Spain: Probe confirms shortcomings of botched energy auction

Spain’s competition regulator, the CNMC, confirmed what many had already expected regarding the curious outcome of a December wholesale energy auction: the tender lacked “competitive pressure,” leading to what would have been an 11 percent hike in energy costs for consumers.

Spanish authorities overruled the results of the auction and implemented a new policy to lower the price increases down to 2.3 percent while assuring the nation a new method would be used to determine electricity costs.

The December 19 auction lead to a CNMC in-depth investigation into what it determined were “atypical circumstances” in the days prior to the auction. The tender is held every quarter; this time marks the first instance the government annulled the results.

According to reports, the CNMC has been rallying for a change in how Spanish energy costs are determined since 2009. The regulator vowed to continue its investigation into the matter.

Full Content: Businessweek

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.