OREANDA-NEWS. August 17, 2012. The 16th Arbitration Appeal Court upheld the judgment of Dagestan Arbitration Court, which had dismissed the claim of “Dagestan Power Supply Company” OJSC (“DESK” OJSC) to abolish a determination of the Office of the Federal Antimonopoly Service in the Republic of Dagestan (Dagestan OFAS Russia) to fine the company 34,375,010 Rubles, reported the press-centre of FAS Russia.

In November 2009, “Kaspenergosbyt” Ltd. complained to Dagestan OFAS Russia about “DESK” OJSC. Investigating the case, Dagestan OFAS Russia established that “DESK” OJSC unlawfully restricted power supply to bona fide consumers in Kaspiisk as well as to socially important facilities in the town. OFAS found that the company violated Part 1 Article 10 of the Federal Law “On Protection of Competition” (abusing market dominance).

Upon establishing the fact of the violation, Dagestan OFAS Russia fined “DESK” OJSC 34,375,010 Rubles.

The power supply company challenged the determination by filing a lawsuit to Dagestan Arbitration Court. The Court dismissed the claim of “DESK” OJSC. The company lodged an appeal to the 16th Arbitration Appeal Court attempting to overrule the judgment of Dagestan Arbitration Court. The Appeal Court, however, upheld the judgment of the Court of lower instance.

“Unlawful restrictions of power supply to “Kaspenergosbyt” Ltd. infringed the rights and legitimate interests of consumers in the town and had socially dangerous consequences. Dagestan OFAS lawfully issued a determination to impose the fine, which was confirmed by Courts of two instances. I call upon power generating companies to think about possible heavy fines before deciding to introduce unlawful restrictions of power supply to consumers”, the Head of Dagestan OFAS Russia, Kurban Kubasaev, commented the Court judgment.