The Italian Antitrust Authority decided at its meeting on 19 July 2007 to launch an investigation into the possible abuse of a dominant position in the supply and distribution of electricity by Enel S.p.A. and its subsidiary Enel Distribuzione S.p.A. The allegedly improper conduct has to do with the treatment of cases of arrears in payment when supplying electricity to new customers who are different from the previous non-payers.

In the Authority’s view, moreover, there exist sufficient grounds for ordering interim measures under Article 14bis of law no. 287/90, given that the conduct in question would seem to give rise to the risk of serious and irreparable harm to the consumer. Consequently, the Authority’s decision demands that Enel Distribuzione change its procedures for the establishment and taking over of electricity supply contracts in such a way that provision of the service is not subject to the payment of arrears which have nothing to do with the applicant.

These proceedings stem from a complaint by a consumer who reported an attempt by Enel Distribuzione (which has a dominant position in the market) to make the activation of a new electricity supply contract subject to the payment of the unpaid bill of a former customer at the same address. The complaint pointed out specifically that Enel Distribuzione, being a monopoly supplier of electricity, was not fulfilling its obligation to stipulate contracts “with anyone making application for the service, ensuring equal treatment for all parties”.

The information obtained by the Authority indicated that this conduct was certainly sporadic and not systematic. On the other hand, after further investigation, the Authority had confirmation, amongst other things by way of enquiries directed to Enel’s call center, that it is impossible to request a connection to the mains where there are unpaid bills, even if those are the responsibility of other parties. In any case, the Authority deemed it excessively onerous to oblige the consumer to demonstrate he had nothing to do with the previous unpaid services.

On the above basis, the Authority decided to launch proceedings which will be completed by 31 July 2008.

Rome, 24 July 2007