OREANDA-NEWS. July 18, 2012. The Federal Antimonopoly Service (FAS Russia) proposed a list of free power transfer zones without price caps for competitive capacity outtakes in 2013, reported the press-centre of FAS Russia.

FAS published two draft orders on its official web-site regarding specifics of competitive capacity outtakes in 2013.

Under the Rules for wholesale market of electric power and capacity, every year FAS analyses economic concentration in the free power transfer zones on the basis of which FAS determined the list of free power transfer zones. Thus, competitive capacity outtakes are organized using capacity price caps. FAS is also considering introduction of additional requirements to price bids filed by capacity suppliers (groups of persons), that have dominant position on the wholesale market within a single free power transfer zone, to take part in competitive capacity outtakes.

According to the first draft regulations, the Antimonopoly Service proposed to introduce price caps for competitive capacity outtakes in 2013 in 18 free power transfer zones out of 23. As a result, capacity outtakes without a price cap will take place in five free power transfer zones: “Siberia”, “Urals”, “Centre”, “Volga” and “Vyatka” free power transfer zones.

Also, the overall number of free power transfer zones (FPTZ) in 2013 will be reduced from 27 to 23 by combining some of them in the First Price Zone of the wholesale market of electric power and capacity: “Kinderi” FPTZ is included in “Vyatka” FPTZ, “Sochi” FPTZ and “Gelendzhik” FPTZ are included in “Kuban” FPTZ and “Vologda” FPTZ is included in “Centre” FPTZ.

“In 2012 capacity market demonstrated a positive trend in developing competition: technological barriers on the market are reduced by combining free power transfer zones, the volume of capacity traded in free power transfer zones without price caps is increasing. In 2013 this capacity volume will reach around 60 % of the total capacity volume on price zones of the wholesale market”, commented Deputy Head of FAS Anatoly Golomolzin. “Before making a decision, FAS organized public discussions at a meeting of the Expert Council on Electric Power Industry at the beginning of June this year. In particular, whenever appropriate FAS took into account proposals of the “Market Council” Non-Commercial Council on defining free power transfer zones without price cups; as a result the number of such free power transfer zones has increased from three to five in comparison with last year”, added deputy Head of FAS.

The second draft regulations devised by FAS introduces additional requirements for price bids filed by capacity suppliers (groups of persons), that have dominant position on the wholesale market within a single free power transfer zone, to take part in competitive capacity outtakes in 2013.

In comparison with last year, requirements to large suppliers in “Siberia” FPTZ are modernized. Now such suppliers (groups of persons) have an alternative for filing bids for competitive capacity outtakes in 2013: they can either file a single price bid for the whole capacity volume, or the volume of price bids must not exceed 10 % of the total volume of price bids and price-accepting applications in a particular free power transfer zone. Economic entities that have dominant position in “Volga” FPTZ and “Vyatka” FPTZ should follow the similar strategy.