Two Iberdrola executives, one of whom has already retired, denied that claim in the case heard in the National Court on Tuesday. The system allegedly developed by the company in 2013 to increase the price of the energy it sold. He stated that the electricity company does not have any “slogan or strategy” and that the price at which energy will be offered to the market is determined automatically.
In this way, both the first defendant was present at the general assembly, Angel ChiarriHe works as Energy Management Director in an electricity company. Gregorio Relaño, was then responsible for Optimization, Resource Management and Trading. It should not be forgotten that in this hearing, Iberdrola Generación and four executives are being tried for the system that was allegedly established in 2013 to increase the price of the energy it sold in order to “cause an increase in electric energy prices and harm consumers”. ” “.
On this first day of rapid publication of previous issues, the interrogation of the first of the defendants revolved around how Iberdrola determined the price of the energy it offered and what led to its exclusion from the offer. by hydropower plants – energy that is cheaper due to the way it is produced – It caused an increase in consumers’ electricity bills.
Chiarri, who tried to explain the complex system with metaphors, at one point summarized it in a way that surprised both the judge and the prosecutor: In Iberdrola, the price of energy was determined by the “machine”It’s a “data-organizing computer tool” that they pour into taking into account different variables they have available, such as rain forecasts, wind conditions and even geopolitical issues that could cause an increase in the gas import price.
In this vein, both he and Relaño explained: Planning meetings were held every Thursday. Deciding on the proposal that is put on the market and sent to the entire management organizational chart of the energy company and converted into the so-called “weekly plan”.
Chiarri explained that this plan was developed thanks to the introduction of variables into the system, which is why they insisted that the price be generated “automatically”. “It’s an action protocol, but within that there’s the forecast of production required, there’s human intervention,” he explained.
But Chiarri insisted that “the most relevant thing” is this: price marked automatically Iberdrola, however, could not manipulate this and even added that the company was losing money on the days that were the subject of the lawsuit.
“Designed” system
According to the prosecutor’s indictment, “In order to cause an increase in electricity prices and to harm consumers -Iberdrola Generación” A system that will increase energy prices has been designed and put into operation “It sells beyond what should result from the free harmony of supply and demand,” he said.
The letter states that this decision was accepted by Iberdrola’s management team, consisting of Ángel Chiarri, director of Energy Management, and Gregorio Relaño, responsible for Optimization, Resource Management and Trading; Asset Management, José Luis Rapún; and Short-Term Markets and Global Production, Javier Paradinas.
According to the Public Ministry, Iberdrola Generación disrupted the order of merit of the plants in the production dispatch, causing a decrease in electricity production at the Duero, Sil and Tajo hydropower plants, and as a result, caused purchases to be linked to energy from combined cycle power plantsIt is more costly and has a higher price range of 80/90€/MWh compared to the average energy price from hydraulic facilities of 45/55€/MWh.
The prosecution is seeking a two-year prison sentence for the four executives, along with special disqualification from employment or public office, profession, trade, industry or commerce related to the production or commercialization of electric energy, respectively. and a fine of 400 euros per day for 12 months, with secondary personal liability for non-payment of 1 day of deprivation of liberty for every 2 days of wages not met.
The Public Ministry also requests a penalty. 84,891,272 euro fine – quadrupling the profits – and confiscating the profits.
It is worth remembering that in November 2015, the National Markets and Competition Commission (CNMC) fined Iberdrola Generación 25 million euros for actions taken by increasing the price, on the grounds that it manipulated electricity prices and that this was a very serious behavior. Offers of the Duero, Sil and Tajo hydraulic plants between November 30, 2013 and December 23, 2013.