OREANDA-NEWS. October 10, 2013. FAS and OECD Regional Competition Center in Hungary jointly organized a workshop on “Developing Competition on the Electric Power Market”, which took place in the Resource-and-Training Centre of the Federal Antimonopoly Service in Kazan.

The workshop participants included the heads and experts of the antimonopoly authorities of Hungary, the Netherlands, Belgium, Finland, Ukraine, Moldova, Russia and other CIS member –states and representatives of the Commission of European Communities were invited to take part in the workshop.

The welcoming address to the international workshop was given by Deputy Head of FAS Anatoly Golomolzin and Vice-President of Hungary’s competition authority, Zoltan Horvath.

“it is important for us to evaluate the experience of reforming electric power industry and understand how effective are methods of antimonopoly enforcement. The question is also about establishing trading sites on wholesale electric power markets as well as restructuring”, emphasized Anatoly Golomolzin.”In Russia representatives of the antimonopoly authority also are members of the Boards of tariff regulators. In most countries antimonopoly bodies combine antimonopoly regulation of the market with tariff regulation. As pointed out at OECD meeting, this combination is the most efficient”, added by Deputy Head of FAS.

“Our goal today is to form a competitive wholesale market of electric power and adequate commercial infrastructure. It is also necessary to create preconditions for entry of new participants to the market. To this aim, Russia has already developed and uses the rules for wholesale and retail markets and the Rule for non-discriminatory access to the electric power market”, stated Anatoly Golomolzin.

A senior OECD expert on competition, Sabine Zigelski discussed the problems of compliance with competition law on the electric power markets in the OECD countries.

First, Sabine Zigelski outlines the common features and characteristics of electric power markets drew experts’ attention to the situation in Russia. “A lot has already been achieved, spot wholesale power market is established and the mechanism for capacity take-off is formed, covering the most part of the European Russia, the Urals and Siberia, and much more. However, it would be too early to relax since the market is very dynamic”, pointed out Sabine Zigelski.

“International cooperation between the antimonopoly bodies is necessary to achieve more comprehensive and fuller control over market development. Our job is to make sure that the decisions of the antimonopoly bodies encourage competition and protect the interests of market players”, summed up Sabine Zigelski.

Raquel Tarrega Lopez, representing the Directorate General on Competition, the European Commission, gave en extensive review of the electric power market in the EU.

She discussed the three packages for liberalization of the electric power market, how they had influenced the market and the violations of the antimonopoly law. According to Raquel Tarrega Lopez: “Electric power markets are very sensitive to a degree of market power, so supporting competition is the key to the benefits for consumers”.

Then Anatoly Golomolzin gave a report on the “Electric Power and Capacity Market in Russia. Antimonopoly regulation and Control over Electric Power Industry”.

“Competitive relations on the electric power and capacity market exist in most Russian provinces. The market is divided into two price zones. The first price zone includes the European part of Russia to the Urals; the second price zone comprises Siberian regions”, explained Anatoly Golomolzin. He presented a history of developing the electric power and capacity market in Russia since 2001.

“The main goal of the reforms is to increase efficiency of industry enterprises, create conditions for its development on the basis of investment stimulation, and ensure reliable and uninterruptable power supply to consumers”, pointed out the speaker. “It is important for us to achieve a balance of interests between suppliers and consumers of electric power. To this purpose, along with creating structural preconditions, there is a well-organized commercial infrastructure of the market of electric power (capacity)”.

Anatoly Golomolzin also looked into the issues of control and monitoring the electric power and capacity market, along with FAS carried out by the “Market Council” Noncommercial Partnership, the Federal Tariff Service and the Ministry of Energy (accordingly to their competences. There is also a Conflict Commission of the Market Council, which considers disputable situation under a pre-action protocol. “Unfortunately, electric power industry remains No.1 violator of the antimonopoly law in Russia, but the number of cases on such violations each year decreases, particular due to an institution of antimonopoly enforcement – warnings, introduced in 2012. Initiating a case is a labour-intensive process, which requires time, and as FAS decisions are often appealed at Courts, it takes many months and even years. The warning system not only enables us to reduce the number of cases but, what’s the most important, to correct the situation on the market within the shortest possible period”, said Anatoly Golomolzin.

Olli Kauppi, a senior investigations inspector of Finnish Competition and Consumer Authority analyzed the electric power market in the countries of the Northern Europe.

The joint workshop continues on 2nd October 2013: participants discussed measures for suppressing violations of competitive conditions on the electric power markets.