FAS OPENED A CASE AGAINST KURSK REGIONAL OPERATOR FOR SOLID MUNICIPAL WASTE TREATMENT

FAS suspects elements of obstructing market entry in the actions of “Ecopol” Ltd.

Monitoring zakupki.gov.ru, the competition authority found that “Ecopol” Ltd. had not carried out competitive bidding for the services of transporting solid municipal waste in the Southwestern zone of the Kursk region, based on which prices for this service are formed.

The consumers of the services provided by “Ecopol” Ltd. are the population and legal entities of the Southwestern zone of the Kursk region, who do not have a possibility to conclude contracts to render solid municipal waste treatment services with other companies, since “Ecopol” Ltd. is a regional operator in the Southwestern zone of the Kursk region.

Due to the antimonopoly law, the company ahs the dominant position in the Southwestern zone of the Kursk region.

FAS also revealed a fact that 44.63% of solid municipal waste in the region are formed in operations area of “Ecopol” Ltd. According to the law, prices for the services of solid municipal waster transportation for the regional operator should be formed upon the outcome of competition bidding, particular, if more than 30% of solid municipal waste are generated in the zone of its operations. Therefore, “Ecopol” Ltd. must have organized the bidding.

Based on the monitoring of zakupki.gov.ru, FAS found that the company organized several procurements from the single supplier for the services of transporting solid municipal waster, 5 hazard class, by road. Such actions are contrary to the Competitive Bidding Rules*.

“Competitive procurement procedures could have reduced the costs of services for solid municipal waster transportation, which ultimately will have a positive impact upon consumer payments. FAS reveals some signs of competition restrictions in actions of “Ecopol” Ltd.: obstructing market entry of other companies. The first case hearing will be on 14 May 2019”, informed Head of FAS Department for Regulating the Housing-and-Utility Sector, Alexei Matyukhin.

Reference:

* No. 1133 Decree of the Government of the Russian Federation "On approving the Competitive Bidding Rules, upon the outcome of which prices are formed for the services on transporting solid municipal waste for regional operators” of 3 November 2016