Alfoz Wind Farm fined for abuse of dominant position and veto in public procurement

  • The CNMC has imposed a fine of 958.593 euros on Eólica del Alfoz for abuse of dominant position.
  • For the first time, the sanctioned company is banned from contracting with the public sector for six months.
  • Eólica del Alfoz unfairly favored one of its group's facilities, harming competitors in accessing the Villimar 220 kV node.
  • The resolution sets a precedent for strengthening fair competition in the renewable energy sector.

CNMC Alfoz Wind Power Sanction

La National Commission of Markets and Competition (CNMC) has once again put the spotlight on equal opportunities in the renewable sector with a historic sanction to Alfoz Wind FarmThe company is at the epicenter of the controversy after receiving a fine of 958.593 euros and a temporary ban on access to public contracts, an unprecedented decision that has generated repercussions throughout the energy sector.

This measure finds its origin in the performance of Eólica del Alfoz as Single Interlocutor of Knot (IUN) at the Villimar 220 kV nodeAccording to the regulator, the company took advantage of this advantageous position to favor an installation of its own group and hinder competition by demanding that a rival up to four unnecessary corrections in its access request. The direct consequence was that the competitor ended up excluded due to exhaustion of capacity, an act that for the CNMC constitutes an serious distortion of competition.

Details of the sanction and scope of the ban

The sanction, which amounts to almost one million euros, affects not only Eólica del Alfoz, but also to its parent company, Beta Participaciones Ibérica, which shares joint liability for payment. But the most striking aspect of the ruling is the prohibition of contracting with the public sector throughout the national territory during six monthsThis restriction affects contracts linked to consulting, construction, operation and maintenance of wind farms and their teams.

This unprecedented punishment is based on the Communication 1/2023 of the CNMC, which regulates the criteria for vetoing public contracts to companies that distort competition. To date, such a decision usually fell to the Ministry of Finance or the Public Procurement Advisory Board, but on this occasion it is the CNMC that determines it directly, highlighting a new sanctioning approach in defense of effective competition.

How the abuse of position occurred

The role of JUN was key in this episode. This figure, created to coordinate and process access to the electricity transmission grid at specific points such as the Villimar hub, is responsible for manage with transparency and without discrimination applications from interested companies. However, the CNMC maintains that Eólica del Alfoz used its margin of discretion to prioritize the demands of their group, violating the principles of objectivity and equal treatment.

The origin of the case is in an access conflict presented by Global Shaula, which was denied entry to the grid for Alfoz Wind projects after receiving requests for correction considered inappropriateThis action was first analyzed by the Regulatory Oversight Chamber of the CNMC and, subsequently, by the Competition Directorate, which concluded the existence of very serious abuse according to article 2 of the Competition Law.

Impact on the sector and background

This file marks a precedent in the monitoring of competition in renewable energies, being the first in which the CNMC has imposed a full ban on contracting. Until now, the agency's actions in cases of network access abuse had been limited to economic sanctions, such as those applied to Enel Green Power Spain y Luminora, also sanctioned by abusing his role as IUN.

La IUN figure, although designed to facilitate regulated access to the grid, can generate inequalities if managed partially. The CNMC reminds us of the importance of always acting with objectivity, good faith and transparency, since access to connection hubs—limited and strategic resources—is vital for new investments in renewable energy in Spain. Any conduct that involves discrimination could jeopardize the energy transition and effective competition in the sector.

Repercussions and changes in supervision

The decision against Eólica del Alfoz emphasizes the intensification of the regulator's control over any practice that limits equal opportunities between energy companies. The sanction seeks to prevent similar situations from recurring, where access to critical infrastructure depends on business affinity rather than merit or technical capability.

The CNMC stresses that the fight against competitive distortion is a priority and, thanks to the direct application of Communication 1/2023Developers must accept that any misuse of privileged positions will have both economic and contractual consequences. This can facilitate a more transparent and trustworthy environment for new operators seeking to connect their facilities to the grid.

This file reflects the will of the regulatory body of strengthen surveillance and equity in access to essential infrastructure for renewable energy development in Spain. With this action, the CNMC is committed to more honest and open practices in the energy transition.

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