OREANDA-NEWS. October 21, 2009. "Tyumensalasy Energosbytovaya Kompania [Tyumen Energy Supplier]" OJSC ("TEK" OJSC) must pay around 1 million Rubles for abusing dominant positron and engaging in unfair competition in the electric power market, reported the press-centre of FAS Russia.

On 28th May 2009, the Tyumen Office of the Federal Antimonopoly Service (OFAS Russia) found that "TEK" OJSC violated the antimonopoly legislation (Part 1 Article 10 and Part 1 Article 14 of the Federal Law "On Protection of Competition").

Under the law on electric power industry, operations of other providers of last resort are not allowed within the boundaries of the area of operation of a single provider of last resort. в границах зоны Under the Retail Market Regulations, the areas of operations of providers of last resort cannot overlap. In the situation in question, "TEK" OJSC can only supply electric power to the customers located in the area of operation of their provider of last resort, as an energy supplier. The company is supposed to acquire electric power using only those means that are provided for in the Retail Market Regulations: to sell electric power to the customers the company must buy it from the provider of last resort, or the producer, or it should put the points of supplying electric power to customers to the wholesale electric power market.

Investigating the case, the Commission of the Tyumen OFAS Russia established that "TEK" OJSC was the only participant of the wholesale electric energy market in the Tyumen region. The company sold electric power, bought by it in the wholesale market, directly to the customers located in the area of operations of a provider of last resort - "Tyumenenergosbyt" OJSC, which was in breach of the Retail Market Regulations. The price for electric power sold by "TEK" OJSC to the customers was lower that the price of the provider of last resort due to a higher share of electric power calculated under the regulated tariffs.

Also in the energy supply contracts signed with the customers located in the area of operations of "Tyumenenergosbyt" OJSC ", "TEK" OJSC indicated that it was the provider of last resort. The Commission found this information untrue.

"Such actions of "TEK" OJSC violate the law on electric power industry and infringe the interests of the provider of last resort - "Tyumenenergosbyt" OJSC and customers who bear responsibility for consuming electric power without appropriate contracts", said Vitaly Korolyov, the Head of the FAS Russia's Department for Control over Electric Power Industry.

Upon the administrative investigation "TEK" OJSC was fined 972,620 Rubles.

Reference:
In 2008 FAS Russia initiated 1640 cases under Article 15 of the Federal Law "On Protection of Competition" (abusing dominant position), which was 25.1% of the total cases initiated for violating the antimonopoly legislation. FAS Russia also initiated 517 cases (7.9%) under Article 14 of the Federal Law "On Protection of Competition" (unfair competition).