Heavy fines of over 15 million euros were imposed by the antitrust on six energy companies: Enel Energia, Eni Plenitude, Acea Energia, Iberdrola Clienti Italia, Dolomiti Energia and Edison Energia. According to the Competition and Markets Authority (AGCM), the six companies in question would have adopted “aggressive business practices that condition consumers to accept increases in electricity and gas prices, contradicting the regulatory protection arising from Article 3 of the aid decree.” (in detail here).
At a historical stage with many critical problems in the energy sector and significant increases in costs to end consumers, this rule prohibited unilateral increases in electricity and gas supply prices from August 10, 2022 to June 30, 2023. “Enel Energia, Eni Plenitude, Acea Energia, Iberdrola Clienti Italia, Dolomiti Energia and Edison Energia sent letters to users, convincing them to accept price changes in the specified period, and as a result, there were significant increases in their customers’ bills.”
What does it mean? Everything revolves around article 3 of the aid decree. Specifically, this provision defines some urgent energy-related measures, especially in the case of ongoing contracts signed on the free electricity and gas market. Article 3 quoted by the Authority stipulates that “the contractual provisions that allow unilateral changes regarding the price definition in electricity and natural gas supply contracts will be suspended until April 30, 2023.” Again, until 30 April 2023 (paragraph 2 of article 3), it defines preliminary notifications transmitted for the same purposes before the date of entry into force of the decree as “ineffective”, as long as the contract changes have not yet been finalized.
In particular, according to the authority, Enel and Eni, which were fined 10 million and 5 million lira, could unilaterally change their supply prices to over 4 million consumers on the basis of contractual clauses that allow the companies to make their own decisions. It is at our discretion whether and when to change rates after the prices of the selected economic offer have expired. Thus, even several years after the economic offer ended, letters were sent to customers in which Enel and Eni increased prices in the absence of a deadline known to the end consumer. “In the case of the $10 million fine against Enel, it is emphasized that the maximum law has been applied for the first time since the consumer law was amended”: Antitrust explains this in this note published today.
According to the agcm memo, Acea and Dolomiti assessed that “communications regarding unilateral price changes sent before the ban goes into effect will be finalized ten days after they are sent, regardless of the 90-day notice.” even with unilateral changes to prices before the correct deadline and, in Acea’s case, in violation of the law. For these reasons, sanctions of 560 thousand euros and 50 thousand euros were imposed, respectively. Iberdrola, which was fined 25 thousand euros, “sent communications from May to October 2022 threatening termination of the contract due to the undue burden arising if a new supply contract is not accepted with worsening economic conditions.” The competition and market authority writes that this behavior also aims to exceed Article 3 of the decree, putting pressure on consumers to accept the unilateral change to increase prices.
Finally, Edison “implemented the price increase before the tariffs established in the contract expired. Considering that the company was replenishing its customers and the marginal number of consumers involved, the legal minimum limit of 5 thousand euros was imposed”.
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Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
