T.Ayursaikhan, Head of Fair Competition and Consumer Protection Agency conducted open meeting with media. It has been two weeks after he was appointed to the post and have been focusing on the following issues:
1. Monitoring of the companies received soft loans
Companies received soft loans in the scope of the price stabilization policy. The agency is to conduct asssessments on soft loan use and its adherence to the laws.
2. Price increase of electricty and heating to be assessed
Electricity distribution entities have monopoly status. Those entities should receive permission from the agency on increase of prices by the law. In 2013 it increased prices with our permission, but 2014 prices were not negotiated with us.
Therefore six electricity distributing entities were imposed fine of MNT 189 million and the price increase resolution was annuled. Those entities have appealed to the court and the court hearing is in progress.
The same situation occurs with Heating Plants as well. Therefore, we are to conduct studies on the status of those, which in turn will clarify their market position and possibly resolve the issues between the agency and heating plants.
3. Monitor the reason why fuel prices are not lowering
Prices for oil on international market have declined significantly from USD 740 per ton to USD 340-360, but the fuel price on domestic market is remaining the same and the public has logical expectation for the fuel prices to be reduced, as Mongolia is dependent on oil imports.
Moreover, fuel importing companies received subsidies from the state as well in the scope of price stabilization program.
The agency is to hold monitoring on operations of those.
4. Downsizing at Fair Competition and Consumer Protection Agency
Accroding to the Government Resolution on downsizing 15 percent of the human resources agency has eliminated 15 positions and currently employs 36 employees.
Moreover, defaults at internal operations are to be eliminated and improved to better serve the public.
Works of the previous management is continued:
1. Commercial bank loan fees
Many complaints were received at the agency regarding the double fees at the banks labeled as operational cost fees. The case was appealed at the court the initial hearing ruled in favor of the agency claims. The verdict have been delivered to argueing banks.
If the banks are to appeal again the court hearings are to continue, otherwise banks may have to pay back the fees.
2. Return on equity of commercial banks are higher than average at international market
Due to the high profits at banks citizens and clients are claiming that it is unfair for them to bear the operational costs. According to the average profits of the banks abroad range at 10-15 percent, while Mongolian commercial banks ROE range higher than 25-30 percent with annual revenues reaching MNT 80-100 billion.
3. Meat price increase
According to the law the agency does not have the rights to intervene to the prices of the individuals. Also meat processing involves four stages and we do understand that entities employ huma resources there. We are conducting studies on possibilites to reducie the meat prices. 
4. Privatization of Circus
Agency is working on annuling the privatization of the circus to the State Property Committee. But as long as the State Property Committee haven't responded to our demands we are appealing at court for the annulement. 
T.Ayursaikhan, Head of Fair Competition and Consumer Protection Agency conducted open meeting with media. It has been two weeks after he was appointed to the post and have been focusing on the following issues:
1. Monitoring of the companies received soft loans
Companies received soft loans in the scope of the price stabilization policy. The agency is to conduct asssessments on soft loan use and its adherence to the laws.
2. Price increase of electricty and heating to be assessed
Electricity distribution entities have monopoly status. Those entities should receive permission from the agency on increase of prices by the law. In 2013 it increased prices with our permission, but 2014 prices were not negotiated with us.
Therefore six electricity distributing entities were imposed fine of MNT 189 million and the price increase resolution was annuled. Those entities have appealed to the court and the court hearing is in progress.
The same situation occurs with Heating Plants as well. Therefore, we are to conduct studies on the status of those, which in turn will clarify their market position and possibly resolve the issues between the agency and heating plants.
3. Monitor the reason why fuel prices are not lowering
Prices for oil on international market have declined significantly from USD 740 per ton to USD 340-360, but the fuel price on domestic market is remaining the same and the public has logical expectation for the fuel prices to be reduced, as Mongolia is dependent on oil imports.
Moreover, fuel importing companies received subsidies from the state as well in the scope of price stabilization program.
The agency is to hold monitoring on operations of those.
4. Downsizing at Fair Competition and Consumer Protection Agency
Accroding to the Government Resolution on downsizing 15 percent of the human resources agency has eliminated 15 positions and currently employs 36 employees.
Moreover, defaults at internal operations are to be eliminated and improved to better serve the public.
Works of the previous management is continued:
1. Commercial bank loan fees
Many complaints were received at the agency regarding the double fees at the banks labeled as operational cost fees. The case was appealed at the court the initial hearing ruled in favor of the agency claims. The verdict have been delivered to argueing banks.
If the banks are to appeal again the court hearings are to continue, otherwise banks may have to pay back the fees.
2. Return on equity of commercial banks are higher than average at international market
Due to the high profits at banks citizens and clients are claiming that it is unfair for them to bear the operational costs. According to the average profits of the banks abroad range at 10-15 percent, while Mongolian commercial banks ROE range higher than 25-30 percent with annual revenues reaching MNT 80-100 billion.
3. Meat price increase
According to the law the agency does not have the rights to intervene to the prices of the individuals. Also meat processing involves four stages and we do understand that entities employ huma resources there. We are conducting studies on possibilites to reducie the meat prices.
4. Privatization of Circus
Agency is working on annuling the privatization of the circus to the State Property Committee. But as long as the State Property Committee haven't responded to our demands we are appealing at court for the annulement.