European Commission opens ethanol price fixing investigation against Abengoa, Alcogroup and Lantmännen

In Belgium, the European Commission has opened an investigation into potential ethanol price fixing among Abengoa, Alcogroup and Lantmännen following information gathered from raids during the past two and a half years. The Commission has concerns that these companies may have colluded to manipulate ethanol benchmarks published by the price reporting agency Platts, for example by agreeing between them to submit or support bids with a view to influencing benchmarks upwards and thus driving up ethanol prices. Shell, BP, Statoil and price publisher Platts, who were raided in May 2013, were not included in the investigation.

Such practices, if confirmed, harm competition and undermine EU energy objectives by increasing prices for renewable energy, namely biofuels used for transport. In 2013, the Commission proposed a Regulation to enhance the governance, integrity and reliability of benchmarks used in financial instruments and contracts. This Regulation is at the final stage of adoption by the Council and European Parliament.

The Commission will now conduct an in-depth investigation as a matter of priority. The opening of formal proceedings does not prejudge the outcome of the investigation.