European justice annuls the financing system of the social bond of electricity companies

14/10/2021 – 18:30

The Court of Justice of the European Union (CJEU) declares the financing system of the social bond of the electricity companies inapplicable, which obliges the parent companies of the groups of companies or, where appropriate, companies to pay the cost of the tariff. that simultaneously develop the activities of production, distribution and commercialization of electrical energy. In other words, Endesa, Naturgy, Iberdrola, EDP, or before, Viesgo.

The ruling thus resolves two preliminary questions raised by the Spanish Supreme Court in 2019. In the opinion of the European body, the Spanish regulations in the electricity market do not comply with the basic principle of non-discrimination and proportionality established by Community regulations.

The judgment of the European court, which agrees with the plaintiffs (Endesa, Iberdrola, EDP, Naturgy and Viesgo), concludes that the previous system “leads to a difference in treatment between the different companies that operate in that market that is not objectively justified “, since the equality rule enshrined in the European Directive does not allow differences in treatment to the detriment of large integrated groups.

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