“Chechenenergo” was fined for inaccurate data

On 20 June 2017 FAS fined “Chechenenergo” JSC 350,000 RUB for improper execution of the Information Disclosure Standards by participants of the wholesale and retail markets of electric power, approved by No. 24 Decree of the Government of the Russian Federation of 21 January 2004.

In breach of the Standards, “Chechenenergo” JSC submitted inaccurate data on the average weighted non-regulated prices for electric power under the first price category for October 2016.

The average weighted non-regulated prices for electric power (capacity) for October 2016 estimated by the company exceeded the average weighted non-regulated prices for electric power (capacity) on the wholesale market, determined by a commercial operator for the relevant provider of last resort.

Deputy Head of FAS Department for Regulating the Electric Power Industry, Sergey Dudkin pointed out: “Apart from administrative liability for failure to submit inaccurate information, exceeding prices on a competitive wholesale market by providers of last resort is the subject of antimonopoly regulation. Universal FAS control over providers of last resort, that receive additional income not from sale mark-ups but from other forms of charging fee from consumers, will be another signal to the participants of the wholesale electric power market that economically unjustified actions are unacceptable”.

 Reference:

The Standards obligate provides of last resort, energy sellers and suppliers to submit to the administrator of the trading system of the wholesale market of electric power additional reliable data on average weighted non-regulated prices on electric power (capacity).

Under Clause 8 of the Standards, participants of the markets of electric power (capacity) are responsible for completeness and reliability of the disclosed information.

Clause 2 Article 25 oftheFederalLawontheelectricpowerindustryestablishesasystemofregularcontrolovertheirperformance,

Aimed at timely prevention, exposing, restricting and (or) suppressing actions (omissions) that lead or can lead to preventing, restricting, eliminating competition and (or) infringing the interests of the subjects of the electric power industry and consumers of electric power, particularly, manipulating prices on the wholesale and retail markets.