Madrid, August 5, 2025 — Spain’s competition watchdog, the CNMC, has fined renewable energy company Eólica del Alfoz €958,593 ($1.04 million) for abusing its dominant position in the electricity transmission grid—marking the first time the regulator has directly imposed a ban on public contracting in such a case.
The six-month prohibition prevents Eólica del Alfoz from bidding for or executing public contracts across Spain for works, supplies, or services related to wind farms. This sanction stems from the company’s conduct in managing access to the Villimar 220 kV node, a key part of the national electricity grid.
According to the CNMC (Comisión Nacional de los Mercados y la Competencia), Eólica del Alfoz exploited its position as the designated Single Node Interlocutor (IUN), the only party allowed to channel access requests to Red Eléctrica de España (REE), the national grid operator. The company allegedly manipulated this role to favor one of its own renewable energy projects by unfairly hindering a competitor’s application—requiring repeated and unjustified corrections that ultimately led to the competitor being excluded due to capacity constraints.
The CNMC found this behavior to be a “very serious infringement” of Article 2 of Spain’s Competition Law (Law 15/2007), which prohibits abuse of a dominant market position. The regulator also held Eólica del Alfoz’s parent company, Beta Participaciones Ibérica, SL, jointly and severally liable for the fine of €958,593 ($1.04 million).
This case marks a regulatory milestone. It is the first in which the CNMC has not only declared a company’s conduct anti-competitive but also directly specified the duration and scope of a public procurement ban. This follows the CNMC’s 2023 guidance clarifying its authority to impose such restrictions when competitive distortions occur.
Previously, the CNMC had referred such matters to the State Public Procurement Advisory Board for further action. Now, with this precedent, companies found guilty of serious competition violations may face more immediate and structured penalties that extend beyond monetary fines.
The resolution stems from an earlier dispute reviewed by the CNMC’s Regulatory Oversight Chamber in 2019 (CFT/DE/163/19), which flagged Eólica del Alfoz’s improper conduct at the Villimar node. That finding triggered the competition investigation leading to today’s ruling.
The CNMC has sanctioned other energy firms in the past for similar behavior, including Enel and Luminora, but this is the first time it has gone so far as to prohibit public sector engagement—signaling a tougher enforcement stance in Spain’s evolving energy market.
Source: https://www.cnmc.es/prensa/multa-eolica-alfoz
