Stakeholder Engagement

Stakeholder engagement in FAS’s decision-making is carried out through stakeholders’ participation in various collegial bodies at FAS. These are advisory bodies, which include:

1. Collegium
2. Exchange Committee
3. Board
4. Appellate Instance
5. Methodological Council
6. Methodological Council on Tariff Regulation
7. Commission for the Analysis of Product Markets
8. Scientific Methodological Council
9. Presidium
10. Public Council
11. Expert Councils on the Development of Competition in the Key Markets

Another way how the stakeholders engage in FAS's decision-making is via the so-called Market Council, a non-profit orhanization, which carries out various regulatory activities in the fiels of energy jointly with FAS.

1. Collegium

The Collegium at FAS is a permanent advisory body supervised by the Head of FAS. Its agenda depends on the tasks and powers assigned to FAS and its Regional Offices.

2. Exchange Committee

The Exchange Committee contributes to the development of well-coordinated trading process.

The Exchange Committee performs the following tasks:

•  Analyzes the situation at the exchange markets.
•  Implements the measures necessary for the development and strengthening of the exchange trade.
• Provides the recommendations for the market players to prevent possible violations of antimonopoly legislation.

The Exchange Committee meets weekly and among other persons consists of the representatives of FAS, the Federal Tax Service, the Bank of Russia, large oil companies, independent market players at the oil-products market, infrastructure organizations (stock exchanges), and expert organizations.

Due to the necessity of further development and improvement of exchange trade and prompt solution to the emerging issues, the following sub-committees and project working groups of the Exchange Committee were created on the initiative of FAS:

• Sub-committee on launch on Russian stock exchange and development of trade of deliverable stock contracts for the export of oil products.
• Sub-committee on development of timber on-exchange trading.
• Sub-committee on development of mineral fertilizers on-exchange trading.
• Sub-committee on development of food product on-exchange trading.
• Sub-committee on organization of movement of regular freight trains with oil products purchased on stock exchange and on registration of rates on railway freight provision, costs of rail transportation of freight.
• Project working group on adoption of a unified position on issues related to payments for services of transportation by lines of common and uncommon usage, as well as other to cases that are not specifically prescribed by the law and that carry disruption of economic activity of oil products market participants.
• Project working group on establishment of proposals related to improvement of provisions of the joint order of the FAS and the Russian Ministry of Energy 12.01.2015 No. 3/15/3.
• Project working group on legal and regulatory consolidation related to stockpiling and drain of oil products reserves, as well as to taking oil refinery out of services for repair.
  

3. Board

The Board adopts the decisions on the establishment of prices (tariffs) and their thresholds in the field of activities of natural monopolies and other regulated entities. The Board consists of twelve people including the representatives of FAS and other public authorities.

4. Appellate Instance

The Appellate Instance revises the rulings and (or) remedies of the Regional Offices of FAS in case of a violation of the antimonopoly legislation when they violate the uniformity of application of antimonopoly legislation.

5. Methodological Council

The Methodological Council considers the most important issues relating to, among other things, methodology, analysis, and generalization of competition law enforcement practices and regional aspects of competition policy.

The Methodological Council performs the following tasks:

• Considers draft methodological recommendations and other methodological materials developed by Central and Regional Offices of FAS.
• Considers the proposals of the Councils of Heads of the Regional Offices of FAS concerning the questions, which require participation of the Central Office.
• Considers draft legal acts and the draft Report on the State of Competition, which includes information on the key achievements of FAS, an assessment of the state of competition, information on the implementation and effectiveness of the measures undertaken by FAS, and information on the problems in various industries and regions.
• Analyzes and summarizes the best and the worst regional competition law enforcement practices jointly with the regional and federal public authorities and public organizations.

The Methodological Council consists of the economists, the heads of the departments of FAS’s Central Office, the heads of FAS’s Regional Offices, and the representatives of the Association of Antimonopoly Experts. The Methodological Council is able to invite the representatives of the Public Advisory Council, the representatives of the Expert Councils, the representatives of federal and regional executive public authorities to its meetings. It is also able to interact with business alliances, non-profit institutions, non-governmental and scientific organizations

6. Methodological Council on Tariff Regulation

The Methodological Council on Tariff Regulation exercises tariff policy with the view of procompetitive principles of tariff regulation.

The Methodological Council on Tariff Regulation performs the following tasks:

• Considers draft laws, regulations, and the best practices related to the determination of prices (tariffs) and (or) their ceiling in the field of activity of natural monopolies and other regulated entities.
• Develops unified approaches to tariff regulation related issues.
• Drafts proposals on the main governmental policy lines in regulated sectors with regard to tariffs.
• Drafts proposals on how to increase the flexibility of tariffs policy and deregulate tariffs in the competition conditions in the regulated and adjacent markets.

The Methodological Council on Tariff Regulation consists of the representatives of the federal and regional executive authorities, the representatives of natural monopolies, scientific organizations, business alliances, and non-governmental organizations.

7. Commission for the Analysis of Product Markets

The Commission for the Analysis of Product Markets carries out several major economic functions.

It performs the following tasks:

• At the proposal of FAS’s departments, it approves the plan for the analysis of product markets, including socially significant markets, which is necessary for the prevention of violations of antimonopoly legislation.
• Develops draft plans for the analysis of product markets.
• Considers and approves draft guidelines for the analysis of product markets developed by the Regional Offices of FAS.
• Considers the materials of the analysis of product markets upon its completion.

The Commission for the Analysis of Product Markets includes the representatives of FAS, the representatives of the Public Advisory Council and Expert Councils of FAS, other public authorities, the representatives of business alliances, non-governmental and scientific organizations.

8. Scientific Methodological Council

Scientific Methodological Council unites efforts of FAS, educational and scientific organizations and academic staff in order to develop competition law and improve antimonopoly regulation, train highly qualified professionals, as well as coordinate educational, methodological, research, and innovation activities in this area.

Its main functions include:

• Popularization of antimonopoly law as one of the basic educational disciplines.
• Organization of scientific, theoretical and practical research and development of antimonopoly science and regulation.
• Providing methodological assistance to antimonopoly tracks at the law faculties.
• Discussion of the most problematic and debatable aspects of antimonopoly law and regulation, shaping the appropriate resolutions for such issues.
• Cooperation with state authorities, universities and public organizations.
• Promotion of antimonopoly law and regulation in the Russian academic community.

The Scientific Methodological Council includes representatives of FAS, heads (representatives) of educational and scientific organizations, academic departments of competition law and antimonopoly regulation.

9. Presidium

The Presidium considers the most important issues attributed to the jurisdiction of FAS.

In particular, the Presidium performs the following tasks:

• Considers the materials, which assess and summarize practical application of antimonopoly legislation and provides corresponding  guidelines.
• Revises rulings and (or)  remedies of the Regional Offices of FAS in cases of violation of antimonopoly legislation in the event such rulings and (or) remedies violate the uniformity of application of antimonopoly legislation.

The Presidium consists of the Head of FAS (Chair of the Presidium), his deputies, the heads of Moscow and Moscow-region Offices of FAS, as well as the heads of a number of departments of Central Office of FAS.

10. Public Council

The Public Council monitors the activity of FAS and develops the recommendations on the improvement of antimonopoly law and enforcement.

Its functions include:

• Consideration of drafts of socially significant regulatory legal acts and other documents developed by FAS.
• Participation in monitoring of quality of public services provided by FAS, in implementation of control and supervisory functions of FAS, in anti-corruption and HR work.
• Assessment of public procurement effectiveness.
• Review of annual plans of FAS’s activity and the report on their implementation.
• Consideration of other issues provided by the current regulatory acts.

It comprises the representatives of the most influential non-governmental organizations and business associations.

Similar councils operate under FAS’s Regional Offices.

11. Expert Councils on the Development of Competition in the Key Markets

Expert Councils on the Development of Competition in the Key Markets evaluate the situation on the relevant markets and enhance the transparency of FAS’s decisions.

Expert Councils consist of market players, representatives of non-profit partnerships and regulatory bodies.

Such Expert Councils include but are not limited to:

• Expert Council on the Development of Competition in Oil and Oil-products Markets
• Expert Council on the Development of Competition in Education and Science
• Expert Council on the Development of Competition in the Retail Industry
• Expert Council on the Development of Competition in the Field of Metallurgy
• Expert Council on the Development of Competition in the Gas Market
• Expert Council on the Development of Competition in Information Technology
• Expert Council on the Development of Competition in Mechanical Engineering
• Expert Council on the Development of Competition in the Markets of Alcoholic Products
• Expert Council on the Development of Competition in Medical Devices Circulation
• Expert Council on the Development of Competition in the Fisheries Industry
• Expert Council on the Development of Competition in the Construction Industry
• Expert Council on the Development of Competition in the Air Transport Market

12. Market Council

The Non-Profit Partnership "Market Council for Organizing Effective System of Wholesale and Retail Power and Capacity Trade" (Market Council) is an organization entrusted with providing commercial infrastructure. It interacts with FAS on the matters related to energy markets regulation. Such interaction allows to react promptly and in due time to the situations on energy markets and to detect the violations of antimonopoly legislation.

FAS jointly with Market Council exercises the following functions:

• Develops a form of agreement on accession to trade system of the wholesale market, regulations of the wholesale market, standard forms of agreements.
• Participates in the preparation of drafts of wholesale and retail market rules and proposals for their amendments.
• Exercises control over the compliance with the rules and regulations of the wholesale market by its subjects (participants of the power and (or) capacity turnover), by commercial infrastructure organizations, by organization for regulation of single national electric network.
• Monitors prices in wholesale and retail markets.
• Predicts power and capacity prices.
• Coordinates with the Ministry of Energy and participates in the development of proposals of legal acts regarding work of generation of 25 MW and above in the retail market, including interaction of such generating objects with the guaranteeing suppliers.
• Reviews and analyses judicial practice in the field of power industry and participates in the development of draft amendments to legal acts aimed at the elimination of gaps and improvement of the legislation on the basis of the developed precedents.
• Prepares the proposals for the improvement of the rules on electric energy commercial accounting in the retail markets including those connected to the determination of the electric energy (capacity) scope, as well as to the specification of an order of responsibilities distribution for equipping with accounting meters and an order of determination of electric energy volumes affecting consumers which have the general border of balance accessory (transit consumers).
• Participates in drafting amendments to legal acts regarding creation of mechanisms and incentives for the conclusion of free contracts, including long-term contracts, by participants of the wholesale market.

Noteworthy, the Market Council and FAS can exchange information regarding potential violation of the antimonopoly legislation by means of price manipulation in the wholesale power and capacity market.