Division i i of competences between the regulator and the Competition authority. Evlampie Donos Sofia, November 7-8, 2008

Transcription

1 Division i i of competences between the regulator and the Competition authority Evlampie Donos Sofia, November 7-8, 2008

2 Elements of competition Fights between participants of market relations; Existence of competition mechanism in the market; Driving force of development of subjects and objects of management; Obtaining maximal effect for a profitable transaction.

3 Classifying competition by nature of development Free competition; Regulated competition.

4 Classifying competition by methods of market rivalry Price competition; Non-price competition.

5 Five competition forces Threat of appearance of new competitors; Threat of appearance of goods or services - substitutes; Ability of suppliers to bargain; Ability of buyers to bargain; Rivalry between competitors.

6 Pure monopoly Reduction of costs related to the need to take away buyers from similar sellers; Possibilities to exercise pressure on the market by means of imposing own conditions to buyers; Formation of new barriers for inflow of new capital.

7 Objectives of the state in the field of competition Not to allow monopolization of the market; Opposing a conspiracy in the market; Protection of consumer rights.

8 Four-stage model of development of regulation Initiation (vertically integrated monopoly); Growth (development of the market, long-term contracts, exclusive right of investors on supply ppy and transport); Development (efficiency and prices, growth of the number of participants, i t consumers choose suppliers); Competition (development of competition Competition (development of competition, strengthening of energy regulation rules, release of prices in regulated sectors).

9 Initiation of the energy market Poorly developed infrastructure; Insignificant energy market; Number of participants is small; High risk in technology and policy; Limited regulatory legal base.

10 Growth of the energy market Development of infrastructure; Growth of the number of market participants; Broadening of competition between participants; Weakening of market risk factors; Need of a regulatory base for formation of the market structure.

11 Developed energy market Well developed infrastructure; Large number of market participants; Insufficient use of positive competition factors; Regulation of activities of natural monopolies; Market structure is inefficient.

12 Formed market Active competition, low profitability; Transparent pricing; Large number of market participants; Horizontal integration with adjacent sectors.

13 Principles of regulation in the energy sector Development of the competitive energy market and restriction of monopolistic activities of certain subjects of the energy sector; Ensuring non-discriminatory access to services of subjects of natural monopolies in the energy sector; Protection of consumer rights.

14 Principal moments in the field of energy development Division of functions of the regulatory body and the competition protection authority; Maintenance of proper levels of competence in the energy field.

15 Development of competition purpose and necessity Creation of a transparent tariff design mechanism; Maintenance of the balance of interests of all consumers; Reduction of energy costs.

16 De-monopolization and competition principles p stipulated in the legislation Restriction of monopolistic activities; Promotion of competition in the energy sector (Law No. 1525/1998 on Energy).

17 Administrative practice (inconveniences) Ambiguous interpretation; Complexity of orientation.

18 Main functions of the regulator Licensing; Regulation of prices (tariffs); Support of competition; De-monopolization and privatization of energy objects; Setting rules for generation, transmission, distribution tib ti and consumption of electricity ti it and gas.

19 Relations between the regulatory body and the competition authority Tasks of the competition authority: - Implementation of the state policy in the field of protection of competition; - Prevention, restriction and elimination of anti- competitive activities; - Exercise of the state control over compliance with the legislation on protection of competition.

20 Functions of the competition authority Identifies dominant positions in the market; Controls compliance of economic entities and public governing bodies with the legislation on protection of competition; Within its competence makes decisions on facts of violation of legislation on protection of competition.

21 Sphere of applying the legislation on competition The law regulates relations that affect competition in commodity markets, where economic entities, central and local governing public bodies and citizens participate; Relations associated with activities of subjects of natural monopolies are regulated by other legal acts, except for cases when activities of these subjects leads to restriction ti of competition in commodity markets.

22 Practice: Identifying dominant position in the energy market Dispute concerning division of authorities in terms of identifying dominant positions between the regulator and the competition authority; Exercise of control over decisions that were made.

23 Proposal: Cooperation between the regulator and the competition authority Various forms of cooperation; Mutual provision of information; Making decisions within granted authorities, etc.

24 THANK YOU