributors, lack of assessment of less burdensome alternatives, and a possible violation of

the Brazil–Italy investment treaty. The company also argues that the official DEC and FEC

indicators continue to be met and that Aneel has started using metrics that were not originally

provided for in the process, such as productivity and team distribution. Enel SP states that

there was an improper merging between the attribution of failures and the requirement for a

recovery plan, a lack of prior analysis of the company’s defense, and an undermining of the