- In the midst of the economic crisis, the Spanish Market and Competition Commission concludes that in 2013 Iberdrola artificially manipulated and increased the electricity price, forcing consumers to pay an additional €96.7 million. In the course of the trial against the company, the Prosecutor’s Office is demanding EUR 84.9 million and two years in prison for four executives.
Charged with a crime against the market and consumers, Tuesday begins a trial against Iberdrola that will last eight sessions. The facts of 2013 are judged: Iberdrola Generation (subsidiary of Iberdrola) closed several dams from 29 November to 23 December, and according to the anti-corruption prosecutor’s office it did because hydropower was cheaper and replaced it with more expensive energies.
Consumer economic damage
As a result of Iberdrola’s action, market prices increased to 126%. It caused damages amounting to EUR 107 million, of which EUR 96.7 million was paid by consumers and the remainder by electricity traders.
The Prosecutor’s Office requires a fine of EUR 84.9 million for the company, 3.3% of the profits made in 2013, and two years in prison for four executives. The four remain responsible in Iberdrola: Angel Chiarri, Gregorio Relaño, José Luis Rapún and Javier Paradinas.
The Facua consumer association and several insurers are presented as popular accusations. Facua requests a fine of EUR 107.5 million and a three-year prison for the four directors.
Iberdrola says that drought forecasting was the cause of the closure of reservoirs and the cessation of production of hydroelectric plants during those days. After the trial began, the declarant executives denied the defendant and justified the price of light increased by market trends.