NKREKU and “Ukrenergo” are unable to articulate how the company abused market position, Buzarov

НКРЭКУ и "Укрэнерго" не смогли сформулировать, каким образом ДТЭК злоупотреблял рыночным положением, - Бузаров

Lawyer, expert in international politics Andrew Buzarov believes that the decision of the Antimonopoly Committee in the case of DTEK will become a marker for Western investors.

About this he wrote on his page in Facebook.

“Antitrust has decided to end the long Saga of research of the market of electricity production this year – the final meeting of the ACU is scheduled for December 28. Well, good for you. There is nothing worse than unfinished business, especially such loud as a matter of DTEK. During the three years of investigation, the appellants (NKREKU and “Ukrenergo”) and could not articulate – how exactly DTEK abused market position,” writes Buzarov.

In his opinion, from a legal perspective the case is not difficult, write ukranews.com.

“The question is not even the fact that the share of the company (DTEK – ed.) on the market of electricity production is only 26%. The thing is that you can have any sort of percentage (for example, “Ukrenergo” in the segment of e/e transmission backbone networks it is generally 100%), but the current market model does not give participants the right to initiative. Tariffs are set NKREKU, production – MEUP, dispatch management WEM performs “Ukrenergo”, – he said.

According to the expert, the investment community, it is important to ensure that the decisions of the authorities in Ukraine are accepted under the legislation and cannot be influenced by policy.

“This is the subject of the legal side of the issue. It is of little interest to all kinds of activists, but very important for potential investors in the Ukrainian energy sector. As far as I know, they are closely monitoring the investigation. And the ability of the AMC to take action on the Law, not guided by political considerations, they will be one of the markers of the investment suitability of Ukraine”, – said Buzarov.

The Antimonopoly Committee of Ukraine (AMCU) has transferred consideration of the case initiated on signs of violation of “DTEK Dniproenergo”, “DTEK Zakhidenergo” and “DTEK Vostokenergo” legislation on protection of economic competition 17 January 2019 28 December. The new terms of the case stated in the agenda of the meeting of the AMC, published on the website of the Committee.

The Committee had twice reviewed the case in public meetings, but postponed the decision in connection with necessity to study new materials. The preliminary conclusions of the AMC implies that the market of electricity generation is highly centered while the company does not have real market power, and therefore cannot dictate terms on the market cannot prevent competition, can not affect the price or create artificial scarcity.