FAS OPENED CASE AGAINST NOVOSIBIRSK REGIONAL OPERATOR OF SOLID MUNICIPAL WASTE TREATMENT

In FAS opinion, operations of “Ecology-Novosibirsk” Ltd.  restrict competition

Monitoring zakupki.gov.ru, the competition authority found that the company organized procurement from a single contractor of services for transporting solid municipal waste in the Novosibirsk region, which is contrary to the Competitive Bidding Rules*.

Consumers of the services rendered by “Ecology-Novosibirsk” Ltd. are the population and legal entities in the Novosibirsk region, who cannot conclude contracts with other companies for the services on solid municipal waste treatment since the company is the regional operator in this subject of the Russian Federation.

According to the norms of the antimonopoly law, the company has the dominant position in the Novosibirsk region.

Under the Rules for organizing tenders to collect and transport solid municipal waste in a particular area, lots are formed in the zone covered by a certain regional operator. Therefore, the prices for the service must be formed as a result of competitive procedures enabling to conclude contracts at economically justified costs.

“Ecology-Novosibirsk” Ltd. organized six procurements, two of which ended by concluding contracts with single suppliers, which is contrary to the Rules on organizing competitive bidding.

Head of FAS Department for Regulating the Housing-and-Utilities Sector, Alexei Matyukhin, said: “Competitive procedures would ensure to support competition, particularly, small companies, and, as a consequence, efficient spending of funds of a regional operator, which are formed from tariff sources. Therefore, observing the law facilitates implementing the National Competition Development Plan that provides for increasing the share of procurement from small business and setting economically justified tariffs, first of all, to protect consumer interests. The first case hearing is schedules on 14 May 2019”.

Reference:

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