OREANDA-NEWS. January 25, 2012. The Federal Arbitration Court of the Moscow District upheld the decision and determination of the Federal Antimonopoly Service regarding “FSK UES”OJSC and reversed the ruling of the 9th Arbitration Appeal Court that had found FAS decision unlawful, reported the press-centre of FAS Russia.

Therefore, the Federal Arbitration Court of the Moscow District supported the position of Moscow Arbitration Court in the part of reasonableness of the decisions and determination issued by the Antimonopoly Service regarding “FSK UES” OJSC.

On 1st December 2010, FAS Russia found that “FSK UES” OJSC violated the antimonopoly law (Clause 5 Part 1 Article 10 of the Federal Law “On Protection of Competition”) in the part of abusing market dominance by economically and technologically unjustified refusal to conclude a contract with “Gazprom Energo” Ltd. that determines the procedures for using the facilities of the national unified energy system. The company evaded a sub-lease contract with “Gazprom Energo” Ltd. for power grid facilities of the unified national (All-Russian) grid that “Gazprom Energo” Ltd. lawfully owns.

Under Articles 7, 8 and 47 of the Federal Law “On Electric Power Industry”, the owners and other lawful possessors of power grid facilities of National Unified Energy System must transfer the management of these facilities to “FSK UES”OJSC.

As pointed out by the Head of FAS Department for Control over Electric power Industry, Vitaly Korolyov, “FAS Russia welcomes the ruling of the Cassation Court that confirms legitimacy and reasonableness of the decisions made by the Antimonopoly Service. It enables compliance not only with the antimonopoly law but also the law on electric power industry, in particular, Articles 7 and 8 of the Federal Law “On Electric Power Industry”.

Reference:

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

Under Part 2 Article 7 of the Federal Law “On Electric Power Industry”, to ensure security of the Russian Federation, protecting the rights and legitimate interests of legal and physical persons, ensuring unity of economic space in the field of electric power circulation, owners or other legal possessors of power grid facilities of the national (All-Russian) unified energy system, are restricted in their rights in the part of:

The right to conclude contracts for the services for transmitting electric power industry using power grid facilities of the national unified energy system, and determining the contract conditions;

Use (decommissioning) of these facilities without approval by the organization managing the national (All-Russian) unified power grid.

Under Part 3 Article 8 of the Federal Law “On Electric Power Industry”, the organization managing the national (All-Russian) unified power grid shall conclude contracts with other owners or other legitimate possessors of power grid facilities of the national unified energy system to determine the procedures of using these facilities.