OREANDA-NEWS. November 29, 2012. The Arbitration Court of the Republic of Mordovia allowed in full the claim of the Office of the Federal Antimonopoly Service in the Republic of Mordovia (Mordovia OFAS Russia) on forced sale of property of “Gorsveelektrosbyt” Ltd. used for buying-and-selling electric power, reported the press-centre of FAS Russia.

In the course of the antimonopoly investigation OFAS established that “Gorsveelektrosbyt” Ltd. (a sales organization) and “Gorsvet” Municipal Enterprise of Saransk (a network organization) were affiliated persons operating within the boundaries of the same price zone of the wholesale market.

Mordovia OFAS Russia filed a lawsuit for forced sale of the property owned by “Gorsveelektrosbyt” Ltd. The Arbitration Court of the Republic of Mordovia allowed the claim and obligated “Gorsveelektrosbyt” Ltd. to sell the property possessed under the right of ownership and directly used in generating and selling-and-buying electric power.

“Enforcement of the Law “On Specifics of Functioning of the Electric Power Industry in the Period of Transition” with regard to affiliated persons became possible only with adopting the “third antimonopoly package”. The Court ruling on the forced sale of property of “Gorsveelektrosbyt” Ltd. is the first of its kind and constitutes a precedent”, emphasized the Head of Mordovia OFAS Russia, Yulia Popova.

Reference:

Article 6 the Law “On Specifics of Functioning of the Electric Power Industry in the Period of Transition” prohibits combining activities of natural monopolies and competitive activities in the electric power industry by legal entities, individual entrepreneurs as well as affiliated persons within the boundaries of the same price zone of the wholesale market.

Under Article 6, the antimonopoly authority shall file a claim to Arbitration Court to stop activities of individual entrepreneurs – economic entities.

If a forced reorganization of a legal person cannot ensure execution of the requirements, the antimonopoly body shall file a claim to Court of Law on forced sale of property possessed by the legal entity on the right of ownership and directly used in generating and (or) buying-and-selling electric power.