OREANDA-NEWS. April 09, 2012. “Mosenergo” OJSC manipulated prices on the wholesale market of electric power (capacity) by filing unreasonably high price applications for sale of electric power without any economic and technological justification, reported the press-centre of FAS Russia.  

On 2nd April 2012, the Federal Antimonopoly Service (FAS Russia) found that “Mosenergo” OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition”. Unlawful actions of “Mosenergo” OJSC: manipulating prices on the wholesale market of electric power (capacity) by filing unreasonably high price bids for sale of electric power without any economic and technological justification. As a result, prices for electric power increased considerably.

The FAS Commission also issued a determination to “Mosenergo” OJSC to transfer the income gained by committing the antimonopoly violation - 2,768,461.9 Rubles – to the federal budget.

FAS will send its decision and determination to “Mosenergo” OJSC within ten working days.

Earlier FAS received a letter from the “Market Council” Non-Commercial Partnership with analysis of growing prices on the wholesale market of electric power.

Following the letter, FAS carried out a scheduled inspection to verify whether the company complied with the antimonopoly law.

On the basis of the obtained information, FAS established that in April 2009 “Mosenergo” OJSC filed day-ahead price bids regarding electric power stations, exceeding the earlier filed applications on average by 70%. Such actions of the company resulted in increasing prices for consumers.

Reference:

Under Part 2 Article 25 of the Federal Law “On Electric Power Industry”, the wholesale and retail markets have a system of regular control over market performance, aimed at timely preventing, exposing and (or) suppressing actions (omissions) that have resulted or can result in preventing, restricting, eliminating competition and (or) infringing the interests of participants of the market of electric power industry and consumers of electric power, including possibility to manipulate prices on the wholesale and retail markets; manipulating prices on the wholesale and retail markets, in particular, using its dominant position.

Under Part 5 Article 25 of the Federal Law “On Electric Power Industry”, to prevent abusing and price manipulation the following measures can be applied, according to the procedures determined by the Government of the Russian Federation, with regard to participants of the wholesale market that have dominant position or manipulate and (or) have a possibility to manipulate prices on the wholesale market: government regulation of prices (tariffs); restricting prices in price applications; introducing restrictions in the form of a condition for filing only price-accepting applications; obligating a participant of the wholesale market to supply maximum possible volumes of electric power and capacity, generated using the equipment owned by the market participant, to the wholesale market.

Under Part 6 Article 25 of the Federal Law “On Electric Power Industry”, according to the procedures established by the antimonopoly law of the Russian Federation, in view of the specifics determined by the Government of the Russian Federation, an economic entity that repeatedly abused its dominant position, in particular, manipulated prices on the wholesale and retail markets or exercised any other monopolistic activities, can be forcibly split-off.