OREANDA-NEWS. March 22, 2013. The Head of the Department of the Federal Antimonopoly Service (FAS Russia) for Control over Electric Power Industry, Vitaly Korolyov, addressed the VII Annual Conference “Russian Electric Power Industry” with a report about “Measures for Improving Competitive Relations on the Market of Electric Power as the Main Driver for Industry Development”.

As pointed out Mr. Korolyov, the main principle of the reform of the electric power industry is using market relations and competition as one of the major instruments for establishing a stable system of satisfying demand for electric power”.

Vitaly Korolyov emphasized several measures included in the “Road Map” for developing competition and aimed at increasing accessibility of energy infrastructure; in particular, including goals for developing competition in the list of areas of work of federal executive bodies.

“Analysis of statistical data for 2007 - 2012 shows increased violations of the antimonopoly law on the market of electric and heating power exposed by the antimonopoly bodies”, Vitaly Korolyov outlined the trend and illustrated it with some figures. For instance, in 2007 FAS exposed 400 violations on the market of electric and heating power and in 2012 this figure already reached 1372 violations.

FAS drafted a technique to evaluate economic feasibility of price bids on the market of electric power (a day-ahead power).

“It is done because from time to time restrictions emerge on the market of electric power (typically, network restrictions), which form such a position of generators when they can determine market price by unilateral actions. A high bid of a generator can fix the price or considerably affect the price on the relevant region. In the absence of any methodology for filing suppliers’ price bids on the electric power market, there is a risk of high prices”, explained Vitaly Korolyov.

He also informed about FAS proposal on liberalizing access to the wholesale market with regard of small retail consumers, as introduction of a single group of supply outlets in the region. A positive effect of the proposal is reducing payment for installing complex commercial accounting system, simplifying access to the wholesale market, eliminating administrative barriers for market participation as well as developing competition on retail markets.