OREANDA-NEWS. November 27, 2009. The Federal Antimonopoly Service (FAS Russia) fined "Komi Energy Supplier" OJSC (KESK OJSC) for abusing dominant market position on the electricity market. The company was fined 30,718,557 Rubles, reported the press-centre of FAS Russia.

On 26th June 2009, FAS Russia found that "KESK" OJSC violated Clause 5 Part 1 Article 10 of the Federal Law "On Protection of Competition" by evading a contract for supplying electric power with an energy supplier.

The case was initiated upon a petition from "Eurasia Energy Company [Yeraziiskaya Energeticheskaya Kompania]" CJSC ("EEC" CJSC).

FAS Russia established that the provider of last resort - "KESK" OJSC - received an application of an energy supplier ("EEC" CJSC) for entering into a contract for supplying electric power and sent a letter to the applicant that completing such a contract would be premature.

Under the Regulations of the retail electric power markets in the transitional period of reforming the electric power industry, the provider of last resort is obligated to enter into a power supply contract (a contract for buying-and-selling (supplying) electric power) with any person that applied to it regarding delivery points and whose energy receivers are located within the boundaries of its area of operations.

The provider of last resort can refuse to enter into a power supply contract with the applicant only in the absence of technological connection of the appropriate energy receivers to the electricity networks in accordance with the established procedures and /or if the retail market delivery points, with regard to which the applicant intends to sign the contract, are located outside the area of operations of the provider of last resort.

The current law on electric power industry does not provide for any other grounds for refusal by the provider of last resort to enter into a relevant contract.

The 30,718,557 Rubles fine constitutes 0.3% of the income of "KESK" OJSC from selling electric power within the boundaries of the relevant market. The amendments to the antimonopoly legislation - the "second antimonopoly package" that came into force on 23rd August 2009 - introduced changes to Article 14,31 of the Code of the Russian Federation on Administrative Violations, which specified administrative charges for abusing market dominance.

For instance, if the income gained by the violator in the market where the violation was committed is more than 75% of its total income in all markets, then the amount of fine can be from 0.3% to 3% of the income gained of this market.