Competition investigates Endesa for abusing its dominant position in the electricity distribution market

Competition investigates Endesa for abusing its dominant position in the electricity distribution market
Competition investigates Endesa for abusing its dominant position in the electricity distribution market

The National Commission for Markets and Competition (CNMC) investigate the Endesa -its distribution subsidiary, E-Distribución, Endesa Operaciones y Servicios Comerciales and its respective parent companies, Endesa and Endesa Energía- for a “possible” abuse of dominant position in the electricity distribution marketwhich is responsible for delivering electricity from the substation to homes and businesses.

The investigation focuses on the “alleged “discriminatory and preferential treatment” that Endesa would have given to the “resolution of requests, claims and incidents of its own subsidiaries, to the detriment of third-party competing companies,” according to the body that directs Cani Fernandez. Among others, the following are analyzed: procedures related to the commercialization of electric power, the installation of equipment and provision of electrical measurement services, the provision of energy servicesas well as the Installation and operation of self-consumptionlinked to the distributed generation market.

The distribution area of ​​the electric companies is responsible for managing the low voltage networks in regime of monopoly, so that consumers cannot choose their distributor, as happens, for example, with electricity suppliers, but they have one assigned based on their territory. Endesa is the main distributor in Andalusia, Aragon, part of Castile and Leon, Catalonia, Galicia, the Balearic Islands, the Canary Islands, the autonomous city of Ceuta and the province of Badajoz.

In this way, in these areas a user can have their electricity supply contracted with Iberdrola, Naturgy or any other electricity company, but their distributor – the one in charge of ensuring that the light reaches their home or business – is Endesa. The CNMC adds that the practices affect All those territories where Endesa operates as a distributor.

For its part, the company maintains that it has acted at all times “complying with the legislation and scrupulously respecting the principle of neutrality that governs the operation of electricity distributors in their dealings with the different marketing companies existing in the market, which guarantees that no no preferential treatment to any agent.”

The opening of this file is not a surprise, but arises as a consequence of the search, last summer, of the headquarters of the companies by CNMC inspectors Endesa and Naturgyand in some of its distribution subsidiaries, due to alleged irregularities. In fact, at the beginning of June this year, the super regulator announced the opening of proceedings against Naturgy, for the same reasons it is now doing with Endesa.

In any case, as the CNMC recalls, the initiation of this file does not prejudge the final outcome of the investigation. A new investigation is now being opened. maximum period of 24 months for its instruction and resolution.

Self-consumption

One of the main reasons for the investigation was the complaints about the abuse of the position of the large distributors by putting obstacles to self-consumption connections, especially collective. In this sense, the energy company adds that its desire to act “as a facilitating agent for self-consumption” is evident in the measures implemented by its distribution subsidiary to “accelerate and facilitate the activation procedure for self-consumption and improve information for all the agents involved”. At the end of June, E-distribución had activated more than 295,000 self-consumption suppliesa figure that represents an increase of 156% compared to the end of 2022.

 
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