OREANDA-NEWS. July 15, 2011. The Russian Ministry of Justice registered orders of the Federal Antimonopoly Service (FAS Russia) “On Determining Free Power Transfer Zones, where Competitive Capacity Outtake for 2012 is Organized Using the Threshold Price for Capacity” (No. 457 of 21st June 2011) and “On Introducing Additional Requirements to the Price Bids Filed for Competitive Capacity Outtake for 2012 by Capacity Suppliers (a Group of Persons) that Have Dominant and (or) Exceptional Position on the Wholesale Market within the Same Free Power Transfer Zone” (No. 458 of 21st June 2011), reported the press-centre of FAS Russia.

These orders introduce threshold prices in 24 free power transfer zones out of 27 for competitive capacity outtake in 2012. In the remaining three largest free power transfer zones (“Centre”, “Urals”, Siberia”) competitive capacity outtake will take place without threshold capacity prices. Earlier, in 2010 competitive capacity outtake was organized without threshold prices for capacity only in two free power transfer zones.

In 2011 the overall number of free power transfer zones reduced in comparison with 2010 because “Khakassia” Free Power Transfer Zone (FPTZ) was included in “Siberia” FPTZ, and “SBU” FPTZ was included in the “Urals” FPTZ. According to FAS Russia, combining free power transfer zones leads to developing competition among suppliers on the wholesale market of electric power (capacity), reducing market prices for capacity, decreasing “forced” generation and lowering technological barriers within the common capacity market in the Russian Federation.

In order to constrain market power of capacity suppliers in the three free power transfer zones, where competitive capacity outtake are organized without using threshold capacity price, FAS Russia introduced additional requirements to the price bids. In particular, capacity suppliers (the group of persons) that have dominant and (or) exceptional position, with installed capacity over 3000 mW in “Siberia” FPTZ were required to file bids with similar price. All bids must be economically justified.

FAS Russia orders can be found on www.fas.gov.ru as well as the specialized technical web-site of the system operator “Competitive Capacity Outtake”.