OREANDA-NEWS. September 03, 2010. The Federal Antimonopoly Service (FAS Russia) determined 26 free power transfer zones, where competitive capacity outtake shall take place using the maximum capacity price, reported the press-centre of FAS Russia.

Under the Regulations of wholesale markets, FAS Russia determines free power transfer zones, where competitive capacity outtake shall take place using the maximum capacity price based on the annual analysis of economic concentration of suppliers in free power transfer zones no later than a month before the deadline for filing applications for competitive capacity outtake (before 1st October 2010).

Currently the wholesale market of electric power (capacity) has 29 free power transfer zones (22 in the first price zone and 7 in the second zone).

FAS Russia has analyzed economic concentration of supplier in 29 free power transfer zones and has established that markets in 26 free power transfer zones are highly concentrated, and in three zones (Siberia, Urals, Centre) the level of concentration is moderate.

Based on this analysis, the Antimonopoly Service has set the maximum capacity price for 26 free power transfer zones where market is highly concentrated, and to protect competition in the remaining three zones FAS has introduced additional requirements with regard to price applications.

“Although there are not too many free power transfer zones, where the maximum level is not introduced, they are quite representative by the volume of capacity -over 40% of competitive market and over 50% geographically, including free power transfer zones of the Centre, Urals and Siberia”, pointed out Deputy Head of FAS Russia Anatoly Golomolzin. “Under the established procedures, FAS Russia has the tools to prevent price manipulation in competitive outtake”.