OREANDA-NEWS. November 12, 2012. A week ago the Federal Antimonopoly Service (FAS Russia) reconsidered its determinations issued earlier to the group of persons of “INTER RAO UES” OJSC, in the part of the requirements to participating in the wholesale market of electric power and capacity, reported the press-centre of FAS Russia.

In 2011, approving the transactions for purchasing the assets of “INTER RAO UES” OJSC in the electric power industry, FAS issued determinations that contained considerable requirements for filing price applications regarding the stations selling electric power on the wholesale market:

1) With regard to the generating facilities in the first price zone (Europe and the Urals) of the wholesale market of electric power and capacity, FAS issued a determination to file price-accepting applications for generating no less than 70% of electric power from the volume of maximum (working) capacity of generating facility from 7 a.m. to 10 p.m. (inclusively) of each day;

2) Do not form price applications exclusively from the costs for generating the relevant volume of electric power and capacity using the most expensive type of fuel; and when filing price applications take into account the average-weighted price of the fuel used to generate electric energy and capacity on the relevant generating equipment.

“During the whole period of determinations validity, FAS did not establish a single violation by the generating facilities of the group of persons of “INTER RAO UES” OJSC in the part of compliance with the above requirements”, pointed out the Head of FAS Department for Control over Electric Power Industry, Vitaly Korolyov.

At the beginning of 2012, when the “third antimonopoly package” was adopted, the antimonopoly law included a new mechanism for reconsidering determination if relevant circumstances emerge. Under Part 11 Article 33 of No.135-FZ Federal Law “On Protection of Competition” of 26th July 2005, upon a person’s petition or upon own initiative the antimonopoly body can reconsider the content or the procedures for executing a determination due to emergence of significant circumstances that emerge after the determination had been issued and that exclude possibility and (or) expediency of exercising the determination fully or partially.

“INTER RAO UES” OJSC used this right and filed a petition for reconsidering the determinations in the part of the requirements for filing applications for 70 % of price-accepting volume.

FAS also received a collective petition form several foreign investors in the electric power sector of Russian economy (“Enel OGK-5” OJSC, “E.ON Rossia” OJSC and “Fortum” OJSC) asking to reconsider the determinations issued to “INTER RAO UES” OJSC. According to the foreign investors, filing price-accepting applications for sale of electric power can distort market signals for both generating companies and consumers of electric power. The Council of Electric Power Generators” Non-Commercial Partnership filed a similar petition.

Based on the analysis carried out with the “Market Council” Non-Commercial Partnership, on 29th October 2012 FAS made No. AG/35061/12 decision to withdraw Clause 1 of the above requirements.

“This is the first time when FAS made such a decision regarding companies operating in the electric power industry. Some conduct requirements for generating facilities of the group of persons of “INTER RAO UES” OJSC are removed; however, other conduct and structural requirements are still in force and enable to ensure conditions for competitive behavior of these persons”, Deputy Head of FAS Anatoly Golomolzin commented the decision.