OREANDA-NEWS. On 19 February 2009 was announced, that on 10 and 11 March the Administration of the Federal Antimonopoly Service, Belgorod Region, will hold a meeting on the issue of groundless refusals of Belgorod Power Sale Company, JSC in conclusion of electricity purchase contracts. The consumers themselves addressed the FAS Administration, asking for protection.

From the end of 2008 legal persons and IDGC of Centre, JSC have been concluding direct contracts on electricity transmission on the territory of the Belgorod Region. It is the most efficient way of interaction between large consumers and the company that provides a whole specter of technological services on electric equipment exploitation. However, today Belgorod Power Sale Company, JSC refuses to conclude electricity purchase contracts with the customers and, thus, makes impossible the execution by Belgorodenergo, a branch of IDGC of Centre, JSC, of contracts on transmission of electricity to its customers. This is infringement of the existing legislation – federal law of the RF No.35-FZ ‘On electric industry’ – where it is said about the right of consumers to enter into “direct” contracts. Under the demand of the grid company, the Public Prosecution Office of the Belgorod Region confirmed inadmissibility of infringement by Belgorod Power Sale Company, JSC of the legally stated right of consumers to change to a purchase contract and regulate independently the relations on electricity transmission with the grid company.

Belgorod FAS Administration also initiated proceedings concerning Belgorod Power Sale Company, JSC on infringement of the antimonopoly legislation: refusal of the guaranteeing supplier to provide sale of electricity to each consumer who addressed it. Under the rules of electricity retail markets functioning approved by the RF Government in 2006, guaranteeing suppliers shall supply electric energy to consumers on the territory of their activity both under public contracts of power supply and under purchase contracts.

Today the consumers have one contract of power supply concluded with Belgorod Power Sale Company, JSC that includes two services: purchase/sale of electric energy and its transportation. It is possible to receive these services under two separate contracts: the contract concluded with the power sale company, as the energy seller, and the grid company, as its transporter. This is efficient, because in this case there is no intermediary – the power sale company – that, due to its major business activity, cannot be responsible for electricity transmission, provide reliable work of networks, control the technical state of equipment, eliminate emergency blackouts in the networks, etc. It is Belgorodenergo, a branch of IDGC of Centre, JSC, that carries responsibility for all this. Secondly, this way of contract conclusion provides transparency of business relations: it becomes clear who much the customer will pay for electricity acquisition and how much, for its transportation. Thirdly, if the price for the purchased energy seems high to the consumer, he/she can always turn to another supplier that is ready to cooperate under more favourable terms.

The FAS Administration will consider the refusal of Belgorod Power Sale Company, JSC to conclude direct electricity purchase contracts. The first meetings will be held on 10 and 11 March.