The Council of the Competition Protection Commission (the “Commission”) adopted a decision by which EPS Distribution was fined in the amount of 330 million RSD for abusing its dominant position in the Serbian electricity distribution market.

The Commission decided that EPS Distribution abused its dominant position by granting commercial electricity suppliers different terms for similar transactions regarding the amount of security instruments. Some suppliers had to submit a security instrument in an amount based on monthly value of services provided, while other security instruments were based on quarterly service revenues. Furthermore, EPS Distribution required all suppliers to deposit their security instruments at a bank selected by EPS Distribution.

Additionally, EPS Suppliers, a sister company of EPS Distribution, was the only company which did not have an obligation to provide a security instrument for payment of the bills. EPS Suppliers also had a significantly longer grace-period for fulfillment of its obligations towards EPS Distribution, compared to all other commercial suppliers.

Having all this in mind, the Commission determined that abuses by EPS led to increased prices of electricity which suppliers provided to final consumers.