Brazil orders Eletrosul to decide on transmission lots by Friday - report

Brazil's power sector regulator Aneel has ordered Eletrosul and Shanghai Electric Group Co Ltd (SHA:601727) to come to an agreement by Friday about certain transmission projects worth BRL 4 billion (USD 965m/EUR 827m) in total.

The two companies have been negotiating for more than a year with a pre-agreement already approved by Aneel, Reuters reported on Tuesday.

Under the mentioned deal, Shanghai Electric will take control of transmission projects in Rio Grande do Sul state currently owned by Eletrosul, a regional unit of Brazilian electric utility Centrais Eletricas Brasileiras SA (BVMF:ELET3), better known as Eletrobras.

Aneel's CEO Andre Pepitone was cited by Reuters as saying that if the companies do not reach an agreement by September 21, their transmission batches will be taken back and put for bids in the December 20 transmission auction.

Eletrosul was awarded the transmission projects through a tender back in 2014, with a deadline to begin operations in March of this year. In June 2017, the company presented to Aneel a plan to transfer control of its concessions to Shanghai Electric.

If the deal goes through, the firms will have four years to build the transmission lines and substations.

(BRL 1 = USD 0.24/EUR 0.21)

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