EXERGIA/ENEL-SERVIZIO DI SALVAGUARDIA
PRESS RELEASE
PRESS RELEASE
ELECTRICITY: ANTITRUST AUTHORITY OPENS INVESTIGATION INTO ENEL GROUP OVER POSSIBLE ABUSE OF DOMINANT POSITION
Proceedings begun following complaint lodged by Exergia. Authority to assess immediately whether precautionary measures necessary to avoid serious irreparable damage to competition
The Italian Competition Authority, at its meeting on 2 October 2008, decided to launch an investigation into ENEL, ENEL Servizio Elettrico and ENEL Distribuzione to determine whether their actions with regard to Exergia constitute an abuse of a dominant position intended to limit competition in the retail sale of electricity to non-domestic customers. The companies of the ENEL group were also given seven days to file statements to allow the Authority to evaluate whether interim measures are necessary in order to obviate serious irreparable damage to competition.
These proceedings were begun following a complaint lodged by Exergia, an independent company selling electricity. Exergia won the contract for northern Italy let by the Acquirente Unico [Single Buyer] for the safeguard service (meant for non-domestic end-users who do not have, or have not yet chosen, an electricity supplier), for the period 1/5/08 – 31/12/08, thanks to the favourable conditions offered, including a discount on the Prezzo Unico di acquisto di Borsa (“PUN”) or standard exchange price.
In order to be efficient, however, the new operator of the safeguard service needed to receive from the outgoing operators an estimate of aggregate forecast hourly consumption and all the data needed for managing the contractual relationship with safeguard users. Exergia claims, instead, that ENEL Servizio Elettrico (the largest outgoing operator) provided deliberately false or incomplete customer and consumption data for this class of user in northern Italy, while ENEL Distribuzione supplied incorrect updates and invoiced transport charges for which Exergia was not liable. It is claimed that this conduct aimed to damage the company economically and to prevent its adequately resupplying safeguard customers so as to make them offers to move to the free market as Exergia customers.
Exergia, faced with the claimed conduct, ceased payments to ENEL Distribuzione in order to check on the correct amounts owing by way of an internal data reconciliation exercise. ENEL Distribuzione demanded that Exergia pay its debts on pain of cancellation of the transport contract from 1/11/08.
The Authority must determine whether the complaint is justified and whether as a whole the conduct complained of reduces competition in the market for the sale of electricity to non-domestic end-customers, resulting in higher prices in both the immediate and foreseeable future with consequent effects on the prices of the goods that energy is used to produce.
Rome, 7 October 2008