FAS Fined Tver Energy Supplier for Excessive Prices for Consumers
OREANDA-NEWS. January 31, 2013. The Federal Antimonopoly Service (FAS Russia) fined “Tver Energy-Supplying Company” OJSC 107,170,592 Rubles, reported the press-centre of FAS Russia.
On 14th September 2012, FAS made a decision on the case against “Tver Energy-Supplying Company” OJSC and the Regional Energy Commission of the Tver Region that had fixed unreasonably high prices for eclectic power in 2010 and 2011 for consumers in the Tver region.
In 2010 and 2011 “Tver Energy-Supplying Company” OJSC in concert with the Regional Energy Commission of the Tver Region presented unreasonably low estimated data on the average number of hours of capacity use. Based on these data, the “Trading System Operator of the Wholesale Market of Electric Power” OJSC determined the average electric power prices for consumers in the Tver region, calculated according to a one-part rate.
An underestimated total average number of hours of capacity use resulted in a considerable increase of the average-weighted non-regulated prices for electric power (capacity) for the end-consumers in the Tver region, calculated according to a one-part rate.
“FAS found that upon consent between Tver Energy-Supplying Company” OJSC and the Regional Energy Commission of the Tver Region, telectric power prices increased unreasonably, in breach of Article 16 of the Federal Law “On Protection of Competition”. FAS also found that “Tver Energy-Supplying Company” OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition” (abusing market dominance) by manipulating prices on the retail market of eclectic power (capacity).
“Upon the case results, consumers, to whom “Tver Energy-Supplying Company” OJSC supplied electric power at unreasonably high prices in 2010 and 2011, will be able to approach a Court of Law for protecting their rights and act to collect the funds unreasonably transferred for electric power. Such kind of private actions are important elements of protecting consumer rights, they also increase responsibility of the companies, that have the dominant market position, in relations with their customers”, stated the Head of the FAS Department for Control over Electric Power Industry, Vitaly Korolyov.
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