OREANDA-NEWS. February 28, 2012. The 16th Arbitration Appeal Court confirmed validity of the decision of the Office of the Federal Antimonopoly Service in the Republic of Dagestan (Dagestan OFAS Russia) to fine “Dagestan Retail Energy Sales Company” OJSC (“DESK” OJSC) 15.7 million Rubles for abusing market dominance on the market of supply and sales of electric power, reported the press-centre of FAS Russia.

The company abused its dominance by creating discriminatory conditions and infringing the interests of “Sulak Hydraulic Power System” OJSC (“SGEK” OJSC) and customers of retail energy sales company, technologically connected to “SGEK” OJSC.

The retail energy sales company filed a lawsuit to Dagestan Arbitration Court challenging the determination of Dagestan OFAS Russia to impose a fine. However, the Court of First Instance dismissed the claim.

The 16th Arbitration Appeal Court also supported the arguments put forward by Dagestan OFAS Russia and dismissed the appeal of “DESK” OJSC.

The antimonopoly body imposed the fine based upon the outcome of an antimonopoly case against “DESK” OJSC. In March 2010, Dagestan OFAS Russia received a petition of the General Director of “SGEK” OJSC who asked to investigate actions of “DESK” OJSC that had unilaterally terminated a contract for transmitting electric power through the networks owned by “SGEK” OJSC.

The Commission of Dagestan OFAS Russia found that actions of “DESK” OJSC were unlawful and violated Part 1 Article 10 of the Federal Law “On Protection of Competition” (“Prohibition of abusing market dominance by economic entities”) and issued a determination to eliminate the violation.

Earlier “DESK” OJSC also challenged the decision on the antimonopoly case at Dagestan Arbitration Court. The Court also dismissed the claim of the energy sales company.

“As “DESK” OJSC is the only provider of last resort in the Republic of Dagestan, it must ensure continuous supply of electric power of proper quality and volume to the customers. Any abusing and violations in this field breaches the law, is unacceptable and will be suppressed by the officers of Dagestan OFAS Russia”, Kurban Kubasaev, the Head of OFAS, commented the Court judgment.