Spain: Iberdrola accused of market manipulation

Spain’s competition and market regulator (CNMC) has accused energy giant Iberdrola of market manipulation in the energy sector, having allegedly forced a price hike of more than 10% affecting millions of households.

The company has been accused of withholding the water held in their Duero, Tajo and Sil hydroelectric reservoirs, thereby raising the cost of electricity between November 20th and December 13th 2013. The date coincides with a government contract bid used to determine the household prices for the first trimester of the following period.

The CNMC described the violation as “very serious”, announcing punishments on Iberdrola, including a 25 million euro fine, equivalent to around 1% of their total profits for 2014. “This type of conduct is a typical manipulation of the market, with malicious intent, which has granted Iberdrola extraordinary benefits”, concludes the report.

Source: El Mundo

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