OREANDA-NEWS. June 26, 2013. The Office of the Federal Antimonopoly Service in the Nizhniy Novgorod Region (Nizhniy Novgorod OFAS Russia) found that “RUSENERGOSBYT” Ltd. violated the antimonopoly law – Part 1 Article 10 of the Federal Law “On Protection of Competition” (abusing dominance).

On 30th October 2012, the energy supplier notified about introducing energy supply restrictions due to arrears accumulated by “House Management Company of Kanavinsky District” in September 2012 (105,717 Rubles). “House Management Company of Kanavinsky District” refused to switch off electrcicity in houses and complained to Nizhniy Novgorod OFAS Russia about unreasonable restrictions of energy supply. The Commission of Nizhniy Novgorod OFAS Russia established that “RUSENERGOSBYT” Ltd. and “House Management Company of Kanavinsky District” concluded a contract for buying-and-selling (supplying) electric power, under which power is supplied to the apartment blocks managed by “House Management Company of Kanavinsky District”.

OFAS also established that based on the claim of “RUSENERGOSBYT” Ltd., the Arbitration Court of Nizhniy Novgorod Region initiated a case on recovering the debt for the electric power consumed in September 2012.

Relations between an executer of communal services and a resource supplying organization on the issues related supplies of communal; resources are regulated by the norms of housing legislation.

Indebtedness for a single payment period cannot constitute the grounds for restricting consumption of electric power.

Also under the current law of the Russian Federation only network organization, and not provider of last resort, can restrict electric power consumption.

“RUSENERGOSBYT” Ltd. is included in the Register of economic entities with over 35% market share or that have the dominant position. The Commission of Nizhniy Novgorod OFAS Russia found that the monopolist abused its dominant position (in breach of Part 1 Article 10 of the Federal Law “On Protection of Competition”) and issued determinations to stop abusing dominant position and prevent violations of the antimonopoly law.

“The case materials are submitted for opening administrative proceedings”, commented the Head of Nizhniy Novgorod OFAS Russia, Mikhail Teodorovich.