Spain's National Commission on Markets and Competition (CNMC) has decided to punish Endesa for a naming game that confuses its own customers. The company has received a fine of €400,000 —reduced to €320,000 after applying a discount for voluntary payment— for having made it difficult for consumers to clearly distinguish between its different energy retailers.

A brand tangle that puts freedom of choice at risk

According to eldiario.es, Competition inspectors detected that Energía XXI Comercializadora de Referencia —Endesa's subsidiary that sells regulated tariffs— used confusing names in its contacts with customers. In telephone calls it used commercial names of other group companies, while in contractual documents it inserted identifying elements of the Endesa brand, which is linked to the free-market retailer.

This chaos of identities is not simply an internal communication problem. The CNMC considers that it put consumers' freedom of choice at risk between contracting a regulated tariff (with prices controlled by the State) or opting for the free market. When a customer does not know clearly who they are calling or does not recognise what type of service is being offered to them, their capacity to make an informed decision is compromised.

Deficiencies in training and customer service

The Competition investigation revealed that the problems stemmed from deficiencies in the company's training mechanisms and customer service processes. Although the CNMC has not proven that Endesa obtained illicit benefits or acted with intent to deceive, it has pointed out that a company of its size and economic capacity should have easily avoided these situations.

The breach has been classified as serious under the Electricity Sector Law. Regulations require that reference retailers maintain image and communication clearly differentiated from retailers in the same group operating in the free market. This separation exists precisely to protect competition and transparency in a sector that affects millions of households.

A structural problem in large energy groups

The fine against Endesa reflects a broader problem: large energy groups operate simultaneously in several segments of the electricity market —distribution, regulated retail, free-market retail— which creates constant tensions over how to differentiate themselves. In theory, these are separate activities. In practice, when they all share the same parent brand, customers become confused.

This type of sanction seeks precisely to prevent confusion between subsidiaries from being used —deliberately or not— to channel customers towards less favourable contracts or to dilute competition in the free market. Now Endesa will have to review its communication protocols with consumers if it does not want to face further action from Competition authorities.

What changes will this fine bring?

For now, it has not emerged whether Endesa plans to appeal the sanction or will accept the regulator's decision. What is foreseeable is that the company will strengthen its identification systems to avoid future problems. For consumers, this fine is a signal that regulators are maintaining vigilance over how retailers communicate, although the question remains whether these measures will be sufficient for customers to truly understand the differences between contracts.