Criteria for Classification of Owners of Power Grid Facilities as Local Grid Operators

Grid operators play a significant role in the energy supply system in the electric power industry. The Strategy for the Development of the Power Grid Complex of the Russian Federation, approved by Order of the Government of the Russian Federation No. 511‑r of April 3, 2013, launched the consolidation of grid operators. One of the consolidation tools is the establishment of criteria and procedures for classifying owners of power grid facilities as territorial grid operators by the Government of the Russian Federation. The purpose of this study is to analyze the legislative norms aimed at consolidating power grid facilities, establishing the approaches of judicial authorities to their application, as well as determining the legal nature of the established Criteria and their further development. In the course of the study, the author comes to the conclusion that the Criteria for Classification of Owners of Power Grid Facilities as Local Grid Operators (LGOs) are not an institution of “quasi-licensing”, but relate to the legal means of antimonopoly legislation for classifying an economic entity as an entity carrying out a natural monopoly activity — the provision of services for the transmission of electric power. Failure of an owner of power grid facilities to comply with the LGO Criteria established by the Government of the Russian Federation shall result in the deprivation of the status of a natural monopoly entity and shall require the adoption by the antimonopoly authority of a decision to terminate such activity with the recording of a specific entry in the Register of Natural Monopoly Entities. Otherwise, we will observe a conflict between the legal norms established by the legislation of the Russian Federation on the electric power industry and the legal norms established by the Federal Law on Natural Monopolies.