OREANDA-NEWS. September 30, 2013. The 15th Arbitration Appeal Court pronounced legitimacy of the decision of the office of the Federal Antimonopoly Service in the Rostov region (Rostov OFAS Russia) to fine “MRSK South” OJSC over 17.5 million Rubles for abusing market dominance.

Having investigated the case, the Commission of Rostov OFAS Russia established that power grid facilities of “Donenergo” OJSC, through which power was supplied to physical and legal persons, were connected to the facilities of “MRSK South” OJSC.

In August 2012, “MRSK South” OJSC notified “Donenergo” OJSC in writing about a forthcoming termination of power supply due to its debt for the provided services, which could have resulted in switching off power to all consumers.

Such actions by “MRSK South” OJSC were contrary to the Federal Law “On Electric Power Industry” that prohibits terminating power supply to consumers that have no arrears for the consumed electric power.

“MRSK South” OJSC was fined over 17.5 million Rubles for violating the antimonopoly law.

The company disagreed with the decision of the antimonopoly body and filed a claim; however, the 15th Arbitration Appeal Court ruled actions of Rostov OFAS Russia legitimate.

“In this situation consumers became hostages to the interests of power network companies. Power supply to the residents who duly paid for electric power could ultimately be terminated, while it was “Donenergo” OJSC rather than ordinary consumers that accumulated arrears to “MRSK South” OJSC”, commented Deputy Head of Rostov OFAS Russia, Sergey Baturin.

Reference:

Under Part 4 Article 26 of the Federal Law “On Electric Power Industry” and Clauses 6 of the Rules for Non-Discriminatory Access to Electric Power Transmission Services, the owners of power grid facilities, through which a consumer power-receiving device is connected to the electric power networks, cannot prevent power flow through their power grid facilities to the consumer and demand payment for this.