A PYMNTS Company

Spain: Regulator fines EDP Energía over end-of-contract penalties

By  |  February 14, 2017

Spanish regulator CNMC has fined energy provider EDP Energía SAU with €900,000 euros over the company’s imposition of penalty charges on early termination of contracts with low-tension, non-domestic customers. This practice is forbidden by consumer protection laws.

The CNMC was notified by one of the companies affected by the penalties in September 2014. The unnamed company allegedly switched their electric supplier, causing a €2,400 euro “indemnity” charge due to early termination, despite having provided the legally required 15-day notice.

The CNMC has decided to penalize the energy provider over a serious violation of consumer protection laws, while also imposing an obligation to modify all existing supply contracts to include new conditions on the termination of contracts.

Full Content: Energy News

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