Spain's National Court is scheduled to try 17 defendants in October and November over an alleged €61.3 million electricity-trading fraud linked to Barcelona and Madrid. The prosecution identifies businessman Esteban Roig as the alleged leader and is seeking a 16-year prison sentence for him.

The case matters to electricity customers because the prosecution alleges that unpaid energy imbalances were ultimately passed into final electricity prices. Red Eléctrica, Spain's electricity system operator, calculated the alleged losses at €61.3 million, with 93 companies seeking compensation, according to the indictment.

The alleged network operated from 2012 until it was uncovered in late 2017. Its commercial operations were based in Madrid, while companies in Barcelona were allegedly financed with proceeds from the energy sales.

The prosecution says an office in Sarrià, Barcelona, where Roig worked, connected the electricity retailers to other companies in the alleged structure.

The Sarrià headquarters was “the link between the fraudulent marketing companies and the rest of the organisation, which gave an appearance of legality to the activities carried out”, the prosecution says.

Sixteen other defendants face requested prison terms of between six and nine years, depending on their alleged involvement.

Alleged use of electricity-market imbalances

According to the prosecution, the defendants created at least 13 electricity retail companies, attracted customers with low prices and collected payments from end users, while failing to pay producers for part of the energy supplied.

The alleged scheme relied on energy “deviations”, extra electricity needed when actual demand exceeds a retailer's forecast. Producers may take about eight months to identify which retailer is responsible for that additional supply, the indictment says.

  • The prosecution alleges that the retailers eventually bought only 5% of the electricity their customers required.
  • Endesa Generación's alleged loss was about €19.8 million.
  • Repsol Generación Eléctrica's alleged loss was about €4.8 million.

The National Commission of Markets and Competition, Spain's competition regulator, began proceedings to disqualify companies over non-payment, according to the prosecution. The indictment alleges that customers were then moved to other companies connected to the same network.

The prosecution also alleges that funds from the 13 retailers were transferred to related companies, including shell companies, to conceal their origin.

Reported by Source Text Link, José Antonio Hernández, Beatriz Parera, lavanguardia.com, Cruz Morcillo, AGENCIAS/RTVE.es, europapress.es, Diari ARA.