FRANKFURT, June 11 (Reuters) - German utility E.ON said its Brazilian affiliate Eneva was holding talks with regulators as it seeks to avoid a fine for failing to bring its gas-fired power facility Parnaiba 2 online on time.
The Parnaiba plant was supposed to start full operations in April, but one of its four blocks has been delayed due to problems with gas feedstock infrastructure.
Germany's Rheinische Post newspaper reported on Wednesday that Eneva faced potential penalties in the high double-digit million euros.
E.ON, which has stake of about 38 percent in debt-laden Eneva, did not confirm this sum, saying: "There is no official estimate."
A spokeswoman said Eneva was holding talks with the Brazilian energy regulator to determine how to resolve the problems.
She said Eneva was aiming to put back the agreed date for the commencement of power deliveries to customers to avoid having to buy in electricity from other producers in Brazil, which would be expensive.
E.ON turned to foreign markets such as Turkey and Brazil as it was faced with green government policies in Germany, but investors have been fretting over its Brazilian investments.
The company said last month it would invest another 200 million euros ($272.3 million) in Eneva to shore up its finances. ($1 = 0.7345 Euros) (Reporting by Tom Kaeckenhoff; Writing by Vera Eckert; Editing by Pravin Char)