OREANDA-NEWS. December 14, 2010. Primorsky Regional Arbitration Court dismissed the claim of “13 Elektricheskaya Set” OJSC on invalidating the decision and determination of Primorsky Office of the Federal Antimonopoly Service (OFAS Russia). The antimonopoly body lawfully recognized the fact of abusing market dominance by the company, reported the press-centre of FAS Russia.

“13 Elektricheskaya Set” OJSC is a regional network organization rendering power transmission services.

Investigating the market of power transmission services, Primorsky OFAS Russia established that “13 Elektricheskaya Set” OJSC has dominant position with 100% shares on Russky island.

In October 2009, “13 Elektricheskaya Set” OJSC received a petition from a physical person for connecting the residential house in his ownership to electric networks.

According to the existing Rules for Technological Connection to Electric Networks, when a physical person applies for technological connection, within thirty days after the day of receiving the application a network organization must fill in and sign two copies of the draft contract and the technical conditions as an integral appendix to the contract and send them to the applicant for signing. If the applicant disagrees with the contract presented by the network organization, the applicant can sent back a reasonable refusal to sign the draft contract proposing to change the presented document and requesting to adjust it in compliance with the Rules.

The applicant disagreed with the draft contract of “13 Elektricheskaya Set” OJSC and proposed to the company to adjust the contract in accordance with the Rules for Technological Connection. “13 Elektricheskaya Set” OJSC took into account the criticism of its subscriber and signed the contract with him in March 2010.

However, the company failed to perform its contract obligations.

Primorsky OFAS Russia found that “13 Elektricheskaya Set” OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition” and qualified the company’s actions as abusing its market dominance, which infringed the interests of the applicant. The antimonopoly body obligated “13 Elektricheskaya Set” OJSC to undertake measures towards technological connection to electric networks.

Primorsky OFAS Russia would like to point out that it takes under special control all facts of evading technological connection to electric networks. “This is not the first case in the Primorsky region when a monopolist evades its obligations. Once again we protected consumer rights and interests”, explained the Head of Primorsky OFAS Russia, Sergey Vyalykh.

Reference:

Part 1 Article 10 of the Federal Law “On Protection of Competition” prohibits actions (omissions) of an economic entity with dominant market position, which lead or can lead to preventing, restricting or eliminating competition and (or) infringing the interests of other people.