Brazil AES Eletropaulo sees risk of 'financial collapse'

miércoles 11 de mayo de 2016 11:22 GYT

SAO PAULO May 11 (Reuters) - Brazil's power distribution company Eletropaulo Metropolitana Eletricidade de São Paulo SA , a subsidiary of U.S.-based AES Corp, sees the risk of 'financial collapse' if rules governing power purchasing contracts are not changed, it said in a letter sent to regulators.

AES Eletropaulo, as the company is known, said in the letter dated April 11 that it is accumulating losses due to the current contract rules that prevent it from reducing the amount of electricity it buys from generators. The company is selling the excess supply at a loss in the spot market. (Reporting by Luciano Costa; Writing by Marcelo Teixeira)