FAS Russia Points out Positive Trends on Electric Power Markets
OREANDA-NEWS On 06 March was announced, that the Federal Antimonopoly Service (FAS Russia) points out positive trends in developing competitive relations on electric power markets; in particular, due to entry of new, independent energy supply companies to the retail markets.
FAS Russia has arrived to that conclusion following its analysis of the competitive environment on the retail electric energy (power) markets in the Russian Federation, based on the analytical materials presented by the regional offices of FAS Russia.
The objective of the analysis was to identify dominant position of energy supplying companies (including providers of last resort), operating in the constituent territories of the Russian Federation, in order to include them in the Register of Economic Entities with the Share of the Goods Market over 35% (the Register).
Having analyzed the competitive environment on the retail markets for buying - selling of electric energy (power), the FAS Russia's regional offices identified 270 companies with dominant position, of which:
- 183 are already included in the Register;
- FAS Russia's regional offices suggested including 87 suppliers in the Register;
- FAS Russia's regional offices suggested excluding 10 energy supplying companies from the Register.
Despite increased presence of independence energy suppliers on retail markets, which emerged, in particular, due to privatization of energy companies with state or municipal participation; retail electric energy markets in all constituent territories of the Russian Federation are still highly concentrated and competition is weak.
At the same time, judicial practice regarding the disputes over the contracts for buying-and-selling electric energy has shown positive developments. The Presidium of the Supreme Arbitration Court supported the FAS Russia's standing when it recognized validity and relevance of the decision made by the Kurgan OFAS Russia. According to the decision, refusal of providers of last resort to sign contracts with energy supplying companies on terms of a public agreement is a violation of the antimonopoly legislation.
Analysis of economic activity of the participants of retail electric energy (power) markets shows that there is still the need to formulate new and improve the existing normative legal acts on electric power industry. In particular, it is necessary to establish the rules for organizing scheduled and non-scheduled tenders for allocating the status of a provider of last resort in order to create conditions for developing competition, particularly, for the status of a provider of last resort.
It is important to tighten the antimonopoly control over actions (lack of actions) of electric energy companies - participants of the wholesale electric energy market, in terms of their compliance with the statutory requirements to the procedures of the buying-and-selling contracts, information exchange agreements, etc., with energy supplying companies operating on retail markets of electric energy.
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