This article reviews the recent investigation led by National Court prosecutors into alleged price manipulation in Spain’s electricity market. The probe was opened after a sanction imposed by the National Markets and Competition Commission (CNMC) against a major power company. The aim is to determine the scope of the alleged incidents and assess whether further investigations into possible crimes against consumer rights are warranted, with the central authority overseeing the process. [CNMC]
As reported, prosecutors from the National Court are receiving directives from the Justice Department’s Technical Secretariat to examine potential corrupt practices by the energy company. Although the Office of the State Attorney General had previously received a warning from the consumer association facua at the start of August about the same events, tax sources indicate the issue is significant because it could be communicated to the central authority as damage to the public across multiple courts across the country. [facua] [CNMC]
Contest Condition
At present, some information has been requested from the contest authorities, particularly to confirm whether a court decision remains sound or valid. Additional resources are anticipated before the courts, with details about the judicial branch and process in this case. [CNMC]
The State Department also seeks to determine whether the sanctioned behavior has the effect of raising final prices for consumers and users, and whether price increases caused by the sanctioned actions are felt nationwide or limited to specific regions. [CNMC]
Separately, the Attorney General of the National Court has requested a rough estimate of the damages—the legacy of higher final prices borne by consumers and users. [CNMC]
Fined Six Million
The consumer association also filed a complaint against Naturgy with both the Attorney General’s Office and the Anti-Corruption Office. They disclosed to El Periódico de España, part of the Prensa Ibérica group, that CNMC had fined the electricity company more than six million euros for the crime of providing generation adjustment services in the electricity market at excessive and uneven prices—especially under technical constraints—without justification, aiming to increase income through the offers made in the daily market. [CNMC] [El Periódico de España]
The association continues to monitor the situation. Article 284 of the Penal Code provides penalties that include imprisonment from six months to six years and fines for those responsible for the manipulations reported. [CNMC]
Additionally, to offset the extra costs incurred, the Competition Authority proposed a compensatory contribution of 35.5 million to cover the losses caused by a reduction in demand for energy. This amount would be distributed among the affected claims over a total of 22 months. [CNMC]
Officials indicated that an appeal was filed against the sanction in court. In pre-contest claims, they argued that the facility consistently formulated proposals with restrictive conditions and did not reasonably address total costs, complicating a clear evaluation of competitive conditions at every moment. [CNMC]
The regulatory sanction relates to actions by the control center within the technical constraints market segment, specifically the Sabón 3 combined cycle in Galicia’s electric region, covering March 23, 2019, to December 31, 2020. [CNMC]
According to CNMC, Sabón 3 exploited the low competition in the restraint market to lift offerings in the technical restraints market, thereby generating higher revenue for the company. [CNMC]