National Court sues Iberdrola for changing electricity price in 2013

The head of the central court of the order no. 2 accepts continue why starting with a complaint filed in 2017 by Anti-Corruption Prosecutor’s Office As a result of a fine of 25m euros by the National Markets and Competition Commission (CNMC) in 2015 for manipulating the price of electricity four directors Those who attended the events were Ángel Chiarri, then director of energy management of the company; Gregorio Relaño, head of optimization, resource management and commerce; José Luis Rapún, head of wealth management; and Javier Paradinas, head of short-term markets and global generation.

The car, developed by Voz, said, “After carrying out numerous provocative prosecutions – testimonials, documents and expert reports – the artificial increase in the price of electricity sold by Iberdrola was “indicative” between November 30 and December 23, 2013. He offered electricity from his company. Duero, Sil and Tajo hydraulic power plants “above the daily market price”. Since the prices of these power plants are even higher than the combined cycles, matched with demand was achieved with gas power plants “with higher cost and higher price range between 80 and 90 Euro” compared to the average energy price in Turkey. Hydroelectric power plants of 45 to 55 euros”.

” results Actions taken by Iberdrola increase in electricity price approximately 7 euros per megawatt hour It causes damage to the demand, which reaches 105 million euros,” the statement said. According to the Prosecutor’s Office, these events may constitute a TPC crime. The decision, which can be appealed by the parties, admits the charges in domestic law. ten days to request the opening of oral proceedings.

Sources from the electricity company state that this procedure is a “cycle of a normal cycle”. subject of administrative disputeBetween the National Markets and Competition Commission (CNMC) and Iberdrola, “without criminal consequences”. “Already at the initial stage, Iberdrola has submitted to CNMC several reports from outside experts that prove that this company has not caused any economic damage to the market”, add these sources.

Emptying the reservoirs

This action is completely contrary to what happened. last summerWhen Iberdrola empties the reservoirs Ricobayo (Zamora) and Valdecañas (Cáceres). How is it possible for the company to benefit in both cases? For two reasons: the enormous diversification of production facilities owned by the company, and electricity market. On the one hand, hydraulic energy is governed by the so-called opportunity cost, that is, its price is slightly lower than that of the most expensive plants (combined cycles). So this summer, when the cost of natural gas began to skyrocket, the company increased production hydroelectric power plants and maximized the revenue from this technology.

Duration reduce production what hydropower does, as it did in the winter of 2013, is to let the most expensive utilities (combined cycles) set the price. other technologies benefited (nuclear, renewable, etc.) are also in Iberdrola’s portfolio. This is because the electricity market is governed by a law. marginal system Accordingly, all technologies pay the same price as cutting-edge technology that matches supply and demand.

“Iberdrola Generación’s hydroelectric offer, opportunity cost hydraulic production no higher than the best future prospect of 80 euros per megawatt hour would replace more expensive cycles On days when the day-ahead market price is higher than EUR 80 per megawatt hour and will reduce the daily market peak hour price from EUR 87.8 per megawatt hour from EUR 80 per megawatt hour “in order of merit,” states the CNMC in its sanction.