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New ÚOHS head vows change

Martin Pecina aims to revitalize appearance of Anti-Monopoly Office

By František Bouc
Staff Writer, The Prague Post
September 28, 2005


Gunter Bartos/The Prague Post
In light of suspicion surrounding oil price hikes, Martin Pecina called for answers from gas station owners.

Tall and imposing with a thick black beard and moustache, Martin Pecina hardly blends in with a crowd. Nor do his smooth, decisive tones.

As for Pecina's advice to corporate managers, that's simple: Whether you notice me or not, you will really need to listen to me.

For the next six years, Pecina will be the country's chief anti-monopoly watchdog, having replaced Josef Bednář at the Brno-based Anti-Monopoly Office (ÚOHS) Sept. 2. Under Bednář, the office was feared by many corporations for its hidden agenda and unexpected raids on companies, often resulting in hefty fines. Changing the negative image of the ÚOHS is a key task, says Pecina.

"We cannot continue the past practices when the ÚOHS was monitoring developments on various markets and was compiling information about any suspected wrongdoings and later struck with hefty fines."

Instead, he says, the ÚOHS should serve as a source of information to help companies avoid violating anti-monopoly laws. "Our work cannot be about setting the height of fines but rather about preventing the breach of anti-monopoly laws," he explains.

Baptism of gas

Pecina demonstrated the new approach during his first days in office. In early September, the price of gasoline dramatically increased in response to a worldwide rise in oil prices after Hurricane Katrina hit the Gulf Coast. Fuel prices here rose by around 10 percent virtually overnight.

While the Finance Ministry suspected gas stations were abusing their power, Pecina called a meeting of station owners and requested an explanation for the higher prices.

"Instead of threatening us with sanctions, he asked about our reasons for the hike, and we also talked about possible future developments," said Aral gas station chain head Martin Durčák.

Before his appointment to the ÚOHS, Pecina worked for two and a half years as the deputy industry and trade minister responsible for the energy sector, where he was labeled an advocate of energy corporations.

After his inauguration as ÚOHS chief, Pecina said he was ready to become a protector of small companies against mighty competitors.

He got a chance to demonstrate that resolve almost immediately when Energy firm MVV Energie filed a complaint that RWE Transgas, which controls 80 percent of the market, was abusing its market dominance by dictating high prices for natural gas. Other companies such as Škoda Auto and Czech Railways supported the appeal. Meanwhile, RWE Transgas spokesman Martin Chalupský insisted the pricing policies reflected prices on markets worldwide.

"RWE Transgas is in the position of a typical monopolist in some segments of the market," said Pecina, "and the ÚOHS has to make sure it doesn't abuse its dominant position."

Pecina said he will meet with RWE executives in mid-October, consider the conclusions of the Energy Regulation Office and RWE Transgas' report and decide whether anti-monopoly proceedings are appropriate.

"Similar to other companies that could come under scrutiny, RWE Transgas will be given a chance to suggest improvements of the situation on its own," Pecina said. "We don't need to issue sanctions immediately. ... Actually, it'll be better for this country to have cheaper natural gas than a few more million in state funds coming from anti-monopoly fines."

František Bouc can be reached at fbouc@praguepost.com







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