OREANDA-NEWS. May 25, 2009. The Federal Arbitration Court of the Moscow District confirmed validity of the decision of the Federal Antimonopoly Service (FAS Russia) regarding "Kuban' Energy Supplying Company" OJSC "Kuban'energosbyt" OJSC. FAS Russia found that the company violated the Law "On Protection of Competition" in terms of abusing dominant position, reported the press-centre of FAS Russia.

Earlier the 9th Arbitration Appeal Court dismissed the appeal of "Kuban'energosbyt" OJSC against the ruling of the Moscow Arbitration Court, which dismissed the company's claim on invalidating the decision of the antimonopoly authority.

On 19th May 2008, FAS Russia found that "Kuban'energosbyt" OJSC violated Part 1 Article 10 of the Federal Law "On Protection of Competition" (abusing dominant position).

The case was initiated upon a complaint of "independent Energy Supplying Company of the Krasnodar Region" OJSC ("NESK" OJSC) against the actions of "Kuban'energosbyt" OJSC that abused dominant position on the market of buying-and selling (supplying) electric energy and prevented access of "NESK" OJSC to the wholesale market of electric energy in relation to its retail customer "Novorossmetall" Ltd.

To enter to the wholesale market of electric energy in relation to its retail customer - "Novorossmetall" Ltd. - "NESK" OJSC forwarded a signed List of measurement devices (PSI) to "Kuban'energosbyt" OJSC for the purposes of commercial registration at the group of outlets of energy supply by "Novorossmetall" Ltd.

The document (PSI) is required to obtain an access to the services provided by the market administrator. Under Clause 8 of the Regulations on Non-Discriminatory Access to the Services of the Wholesale Market Administrator and Provision of Those Services, a wholesale market entity, adjacent to the petitioner, must ensure agreement upon PSI within 30 days after receiving the document. "Kuban'energosbyt" OJSC, however, delayed the PSI approval procedures, avoiding PSI approval within the designated period.

As a result, "Kuban'energosbyt" OJSC prevented access of "NESK" OJSC to the wholesale market of electric energy in relation to its retail customer - "Novorossmetall" Ltd. and infringed the interests of "NESK" OJSC.