FAS will form a unified control-and-liability system in heat supply

The Government of the Russian Federation approved a draft law of the Antimonopoly Service providing for administrative liability for failure to observe the information disclosure standards in this field.

The Government approved a draft law of the Federal Antimonopoly Service(FAS Russia)). It brings amendments to the Code on Administrative Violations (the Code) (Articles 9.15 and 19.8.1).

Article 9.15 has new elements: submitting knowingly incorrect information. Currently liability is established only for failure to provide information while Article 19.8.1 provides for administrative punishments for both failure and submitting knowingly false information.

Upon adapting the law, FAS will be able to hold regional tariff regulators liable for breaching the information disclosure standards. Information should be disclosed by heat suppliers and networks, regulators and FAS, although only natural monopoles can be held liable.

If FAS breaches the information disclosure standards it can be held liable by Courts.

Article 19.8.1 introduces liability for failure to disclose information for heat suppliers that are not natural monopolies.

Head of FAS Department for Regulation of the Housing & Utilities Sector, Alexei Matyukhin emphasized: “Adopting the draft law will enable establishing unified practice of applying administrative liability upon entities in the electric power industry and heat supply”.

Last year a Government Decree was passed to approve the information disclosure by heat suppliers and networks as well as regulators. Companies should put information in open access on decommissioning heat energy sources and networks, and on the grounds for suspending, restricting and termination hear energy consumption.

Earlier Alexei Matyukhin pointed out: “Observing the information disclosure standards by participants of the heat energy market is an essential condition for non-discriminatory access of consumers and stakeholders to the heat supply services”.

Reference:

Article9.15 of the Code on Administrative Violations: Breaching the information disclosure standards by participants of the wholesale market of electric power and capacity, retail markets of electric power (No. 160-FZ Federal Law of17.07.2009)

Breaching the information disclosure standards by participants of the wholesale market of electric power and capacity, retail markets of electric power: the procedure, methods or timeframe for publishing information in print media, that publish official materials of the authorities in accord with the federal laws and the laws of the subjects of the Russian Federation, in electronic mass media, and  the procedure, methods or timeframe for providing information upon a written request from the interested persons –

is punishable by an administrative fine upon officials – from 20,000 RUB to 30,000 RUB; upon legal entities – from 200,000 RUB to 500,000 RUB.

Article19.8.1 of the Code: Failure to provide information or providing knowingly false information on their operations by natural monopolies and (or) utility companies (No. 281-FZ Federal Law of 25.12.2008)

1. Failure to provide information or providing knowingly false information on their operations, failure to publish or publishing knowingly false information on their operations by natural monopolies and (or) utility companies, if publishing and (or) submitting such data is mandatory under the law of the Russian Federation, as well as breaching the established information disclosure standards on regulated operations of natural monopolies and (or) utility companies  and the forms of providing it and (or) filling in, including the time frame and frequency of providing information by natural monopolies  and (or) utility companies, except cases specified in Article 9.15 of the Code,

(in the version of  No. 160- FZ Federal Law of17.07.2009)

are punishable by an administrative fine upon officials – from 5000 RUB to 20000 RUB; upon legal entities – from 100,000 RUB to 500,000 RUB.

2. An administrative violation under Part 1 of this Article, by an official that was earlier subjected to a similar administrative punishment –

leads to disqualification for the period 1-3 years.