ENFORCEMENT PRACTICE OF THE COMPETITION AUTHORITY WAS DISCUSSED IN MOSCOW

On 14 May 2019, Moscow OFAS discussed with FAS its enforcement practice and implementing antimonopoly compliance by Moscow authorities

The meeting was opened by Head of Moscow OFAS Armen Khanyan. He emphasized that Moscow remains one of the most favourable cities in Russia for attracting investments and doing private business. The targets of the National Competition Development Plan are high.

Last year an Agreement on Cooperation was signed between Moscow Government and FAS. The Action Plan for competition development on 35 markets in Moscow is already approved. The work is in full swing, antimonopoly compliance is already implemented by Moscow executive bodies”, said Armen Khanyan.

Deputy Head of Moscow OFAS, Ekaterina Osipchuk, discussed in detail the system of in-house conformity to the norms of the antimonopoly law in Moscow authorities. She emphasized that the institution of antimonopoly compliance is designed reduce violations of the antimonopoly law by the authorities, so for them antimonopoly compliance is mandatory while it is a recommendation for economic entities.

“Each decision of the authorities should be made in view of assessment of its consequences for competition. All Departments, Committees, Inspectorates, Offices, Prefectures and Municipal Councils in Moscow passed regulations on antimonopoly compliance, designated structural units or officials responsible for antimonopoly compliance. In-house efforts are undertaken to expose compliance-risks and approving Action Plans and Road Maps to reduce the risks of breaching the antimonopoly law”, emphasized Deputy Head of Moscow OFAS, Ekaterina Osipchuk.

Head of FAS Department for Regulating the Electric Power Industry, Dmitry Vasiliev pointed out that FAS has drafted a package of decisions to automate control over tariff decision-making in the sector.

“As a result, several new digital solutions were developed aimed at implementing a risk-oriented approach by regional tariff bodies, tightening preliminary control over tariffs and prices in the electric power industry, enhance transparency and shift to unification and streamlining the regulation mode with elements of verifying tariff decisions by automated smart programs”, reportedDmitry Vasiliev.

He described digital solutions being implemented by FAS in tariff regulation of eh electric power industry. First, the “federal tariff traffic lights”, enabling regional tariff bodies to determine in advance that their decisions will comply with the regulations or require refinement and are contrary to the current norms.

The next FAS project in digital tariff regulation is a calculator of electric power (capacity) prices. The calculator will allow individuals and legal entities to verify the correctness of bills for consumed electric power in particular months.

Another digital solution being developed by FAS is an interactive map of prices and tariffs. It is designed to create transparent price signals, particularly, to analyze investment attractiveness of regions in Russia. The map will show current prices (tariffs) and payments for technological connection by the regions, which will help evaluate electric power costs (including technological connection) before implementing investment projects and make the right administrative decisions.

The tools of the interactive map will enable consumers of electric power (capacity) to understand the elements of the end price for electric power (capacity), thus improving consumer competence and transparency of tariff regulation in general.

Finally, Armen Khanyan added that the informational policy of Moscow OFAS is transparent and the antimonopoly body does its best to further improve its operations.