Italy’s Antitrust Authority Investigates Enel’s Communication of Energy Price Hikes

Italy’s Antitrust authority has launched an investigation into Enel, the country’s largest utility provider, over its communication of significant gas and power price increases to domestic customers. The probe comes in response to complaints from over 600 customers and small businesses regarding rising energy bills attributed to Enel Energia, a subsidiary of Enel.

According to reports from Finance Yahoo, the complaints primarily revolve around a lack of clear and written communication from Enel regarding the impending price hikes. Customers allege that this lack of transparency deprived them of the opportunity to opt out of their contracts and seek alternative energy providers.

Enel Energia responded to the allegations in a statement, asserting its belief that it has consistently operated within the bounds of both primary and sector regulations, as well as contractual obligations. The company expressed confidence in its ability to demonstrate the accuracy and propriety of its actions throughout the investigation.

The investigation comes at a time of leadership transition for Enel, with Flavio Cattaneo recently assuming the role of Chief Executive. Despite the controversy, Enel reported a notable 12% increase in its 2023 ordinary earnings before interest, taxes, depreciation, and amortization (EBITDA) under Cattaneo’s leadership, reaching 22 billion euros. This growth was largely attributed to the expansion of its retail business within Italy, as per Finance Yahoo.

Source: UK Finance Yahoo