The Chairman of the AMC Terentyev: allegations of monopolization of the market due to the purchase of DTEK power companies – a meaningless lie

Председатель АМКУ Терентьев: заявления о монополизации рынка из-за покупки ДТЭК облэнерго - бессмысленная ложь

The Chairman of the Antimonopoly Committee of Ukraine 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. This Terentiev said in a video interview Politeka.

“Acquired only a portion of the assets related to the activity of distribution system operator. That is, it is exclusively a network that does not in any way engaged in the supply of electric energy on the territory of Kyiv region on the territory of Odessa region. That is, the monopolization in this case, neither market is not happening “.

Chairman of the ACU said that power companies are natural monopolies in their respective territories. Their acquisition does not affect competition, because in this segment it is not and can not be. This is why the activity of natural monopolies is completely controlled by the appropriate government authorities, in particular, NKREKP through licensing conditions. “What has the power companies or the distribution system operator? This is the network that is within a certain territorial unit. This business is the so-called natural monopoly. That is, there is no economic sense of creating a new re-distribution of gas. Is a regulated market, which is in a state of natural monopoly a priori, 100%, always. And acquisition of one entity additional network in another region does not create monopolization of a particular national market, since these markets a priori territorial, and they don’t have plusvalia to each other, ” he said.

The acquisition of natural monopolies as oblenergo Chairman of the ACU compared with the purchase of a lift in a neighbouring house. “In one apartment building has an Elevator and in another apartment building has an Elevator. If one entity purchased one a lift and bought a second lift, he is not monopolizing the elevators. Since one Elevator is a definite economic boon within just one house. Similarly, the distribution network “.

According to Yury Terentyev before authorizing the AMC interviewed market participants, authorities, public associations and organizations. No objections were expressed, with the exception of one letter from Andrew Gerus Sergey Leshchenko and Victoria Wojcicki. The authors saw in this solution the monopolization of the electricity market, but DTEK did not buy the suppliers. “If you show, what was discussed at this concentration, it becomes obvious that this letter is simply unfounded political statement,” said Terentyev.

We will remind, on April 25 the Antimonopoly Committee of Ukraine by the majority of votes allowed DTEK to buy “Kievoblenergo” and “Odessaoblenergo”. These companies are the operators of the distribution system in the Odessa and Kyiv regions and do not operate on the electricity supply. The activities of the operators of the distribution system is fully adjustable NCIKU.

Giving permission to the concentration of the AMC put on DTEK number of commitments that eliminate any possible impact on adjacent markets — supply and electricity production.