AGU asks TST to suspend injunction that prevents Eletrobras auction

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The Attorney General's Office of the Union sent, this Friday (17/08), to the Superior Labor Court, a request to suspend the injunction that prevents the auction of six Eletrobras distributors (Cepisa, Ceal, Eletroacre, Ceron, Boa Vista Energia and Amazonas Distribuidora). The public auction was scheduled for the 30th.


This Thursday (16/8), the Special Body of the Regional Labor Court of the 1st Region (RJ)  suspended  the auction of four of the distributors.

In the request, AGU states that the B2B Lead distributors are in deficit and have needed to receive, over the last 20 years, a contribution of R$30 billion from Eletrobras. As the state-owned company is no longer able to inject resources into the companies, “they will have to be liquidated if the auctions are not held — so the transfer of control of the companies to the private sector is the only way not only to maintain the work, but also to guarantee the continuity of energy distribution services in the regions they serve”, he highlights.

Furthermore, the agency recalls that Brazilian legislation already offers adequate protection to current employment contracts. “Maintaining the injunction, even if only for a few days, will produce instability with the potential to drive away the interest of potential interested parties in purchasing the distributors, blatantly damaging the public interest”, he explains.



In the action, the AGU also states that the central issue is based on the privatization procedure of electricity distribution companies. “The legal and economic interest of the Union in this suspension is justified, as it is responsible for promoting the bidding of concessions for the generation, transmission and distribution of electrical energy of legal entities under its direct and indirect control, as in this case.”

For AGU, given the unfeasibility of disposal, and consequent liquidation of the distributors, the Union will have to intervene directly to ensure the maintenance of the service.

Various decisions
The injunction granted determines that the sale of the distributors be suspended until Eletrobras presents a study on the impact of the operation on the employment contracts of employees of the aforementioned energy companies.