Nizhny Novgorod Regional Tariff Service executed a FAS warning

Actions of the authority had signs of competition restriction

In December 2016, the Antimonopoly Service sent a warning to Nizhny Novgorod Regional Tariff Service. FAS established that the tariff body of the subjects of the Russian Federation unreasonably abolished the tariffs for the electric power transmission services for “Nizhny Novgorod Regional Tariff Service Grid Company” Ltd. (“NESK” Ltd.).

The antimonopoly body exposed the following fact: Nizhny Novgorod Regional Tariff Service included the company in the list of regional grid companies, for which tariffs are not set and reviewed because the company does not meet the criteria approved by a Decree of the Government of the Russian Federation.

The regional tariff body included the company in the list following an expert examination based on departmental acts that are no more valid. Therefore, they should have not been applied to analyze conformity of “NESK” Ltd. to the local grid operator criteria.

Therefore, abolishing individual tariffs for the company, the Regional Tariff Service unreasonably excluded “NESK” Ltd. from economic entities that can render electric power transmission services in the Nizhny Novgorod region.

Such actions contained elements of violating the antimonopoly law. In December 2016 FAS warned the regional tariff regulator which was executed by returning the earlier tariff.

Deputy Head of FAS Vitaly Korolev said: “Exercising their statutory functions, regional tariff regulators must fulfill them strictly in line with the law and prevent wrongful elimination of companies that meet the local grid operator criteria from the market”.