OREANDA-NEWS. September 13, 2012. The Arbitration Court of the Nizhny Novgorod Region pronounced legitimacy of a fine imposed by the Office of the Federal Antimonopoly Service in the Nizhny Novgorod Region (Nizhny Novgorod OFAS Russia) upon “Borsky Vodokanal” OJSC, reported the press-centre of FAS Russia.

According to a petition of No.1 “Zvezda” Homeowners Association, on 18-21 October 2011 “Borsky Vodokanal” OJSC restricted cold water supply due to a debt of the Homeowners Association to the resource-supplying company. As a result, water supply to the residents of an apartment house in Zheleznodorozhny village, Borsky District, the Nizhny Novgorod region, was terminated.

The Rules for provision of utility services to physical persons prohibit cold water supply restrictions and termination on the grounds of indebtedness of physical persons to a recourse-supplying organization.

On 20th March 2012, Nizhny Novgorod OFAS Russia found that “Borsky Vodokanal” OJSC violated Clause 1 Article 10 of the Federal Law “On Protection of Competition” (abusing market dominance) and fined the company 959,321 Rubles 96 kopecks.

“Borsky Vodokanal” OJSC disagreed with the determination of Nizhny Novgorod OFAS Russia and filed a lawsuit to the Arbitration Court of the Nizhny Novgorod Region to invalidate the fine. The Court, however, dismissed the claim of “Borsky Vodokanal” OJSC and supported the decision made by Nizhny Novgorod OFAS Russia.

“By switching off cold water, “Borsky Vodokanal” OJSC created a situation when, in particular, bona fide residents suffered, who paid for the services in full. Such actions of the company are unacceptable”, pointed out the Head of Nizhny Novgorod OFAS Russia, Mikhail Teodorovich.