The Brazilian Supreme Court ruled this week that utility company Cemig has no right to renew its contract to continue operating the 424-MW Jaguara hydropower plant.
The result of the 6-2 vote means Cemig must return Jaguara’s operating concessions to the state, which will then eventually be bid to another operator.
HydroWorld.com reported that the Supreme Court granted an injunction to Cemig in June 2013, allowing the company to maintain control of Jaguara after the government had revoked its license for refusing to agree with President Dilma Rousseff’s controversial energy sector reforms earlier that year.
A statement from Cemig said the company “respects the decision”, but that it is considering legal.
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