Iberdrola could be fined over 'fraudulent' energy price inflation
Thursday, June 19, 2014 @ 2:29 PM
ELECTRICITY board Iberdrola faces a multi-million fine over alleged 'fraudulent manipulation of prices', according to the National Markets and Competition Commission (CNMC).
The utility supplier hotly denies the accusations, originally made by the ministry for industry to the CNMC, which has opened a disciplinary inquiry.
Investigations centre on Iberdrola's 'alteration' of energy prices just before the supply contract was last put out to auction in December – a process that used to take place every three months but has now been scrapped.
The Spanish government declared the auction null and void, since it would have led to an 11-per-cent hike in electricity bills for residents.
According to the ministry at the time, there had been 'a clear price manipulation' which had led to the actual cost of energy being grossly inflated and the surplus passed onto the consumer.
The ministry has since announced plans to give the electricity supply system a thorough MOT which is likely to result in a restructure.
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