OREANDA-NEWS. May 04, 2009. The Stavropol Office of the Federal Antimonopoly Service (OFAS Russia) fined "Essentukskie Gorodskie Elektricheskie Seti [Essentuki City Electric Grid]" OJSC for abusing dominant position on the market of buying-and-selling electric power, reported the press-centre of FAS Russia.

"Essentukskie Gorodskie Elektricheskie Seti" OJSC violated the law by unreasonably avoiding signing an energy supply agreement.

The case was initiated upon a petition from Mrs Intergauz, who approached "Essentukskie Gorodskie Elektricheskie Seti" OJSC to sign an energy supply agreement. "Essentukskie Gorodskie Elektricheskie Seti" OJSC is the provider of last resort and is obliged to sign agreements with any customer who applied to the company. However, "Essentukskie Gorodskie Elektricheskie Seti" OJSC refused to sign an energy supply agreement with Mrs Intergauz, referring to the need to carry out some works for technical connection to the grid. The Commission of the Stavropol OFAS Russia established that the house of Mrs Intergauz was properly connected to the electric network of "Essentukskie Gorodskie Elektricheskie Seti" OJSC and the company's claim was ungrounded because second connection to the electric grid is not necessary if the connection already exists.

Not only unreasonable refusal to conclude an energy supply agreement by an economic entity that has dominant position violates Clause 5 Part 1 Article 10 of the Federal Law "On Protection of Competition" but also makes the company administratively liable under Article 14.31 of the Code of the Russian Federation on Administrative Violations for abusing dominant position.

The Stavropol OFAS Russia issued a determination on imposing a 2,503,630 fine upon "Essentukskie Gorodskie Elektricheskie Seti" OJSC under Article 14.31 of the Code of the Russian Federation on Administrative Violations.

Reference:
Clause 5 Part 1 Article 10 of the Federal Law "On Protection of Competition" prohibits actions (lack of action) of an economic entity with dominant position, which have resulted or can result in preventing, restricting or eliminating competition and (or) infringing the interests of other persons, including economically or technologically unjustified refusal or avoiding signing contracts with individual buyers (customers), provided there is a possibility to produce or supply the goods in question, as well as if such a refusal or avoidance is not provided for in the federal laws, normative legal acts of the President of the Russian Federation, normative legal acts of the Government of the Russian Federation, normative legal acts of the federal executive bodies or judicial acts.