OREANDA-NEWS. April 07, 2008. The Federal Antimonopoly Service (FAS Russia) recognized that "Mumanoblgaz" OJSC, the Government of the Murmansk region and Rosenergo violated Article 16 of the Federal Law "On Protection of Competition" and issued a determination to stop the violations, reported the press-centre of FAS Russia.

The law was violated by engaging in concerted actions that led to competition restriction of the market of commercial sales of liquefied petrol gas (LPG).

In August 2007 FAS Russia was carrying out a scheduled inspection of the wholesale LPG market in the Murmansk region and established that the gas distribution organization - "Mumanoblgaz" OJSC overstated by more than 20% the LPG volume, purchased as part of LPG supply schedule for the household needs (the so-called balance assignment), approved annually by the Federal Agency on the Electric-Power Industry (Rosenergo).

Under the Order of the Russian Ministry of Industry and Energy "On Organizing Data Collection and Processing to register production and Supply of Liquefied Petrol Gases to the Consumers in the Russian Federation and for Export" and the Decree of the President of the Russian Federation, LPG supplied as part of the balance assignments under the regulated tariffs can be distributed only to the general population at the prices approved by the Government of the Murmansk region. However, "Mumanoblgaz" OJSC was selling some of the gas to other commercial organizations as well as at the company's petrol stations. "Mumanoblgaz" OJSC was able to obtain such volumes of LPG because it overstated its applications to Rosenergo.

FAS Russia established that in 2006 and 2007 the Government of the Murmansk region approved the overstated applications of "Mumanoblgaz" OJSC for the balanced gas requirements - 21 000.940 and 23 000.800 tons accordingly. At the same time, approving the rates for retail LPG sales, the Government based its calculation on a different volumes of LPG: 18 000.500 tons in 2006 and 2007.

In its turn, Rosenergo accepted and approved the application of "Mumanoblgaz" OJSC without taking into consideration LPG consumption rates for the household needs in the Murmansk region, breaching the Order of the Russian Ministry of Industry and Energy.

Having considered the case, FAS Russia recognized that "Mumanoblgaz" OJSC, the Government of the Murmansk region and Rosenergo violated the antimonopoly legislation.