OREANDA-NEWS. June 07, 2012. The Antimonopoly Service fined “Dagenergoset” OJSC over five million Rubles for restricting electric power supply in Kizilyurt.

On 30th May 2012, the Office of the Federal Antimonopoly Service in the Republic of Dagestan (Dagestan OFAS Russia) made a decision to impose administrative sanctions upon the company for abusing its dominant position on the market of electric power.

In 2011, Dagestan OFAS Russia received documents and information from “Kizikyurtenergosbyt” Municipal Unitary Enterprise that indicate the facts of restricting energy supply in Kizikyurt by “DESK” OJSC, “MRSK North Caucasus” OJSC and “Dagenergoset” OJSC. Dagestan OFAS Russia found that actions of the companies had signs of violating the antimonopoly law. In course of the investigation, the Antimonopoly Service established that “DESK” OJSC had dominant position on the market of supplying electric power in Dagestan. The antimonopoly body also exposed the following facts: an application for restricting electric power supply to “Kizikyurtenergosbyt” Municipal Unitary Enterprise; specifying the restriction period; “Dagenergoset” OJSC and “DESK” OJSC are members of the same group of persons because the functions of the sole executive body of “DESK” OJSC are transferred to “MRSK North Caucasus” OJSC, and “Dagenergoset” OJSC is a subsidiary of “MRSK North Caucasus” OJSC.

Having investigated the case, Dagestan OFAS Russia found that “DESK” OJSC, “MRSK North Caucasus” OJSC and “Dagenergoset” OJSC violated Article 10 of the Federal Law “On Protection of Competition”.

“DESK” OJSC и “Dagenergoset” OJSC filed a lawsuit to invalidate the decision of the Antimonopoly Service; however, Dagestan Arbitration Court dismissed their claims.

Dagestan OFAS Russia also initiated an administrative case against “Dagenergoset” OJSC upon the fact of the sales company abusing its dominant position in the Republic of Dagestan. Based on the investigation, the company was fined over five million Rubles (5,359,809 Rubles).

“Unlawful actions of energy companies, including “Dagenergoset” OJSC, resulted in infringing the rights and legitimate interests of bona fide consumers of electric power in Kizikyurt. It’s not the first time that Dagestan OFAS Russia defends the interests of general public, particularly, at Courts”, commented the Head if Dagestan OFAS, Kurban Kubasaev.