Energy, Latvia, Legislation, Markets and Companies

The Competition Council launched a probe following a complaint received from Latvenergo about collusive behavior of the four companies that submitted their bids for the demolition of a building. During the probe, the Competition Council obtained evidence that E Buvvadiba had exchanged information about its bid with Remontbuve, and Eirotransmet with Eirobuvmetals.

That, according to the Competition Council, was a cartel agreement, which is a particularly serious violation of competition regulations.

E Buvvadiba collaborated with the Competition Council during the investigation, and its fine will therefore be reduced 50%.

The following fines will be imposed on the four companies: Remontbuve will have to pay EUR 47,814.62 fine, Eirobuvmetals – EUR 23,967.14, E Buvvadiba – EUR 20,747.66, and Eirotransmet – EUR 5,538.40.

Furthermore, Eirotransmet and Eirobuvmetals will additionally have to pay EUR 3,000 and EUR 4,000 fines, respectively, for obstructing investigation and refusing Competition Council inspectors' access to the companies' offices.

Latvenergo always carefully examines all bids it receives, and the company is pleased that the Competition Council, following Latvenergo's notification, found violations on the part of the bidders, thereby upholding fair competition, as Latvenergo spokesman Andris Siksnis told LETA.

According to Firmas.lv, Eirobuvmetals and"Eirotransmet have the same registered address – 2A Stienes Street in Riga. Eirobuvmetals belongs to Ainars Gailiss and Eirotransmet to Vasilijs Galkins.

Eirobuvmetals posted EUR 1.2 million in turnover and EUR 16,397 in profit last year, while Eirotransmet – EUR 276,920 and EUR 84,264 respectively.

E Buvvadiba belongs to Baiba Gudrite, the company achieved EUR 4.88 million in turnover and EUR 277,657 in profit in 2014.

Remontbuve belongs to Alvis Berzins. The company's turnover last year totaled EUR 2.39 million and profit EUR 2,478, according to Firmas.lv.