OREANDA-NEWS. January 29, 2014. The Federal Arbitration Court of the North-Caucasian District supported the position of the Federal Antimonopoly Service (FAS Russia) with regard to “Donenergosbyt” Ltd.

The Antimonopoly Service received petitions of “Nizhnovatomenergosbyt” OJSC that “Donenergosbyt” Ltd. and “Energosbyt Rostovenergo” OJSC violated the antimonopoly law. FAS established that “Donenergosbyt” Ltd. and “Energosbyt Rostovenergo” OJSC are adjacent market participants with regard to “Nizhnovatomenergosbyt” OJSC and fulfill the sanctions of provider of last resort in the Rostov region. “Donenergosbyt” Ltd. and “Energosbyt Rostovenergo” OJSC have the dominant position in the Rostov region and have an exclusive right to agree upon the list of measurement devices and sign an agreement on information exchange necessary for “Nizhnovatomenergosbyt” OJSC to enter the wholesale market.

In 2010 “Donenergosbyt” Ltd. avoided signing documents with “Nizhnovatomenergosbyt” OJSC, preventing exit of “Nizhnovatomenergosbyt” OJSC from retail to wholesale markets of electric power (capacity) that planned to purchase electric power (capacity) on the wholesale markets for its customer – “Vodokanal” PO” OJSC.

The Antimonopoly Service found that “Donenergosbyt” Ltd. abused its dominant position (a violation of Part 1 Article 10 Federal Law “On Protection of Competition”) and fined the company over 34 million RUB.

The ruling of the Presidium of the Supreme Arbitration Court of the Russian Federation of 11th December 2012 confirmed legitimacy of FAS decision.

On the basis of the ruling, the Antimonopoly Service filed a claim to the Arbitration Court of the Rostov Region to reconsider unlawful the ruling to hold “Donenergosbyt” Ltd. liable and impose a fine.

The Courts of First Instance refused to reconsider the case, but the Appeal Court and the Federal Arbitration Court of the North-Caucasian District reversed the judgment of the Courts of First Instance and remanded the case for substantive reconsideration.

“In FAS opinion, there are all legitimate grounds for holding violators of the antimonopoly law administratively liable, and we will defend this position at Court”, commented the Head of FAS Department for Control over Electric Power Industry, Vitaly Korolyov.