OREANDA-NEWS. July 06, 2009. The Office of the Federal Antimonopoly Service in the Ulyanovsk region (the Ulyanovsk OFAS Russia) found that "Ulyanovskregiongaz" Ltd., a member of the group of "Gazprom" OJSC, abused its dominant position. In particular, the company supplied gas to the homeowners associations at the rates set for industrial enterprises, although the homeowners associations serve residents for whom the rates are lower.

The Ulyanovsk OFAS Russia has already registered repeated antimonopoly violations (6 times) by "Ulyanovskregiongaz" Ltd., which has dominant market position, in relation to several homeowners associations in the region. Legitimacy of the decision made by the antimonopoly body was confirmed by courts of law. "Ulyanovskregiongaz" Ltd. attempted to appeal one of those decisions on error, but the Court of Third Instance dismissed the company's claim. The Supreme Arbitration Court did not accept the claim of the gas company on the grounds that "the antimonopoly body substantiated the antimonopoly violation committed by the company". The total sum of fines imposed by OFAS Russia upon the gas supplier for antimonopoly violations is close to 145 million Rubles.

Regarding the new case, the Commission of the Ulyanovsk OFAS Russia found that "Ulyanovskregiongaz" Ltd. violated Part 1 Article 10 of the Federal Law "On Protection of Competition". The case was initiated upon petitions of the "Region - U" Homeowners Association and the "Navigator" Homeowners Association. The Petitioners complained that "Ulyanovskregiongaz" Ltd. applied the rate for supplying gas for industrial enterprises in transactions with the Homeowners Associations, although they needed the gas for heating and hot water supply to residential houses using autonomous boiler rooms (roof boiler rooms of apartment blocks).

Reference:
According to Clause 15 of the Rules for Providing Utility Services to the Population, approved by No.307 Decree of the Government of the Russian Federation of 23 May 2006 "On the Procedures for Providing Utility Services to the Population", if the contractor is a homeowners association,housing development, housing or other specialised consumer cooperative or a managing organisation, utility charges, as well as contractor's payment for cold and hot water, water disposal, electric power, gas and heat power are calculated as per rates established by the Government of the Russian Federation and used for calculating payments for utility services provided for the population.

The Commission of the Ulyanovsk OFAS Russia decreed to issue determinations to the company, with the requests to stop the antimonopoly violations. The company will be required to stop applying the rates for industrial customers to the housing associations. Also OFAS Russia is examining possibility of initiating administrative proceedings under Article 14.31 of the Code on Administrative Violations.

Earlier OFAS Russia investigated a complaint of "Granit" Housing Association and found that "Ulyanovskregiongaz" Ltd. violated similar provisions of the Federal Law "On Protection of Competition". Three Court Instances upheld the decision made by the antimonopoly body. OFAS Russia fined "Ulyanovskregiongaz" Ltd. more than 62 million Rubles.

On 27th April 2009, "Ulyanovskregiongaz" Ltd. was fined 82.9 million Rubles for an antimonopoly violation in relation to the "Istoki" Homeowners Association.

Gennady Spirichagov, the Head of the Ulyanovsk OFAS Russia, said: "We find it unacceptable that an economic entity that has dominant market position disregards the court rulings and continues violating the antimonopoly legislation on numerous occasions, taking advantage of the fact that in the first case the courts pronounced low significance under Clause 2.9 of the Code of the Russian Federation on Administrative Violations".

In its turn, FAS Russia emphasises that regional gas supplies, members of the group of "Gazprom" OJSC, have committed similar violations against homeowners associations in other Russian provinces, in particular, in the Samara, Ivanovo and Kostroma regions. Upon such facts, the regional offices of FAS Russia have initiated antimonopoly proceedings and are conducting investigations.