Spain: CNMC to fine Endesa for “deceptive actions”

The CNMC of Spain has sanctioned Endesa Energía XXI for 5.5 million euros over a serious infringement, accusing the company of distorting competition and acting in bad faith in its use of a privileged communication channel and its attitude toward household consumers.

The authority indicated that these actions affected consumers who, due to having special characteristics, are subject to a special protection mechanism. The CNMC also maintains that “Endesa XXI was aware of the vulnerability of these consumers and that their behavior was capable of significantly distorting their behavior”. The facts investigated would have occurred between October 2012 and March 2014, during the so-called heating campaigns.

According to the CNMC, “confusion and scarce knowledge of the average household consumer about the differences and consequences between the supply in the free market and the sales of last resort… with the aim of redirecting them to service points linked to their marketer were taken advantage of. In addition, it is considered an infringement of unfair competition when performing a practice that goes objectively against good faith and professional diligence, due to the sending of confusing communications through a privileged channel, diminishing the capacity of the consumer to make a decision with full information.