Audax Renovables faced a temporary delay in paying a fine of 8.13 million euros imposed by the National Markets and Competition Commission (CNMC). The delay followed findings that the company had, over several years, employed tactics aimed at attracting electricity and gas customers who already held contracts with competing providers, creating confusion and deception in the market.
In 2022, a supervisor was appointed and six marketing subsidiaries within the Audax Group were collectively fined 9.25 million euros. The National Court, in a separate or related action, ruled on the most substantial sanction to date, addressing the core subsidiaries of the group. The CNMC contends that these Audax marketers misled customers by impersonating other firms, announcing price updates or renewals, advertising discounts that trapped customers with their existing supplier, or claiming that a contract provider had ceased operations and forced a switch in service.
The Disputed Chamber of the Court heard Audax Group’s request to suspend the penalties pending resolution. The court’s decision would determine whether the sanctions, including the financial fines and a prohibition on contracting with Public Administrations, would be stayed while the objection is reviewed. A ruling on this objection was anticipated as part of the ongoing challenge to the CNMC file.
Meanwhile, the court temporarily lifted the ban preventing Audax Renovables from entering into contracts with public authorities. However, that suspension has not taken full effect because the Public Procurement Advisory Board, under the Ministry of Finance, has yet to decide the scope and duration of the CNMC sanction.
Weakness in independent electricity suppliers
Audax argued that immediate enforcement of the sentence would threaten the company’s viability and underscored the broader challenges faced by smaller electricity suppliers amid volatile energy markets, which have led to the closure of several marketing firms. The company contended that many independent suppliers operate with pre-arranged fixed-price contracts for customers, while wholesale market prices rise beyond those agreed rates. This dynamic has produced significant losses for smaller marketers.
In its appeal before the National Court, Audax highlighted what it described as the disadvantage faced by independent power producers during the energy crisis compared to larger groups such as Iberdrola, Endesa, Naturgy, EDP, or Repsol, which can offset marketing losses with higher revenue from their own generation activities. Audax added that it remains committed to developing renewable energy facilities to produce green electricity, signaling long-term investment in the sector.
Audax Renovables is controlled by its parent company, with the President, Jose Elias, holding a 75% stake. The group remains significantly represented in the energy market through direct ownership and financial instruments, including holdings by BNP Paribas (6.3%), the Domínguez de Gor family (major owners, approximately 5.88%), and Goldman Sachs (4.99%). This capitalization structure places Audax among notable players seeking to navigate regulatory scrutiny while pursuing expansion in renewable projects.
Notes: The proceedings reference a series of regulatory actions by the CNMC, and subsequent legal developments may alter the enforcement landscape for Audax Renovables and its subsidiaries. The case continues to unfold in court, with ongoing assessments of remedy and penalties versus the company’s ability to operate within public market frameworks. Marked citations are available from the CNMC briefings and court records as of the latest updates in the matter.