Indecopi: fined S / 4 million 400,000 to the electric company Seal for anticompetitive practices

The National Institute for the Defense of Competition (Indecopi) fined with 4 million 400 thousand soles (1000 UIT) to the company Sociedad Eléctrica del Sur Oeste SA (Seal) for abusing its dominant position by implementing discriminatory treatment of its clients who are in the category of “free users”, in the Arequipa region.

Indecopi reported that the company Seal —which is an electric power distributor in the department of Arequipa and the sole supplier of regulated users in its concession area— incurred in abuse of domain by unjustifiably applying discriminatory conditions in the electricity supply market, affecting users of the “free” segment who chose to contract with competing companies such as Atria Energía (the complainant company) and other generators.

CAN SEE

The Free Competition Defense Commission rated this offense as serious and applied a fine of 1000 UIT. Through a press release, Indecopi reported that “free users” are those who consume electricity with an annual demand greater than 2,500 kW —like large companies— and can contract the supply with any generator or distributor.

A serious offense

According current legislationElectric power users who want to change their status to free users must notify their utility company one year in advance. Similarly, users who opt for this change must have adequate protection, measurement and power equipment for the change to take place effectively.

CAN SEE

Indecopi concluded that the electricity company Seal “implemented a policy that exempted the one-year notice period and it did not require the installation of measurement, protection and power limitation equipment to those regulated users who changed their status to free users, if they committed to maintaining said company as a supplier in the free market ”.

However, users who changed their status to “free” —but who chose to contract with other competing companies — were required to comply with this deadline and install equipment.

Indecopi announced that these discriminatory conditions had no basis. They also indicated that Seal was unable to demonstrate that such policy introduced efficiencies to the market for the benefit of consumers, and that, on the contrary, this “allowed to increase its participation in the market for the supply of free users within its concession area, both in terms of the percentage of new users and that of total contracted power, which ensured —Between 2016 and 2020— obtain significant benefits, by charging average prices 21.5% higher than the weighted price charged by other suppliers. “

CAN SEE

Likewise, he pointed out that the Commission for the Defense of Free Competition “considers it pertinent to request Osinergmin and the Ministry of Energy and Mines to analyze the need or relevance of introduce or modify the regulations applicable to conducts such as those analyzed in this case, explaining its position within a maximum period of ninety (90) business days, as provided in the aforementioned rule ”.

However, they announced that this first instance decision is not final and can be appealed by Seal before the Specialized Chamber for the Defense of Competition of the Indecopi Court.