Former Minister of Industry and Energy José Manuel Soria testified as a witness in a case touching Iberdrola Generación and the broader dynamics of Spain’s electricity market during the winter of 2013. He acknowledged that he had a personal department involved in monitoring energy matters, and he noted that something unusual had been detected in electricity prices at the end of 2013. This prompted calls for a formal review by the National Markets and Competition Commission, CNMC, to examine the situation in depth.
During his appearance before the energy commission of the Congress in January 2014, Soria discussed the rise in the energy component of the December electricity tender. He pointed out that the tender had been suspended in December of that year and mentioned the withdrawal of planned budget contributions to the electricity system as part of the context surrounding the events.
The central criminal court is assessing whether there is a motive to allege market and consumer crimes tied to an alleged artificial increase in electricity prices in the 2013 winter. The defendants named include Iberdrola Generación and four of its directors at the time, along with certain employees. Soria’s testimony aimed to shed light on how the market evolved during that period and the factors at play inside the sector.
Soria explained that, according to his testimony, the wholesale market price had risen after the ruling party submitted an amendment on November 29 that withdrew 3.6 billion euros in budget contributions to the system. He indicated this change coincided with the auction held on December 19, and the discussions around it were tied to a recognized tariff deficit for 2013. The National Markets and Competition Commission later decided not to approve the auction, a decision that led the Government to suspend its application and to increase the rate by 2.3 percent for the first quarter of the year.
In December, just one day after the auction was suspended, CNMC prepared a report drawing attention to unusual circumstances surrounding the auction. Soria recalled that at the start of December the Ministry began to detect indicators of unusual price behavior and that the analysis of price evolution remained under CNMC’s responsibility, even as his department followed developments in the sector.
As CNMC confirmed the presence of unusual conditions at the auction, it became clearer that something was occurring within the department. Soria acknowledged in his statement that price manipulation could be part of the picture, though he did not recall every specific detail. He cited a Competition report noting that offers appeared lower because reservoir levels were higher than in previous years, especially compared with 2012, which could have contributed to higher prices overall.
The former minister also described the relationship with sector players as fluid, while underscoring that most executive decisions faced appeals. Following the price increases linked to the events of that period, CNMC opened an administrative file against Iberdrola Generación and imposed a 25 million euro fine, a decision the company challenged, though the court did not treat it as a criminal offense. The case thus moved through civil and administrative channels as investigators probed the surrounding circumstances.
Meanwhile, anti corruption authorities pursued substantial penalties, with a broad set of sanctions proposed for Iberdrola Generación España. The proposed penalties included a multi-year prison sentence for some involved individuals, a significant disqualification, and daily fines. These developments reflected the seriousness with which the authorities viewed potential market manipulation and its effects on consumers and the market as a whole. The case continues to be a focal point for debates about market integrity and oversight in the energy sector, illustrating how regulatory bodies, lawmakers, and companies intersect when prices and competitive practices come into question. The discussions remain part of a wider narrative about how wholesale electricity markets function under heavy influence from policy measures and corporate strategies, and how responsibilities are distributed across ministries, regulators, and market participants, as reported by the primary investigative bodies and court records. (Source attribution: CNMC reports and court proceedings.)