OREANDA-NEWS. August 17, 2011. The Office of the Federal Antimonopoly Service in the Tyumen Region (Tyumen OFAS Russia) fined “Tyumenenergo” OJSC 1.8 million Rubles under Article 14.31 of the Code of the Russian Federation on Administrative Violations, reported the press-centre of FAS Russia

The fine was imposed upon OFAS recognising that “Tyumenenergo” OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition”. Tyumen OFAS Russia received a petition of “SUENKO” OJSC, that tried to connect its applicant to an electric power network but the energy company set unreasonable conditions. The Commission of the antimonopoly body concluded that “Tyumenenergo” OJSC abused its market dominance by imposing disadvantageous conditions of the contract for technological connection.

According to the contract conditions, “SUENKO” OJSC was obligated to sign an additional agreement, under which “Tyumenenergo” OJSC could postpone the date of technological connection for any period convenient for the company. In case of fulfilling the contract conditions the interests of “SUENKO” OJSC could have been infringed in terms of completing technological connection within the period specified by normative legal acts and the petitioner would also have disadvantageous and non-statutory obligations to enter into the additional agreement.

“Violations in the field of technological connection to electric power networks of network organisations are systemic. In the latest years FAS and its regional offices have considerably increased the efforts to suppress such violations. The measures undertaken by the antimonopoly bodies, particularly holding the violators administratively liable - imposing fines calculated on the basis of the company income, should produce positive effect by reducing the number of violations in this field and ensuring availability of technological connection for all consumer categories”, said the Head of FAS 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 that have resulted or can resulted in preventing, eliminating, restricting competition and (or) infringing the interests of other persons.

Under Article 14.31 of the Code of the Russian Federation on Administrative Violations , if an economic entity with dominance position exercises actions that are recognised as abusing market dominance and are prohibited under the antimonopoly law of the Russian Federation, it is punishable by an administrative fine upon legal entities – from one hundredth to fifteen hundredths of the income of the violator from selling goods (works, services) on the market, where the administrative violation was committed but no more than one fiftieth of the overall income of the violator from selling all goods (works, services) and no less than 100,000 Rubles, and if the income of the violator from selling goods (works, services) on the market, where the administrative violation was committed exceeds 75% of the overall income of the violator from selling all goods (works, services) – from three thousandths to three hundredths of the income of the violator from selling goods (works, services) on the market, where the administrative violation was committed, but no more than one fiftieth of the overall income of the violator from selling all goods (works, services) and no less than 100,000 Rubles.