Blackouts lead to Cemig facing legal sanctions in Minas Gerais

At the request of the Public Prosecutor's Office, decisions oblige the concessionaire to adopt measures to minimize problems in the State
Blackouts lead to Cemig facing legal sanctions in Minas Gerais
Cemig had a net profit of R$5,8 billion in 2023. Photo: Guilherme Dardanhan/ALMG/Disclosure

The month of November brought a series of legal problems for Cemig (Companhia Energética de Minas Gerais) due to constant and prolonged interruptions in the supply of electricity in at least three cities in the State. 

Last Tuesday (19), the Court determined that the distributor must pay a daily fine of R$100 if it does not present an action plan to avoid blackouts in the municipality of Virginópolis (MG). 

The concessionaire has a period of 30 days to deliver the document to the Court, according to a statement released by the Public Ministry of Minas Gerais. 

The decision is the result of a public civil action proposed by the agency, after an investigation revealed constant power outages in the municipality.

The plan must include a complete diagnosis of the situation, specific goals, implementation schedule, measures to reduce the frequency and duration of outages, including data on investments in the electricity grid, preventive maintenance and emergency actions in cases of force majeure.

According to the Public Prosecutor of Virginópolis (MG), Lucas Augusto Resende Monteiro, problems with the energy supply in the municipality intensified in the second half of this year, harming consumers and compromising the functioning of essential services, such as the Judiciary and the Civil and Military Police.

He reports that the constant outages, in addition to depriving consumers of enjoying various rights that depend on electricity, cause property damage and harm the work of those who use the internet. 

Furthermore, the Court ordered a conciliation hearing to be held, where the parties will be able to discuss definitive solutions to the problem. However, this stage does not exempt Cemig from presenting the action plan within the stipulated deadline.

Problems in other municipalities 

In addition to the problems mentioned in Virginópolis (MG), Cemig was also ordered this month to resolve undue interruptions in the energy supply in two other municipalities in Minas Gerais.

In the first week of November, the Public Prosecutor's Office of Minas Gerais, through the 5th Public Prosecutor's Office of the District of Frutal, obtained a favorable court decision in a public civil action against the dealership in Frutal (MG). 

The ruling requires the distributor to carry out, within 120 days, a technical study to identify the causes of the service failures in the months of September and October of last year. 

Once the study is completed, Cemig will have 180 days to implement corrective measures, and must also refrain from unjustified interruptions and adopt actions to ensure continuous, quality supply in the municipality, especially in the central commercial area. 

According to the court decision, “it is possible to that the problem in the supply of electricity in the municipality of Frutal is not an isolated or punctual event, and cannot be attributed to 'force majeure', and the defendant must reassess the quality of the service it provided to the municipality”. 

The decision also highlights that the supply of electricity constitutes an essential public service and must be provided continuously, efficiently and safely. “It can only be interrupted in the event of an emergency, provided that the interruption is motivated by technical reasons or the safety of the facilities,” it states. 

In the second week of November, the Public Prosecutor's Office of Minas Gerais, through the 1st Public Prosecutor's Office of Itabira, obtained another favorable decision against Cemig, determining that the company also present, within 30 days, an action plan to avoid undue interruptions in the energy supply in the municipality.

The plan must include a complete diagnosis of the situation, specific goals, an implementation schedule, measures to reduce the frequency and duration of power outages, including data on investments in the electricity grid, preventive maintenance and emergency actions in cases of force majeure. It must begin within 15 days of its submission to the Judiciary.

In case of non-compliance with the court order, the decision provides for penalties for Cemig. If the concessionaire does not present the action plan within 30 days or does not begin its execution as planned, there will be an immediate block of R$500 from the company's bank s. 

The court decision also ordered a conciliation hearing to be held, in which the parties may present proposals for a definitive resolution of the issue. The holding of the hearing does not release Cemig from the obligation to present the aforementioned action plan within 30 days.

Net profit of R$5,8 billion 

According to the Court, although Cemig obtained a significant net profit of approximately R$5,8 billion in 2023 (an increase of 41% compared to the previous year, reaching an annual revenue of R$36,8 billion), this expressive financial result contrasts with the insufficient investment to improve the service provided in the municipalities of Minas Gerais. 

The decision points out that the company's financial prosperity reveals an apparent disregard for the principles of efficiency and continuity that should guide the provision of essential public services, such as the supply of energy.

“The lack of electricity compromises activities in closed environments and at night; prevents consumers from using refrigerators, electric stoves, and washing machines; causes food waste; hinders communication and actions that depend on the internet (…) The least that is expected is effective and swift action to prevent the damage from happening again,” says the prosecutor of the 1st Public Prosecutor's Office of Itabira, Renato Ângelo Salvador Ferreira.

Cemig's response

Ao Canal Solar, Cemig informed that it respects the decisions issued by the Judiciary and is evaluating the appropriate measures regarding the judicial decisions issued by the Single Court of the District of Virginópolis, by the 1st Civil Court of the District of Fruta and by the 2nd Civil Court of the District of Itabira.

Cemig also highlighted that this is the “largest investment cycle in its history”, allocating resources in the order of R$23 billion in the period from 2023 to 2027 to its distribution networks. 

“For the Virginópolis region, which includes Guanhães, investments of around R$96 million are planned, of which more than R$82 million has already been invested by Cemig, with emphasis on the integration of the Braúnas Substation (Transmission) with the Guanhães 2 Substation (Distribution), delivered in August 2022”, said the company, which continued in its response.

“In addition to the aforementioned integration, works are underway under the 'Minas Trifásico' Program with the forecast of another 30 km of medium voltage networks for the Virginópolis region”, highlighted Cemig.

For the Frutal region, the distributor said that more than R$70 million is being invested, with emphasis on the Planura Substation, delivered in September 2022, as well as the Fronteira Substation, scheduled for July 2025.

“In addition to the aforementioned substations, construction is underway on another distribution line between the Frutal 2 Substation and the Porto Colômbia Hydroelectric Plant.”

For the Itabira region, the company highlighted that “it also includes João Monlevade and Ferros, the investment planned for the cycle is R$ 130 million, with R$ 14,8 million already made, with emphasis on the Itabira 6 Substation, delivered in February 2020, and the João Monlevade 4 Substation, delivered in June 2022, in addition to another 65 million for the Ferros 1 Substation scheduled for 2027”.

These works, according to Cemig, contribute significantly to improving continuity indicators and energy availability. 

“Cemig emphasizes that it continues to work tirelessly to improve technical and regulatory standards with respect to the safety of its employees and the population, bringing quality energy to the people of Minas Gerais,” concluded the company’s statement.

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Photo by Henrique Hein
Henrique Hein
He worked at Correio Popular and Rádio Trianon. He has experience in podcast production, radio programs, interviews and reporting. Has been following the solar sector since 2020.

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