OREANDA-NEWS. August 11, 2014. Competitive capacity take-off for 2015 shall take place in September 2014 (CCTO).

Competitive capacity take-off is organized to ensure that the Unified Energy System of Russia has sufficient volume of generating capacity to satisfy demand for electric power. The price for capacity supply in 2015 within the boundaries of free power transfer zones (FPTZ) shall be determined on the basis of competitive capacity take-off.

Based on analysis of economic concentration in 21 FPTZ, FAS determined 5 zones with competitive pricing – “Siberia”, “Urals”, “Centre”, “Volga” and “Vyatka”, where CCTO will take place without determining the ceiling capacity price. The remaining 16 zones are included in the list of FPTZ, take-off for which is based on the ceiling price.

In comparison with 2013, the list of zones with competitive pricing remains unchanged: sufficient technological measures (network construction that increases electric power and capacity transfer between FPTZ) and changes to normative legal acts that expand the list of zones have not been implemented.

Based on the findings of an analysis conducted, in particular, using data of the “Market Council” Non-Profit Partnership, FAS Russia, taking into account public discussions and upon an agreement with the Ministry of Energy and the Federal Tariff Service, approved the Order “On Determining Free Power Transfer Zones, Where Competitive Capacity Take-Off for 2015 is Organized Using Maximum Capacity Prices”.

Due to adopting the Rules of Antimonopoly Regulation and Control over Electric Power Industry, approved by No. 1164 Decree of the Government of the Russian Federation of 17.12.2013, FAS also determined the List of wholesale market participants that have the dominant position within the boundaries of free power transfer zones, and forwarded the List to the “System Operator of the Unified Energy System” OJSC.

This year, for the first time mandatory preliminary control by the antimonopoly authority is introduced to verify whether the applications filed by dominant economic entities for taking part in competitive capacity take-off are economically justified and if necessary FAS issues conditions for such entities taking part in such take-off.

Therefore, economic entities included in the List that intend to take part in CCTO must petition to FAS no later than 15 days after the List was published on determining the conditions for an economic entity taking part in competitive take-off.

“Introducing the new mechanism of preliminary consideration of petitions for participation of the largest market players in competitive take-off will prevent possible non-market conduct of companies and price manipulation on the capacity market. I also would like to express the hope that in the next competitive capacity take-off, we, jointly with our colleagues from the Ministry of Energy, will be able to form a new list of enlarged FPTZ, which will make capacity trading more competitive”, pointed out the Head of FAS Department for Control over Electric Power Industry, Vitaly Korolyov.