OREANDA-NEWS. July 13, 2012. The Federal Arbitration Court of the Povolzhie District confirmed legitimacy of the fine imposed upon “Vodokanal” Municipal Unitary Enterprise because the company avoided issuing technical conditions for connecting a children’s camp to water supply networks. “Vodokanal” already paid the fine, reported the press-centre of FAS Russia.

In November 2011, the Office of the Federal Antimonopoly Service in the Republic of Tatarstan (Tatarstan OFAS Russia) fined “Vodokanal” 11.8 million Rubles for violating Part 1 Article 10 of the Federal Law “On Protection of Competition”.

The Commission of Tatarstan OFAS Russia established that “Vodokanal” also did not issue technical conditions for connecting capital construction facilities of “Pharm-Friend” Ltd. (a fuel-filling station with car wash) and “Varikus” Ltd. (Kazan). In its responses, “Vodokanal” pointed out that supplying water to the facilities would be possible after constructing “Tetsevsky” water-supply centre.

Deputy Head of Tatarstan OFAS Russia, Lenar Shafigullin, commented the judgment passed by the Arbitration Court: “The case is important to us, in particular, because the Courts confirmed our position: technological connection to networks does not constitute an independent market and the fine is calculated on the basis of the income obtained by providing water-supply services”.

In October 2010, “Leto” Republican Center for Health Improvement, Recreation and Employment of Children and Teenagers applied to “Vodokanal” for obtaining technical conditions for connecting “Plamya” Children’s Health Improvement Camp in Kirov District, Kazan, to water-supply and sewage networks of “Vodokanal”. In response, “Vodokanal” stated that technical conditions could not be issued due to insufficient capacity of the existing networks and facilities.

No.11-40 Decision of Kazan City Legislature of 29th April 2009 approved the investment programme for “Vodokanal” for 2010-2012, which, in particular, provides for increasing carrying capacity of “Tetsevsky” water-supply centre.

Thus, in breach of the Rules for Determining and Providing Technical Conditions for Connecting Capital Construction Facilities to Utility Networks, “Vodokanal” unreasonably avoided issuing technical conditions for connecting capital construction facilities to water-supply networks of “Vodokanal”.

Reference:

Under Clause 9 of the Rules, an organization responsible for operating utility networks (water-supply networks) must within 14 working days after the date of receiving an application for technical conditions determine and provide technical conditions or give a substantiated refusal to issue the above conditions in the absence of a possibility to connect capital construction facilities under construction (reconstruction) to utility networks.

Clause 13 of the Rules specifies that possibility to connect capital construction facilities to utility networks (water-supply networks), particularly, on application by a title holder for a land plot who intends to reconstruct capital construction facilities or connect a constructed capital construction facility to utility networks, in the absence of technical conditions for connection, or technical conditions expired, exists provided there are carrying capacity reserves sufficient to transfer the required resources; there are capacity reserves for producing relevant resources.

Clause 13 of the Rules specifies that absence of the above reserves at the time of filing an application constitutes the grounds for refusing to issue technical conditions, except when eliminating such restrictions is included in the investment programmes of organizations operating utility networks (in the case in question – “Vodokanal” Municipal Unitary Enterprise).