Buying DTEK two power companies do not affect competition, energoexpert Ryabtsev

Покупка ДТЭК двух облэнерго не влияет на конкуренцию, – энергоэксперт Рябцев

The company’s acquisition of DTEK’s two power companies (PJSC “Kievoblenergo” and JSC “Odessaoblenergo”) has absolutely no effect on competition in the electricity market as purchased operators of the distribution systems, not electricity suppliers

As reported by “Ukrainian news” such opinion was voiced energoekspert, Director of special projects Scientific-technical center (STC) “Psyche” Gennady Ryabtsev.

“How can there be competition if a natural monopoly? Here you need to understand that the law of Ukraine “On electricity market” determines what not everywhere, not all segments of the market is possible to perfect competition. There are segments of the market, these include the distribution of electrical energy, which can be secured in perfect competition or competition. As “perfect” after all- this concept is more theoretical. And these segments of the market the task of government is to prevent abuses of market power by those entities, the ownership of which are infrastructure. So there’s nothing wrong or illegal in that particular company, a particular entity acquires certain stakes in markets with limited competition,” — says Gennady Ryabtsev.

According to him, if the requirements of the law have been observed, restrictions can not be. “So if the state there are levers of influence on these entities if the authority, which is responsible for the implementation of relevant legislation, considers that all the requirements of the entities observed, if privatization is conducted in full compliance with the Ukrainian legislation, what could be the limitations?” noted energoekspert.

Gennady Ryabtsev reminded that when talking about natural monopoly, we are talking only about distribution companies (oblenergos) and to the electricity market, which, according to the law, will be launched on 1 July 2019, this situation is not affected. “In accordance with the law of Ukraine on the electric energy market, these companies (power companies) are unable to generate electrical energy, can not sell electric energy, neither on the wholesale nor on the retail market. It should deal with other companies”, — said Gennady Ryabtsev.

As previously reported, the Chairman of the Antimonopoly Committee of Ukraine (AMCU), Yury Terentyev called nonsense and outright lies statements by politicians about the monopoly of the company through the acquisition of shares of “Kievoblenergo” and “Odessaoblenergo”. According to him, DTEK buys exclusively electric networks, not suppliers.