Brazilian utility considers contesting imposed rate cut

Brazilian power utility AES Eletropaulo may request a review of the decision by Aneel, the country's energy regulator, to cut the rate it can charge its customers.

Speaking to Reuters, Britaldo Soares, AES Eletropaulo’s CEO, said: "We're studying [the decision] to identify items that have substance to be considered for an appeal, a request for review with Aneel," said

At the beginning of this week, Aneel cut the average rate AES Eletropaulo can charge consumers by 9.33 per cent.

According to Reuters, the decision subsequently caused the utility’s stock to drop by around 10 per cent, following a massive shares sell-off.

AES Eletropaulo's controlling shareholders are Brazil's state-run development bank BNDES and AES Brasil, the Brazilian unit of US energy giant AES Corporation.

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