Electro Dunas de Ica must pay almost one million soles for abuse of dominance position

Electro Dunas S.A.A., an electric power distribution company, was fined 200.89 UIT (tax units), equivalent to more than S/ 994,000, by the Commission for the Defense of Free Competition (CLC) of Indecopi, due to the fact that it committed abuse of dominance position.

The investigation was initiated in February 2022 following the complaint filed by Atria Energía, in August 2018. At the beginning of this year, the discharges of both sides were presented concluding in the sanctions filed by the Commission for the Defense of Free Competition.

According to the CLC, Electro Dunas applied unequal conditions for regulated users who opted to change their status to free users. That is to say, it exempted from the one-year notice period for those who committed to maintain it as a supplier in the free market. On the contrary, it required compliance with this term for users who changed to the free user segment, but chose to contract with Atria Energía or other competitors.

In the investigation process, it was verified that, during the investigated period 2017 - 2020, the aforementioned conduct allowed Electro Dunas to increase its participation in the affected market, both in terms of the percentage of new users and the percentage of total contracted power.

In this way, the Commission for the Defense of Free Competition added that the sanctioned company could not demonstrate that the adopted policy introduced efficiencies to the market for the benefit of consumers.

Indecopi's investigation

Three types of electricity users participate in the market under investigation: regulated users; free users; and users with a power demand between 200 kW and 2,500 kW, who may decide to remain as regulated users or migrate to free status.

In this respect, current legislation establishes that regulated users who wish to change their status to free users must give one year's notice to their current supplier (distribution company).

Regulated users. These are users who consume electricity with an annual power demand of no more than 200 kW (for example, households) and contract their electricity supply with the distributor in the area where they are located.

Free users. These are users that consume electricity with an annual power demand greater than 2,500 kW (for example, large companies) and can contract the supply with any generator or distributor.

The denounced company, Electro Dunas, distributes electricity in the south of Peru, mainly in Ica. It is also the sole supplier of regulated users in its concession area. Additionally, it offers energy supply to free users.

On the other hand, the complainant, Atria Energía, is dedicated to the generation and supply of electricity to free users, that is to say, it is its competitor for this group of users.

The sanctioned conduct infringed paragraphs b) and h) of Article 10.2 of the Free Competition Law, since it implied the unjustified application of unequal conditions for equivalent services in the electricity supply market, unduly restricting competition.

The company is still within the legal term to appeal this decision before the Specialized Chamber for the Defense of Competition, the second and last instance of Indecopi.

Resolution N° 055-2023/CLC-INDECOPI: Electro Dunas applied discriminatory treatment among its clients.

Indecopi sanctions Electro Dunas de Ica for abuse of dominant position by Diario Gestión on Scribd