Escalation in Spain as Iberdrola Accuses Repsol of Greenwashing
A public dispute has intensified between Iberdrola and Repsol. Iberdrola, a leading Spanish utility, has filed a case alleging unfair competition against Repsol, the country’s top oil company. The claim centers on accusations of greenwashing in environmental campaigns, arguing that Repsol presents itself to electricity customers as a viable, sustainable, and affordable alternative while discounts driven by high fuel margins distort the true economics. [citation: El Confidencial; corroborated by Iberdrola]
The lawsuit, reported by El Confidencial and corroborated by Iberdrola, was filed and admitted for processing at the Commercial Court No. 2 in Santander, the city where Repsol Distribuidora de Electricidad y Gas holds its registered office. Iberdrola asserts that Repsol violates multiple provisions of the Unfair Competition Law, particularly those governing deceit, misleading omissions, and illicit advertising in public communications. The company seeks an order requiring Repsol to halt these practices and refrain from repeating them in the future. [citation: Iberdrola press materials; court filing details]
Iberdrola, led by Ignacio Sánchez Galán, claims Repsol promotes sustainable initiatives while its bundled offers encourage the use of fuels or highlight sustainability in messaging only when such emphasis plays a minor role in current activities. Iberdrola contends that Repsol omits the core business activities and the real environmental impact of its products and services. The filing notes that Repsol remains the largest emitter of greenhouse gases in the country yet positions itself as a leader in sustainability and energy transition in its communications. The campaigns are said to breach the Unfair Competition Law through deceptive acts and misleading omissions about the company’s environmental commitments. [citation: Regulatory filings summary; case documents]
Iberdrola cites up to 15 references that it regards as greenwashing, which Repsol lists on its website under statements such as Leading the energy transition, Climate change action is in our DNA, and Top in the sector in addressing climate change. [citation: Iberdrola filing list]
Nervousness
Repsol maintains that the accusation is unfounded. The company defends its transformation into a multi energy group and suggests Iberdrola is reacting out of nerves as the market remains intensely competitive. The two firms have a history of public friction. In late 2020, following government moves to lower electricity bills while raising fuel prices, and in the ensuing year, Repsol chief executive Josu Jon Imaz argued that oil margins are cyclical and tied to a higher risk, whereas electricity margins are partly driven by regulated activities. [citation: industry coverage; executive statements]
Repsol has seen rapid growth in its electricity business. It ranks as the fourth largest electricity retailer in the country with about 1.5 million customers, rising to 2.1 million when gas supply is included, behind Iberdrola, Endesa, and Naturgy. In renewables, Repsol reports about 2,800 megawatts of installed capacity in Spain and more than 1,700 charging points for electric vehicles. The company states it will continue expanding its electricity customer base and delivering energy solutions, including renewable fuels that some view as challenging the idea that electrification alone solves CO2 emissions in transport. The Iberdrola action does not extend to other oil firms like BP or Cepsa. [citation: market data; company disclosures]
Background
Iberdrola notes that Repsol has previously faced sanctions from the United Kingdom advertising regulator for campaigns with messages similar to those in Spain. The regulator ordered the withdrawal of a campaign about biofuels that stated Repsol develops biofuels and synthetic fuels to achieve net zero emissions. In another case, the regulator determined that a hydrogen campaign described products not yet commercially available and thus contributed to presenting the company as more sustainable than it actually was. [citation: UK advertising regulator rulings; case summaries]