PRESS RELEASE

ANTITRUST AUTHORITY ACCEPTS E-DISTRIBUZIONE AND ENEL SPA COMMITMENTS: MORE COMPETITION AND TRANSPARENCY IN ‘SMART METERS'

More transparency for consumers and greater competition among companies in the electricity consumption monitoring sector: this is the outcome of Antitrust proceedings concluded on 6 September with the acceptance of commitments submitted by e-distribuzione S.p.A. (ED) and Enel S.p.A. during the investigation for potential abusive conduct of the Enel Group in smart metering services, which enable customers to obtain detailed information, almost in real time, about their consumption patterns.

The case was based on the assumption that ED had obstructed the activity of a market competitor, using an articulated exclusionary strategy. In particular, the initiation provision hypothesized that ED had: i) engaged in numerous incidents of detaching LED-based or pulse-count devices of the reporting party (these instruments are capable of collecting customers’ electricity consumption data); ii) denied physical access to the meter to install pulse-count devices of the reporting party if the said meter was placed inside covers, grates or display cases; iii) refused reporting companies access to technical information and know-how to replicate an advanced knowledge system of consumption based on a different device inserted directly into the electrical outlet in the customer's home that directly reads the meter data (in-home device), similar to that produced by the same ED and called "Smart Info”.

The commitments offered by ED consist, among other things, of different future scenarios to develop services for detailed measurement of electricity consumption using various devices. First, ED pledged to limit removals of LED-based devices from meters only in cases of strict necessity, ensuring the transfer to the market of information about the second-generation electronic meter installation programme the company will activate in coming years. Secondly, for meters located inside sealed housings, ED will provide free of charge, within a maximum number of monthly interventions, Signal Emitters ("SE") for advanced consumption monitoring services. Finally, ED will provide on request an Original Equipment Manufacturer module ("OEM") to be added to third-party in-home devices, making available on request its own in-home device called Smart info, in a generic version, in both cases at cost price.

As regards the measures presented by Enel SpA, it commits to overseeingED’s compliance with the measures proposed, and to ensuring that ED will apply the same commercial and non-commercial terms, applied to companies outside the group, to any other company of the Enel group operating in Italy.

The Competition Authority considers that the pledges made can prevent future occurrence of misleading conduct by the major Italian electricity distributor aimed at delaying and/or preventing competitors from entering the market, and enable competitive conditions and development of the innovative market of smart metering of electricity with benefits for end consumers.

Rome, 8 September 2016