FAS ISSUED A WARNING TO SYZRAN AUTHORITY

Competition authority revealed signs of violating the procedures for determining a single heating supplier and restricting competition

In July 2018, Syzran Town Authority adopted a Road Map on the measures towards preparing to 2018-2019 autumn-winter season in view of the current position of “ZhES” Municipal Unitary Enterprise.

According to the Road Map, from June 2018 this unitary enterprise stopped being the single heating supplier in Syzran.

Within three days after making the decision, the local self-government body had to make it publically available, and ask heat suppliers and heat distribution networks to apply for the status of the single heating supplier.

The law requires that the single heating supplier should be determined through an open and competitive method.

On 31 July 2018 Syzran Town Authority passed a decree on assigning the status of the single heating supplier to “Energetic” Ltd. Syzran Authority, however, failed to publish the decision within the required period.

Deputy Head of FAS Vitaly Korolev commented: “Omission by the local self-government body restricted the legitimate rights of the market participants.  FAS issued a warning to Syzran Town Authority. Within 60 days after the local self-government body received it, the warning must have been executed by withdrawing the order on assigning the status of the single heating supplier to “Energetic” Ltd. Also, it is necessary to repeat the procedure for determining single heating supplier”.