PRESS RELEASE

Fines exceeding 14 million euro imposed on Acea, Edison, Eni, Enel Energy and Electricity Service for aggressive billing

With fines for a total of 14,530,000 EURO, the Italian Competition Authority (the Authority) has concluded four cases – started in July 2015 following numerous reports from individual consumers and different consumer associations – against the five big energy companies: Acea, Edison, Eni, Enel Energy and Enel Electricity Service. The measures relate to billing and repeated requests for payment of bills that do not correspond to actual consumption, as well as the obstacles for reimbursement.

During the proceedings, the Aeegsi (Authority for Electricity, gas and water system) has given a detailed opinion, within the cooperation framework provided by the Memorandum of Understanding, which has allowed the Authority to identify and to assess distinct aggressive practices. During the inspections, the Authority has collaborated with the Special Antitrust Unit of the Financial Guard (Guardia di Finanza).

At the end of its investigation, the Authority has ascertained that the five companies were guilty of a first aggressive commercial practice: namely poor management of the cases and the communication by the end clients who complained about the billing for electrical or gas consumption which differed from the actual measurements. This was due to deficiencies in the billing process, to computer system malfunctions and to the non-suspension of the recovery measures (reminder, formal notice and detachment, sometimes without notice) whilst waiting for a clear, precise and complete reply. Moreover, in the case of adjustments of significant amounts, the companies had not taken measures to mitigate the impact of the bill, without adequately informing the users of the possibility of paying in instalments or over a longer period of time.

According to the Authority, this conduct has violated the right of the client to receive appropriate and effective assistance and verification of their consumption, before proceeding to pay the disputed invoices and, therefore, constitute aggressive commercial practices. In the opinion of the Authority, the looming threat to start or to continue the procedures for collection cause an undue influence on the consumer choice with regards to the payment of unverified consumption and the submission of applications and communication.

A second incorrect practice, found by the inquiry, concerns the failure or the delay in repayment of amounts due for various reasons to the final clients. The Authority has, in fact, considered that the information and procedures adopted by the five companies did not allow the consumers to receive in a full and timely manner the amount paid in excess for the supply of electricity or gas.

Finally, in the case of the two Enel Group companies a third incorrect practice was ascertained: this consisted in the charging of default interest for late payment, even in the case of bills that were received late or that were not delivered and where claims to that effect were made.

Given the specificity of each practice and the number of the malpractices encountered, the Authority has imposed the following sanctions respectively:

- Acea: 3.600.000 euro

- Edison: 1.725.000 euro

- Eni: 3.600.000  euro

- Enel Energia: 2.985.000 euro

- Enel Servizio Elettrico: 2.620.000 euro

During the proceedings, the operators have proposed changes to the procedures used so far in the handling of requests and complaints from consumers and also to improve the billing system. In view of these elements, the fines were reduced in proportion to the degree of relevance and effective implementation of such changes.

Rome, 13 June 2016