On December 23 2016 the Competition Commission issued a decision determining that distribution system operator EPS Distribucija doo Beograd – the only operator on the Serbian electricity distribution market – abused its dominant position. The company was fined RSD330 million (approx €3 million; 0.6% of its total 2015 turnover), to be paid into the government budget account, and was issued with behavioural remedies aimed at creating equal conditions for doing business on the market.

In the course of the proceedings, the commission found that the company's abuse of dominance involved placing certain commercial electricity suppliers, particularly EPS Snabdevanje (the affiliated company to EPS Distribucija doo), in a more favourable position compared to their competitors.

In allowing access to the electricity distribution system, EPS Distribucija imposed the obligation to deposit security collateral on all suppliers other than EPS Snabdevanje. In addition, most of the suppliers could only deposit the collateral in a single commercial bank chosen by EPS Distribucija. For a while, EPS Snabdevanje also had a considerably longer payment deadline to pay its dues relative to the other suppliers. According to the commission, this resulted in the suppliers charging increased rates to end consumers.

The commission took into account EPS Distribucija's cooperation and conduct during the proceedings; the company demonstrated its willingness to entirely eliminate its anti-competitive behaviour.

For further information on this topic please contact Srdjana Petronijevic at Moravcevic Vojnovic i Partneri in cooperation with Schoenherr by telephone (+381 11 320 26 00) or email (s.petronijevic@schoenherr.rs). The Moravcevic Vojnovic i Partneri website can be accessed atwww.schoenherr.rs.

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