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News / 21 January 2014 | 15:57
Competition development program to be approved

Competition development program to be approved

Larisa Kolesnik, State Commissioner and Deputy Chairman of the Antimonopoly Committee of Ukraine presented draft Law on ratification of the National Program for development of competition in 2014-2024 in the "Agenda" program on First Ukrainian radio channel. The key objective of the program is development of competition on the markets where it’s virtually non-existent. Draft program approved by experts on competition policy in the US, Europe and CIS countries, was discussed and approved at the local level, Larisa Kolesnik said, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.

The provisions of the National Program for development of competition in 2014-2024 are designed to work in three directions. The first direction is work on the markets with effective competition, e.g. trade in Ukraine. According to Larisa Kolesnik, the main efforts will be made in the second direction - to promote development of effective competition on the markets where it is absent or poorly represented. These are the markets for housing and communal services (HCS), electric power, oil refining, construction materials. This market in Ukraine accounts for about 46% of the sales of goods.

The program envisions expansion of competition on these markets, ensuring quality and price of services that suits the majority of citizens. According to experts, the program establishes a list of measures to improve efficiency of competition on these markets: reducing barriers to enter and exit the market, the development of infrastructure on these markets, etc.

The third area of the Program concerns markets where competition is impossible, such as, for example, natural monopolies. But achievement of a higher level of service and of a sufficient price change on such markets is possible, experts say. This requires some changes in the institutionalization of approaches to markets regulation. The example is the reform of the wholesale electricity market, which moved away from a model of the competitive market to the model of contractual relations.

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