OREANDA-NEWS. On January 10, 2007 Penza Regional Arbitration Court dismissed the claim of "Penzaregiongaz" Ltd. on invalidity of the decision of the Antimonopoly Office, reported the press-centre of FAS Russia.

On 17th April 2007 the Office of the Federal Antimonopoly Service (OFAS Russia) in the Penza Region recognized that "Penzaregiongaz" Ltd. had breached Article 10 of the Federal Law "On Protection of Competition".

The case was initiated upon a petition of "Domostroitel" AK" OJSC, involved in housing construction.

Penza OFAS Russia established that from 16th to 28th February 2007, "Penzaregiongaz" Ltd. requested "Domostroitel" AK" OJSC to pay for the volumes of gas calculated according to the designed capacity of the gas-consuming equipment in the boiler-house, based on 24 hours of operation per day. "Penzaregiongaz" Ltd. warned "Domostroitel" that should it fail to pay for the above volume of gas, it would stop supplying gas to the petitioner's objects.

Justifying its decision, "Penzaregiongaz" Ltd. explained that "Domostroitel" AK" OJSC failed to execute the direction to reconstruct the company's measurement unit, which did not meet the existing standards.

The Antimonopoly Office established that the gas supplier undertook non-relevant functions of technical regulation and metrology, that is: evaluating the use of measurements facilities and concluding whether the facilities comply with the norms and regulation. Such issues are prerogative of the Federal Agency on Technical Regulation and Metrology.

Furthermore, Penza OFAS Russia established that the existing norms and regulations do not forbid the petitioner to use the gas measurement facilities. Therefore, by forcing "Domostroitel" AK" OJSC to pay for gas volumes calculated according to the designed capacity of the boiler-house based on 24 hours of operation per day, "Penzaregiongaz" Ltd. was infringing the company's interests and abusing its dominant position.

The Antimonopoly Office recognized that the company breached Article 10 of the Federal Law "On Protection of Competition" and issued a determination to eliminate the violations.

"Penzaregiongaz" Ltd. disagreed and appealed to the Arbitration Court.

The Court of First Instance invalidated the decision passed by Penza OFAS Russia. The Cassation Court, however, reversed the judgment of the Court of First Instance and remanded the case for reconsideration.

Finally, Penza Regional Arbitration Court found the arguments of "Penzaregiongaz" Ltd. unjustified and, therefore, confirmed the rightness of the Antimonopoly Office.