REFORMING ELECTRIC POWER INDUSTRY INCREASED THE NUMBER OF INDEPENDENT PLAYERS

Another conclusion reached by FAS experts is that the level of market concentration also reduced

On 24 October 2019, Deputy Head of FAS Andrey Tsyganov chaired a meeting of the Market Analysis Commission. The experts reviewed the state of competition on the wholesale market of electric power and capacity in 2018.

The Review includes definition of product and geographic market boundaries, categories of economic entities, the volume (scope) of the wholesale market and market share of participants, the level of concentration of producers on the wholesale market of electric power (capacity) and market entry barriers.

Experts concluded that the reforms of the electric power industry increased the number of independent participants on the wholesale market of electric power (capacity) and reduced the level of market concentration. To further develop competition on the market, the Review outlines several measures, including regulatory acts provided for by the Rules of antimonopoly regulation and control in the electric power industry, improving the mechanisms of trade with electric power  and capacity, stimulating competitive conduct of suppliers and enhancing their performance, eliminating technological restrictions between free power transfer zones as well as price zones through construction of power grid facilities, increasing network transfer capacity, etc.

As pointed out Commission Chairman Andrey Tsyganov, “the wholesale market of electric power (capacity) is the most backbone market. FAS watches carefully its performance and analyses the state of competition on this market annually”.