By Brazil Stock Guide – Âmbar Energia, part of J&F Investimentos controlled by brothers Wesley and Joesley Batista, won approval from Brazil’s power regulator Aneel to take over Amazonas Energia after months of delay, Agência iNFRA reported. The deal grants a 14-year period of regulatory relief, one year shorter than initially proposed.
The regulator set three tariff cycles. In the first, Âmbar will keep 100% of the benefits. In the second, efficiency gains will be shared with consumers, in a mechanism similar to tariff cashback. In the third, the company will be required to meet pre-defined regulatory targets. The final cost to households will depend on the distributor’s performance.
This design balances investment appeal with gradual consumer benefits, a source told Agência iNFRA. The documents now go to the Attorney General’s Office (AGU), which will handle the deal in court.
Dispute resolved with revisions
The transaction advanced after Âmbar revised its initial proposal, presented in April. Under Provisional Measure 1,232 — issued in June 2024 and expired in October — the company had requested R$14 billion ($2.8 billion) in relief. Aneel’s technical staff instead defended R$8 billion ($1.6 billion), with tougher efficiency targets.
In the new model, Âmbar will keep all benefits in the early years but must share future improvements, such as reduced non-technical losses and delinquency, with consumers. Funding comes from the Fuel Consumption Account (CCC), a levy paid by all Brazilians on their power bills via the Energy Development Account (CDE).
History of failed attempts
Privatized in 2018 and acquired by Grupo Oliveira, Amazonas Energia never achieved financial sustainability. In 2023, Aneel even recommended revoking its concession after a failed attempt to sell the utility to Green Energy, an unknown player backed by an Israeli fund.
The current agreement gives the Batista brothers another foothold in Brazil’s power sector. J&F also controls JBS (B3: JBSS3), the world’s largest meatpacker, pulp producer Eldorado Brasil, investment arm J&F Investimentos and other assets in energy, mining and finance. Regulatory oversight will remain key as the deal moves to court.