OREANDA-NEWS. March 18, 2011. The Federal Antimonopoly Service (FAS Russia) granted petitions of “INTER RAO UES” CJSC for acquiring “Mosenergosbyt” OJSC, “Peterburgskaya Sbytovaya Kompania” OJSC and “Saratovenergo” OJSC, “Kubanskaya Energosbytovaya Kompania” OJSC, reported the press-centre of FAS Russia.

In view of the dominant position of the energy suppliers being acquired by “INTER RAO UES” CJSC, and the group of persons of “INTER RAO UES” CJSC having power-generating assets in the relevant regions, FAS Russia issued determinations to the companies to prevent actions that can considerably increase prices on the wholesale and retail markets of electric power and capacity.

“Mosenergosbyt” OJSC, “Peterburgskaya Sbytovaya Kompania” OJSC and “Saratovenergo” OJSC should not prevent other economic entities exiting the retail market.

Such companies are unable to enter into free contracts for supply of electric power or capacity with the participants of the wholesale market – members of the group of persons of “INTER RAO UES” CJSC.

In its determinations issued to “Mosenergosbyt” OJSC, “Peterburgskaya Sbytovaya Kompania” OJSC and “Saratovenergo” OJSC the Antimonopoly Service requested not to claim excessive volume of consumption in the outlets, where the Provider of last resort buys electric power (capacity) on the wholesale market for the purposes of selling it on the retail markets.

FAS allowed acquiring over 50% of “Saratovenergo” OJSC provided that within four years the block of shares of “Volzhkaya TGK” OJSC would be sold.

FAS requested “Kubanskaya Energosbytovaya Kompania” OJSC to reduce the scope of property rights below 25% of the shares of particular companies within six months after the day the transaction is completed, and also within four years after the date of the transaction the company must terminate the property rights for the above block of shares in full.

The transactions are granted subject to “Rosenergoatom” Concern” OJSC withdrawing from the group of “INTER RAO UES” CJSC within four months after the transactions.

FAS Russia also granted the petitions of “INTER RAO UES” CJSC about preliminary approval of acquiring 100% of the authorised capital of “RN-Energo” Ltd., 67.87 % voting shares of “Tambovskaya Energosbytovaya Kompania” OJSC and 100% voting shares of “Altaienergosbyt” OJSC without issuing determinations.

Having analyzed the impact of the transactions upon the state of competition on the markets of electric power, FAS made a well-thought decision that enables proper state control over strategically important enterprises in the industry and maintains conditions for development competition and сan strengthen the trend towards attracting strategic investors in Russian eletric power industry within the periods specified in the determinations. The requirement to sell assets is also based on the investment cycles in the electric power industry and takes into account the government interests in selling the assets.