OREANDA-NEWS. August 10, 2009. "Sevkavkazenergo" will transfer 19 million Rubles to the federal budget for violating the antimonopoly legislation on the market of electric energy in the Republic of Northern Ossetia – Alania, reported the press-centre of FAS Russia.

The Cassation Instance (the federal Arbitration Court of the North Caucasus District) confirmed validity if the decision made by the Office of the Federal Antimonopoly service (FAS Russia) in the Republic of Northern Ossetia - Alania (the Northern Ossetia OFAS Russia) regarding "Sevkavkazenergo" OJSC. Earlier, similar rulings were passed by the Arbitration and the Appeal Courts.

"Sevkavkazenergo" OJSC is the only provider of last resort in the Republic.

In 2008 the Northern Ossetia OFAS Russia found that "Sevkavkazenergo" OJSC violated Part 1 Article 10 of the Federal Law "On Protection of Competition". "Sevkavkazenergo" OJSC initiated cutting off energy supply, which is classified as abusing dominant position.

The antimonopoly body established that had sent applications and notice letters to business units of "RZhD" OJSC about cutting off several feeders at the "Beslan-Tyagovaya" sub-station, as well as unreasonable notices to "OssetiaEnergoset" Ltd. about limiting supplies of electric energy to a company that did not pay its bills.

The purpose of requests made by "Sevkavkazenergo" OJSC was to resolve the issue with the debtor.

Executing applications for cutting off the feeders resulted in complete termination of supplies of electric energy to bona fide consumers. At the end, "Sevkavkazenergo" OJSC terminated supplies of electric energy to consumers in residential housing as well as to socially important facilities in Beslan (social security facilities, educational institutions, etc.), which timely pay for electric energy consumption.

The antimonopoly body established that it was technically possible to cut off the defbtor without cutting off bona fide consumers. In spite of that, "Sevkavkazenergo" OJSC used a remedy that infringed legitimate interests of town residents, although it had a possibility to recover the debt through a court of law or restrict energy consumption just for its debtor. This constitutes a violation of the law.

Along with administrative sanction, OFAS Russia issued a determination requesting "Sevkavkazenergo" OJSC to stop the violations, and "RZhD" OJSC to pay attention that it was inadmissible for the company's business units to execute unreasonable and unlawful letters and applications of "Sevkavkazenergo" OJSC on limiting consumption of electric energy.