Italy’s antitrust agency, AGCM, has slapped fines totaling over 15.6 million euros ($16.3 million) on six major energy providers, including industry giants Eni’s Plenitude and Enel. The penalties were levied for violating regulations by implementing price hikes during a period when the government had explicitly prohibited such unilateral actions.
According to Reuters, the illicit billing occurred between August 2022 and June 2023, a time frame coinciding with the government’s ban on unilateral price increases for gas and electricity supplies. AGCM, in a statement released on Wednesday, highlighted the defiance of these energy providers in the face of the regulatory directive.
Enel, one of Italy’s largest energy companies, was slapped with the maximum fine of 10 million euros. Eni’s Plenitude, another major player in the sector, received a penalty of 5 million euros. The charges relate to the companies raising prices for over 4 million customers without providing any advance warning, a clear violation of the government-imposed regulations.
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Responding to the fines, Enel defended its actions, stating that it had adhered to the ban by merely renewing expiring economic conditions and not making any unilateral variations to the contract. The company asserted its commitment to full compliance and reserved the right to take measures to demonstrate its adherence to regulations.
Eni’s Plenitude also maintained its innocence and expressed the intention to appeal against the decision, affirming that it had acted correctly within the regulatory framework.
In addition to the industry giants, regional utilities Acea and Dolomiti Energia faced fines of 560,000 euros and 50,000 euros, respectively, for failing to provide customers with sufficient advance notice of impending price increases.
Iberdrola’s Italian unit received a 25,000 euro fine for reportedly resorting to coercive tactics. According to AGCM, the company threatened to cut off customers unless they accepted a new contract under “worse economic conditions.”
The antitrust agency’s decision sends a strong message regarding the enforcement of fair practices within the energy sector.
Source: Reuters
Power Industry Shake-Up: Constellation Energy to Buy Calpine in Massive $26.6B Deal
US-based nuclear power giant Constellation Energy has announced a landmark deal to acquire privately-held natural gas and geothermal company Calpine Corp for $16.4 billion in a move that reshapes the American energy landscape. The acquisition, one of the largest in the history of the U.S. power sector, comes at a time of surging electricity demand driven by the rapid expansion of energy-intensive technologies like artificial intelligence and the ongoing electrification of transportation and buildings.
According to Yahoo the agreement will transform Constellation into the largest independent power provider in the United States, with a diverse portfolio spanning nuclear, natural gas, and geothermal energy sources. The deal, which also includes Calpine’s debt, values the transaction at $26.6 billion.
Following the announcement, Constellation’s stock surged by as much as 10% before markets opened, with gains extending to 22% shortly after trading began. The company expects the acquisition to close in the second half of 2025. Once finalized, the merger is projected to add $2 billion in annual free cash flow, further strengthening Constellation’s financial position.
Read more: Federal Competition Office to Scrutinize High Electricity Prices in Germany
The acquisition reflects the growing urgency for reliable and sustainable energy solutions. Per Yahoo, the combined entity will boast nearly 60 gigawatts (GW) of low- and zero-emission capacity, allowing Constellation to solidify its position as a key player in the nation’s clean energy transition. CEO Joe Dominguez emphasized the critical need to meet rising energy demands, saying, “Demand for our products is expected to grow by levels we haven’t seen in a lifetime.”
The transaction significantly expands Constellation’s geographic footprint, particularly in the high-demand markets of Texas and California. With this deal, Constellation’s share of generation capacity in Texas will jump from 11% to 23%, while its presence in California will rise to 10%, up from a negligible amount. Both states rank among the most populous and energy-intensive in the country.
Aneesh Prabhu, an analyst with S&P, described the deal as transformative, noting that the merger will create “the largest coast-to-coast power generator” in the U.S. The acquisition will also boost Constellation’s workforce by 20%, adding approximately 2,750 employees to its ranks and bringing the total headcount to 16,500.
Source: Yahoo
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