OREANDA-NEWS. April 05, 2013. The Federal Antimonopoly Service (FAS Russia) made a decision on an antimonopoly case against “TGK Urussinskaya” Regional Power Station” CJSC and a group of persons comprising “Volzhskaya” TGK [Territorial Generating Company]” OJSC and “TGK-6” OJSC.

FAS found that “TGK Urussinskaya” Regional Power Station” CJSC and the group of persons comprising “Volzhskaya” TGK [Territorial Generating Company]” OJSC and “TGK-6” OJSC violated Part 3 Article 11 of the Federal Law “On Protection of Competition” (an agreement that results in manipulations on the wholesale market). Also the group of persons comprising “Volzhskaya” TGK” OJSC and “TGK-6” OJSC abused market dominance by manipulating prices in the course of competitive capacity outtake for 2013 (Part 1 Article 10 of the Federal Law “On Protection of Competition”).

Competitive capacity outtakes for 2013 took place in September 2012 in 23 free power transfer zones. The results of the outtakes were published on 24th September on the web-site of the Grid Operator, according to which the capacity price in one of the free power transfer zones of the First Price Zone was 16% higher than in other free power transfer zones”: in “Volga” free power transfer zone capacity price was 153,000 Rub/MW per month.

Analyzing the pricing factors in “Volga” free power transfer zone, FAS Russia exposed signs of economically and technologically unjustified actions – signs of prices manipulation in this zone by the group of persons comprising “Volzhskaya” TGK” OJSC and “TGK-6” OJSC. FAS also identified signs of an agreement concluded between “TGK Urussinskaya” Regional Power Station” CJSC and the group of persons comprising “Volzhskaya” TGK” OJSC and “TGK-6” OJSC, which resulted in price manipulation on the wholesale market. FAS informed the Supervisory Board of the “Market Council” Non-Commercial Partnership about signs of price manipulation. The Supervisory Board is responsible for abolishing competitive capacity outtakes.

On 11th October 2012, the Supervisory Board of the “Market Council” Non-Commercial Partnership made a decision to abolish the results of the competitive capacity outtake in the First Price Zone and repeat the outtake.

As a result of the repeated outtake, the capacity price in “Volga” free power transfer zone decreased by 29% to 117,999.00 Rub/MW per month.

“Investigating the case, FAS took into consideration, in particular, the prices formed as a result of competitive capacity outtakes in other free power transfer zones that are comparable markets for the purposes of assessing the results of the actions of market participants. The analysis shows that the price and the price bid that formed it are economically unjustified”, pointed out the Head of FAS Department for Control over Electric Power Industry, Vitaly Korolyov.