FAS Russia found that UC “RUSAL” violated the antimonopoly law

FAS Russia found that UC “RUSAL” violated the antimonopoly law

The group of persons (“RUSAL Krasnoyarsk” OJSC, “RUSAL Sayanogorsk” OJSC, “RUSAL Bratsk” OJSC, “RUSAL Novokuznetsk” OJSC and “SUAL” OJSC) abused its dominant position on the wholesale market of electric power and capacity. The companies restricted competition by cutting down prices and also infringed the interests of market participants within the geographic boundaries of the Second price zone of the wholesale market of electric power and capacity as “RUSAL Krasnoyarsk” OJSC and “RUSAL Sayanogorsk” OJSC failed to file the bids for buying electric power (capacity) for the periods from 10th August 2009 and 13th September 2009 accordingly.
“RUSAL Krasnoyarsk” OJSC, “RUSAL Sayanogorsk” OJSC, “RUSAL Bratsk” OJSC, “RUSAL Novokuznetsk” OJSC and “SUAL” OJSC are participants of the wholesale market of electric power and capacity and are included in the Register of participants of the wholesale market of electric power (capacity) as large consumers.
In August – September 2009, the Second price zone of the wholesale market of electric power and capacity experienced a sharp drop of the average weighted “day ahead” prices (at some hours - up to 0 Rubles/MW) due to decreased overall buying of electric power.
The antimonopoly authority has analysed the situation on the market and established that the main reason for low average weighted price on the “day ahead” market on some days in August 2009 was that “RUSAL Krasnoyarsk” OJSC failed to file a “day ahead” price bid. A similar situation occurred in September 2009 when “RUSAL Sayanogorsk” OJSC failed to file its price bid, which caused a sharp decline of the average weighted prices in Siberia.
Failures of “RUSAL Krasnoyarsk” OJSC and “RUSAL Sayanogorsk” OJSC to file the bids for buying electric power (capacity) resulted in “withdrawing capacity” from the wholesale market of electric power (capacity), considerable decrease of the “day ahead” prices and damages to the power-generating companies that were forced to sell electric power at underestimated prices (even down to 0 Rubles/MW). Failure to file the bids was not justified by technical deficiency of the equipment at “RUSAL Krasnoyarsk” OJSC and “RUSAL Sayanogorsk” OJSC, as the companies attempted to explain. FAS Russia’s investigation established the fact of the absence of technical deficiencies and disruptions of the functioning of the equipment at “RUSAL Krasnoyarsk” OJSC and “RUSAL Sayanogorsk” OJSC, which provides Internet connection.
Within two days he income obtained by the group of persons including “RUSAL Krasnoyarsk” OJSC, “RUSAL Sayanogorsk” OJSC, “RUSAL Bratsk” OJSC, “RUSAL Novokuznetsk” OJSC and “SUAL” OJSC by violating the antimonopoly law reached around two million Rubles.
FAS Russia will send its decision and determination to transfer the income obtained by the violating the antimonopoly law to the group of persons including “RUSAL Krasnoyarsk” OJSC, “RUSAL Sayanogorsk” OJSC, “RUSAL Bratsk” OJSC, “RUSAL Novokuznetsk” OJSC and “SUAL” OJSC within ten working days.
FAS Russia has also established that from October 2009 to December 2010 the plants that are members of RUSAL group of person used a joint strategy for price bidding in the Second prices zone for buying electric power within the rage of 350 to 500 Rubles/MW. When this strategy is used by a large consumer of electric power, there is a risk of “day ahead” price being below the production costs of electric power generated by most producers of electric power in the Second price zone of the wholesale market of electric power and capacity.
To be able to carry out comprehensive investigation of the case, the antimonopoly authority has initiated separate proceedings against the group of persons, including “RUSAL Krasnoyarsk” OJSC, “RUSAL Sayanogorsk” OJSC, “RUSAL Bratsk” OJSC, “RUSAL Novokuznetsk” OJSC and “SUAL” OJSC, for filing price bids for buying electric power.