Synergy of powers facilitates competition development

Deputy Head of FAS Andrey Tsyganov discussed it at a special meeting of top official of competition authorities on 28 April. The meeting was chaired by a professor from the University of Washington, William Kovacic, and focused on the strategies of antimonopoly bodies and modern challenges.  

Deputy Head of FAS Andrey Tsyganov informed his colleagues from foreign competition authorities about changes to Russian antimonopoly law due to the “forth antimonopoly package” coming into force. The package of amendments was devised in view of OECD Recommendations and the best ICN practices.

He informed attendees on transferring the tariff regulation functions to Russia in July 2015.

Among the principles guiding FAS in tariff-setting decisions, the primary one is a general pro-competitive approach: deregulating some sectors and segments of natural monopolies and a gradual transition to market relations. In its work FAS uses the principle of cost reduction in exchange for tariff indexation as well as the “costs minus” principle, and applies the “comparable markets” method.  

Andrey Tsyganov emphasized the importance of the synergy of power of the competition authorities that enables suppressing monopolistic activity of infrastructure companies, reduce the costs by optimizing corporate procurement, set economically justified tariffs in the interests of consumers and prevent excessive regulation.