OREANDA-NEWS. March 11, 2010. "Kurskenergosbyt" OJSC, the provider of last resort in the Kursk region, paid more than 4 million Rubles as a fine to the federal budget, reported the press-centre of FAS Russia.

In June 2008, the Kursk Office of FAS Russia initiated a case against "Kurskenergosbyt" OJSC for violating Article 10 of the Federal Law "On Protection of Competition". "Kurskenergosbyt" OJSC dominates the electric energy market in the Kursk region. The company violated the law by insisting on a contract that included a condition of a 100% advance payment, which was disadvantageous for a counteragent.

Having investigated the case, OFAS Russia obligated "Kurskenergosbyt" OJSC to bring the conditions for payment for the consumed electric energy in compliance with the statutory requirements. The same month the Kursk OFAS Russia issued a decision on administrative liability of the company and imposed a fine for violating the law.

"Kurskenergosbyt" OJSC appealed the decision to the Kursk regional Arbitration Court; however, the claim was dismissed.

"Kurskenergosbyt" OJSC disagreed with the judgment of the Court and appealed. The Appeal Court sustained the judgment of the Arbitration Court. It drew a line under the case that went on for over two years, and the supplier had to pay an impressive fine.

"In the case of "Kurskenergosbyt" OJSC it was the first employment of turnover fines", said the Head of the Kursk OFAS Russia. "Litigation lasted 2.5 years and reached the level of the Arbitration Court that took out side".

Reference:
Under Article 14.31 f the Code of the Russian Federation on Administrative Violation, if an economic entity that dominates the market exercised actions classified as abusing market dominance, legal entities are punished by an administrative fine calculated as a percentage of the company's income gained by selling goods (works, services) on the market where the administrative violations was committed.