OREANDA-NEWS. July 18, 2014. Arbitration Court supported the decision of the Office of the Federal Antimonopoly Service (FAS Russia) in the Krasnodar region (Krasnodar OFAS Russia) that “Kybanenergosbyt” OJSC had violated the antimonopoly law.

On 7th February 2014, Krasnodar OFAS Russia found that “Kybanenergosbyt” violated Part 1 Article 10 of the Federal Law “On Protection of Competition” and issued a determination to eliminate the violation. “Kybanenergosbyt” unilaterally refused to execute the contract with “Yugvodokanal” Ltd. due to electric power arrears.

The Rules for complete and (or) partial restrictions of energy supply, approved by No.442 Decree of the Government of the Russian Federation of 04.05.2012, prohibit terminating electric power supply on water-supply facilities. According to the Rules, organizations that operate water-supply facilities are classified as consumers, and restricting electric power supply can lead to economic, environmental and social consequences.

The energy supplier disagreed with the decision of Krasnodar OFAS Russia and filed a lawsuit. Arbitration Court, however, confirmed legitimacy of the decision and determination issued by the antimonopoly body.