On electricity and gas bills in the third quarter of 2016, the Antitrust also takes the field. Urged by the Energy Authority, the competition guarantor launched two investigations on Thursday into Enel and Sorgenia, suspected of having violated the rules on competition by applying excessive procurement costs to Terna, which were then reflected in the bill.
What prompted the Antitrust to move? It happened that on 1st July, with the definition of the new prices for the third quarter of 2016, the sector Authority surprisingly decided on the increases. At the basis of the decision, the jump in dispatching costs paid by Terna to operators for the services of turning on their plants at the technical minimum in the Brindisi area, essential to guarantee the voltage of the local electricity grid in a period in which the increase in electricity production from renewable energies is at seasonal peaks. We are talking about prices that recorded unusual levels in that period, with peaks of up to 600 euros per megawatt hour. Huh a case arose with alarmed positions taken by industrialists and consumer associations, appeals to the Tar, suspension of the tariff e subsequent reset by the Tribunal, untillatest rate update of 1 October. And now the Antitrust proceedings are starting after some inspections carried out in collaboration with the Market Protection Unit of the Guardia di Finanza.
THEEnergy Authority had alerted the guarantor to the fact that, “in the period 27 March – 15 June 2016, Enel and Sorgenia would have changed their strategy of offering the energy produced by the plants located in the Brindisi area. In particular, the supply conditions of both operators on the wholesale markets would have resulted in the tendential elimination of the production programs of the respective plants in the area, which were therefore "switched off" as a result of these markets" explains the Antitrust press release.
Terna, which is the operator of the national transmission grid, was therefore “obliged to ask the companies to start up some production units on the dispatching services market. Both Enel Produzione and Sorgenia therefore found themselves in the position of indispensable supplier in certain time slots of the period in question, a position on which they seem to have leveraged to impose excessive prices on Terna, which would seem prima facie disproportionate to the cost of the service offered ”.
According to what was represented by the sector regulator, the higher cost paid by Terna for the procurement of voltage regulation services in the Brindisi area in the first six months of 2016 was approximately 320 million euros higher than the expenditure incurred in the same period of the previous year. This cost (the so-called uplift) constitutes a component of the electricity bill, which is therefore passed on to all users, both consumers and businesses.
Both Enel and Sorgenia deny the allegations. "Enel believes it has acted legitimately, in full compliance with the relevant legislation on competition and with the regulatory requirements in force", replied the electricity group and provided "full collaboration" to the guarantor. "Sorgenia believes it has operated correctly, in full compliance with current legislation and in full compliance with regulatory requirements" stated the other "defendant".
