By Brazil Stock Guide – Brazil’s Ministry of Mines and Energy has formally terminated four power transmission contracts held by MEZ Energia, clearing the projects for a new auction as the government moves to restore timelines in the electricity sector.
The decision was published Monday (23) in the country’s Official Gazette, making the assets immediately available for re-bidding. The contracts had been awarded in transmission auctions held in 2020 and 2021.
The case reached Brazil’s Federal Court of Accounts (TCU) after the electricity regulator, Agência Nacional de Energia Elétrica, or ANEEL, recommended in May 2025 that five of the company’s contracts be declared void due to non-compliance. According to ANEEL’s technical staff, the projects showed unsatisfactory progress, with construction delays and postponed start-up dates that breached contractual schedules.
A negotiated solution was structured through the TCU’s consensual dispute resolution unit at the request of Mines and Energy Minister Alexandre Silveira. As a result, four contracts were rescinded, while MEZ Energia retains responsibility for one remaining asset.
In the official order, the government cited the “immediate availability of the assets for a new bidding process.”
The transmission projects are expected to be included in Brazil’s first power transmission auction of the year, scheduled for Thursday (27). ANEEL’s board is set to review the auction notice on Tuesday (24).
Earlier in February, ANEEL Director Fernando Mosna, the case rapporteur, sent a formal letter to the ministry requesting a final decision on whether the assets would remain in the upcoming auction. In the document, he stated it was “indisputable the importance and urgency of implementing the projects.”
The assets had initially been listed for an October 2025 auction but were withdrawn at the request of Minister Silveira. At the time, the ministry sought to postpone re-contracting to allow room for an alternative to outright contract forfeiture.
MEZ Energia did not comment on the matter.