OREANDA-NEWS. February 05, 2013. Dagestan Arbitration Court dismissed the claim of “Dagestan Energy Supplier” OJSC on invalidating and abolishing the determination of Dagestan OFAS Russia to impose an administrative fine upon the company (18,343,116 Rubles). “DESK” OJSC attempted to challenge the size of the fine, expecting to reduce it from several millions to 300,000 Rubles, reported the press-centre of FAS Russia.

In August 2011, Dagestan OFAS Russia exposed an antimonopoly violation by “DESK” OJSC (Part 1 Article 10 of the Federal Law “On Protection of Competition”). The company refused to prolong the contract with “Dagestan Small Hydroelectric Power Stations” OJSC for buying-and-selling electric power. Dagestan OFAS Russia obligated the company to conclude the contract with “Dagestan Small Hydroelectric Power Stations” OJSC by 5th September 2011. “DESK” OJSC considered the decision of the Antimonopoly Service unlawful and filed a lawsuit to Arbitration Court of the Republic of Dagestan.

In February 2012, Dagestan Arbitration Court supported the decision of Dagestan OFAS Russia and dismissed the claim of “DESK” OJSC. The energy company appealed; however, the Appeal Court and the Cassation Court dismissed the claim of “DESK” OJSC.

Dagestan OFAS Russia initiated an administrative case against the energy company for abusing market dominance; based on the case outcome, OFAS fined “DESK” OJSC 18,343,116 Rubles.

The energy supplier filed a lawsuit to Dagestan Arbitration Court challenging the determination on imposing the fine. The Court dismissed the claim of “DESK” OJSC, confirming legitimacy of the fine imposed by the Antimonopoly Service.

“Arbitration Court of the Republic of Dagestan passed an objective and fair ruling on the case because as a result of unlawful actions of the energy company the hydroelectric power sector in Dagestan suffered considerable losses. The administrative fine is proportionate to the violation, and Dagestan OFAS Russia, as before, will guard the principle of unavoidability of punishment for the guilty persons”, the Head of OFAS, Kurban Kubasaev, commented the Court ruling.