OREANDA-NEWS. September 05, 2013. Moscow Arbitration Court supported the decision of the Federal Antimonopoly Service (FAS Russia) and confirmed that “Moscow Integrated Electric Power Network Company” OJSC (“MOESK” OJSC) abused its market dominance.

On 13th February 2013, FAS found that “MOESK” OJSC violated the antimonopoly law and issued a determination to the company to transfer an income over 230 million Rubles to the federal budget.

Earlier FAS carried out an unscheduled inspection of “MOESK” OJSC and revealed various violations related to concluding and executing contracts for technological connection of non-stationary retail facilities with the authorities (municipal councils) of administrative districts in Moscow (Clause 1 Article 10 of the Federal Law “On Protection of Competition”).

In June 2011 - November 2012, municipal councils concluded contracts with “MOESK” OJSC for technological connection of non-stationary retail facilities to electric power networks. For each non-stationary retail facility municipal councils sent a separate application to “MOESK” OJSC for technological connection of such facilities, each of which was registered by “MOESK” OJSC under a separate registration number.

At the same time, “MOESK” OJSC combined several applications for technological connection of power-receiving devices with up to 15 kW capacity made by municipal councils of Moscow districts as the subject of a single contract for technological connection in order to increase the maximum capacity of connected receivers making it over 15 kW. Such actions enabled applying the rate for calculating the costs of connecting to the electric power networks of “MOESK” OJSC at16 648.80 Rub/kW instead of the statutory 550 Rubles, which is confirmed by Moscow City Department for Commerce and Services.

Also on 23rd August 2013, the Moscow Office of the Federal Antimonopoly Service (Moscow OFAS Russia) fined “MOESK” OJSC over 16 million Rubles for breaching the antimonopoly law (Part 1 Article 10 of the Federal Law “On Protection of Competition”).

Moscow OFAS Russia established that the network company abused its dominance on the market for electric power transmission and technological connection to electric power networks in Moscow within the boundaries of the connected network. As a result, the interests of a premises owner were infringed and the owner approached the antimonopoly body seeking help.