PRESS RELEASE

FINES EXCEEDING TWO MILLION EUROS IMPOSED ON ACEA ATO 2, GORI, CITL AND PUBLISERVIZI FOR UNFAIR COMMERCIAL PRACTICES IN WATER SUPPLY

The ICA concluded three proceedings imposing a cumulative fine of more than two million Euros on the companies that manage the National Integrated Water Service. In fact, on the basis of many reports submitted by the Regulatory Authority for Electricity, Gas and Water (AEEGSI), by individual consumers and Consumers’ Associations, the ICA launched investigations carrying out inspections directly at the premises of the companies involved, with the collaboration of the ICA’s Special Unit of the Guardia di Finanza. The proceedings also kept into consideration the AEEGSI’s opinion within the scope of its protocol agreement with the ICA.

During the proceedings against Acea Ato 2, Gori (Gestione ottimale risorse idriche), CITL (Consorzio idrico Terra di Lavoro) and Publiservizi, various conducts emerged contrary to the Consumers’ Code with reference to consumption verification and invoicing. In particular, the following unfair commercial practices were found: non-periodical reading of meters; non-acquisition of users’ self-reading, with consequent invoicing on the basis of estimates that sometimes turned out to be wrong or exceedingly high, or based on several years’ balance; non-compliance with invoice periodicity, sending high-amount bills related to several years’ consumption; procedures imposing on consumers charges for water not actually consumed, due to concealed leaks in the water system. Once issued such invoices, upon the expiry of payment terms, the mentioned companies would immediately start arrearage procedures, threatening to interrupt water supply.

The ICA, headed by Giovanni Pitruzzella, deemed that these behaviours were characterized not only by a lack of diligence, but also by an aggressive conduct, that is: capable of illicitly conditioning consumers and obtaining the payment of amounts not corresponding to actual consumptions, or indeed owed but with different modalities and timing. In fact, the fined companies - operating in regime of monopoly for the supply of a vital and essential commodity such as water – are so relevant from a commercial viewpoint to be able to threat the interruption of the supply.

Moreover, serious inactivity was found as regards the management of consumers’ complaints and requests. In many cases, total lack of management or late management was identified, besides the provision of evasive answers not resolving or not pertinent to the object of the complaint, often without preventively suspending procedures for collecting charges and for interrupting the supply. These conducts hindered the execution of consumers’ contractual rights. Moreover, consumers were conditioned by the threat of supply interruption in case of pending complaints or requests, thus forced to pay due to the essentiality of the integrated water service.

Furthermore, in Gori’s case, consumers were invoiced amounts different from what they should have paid. As regards Consorzio idrico Terra di Lavoro, users had not been informed that the so-called “minimum commitment” (“minimo impegnato”) was no longer in force – which entailed a significant change in tariffs – and that fiscal injunction had entered into force for collecting credits, the amount of which not yet verified.

Keeping into account the specificities of each conduct and the scope of the phenomena ascertained, the ICA imposed the following fines:

• on ACEA, 900,000 Euros for the first conduct and 600,000 for the second, in both cases granting as extenuating circumstance the measures proposed for improving the service;
• on Gori, 250,000 Euros for each of the two infringements, in both cases granting as extenuating circumstances several managerial difficulties and the measures proposed for improving the service;
• on CITL, a total amount of 160,000 Euros for the three infringements, granting as extenuating circumstances several managerial difficulties; and 100,000 Euros on Publiservizi which was actively involved in the second conduct.

Lastly, the four companies must communicate to the ICA all changes made to overcome the criticalities ascertained during the preliminary investigations.

Rome, 25 January 2016