OREANDA-NEWS. March 04, 2011. The Order of the Federal Antimonopoly Service (FAS Russia) “On Approving the Technique for Verifying Conformity of Capacity Price Bids to the Economic Justification Requirement” came into effect, reported the press-centre of FAS Russia.

To determine whether the capacity price bids, filed for generating facilities in course of competitive power takeoff, conform to the economic justification requirement, the return on investment (ROI) method is applied, as well as the criterion of minimizing the aggregate capacity cost.

FAS Russia shall apply this technique if the antimonopoly authority establishes the incidents of capacity price manipulations in the wholesale market (related to competitive power outtakes). It is planned that in 2011 there will be four competitive power outtakes for the years 2012-2015.

If an antimonopoly body discovers the signs of price manipulation by one or several participants of the wholesale market in a free power transfer zone, it can propose that the Supervision Board of the Market Council cancels the results of the competitive power outtake. If the Supervision Board cancels the results, than a new competitive power outtake shall take place for the affected price zone of the wholesale market.

“This technique determines the procedures to be followed by the antimonopoly bodies to evaluate economic justification of the bids filed by participants of the capacity market. It should increase transparency and reasonableness of the decisions made by the government in this field”, said the Head of the FAS Russia’s Department for Electric Power Industry, Vitaly Korolyov.