Brazil Supreme Court of Justice has passed a ruling that will allow utility company Cemig to retain its holding in the 424MW Jaguara hydroelectric plant.
The ruling follows concession license termination of Cemig by the federal government for the facility on the Grande River located north of Rifaina.
Cemig refused to comply with revised contract in line with government’s MP579 bill sanctioned by President Dilma Rousseff earlier in January 2013. The terms of the contract reduced the revenues from the plant.
Reacting to the court ruling, Cemig released a statement saying that the decision reflects independence and autonomy of judicial authorities in resolving issues between the two parties, according to BN Americas.
"We reiterate our commitment to seek a fair price for the services provided to our customers together with quality and sustainability in the utilization of human and natural resources," the company added in its statement.
The preliminary decision, however, is subject to a court review of the plant’s legal status.
Cemig, meanwhile, is yet to renew its concession license for 1.7GW São Simão and 408MW Miranda hydroelectric plants in the country.