Competition Commission fines Iberdrola €25 million for manipulating market
Tuesday, December 1, 2015 @ 8:46 AM
Spain's National Markets & Competition Commission (CNMC) has fined Iberdrola €25 million for manipulating the electricity distribution market in 2013, conduct deemed by the authorities to be "very serious".
According to a press release issued today by the CNMC, the sanction against Iberdrola Generación relates to a policy aimed at increasing prices at hydroelectric plants on the banks of the Duero, the Sil and the Tajo rivers between November 30th and December 23rd 2013, just before electricity prices went through the roof.
In the weeks running up to the Cesur tender to set electricity prices for the first quarter of 2014, massive hikes were noticed in the distribution market. These price hikes made the tendering price go up 26 %, the equivalent to a 10 % rise in consumer electricity prices.
In response to this unusual situation, the CNMC suspended the tender and intervened to set consumer prices at reasonable levels.
The Commission underlined the fact that the electricity sector considers "any kind of fraudulent manipulation of electricity prices or attempt to alter supply figures" to be a serious infraction.
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