ANTIMONOPOLY CONTROL OVER PARTICIPANTS OF ELECTRIC POWER MARKETS SHOULD CONTINUE

Market power can prevent entry of new energy sale companies

On 23 September 2019, experts of the FAS Commission on market analysis discussed the findings of a survey of the state of competition on retail electric power (capacity) markets and the wholesale markets of liquefied hydrocarbon gases in 2018.

According to Commission Chairman, Deputy Head of FAS Andrey Tsyganov, “it is necessary to continue antimonopoly control over participants of electric power markets that possess actual market power and can prevent entry of new energy sale companies to these markets as well as entry of sales company and large consumers to the wholesale electric power market”.

Experts characterized the competitive environment on the markets of liquefied hydrocarbon gases as underdeveloped. The concentration level on liquefied hydrocarbon gas markets is high; entry of new participants is hampered. The survey shows that due to high volume of capital investments necessary to establish a new economic entity involved in production of liquefied hydrocarbon gas, and in view of vertically-integrated entities on the market, and a limited sales segment, development of other large producers in any segment of the wholesale market of liquefied hydrocarbon gases is highly unlikely.