OREANDA-NEWS. November 25, 2013. The 13th Arbitration Appeal Court pronounced legitimacy of the fine imposed by the Office of the Federal Antimonopoly Service in the Leningrad region (Leningrad OFAS Russia) upon “Lenenergo” OJSC.

At the end of March 2013, “Crystall” Horticultural Non-Commercial Partnership sent a list of disagreements to a draft connection contract, but received a response from “Lenenergo” OJSC only in 61 days instead of the statutory five days (in breach of Clause 15 of the Rules for Technological Connection to Electric Power Networks).

Since the monopolist already committed similar violations in 2013, “Lenenergo” OJSC was imposed an administrative fine 600,000 RUB due to the recurrence under Part 2 Article 9.21 of the Code of the Russian Federation on Administrative Violations.

The network organization challenged the determination on the administrative fine; however, the Court of First Instance and Appeal Court confirmed its legitimacy.

Under Clause 15 of the Rules for Technological Connection to Electric Power Networks, approved by № 861 Decree of the Government of the Russian Federation of 27th December 2004 (in the version valid until 24th August 2013), a network organization shall forward to an applicant to be signed a filled in and signed draft contract and technical conditions, as an integral appendix to the contract, within 30 days after the date of receiving the application.

If within 30 days after receiving a draft contract from the network organization, an applicant sends a reasonable refusal to sign it and requests to adjust the draft in line with the Rules to Technical Connection to Electric Power Networks, a network organization must adjust a draft contract in line with the Rules within five working days after the date when the request was received.

Under Part 2 Article 9.21 of the Code of the Russian Federation on Administrative Violations, repeated administrative violations shall be punishable by an administrative fine upon legal entities – from 600,000 RUB to 1 million RUB.