OREANDA-NEWS. April 17, 2014. The Federal Arbitration Court of the North Caucasus District confirmed legitimacy of an over 10 million fine imposed upon “Dagestan Energy Supplying Company” OJSC (“DESK” OJSC) for violating the antimonopoly law.

Earlier “Makhachkala Town Electric Grid” OJSC (“MGES” OJSC) asked the Office of the Federal Antimonopoly Service in the Republic of Dagestan (Dagestan OFAS Russia) to take measures with regard to “DESK” OJSC and assess the company’s actions in terms of compliance with the antimonopoly law.

“MGES” OJSC stated that “DESK” OJSC unreasonably overrated the costs of electric power consumed by “MGES” OJSC, and threatened the town to switch off supplies.

OFAS initiated a case against “DESK” OJSC upon signs of violating Clause 10 Part 1 Article 10 of the Federal Law “On Protection of Competition”, as the company violated the established pricing procedures for the purposes of billing for the electric power consumed by “MGES” OJSC.

Having investigating the case, Dagestan OFAS Russia found that the company had violated the antimonopoly law and fined “DESK” OJSC 10,312,503 RUB.

“The company attempted to challenge the fine at Dagestan Arbitration Court and the 16th Arbitration Appeal Court. Both Courts, however, confirmed legitimacy of the fine imposed by the Antimonopoly Service”, pointed out the Head of Dagestan OFAS Russia, Kurban Kubasaev.