PRESS RELEASE

UNFAIR COMMERCIAL PRACTICES FOR PHOTOVOLTAIC SYSTEMS: A 640,000 EURO FINE IMPOSED ON GREEN POWER GROUP

The ICA has imposed a EUR 640,000 fine on Green Power Group for commercial practices adopted in selling systems for harnessing solar energy and for producing electricity and heat. Said practices were found to be unfair because misleading with reference to the actual savings obtainable from the system and to the company’s connection with the Enel Group. They were also deemed aggressive because they limited the right to withdrawal.

The Italian Competition Authority deemed that presenting such systems as operating "at zero cost" – due to the savings and profits achievable from the sale of the energy produced in excess - misled consumers on the uncertain outcome and the temporal distribution of these benefits; against the above, the practice envisaged sure payments for purchasing the system which often occurred through financing offered by companies operating within an agreement with Green Power. Moreover, it was also found that the Group’s agents continued to state the relationship with Enel, also using "Enel.sì"’s logo in their forms, for about a year after the termination of the relationship between the two companies.

Finally, in the ICA’s opinion, Green Power hindered consumers’ right to withdrawal, by making the terms effective from the signing date of the contract - which is a proposal - and not from the acceptance date. All this at the end of inspections on the technical feasibility and, therefore, determining specifications and actual costs of the system to be installed after obtaining the required authorisations. The elements acquired also show that the Company did not communicate this acceptance to consumers. Finally, in order to deter consumers from withdrawing from the proposal, the Group provided for a penalty fee amounting to 25 % of the system’s value.

The original fine of EUR 680,000 imposed for these unfair practices was reduced by EUR 40,000 due to Green Power’s loss registered in its financial statements.

Rome, 26 July 2016