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Tuesday 22.08.2017 | Name days: Rudīte, Everts

Competition Council fines cartel; Latvenergo and Sadales tīkls may be involved

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe Competition Council (CC) has fined 26 electrical construction companies a total of LVL 2 011 557 for distorting competition and making prices more expensive in more than 300 procurement tenders, Several reproaches are also addressed to Latvenergo and its subsidiary Sadales tīkls, the CC told the journalists.

The largest fine has been imposed on Vidzemes energoceltnieks – LVL 471 106, followed by Latvijas energoceltnieks – LVL 309 362, and Empower – LVL 303 638.

Due the unlawful agreement among these companies, competition was distorted in 316 procurement tenders organized by Latvenergo and Sadales tikls, three tenders by Latvijas Dzelzcels, two LatRosTrans procurements and one Binders procurement project.

Most of the tenders involved different construction and maintenance work (installation of power lines, repairs, modernization). Procurement amounts varied from a few thousand to hundreds of thousands.

The companies the CC fined have been in league with each other since 2006, coordinating their participation in different projects, thereby erasing competition and any choice for the client to receive the requested services for lower, more appropriate prices.

In light of the extent of the cartel’s actions and the damage it has caused to specific clients, the CC has decided to impose significant penalties to the involved companies. Penalties are calculated according to a company’s annual turnover and depending on the severity of their violations: Rio Ltd. – LVL 194 171, Aiviekstes energobūvnieks Ltd. – LVL 117 991, SZMA Ltd. – LVL 73 996, Alūksnes energocentnieks Ltd. – LVL 64 056, Daugavpils energoceltnieks Ltd. – LVL 57 559, AS SZMA V – LVL 53 875, Farads Ltd. – LVL 51 966, Austrumu energoceltnieks Ltd. – 41 957, Besecke Ltd. – LVL 40 860, Elbra Ltd. – LVL 37 326, Telms Ltd. – LVL 37 228, Oms Ltd. – LVL 30 345, Elpoli Ltd. – LVL 27 110, Latgales elektromontāža Ltd. – LVL 25 211, Darleks Ltd. – LVL 22 098, J.E.F. Ltd. – LVL 16 540, Firma Spriegums Ltd. – LVL 15 761, MCD Ltd. – LVL 8 505, Energoceltnieks Ltd. – LVL 6 239, Instel Ltd. – LVL 2 566, Krāslavas energoceltnieks Ltd. – LVL 776, Rīgas energo būve Ltd. – LVL 771, and Demp Ltd. – LVL 544.

CC notes that Sadales tīkls and Latvenergo have played a major part in this mess, because the companies had ignored the illogical similarities in the offers. On top of that, representatives of both companies were close to some of the procurement candidates. Requirements presented by Sadales tīkls and Latvenergo helped imitate actual competition.


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