HE Court of Justice of the European Union (ABAD) announced on Thursday that national energy regulatory authorities can impose electricity companies refund of received amounts to customers not complying with demands on consumer protection.
The decision states that consumer protection is actually one of the obligations of these authorities, as in the case of the National Markets and Competition Commission (CNMC) in Spain.
The Court of Justice therefore concludes that Member States may assign these authorities the following powers: require operators to refund amounts received in violation of consumer protection requirements, in particular those relating to transparency and correct billing obligations.
It also points out that it is not about the exact reason why an electric company should reimburse your Customers, as compliance with consumer protection and transparency obligations is part of the obligations of these regulatory authorities.
The fine came in 2019 after the Italian Energy, Grids and Environmental Regulation Authority fined Green Network, an Italian electricity and gas distribution company, of 655,000 euros for violating its tariff transparency obligations. It returned to its clients approximately 14 million euros billed for administrative expenses based on a clause deemed illegal by that authority.
After Green Network unsuccessfully appealed the previous decision through contentious-administrative proceedings, attractive before the Italian State Council, which forwarded the request to the CJEU, it supported the capacities of these national authorities for consumer protection.