Spain: Regulator to probe ENDESA and FENOSA over high energy prices

Spain’s competition regulator has announced it will launch a probe to investigate the sudden spike in energy prices that hit the country in January, with a focus on alleged irregularities in the natural gas market. Spanish homes were hit with a 9% rise in energy prices over the month, causing some anger.

The CNMC has asked Gas Natural Fenosa, Spain’s leading gas distributor, to provide information regarding their sales and purchases, as well as analysing its closest competitor, ENDESA. The commission will try to determine whether the fuel had been exported at previously fixed prices, while imports were brought in at higher ‘spot’ prices, which would raise costs.

The price in energy bills is the result of highly complex calculations, with the challenge for the CNMC being to unravel which factors contributed to the price spike, and whether these obey the normal functioning of the market. The CNMC has said it will focus on gas purchases and sales dating to November, which may have impacted January’s prices. Among other signs of wrong-doing, the regulator will look for possible shipment delays and whether the companies had adequate reserves in order to avoid dipping into emergency pricing.

Full Content: El Mundo

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