The CEOs been replaced by EDP chief financial officer Miguel Stilwell de Andrade and EDPR board member Rui Manuel Rodrigues Lopes Teixeira respectively.
The changes have been made during an investigation into alleged corruption. Mexia and Neto have not been formally accused and the inquiry is ongoing.
The two men were named as suspects, alongside former Portuguese economy minister Manuel Pinho, in a corruption case three years ago. The case was linked to state compensation paid to EDP for prematurely ending long-term power purchase agreements (PPAs) when the country’s power sector was liberalised in 2004, the Financial Times reported.
The Portuguese public prosecutor alleged that Pinho personally benefited when he approved a scheme to compensate EDP for the early end of fixed-term PPAs and a 25-year extension of 27 hydro dam concessions without a public tender, according to Reuters.
In a market statement, EDP explained that the investigation has been open since 2012 and is related to “the alleged favouring of EDP through the obtainment of supposed benefits of €1.2 billion”. It added that “no irregularities could be attributed to the company”.