OREANDA-NEWS. January 19, 2010. The Federal Antimonopoly Service issued a determination to "Biyskenergo" Ltd. to transfer more than 117 million Rubles of illegally gained income to the federal budget for price manipulation in the wholesale electric energy (power) market, reported the press-centre of FAS Russia.

On 1st December 2009, FAS Russia found that "Biyskenergo" Ltd. abused market dominance (in breach of Part 1 Article 10 of the Federal Law "On Protection of Competition").

"Biyskenergo" Ltd. generates electric power within the geographic boundaries of the second price zone for electric energy (power) as well as within the boundaries of the free power transfer - "Barnaul - Biysk Generation Centre".

"Biyskenergo" Ltd. violated the law by manipulating prices in the wholesale electric energy (power) market: the company filed economically and technologically unjustified price bids for selling electric power from 23rd May to 1st July 2007 and from 8th May to 18th November 2008. Such actions of the company resulted in considerable changes to the price of electric power and infringed the interests of the participants of the wholesale electric energy (power) market, operating within the geographic boundaries of the second price zone for electric energy (power).

FAS Russia issued a determination to "Biyskenergo" Ltd. to transfer to the federal budget 75,477,259 Rubles obtained as a result of violating the antimonopoly law from 23rd May to 1st July 2007, and 42,481,049 for violating the antimonopoly law from 8th May to 18th November 2008. The total fine amounts to 117,958,308 Rubles.

"This decision is very important for developing enforcement practice of antimonopoly control over the wholesale market of electric energy and power; and it should send a signal to market participants on the need to take into account the norms and standards of the antimonopoly law and the law on electric power industry. Producers of electric energy on the wholesale market must consider this when choosing the strategy of market behaviour, first of all, filing the price bids that should meet the criteria economic and technological justification", said Vitaly Korolyov, the Head of the FAS Russia's Department for Control over the Electric Power Industry.

Reference:
Under Clause 2 Article 25 of the Federal Law "On Electric Power Industry" of 26th March 2003, the wholesale and retail markets are under a system of regular control, aimed at timely preventing, discovering, restricting and (or) suppressing actions (lack of actions) that result or can result in preventing, restricting, eliminating competition and (or) infringing the interests of participants of the electric energy market and energy consumers, particularly, by price manipulating on wholesale and retail markets, particularly, by using market dominance and (or) exceptional market position.