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Italian Court Overturns €5 Million Fine on Eni’s Plenitude Over Price Hike Dispute

By  |  November 18, 2024

Plenitude, the retail arm of Italian energy giant Eni, successfully contested a €5 million ($5.3 million) fine levied by Italy’s antitrust authority, the AGCM, over alleged improper billing practices. The fine, issued last year, was based on accusations that Plenitude had violated a government decree aimed at curbing price hikes in energy costs in response to the economic impact of the Ukraine conflict, according to Reuters.

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    The AGCM’s complaint centered around claims that Plenitude had unilaterally raised gas and electricity prices in Italy, an action temporarily prohibited by the government to shield consumers from steep energy costs in the wake of rising global instability. However, the Italian court for the Lazio region, known as the TAR, determined that the decree’s limitations were not absolute. According to the court’s interpretation, energy providers retained the ability to adjust pricing at the end of special promotional periods, provided they notified customers in advance and allowed them the option to cancel services without penalty.

    This ruling provides a significant clarification for the Italian energy sector, which has been navigating complex regulatory changes introduced as part of the government’s broader response to energy market fluctuations. The TAR’s decision effectively underscores that companies can raise prices under specific conditions, an outcome that could influence future regulatory enforcement in Italy’s energy industry.

    Source: Reuters