FAS IS ASSIGNED THE RIGHT TO DEPRIVE AN ECONOMIC ENTITY OF ITS STATUS OF THE INTEGRATED HEATING SUPPLIER

The decision can be made if the integrated heating supplier systematically violated the antimonopoly law

The Heat Supply Working Group at FAS Expert Council on the Housing-and-Utility Complex discussed a new model of the heat supply market, steam deregulating practice and possibility to expand price deregulation to other segments of the housing-and-utilities sector.

Deputy Head of FAS Department for Regulating the Housing-and-Utility Complex, Elena Tsyshevskaya detailed new FAS powers assigned by the relevant amendments to the Law on heating supply coming into force.  Article 4.2. of the Law on heating supply approved some provisions that require special attention.

She clarified: “When an economic entity obtains the state of the integrated heating supplier (IHS), FAS a priori considers it an entity that has the dominant position on the market. The objects of antimonopoly control, in particular, become disputes that can emerge throughout allocating heating load within the heating system under the frame of devised heating supply schemes, the procedure for concluding HIS contracts with counteragents, as well as prices. FAS is assigned the right to deprive HIS of its status in case of systematic violations of the antimonopoly law.

The Working Group also discussed heating supply measures in the context of 2018-2020 National Competition Development Plan and the Public Declaration of 2018 FAS goals and objectives.

Alexei Matyukhin, Head of FAS Department for Regulating the Housing-and-Utility Complex, concluded: “FAS is working with the regions on executing measures of tariff policy specified in the National Competition Development Plan and approved by a Presidential Order. We invite market players to take part in the discussion. It is important for FAS to hear your opinion about implementing the National Plan as well as FAS public goals and objectives”.

The deadline for submitting comments and proposals by members of the Working Group is 16 March.