OREANDA-NEWS. May 04, 2011. Moscow Arbitration Court upheld the decision and determination of the Federal Antimonopoly Service (FAS Russia) that “Federal Grid Company of United Energy System” (“FGC UES”) OJSC violated Clause 5 Part 1 Article 10 of the Federal Law “On Protection of Competition” by abusing market dominance, reported the press-centre of FAS Russia.

On 1st December 2010, the FAS Russia’s Commission recognised the fact of “FGC UES” OJSC violating Part 1 Article 10 of the Federal Law “On Protection of Competition”.

The case was initiated after FAS Russia received a complaint from “Gazprom Energo” Ltd. about “FGC UES” OJSC. The company avoided concluding a sub-lease contract with “Gazprom Energo” Ltd. for power supply network facilities, included in the united national (All-Russian) grid, and which “Gazprom Energo” Ltd. legally owns.

Under Articles 7, 8, 47 of the Federal Law “On Electric Power Industry”, owners or other lawful possessors of power supply network facilities, included in the united national (All-Russian) grid, must transfer the management of these facilities to “FGC UES” OJSC.

“This case is important not only in terms of observing the antimonopoly law by the largest natural monopolies. It also creates a precedent laying the fundament to complying with the law on electric power industry, particularly, Articles 7, 8 and 47 of the Federal Law “On Electric Power Industry”, said the Head of the FAS Russia’s Department for Control over Electric Power Industry, Vitaly Korolyov.

Reference:

Part 1 Article 10 of the Federal Law “On Protection of Competition” prohibits actions (omissions) of an economic entity with dominant position if they have resulted or can result in preventing, eliminating, restricting competition and (or) infringing the interests of other persons.

Under Part 2 Article 7 of the Federal Law “On Electric Power Industry”, in order to safeguard security of the Russian Federation, protect the rights and legitimate interests of legal and physical persons, ensure the unity of economic space in terms of circulating electric power, the owners or other lawful possessors of power supply network facilities, included in the united national (All-Russian) grid, are restricted in exercising their rights in the part of:

the rights to conclude contracts for providing power transmission services with use of power supply network facilities, included in the united national (All-Russian) grid, and to determine the conditions of such contracts;

to use (decommission) the above facilities without an approval by the organisation authorised to manage the united national (All-Russian) grid.

Under Part 3 Article 8 of the Federal Law “On Electric Power Industry”, the organisation authorised to manage the united national (All-Russian) grid shall conclude contracts with other owners or other lawful possessors of power supply network facilities, included in the united national (All-Russian) grid, that determine the procedures for use of these facilities.