OREANDA-NEWS. March 21, 2007. On 20th March 2007, the 9th Arbitration Appeal Court dismissed the appeal of "Chelyabenergosbyt" OJSC against the ruling of the Moscow Arbitration Court not to allow the company's petition on recognizing invalidity of decision and determinations of the Federal Antimonopoly Service (FAS Russia), reported the press-centre of  FAS Russia.

Earlier FAS Russia initiated a case against "Chelyabenergosbyt" on petition of "MAG-Energo" Ltd.

The Antimonopoly Service established that "Chelyabenergosbyt" had been holding back from singing an additional agreement to the energy supply contract and a tripartite agreement with "MAG-Energo". These documents are prerequisites for gaining admission to the tenders on the energy market.

Furthermore, in course of negotiating the above agreements, "Chelyabenergosbyt" imposed discriminatory conditions on "MAG-Energo" by calculating a uniform flat-rate tariff on electricity for the company, which is considerably higher in comparison with those offered to other similar customers of "Chelyabenergosbyt".

Thus, actions undertaken by "Chelyabenergosbyt" were obstructing the entry of "MAG-Energo" to the wholesale energy market.
On 14th June 2006 FAS Russia found that the energy company had breached Clause 1 Article 5 of the Law "On Competition and Restricting Monopolistic Activities on Goods Markets" and instructed the company to enter into an additional agreement to the energy supply contract and a tripartite agreement with "MAG-Energo" according to the forms specified by the tender organizer on the energy market - the "Administrator of the trading network of the wholesale energy market of the United Energy System" nonprofit partnership ("АТS" NP).

"Chelyabenergosbyt" disagreed with decision and determinations of the antimonopoly authority and appealed to the Moscow Arbitration Court. The Court, however, dismissed the company's complaint and, therefore, confirmed validity of FAS Russia decision and determinations. The 9th Arbitration Appeal Court affirmed the judgment of the first instance court.