By Pierre Bertrand

Naturgy is under investigation by Spain's competition regulator over possible anticompetitive practices between 2021 and 2022.

The country's National Markets and Competition Commission, known as CNMC, is looking into whether the Spanish gas and power utility's electricity distribution business, UFD Distribucion Electricidad, and its parent companies, gave preferential treatment to certain electricity providers in breach of regulations.

The CNMC said doing so could have hurt market competition for the retail supply of electrical energy where UFD operates as a distributor.

As part of the investigation, two Naturgy offices were searched, the CNMC said.

The start of the investigation doesn't imply market rules were breached, the CNMC said, adding that the investigation could take up to 24 months.

"UFD scrupulously complies with regulations and applies the same procedures in its daily and ongoing relationship with dozens of retailers as part of its activity as an electricity distributor, without applying any favored treatment or benefiting any one in particular," Naturgy said in a statement.

Naturgy added that it would cooperate with the investigation.

Write to Pierre Bertrand at

(END) Dow Jones Newswires

06-19-24 0747ET