DLA Piper advises Iberdrola on CNMC fine annulment
Spain’s Audiencia Nacional has annulled a €25 million fine imposed by the Comisión Nacional de los Mercados y la Competencia (CNMC) on Iberdrola Energía España over alleged electricity market price manipulation, upholding the company’s appeal. DLA Piper advised Iberdrola on the case.
The dispute dates back to 2013, when the CNMC concluded that certain energy-offer decisions relating to several of Iberdrola’s hydroelectric plants had artificially inflated prices in the wholesale electricity market. The company maintained from the outset that its conduct reflected the economically rational management of available hydraulic resources amid a period of drought and reduced water inflows.
The administrative ruling was subsequently referred to the Anti-Corruption Prosecutor’s Office on the grounds that the facts could constitute an offence under Article 281 of the Criminal Code. This triggered a criminal proceeding that led to the suspension of the parallel administrative appeal.
Criminal acquittal and non bis in idem argument
The criminal case concluded in January 2024 with an acquittal handed down by the Juzgado Central de lo Penal of the Audiencia Nacional. The ruling, which became final after going unappealed, rejected the existence of conduct aimed at fraudulently altering prices and found it legitimate for the company to factor in elements such as future water availability and weather forecasts when making its commercial decisions.
Once the administrative proceeding resumed, Iberdrola sought annulment of the fine on the basis of the non bis in idem principle, arguing that the facts, the party involved and the legal grounds were identical between the sanctioning procedure and the criminal case that had ended in a final acquittal.
The Audiencia Nacional accepted these arguments, ruling that it is incompatible with the legal system to uphold an administrative sanction based on facts already examined and dismissed by the criminal courts. As a result, the court ordered the full annulment of the sanctioning resolution, bringing to a close a dispute that spanned more than a decade and was examined by both criminal and administrative courts.
Legal team
The DLA Piper team advising Iberdrola was led by José Manuel Sala, of counsel in the firm’s Litigation and Regulatory department, together with José María Barrios, partner in the same department.
