OREANDA-NEWS. September 01, 2014. The Federal Antimonopoly Service (FAS Russia) found that providers of last resort violated the antimonopoly law: “Dagestan Energy Supplier” OJSC, “Nurenergo” OJSC, “Kabbalkenergo” OJSC, “Karachaevo-Cherkesskenergo” OJSC, “Ingushenergo” OJSC and “Sevkavkazenergo” OJSC that are members of “Rosseti” OJSC.

In January 2011 - December 2012, the companies in an organized manner considerably overrated the planned consumption at a regular basis with regard to actual consumption. As a result, prices for other consumers of electric power in the First price zone of the wholesale market of electric power and capacity increased unreasonably, which is a sign of restricting competition.

The group of persons operates in the areas where performance specifics of wholesale and retail markets are established. The consequence is buying electric power under the frame of regulated contracts considerably below the purchasing price of electric power on the wholesale market, where other market participants buy it.

By increasing the scope of buying electric power at understated prices in comparison with the fact of consumption, providers of last resort – members of the group of persons had a possibility to sell the remaining volumes at the price of the balancing market, which on average is 125% higher, generating a positive economic effect and influencing prices.

Such influence involved augmenting the volume characteristics of electric power demand, a consequence of which was loading more expensive generating equipment and demanding more expensive volumes of power generation. In view of the applied marginal pricing model (the price is determined according to the latest, the most expensive, marketable energy generated), it influenced not only the purchasing price of those providers of last resort but also the prices of other buyers on the wholesale market of electric power and capacity.

FAS found that such actions abused dominance and decided to forward proposals and recommendations to the Ministry of Energy of the Russian Federation and to issue a determination to transfer illegally obtained income to the federal budget. The sum for the companies - members of the group of persons exceeded 512 million RUB.

“Currently the decision and determinations are being prepared in full. The companies will also be issued conduct requirements to ensure accuracy of consumption planning, which will allow avoiding such violations in the future. Similar determinations issued earlier to the largest providers of last resort – “Mosenergisbyt” OJSC and “Petersburg Energy Supplier” OJSC under the frame of economic concentration control proved its efficiency: the accuracy of companies’ planning has improved”, pointed out the Head of FAS Department for Control over Electric Power Industry, Vitaly Korolyov.