OREANDA-NEWS. December 09, 2008. The Arbitration Court of the Dagestan Republic pronounced validity of the decision and determination issued by the Dagestan OFAS Russia regarding "Interregional Distribution Grid Company of the Northern Caucasus" OJSC ("MRSK SK" OJSC), and a branch of "MRSK SK" OJSC - "Dagenergo", reported the press-centre of FAS Russia.

At the beginning of March 2008, following a petition from "Kaspenergosbyt" Ltd., the Dagestan OFAS Russia initiated a case against "MRSK SK" OJSC, "MRSK SK" OJSC - "Dagenergo" for violation Article 10 of the Federal Law "On Protection of Competition". Investigating the case, OFAS Russia established that "Dagestanskaya Energosbytovaya Kompania [Retail Supplier]" OJSC ("DESK" OJSC), "MRSK SK" OJSC ", "MRSK SK" OJSC - "Dagenergo" abused dominant position of the market for the services of transmitting, supplying and distributing electrical power in the Dagestan Republic.

The companies violated the law by cutting off electric power to the customers in Kaspiisk that earlier had contracts with "DESK" OJSC and then became customers of "Kaspenergosbyt" Ltd. Also a branch of "MRSK SK" OJSC - "Dagenergo" cut off electric power to the "Vodocanal" Municipal Unitary Enterprise, referring that the customer had failed to pay for the consumed electric power.

Such actions of the electric power supplier violated Clause 168 of the Regulations on retail markets of Electric Power in the Transitional Period of Reforming the Electric Power Industry. According to the regulations, water supply facilities are included in the list of consumers of electric power whose power supply level cannot be reduced below the level reserved for emergency.

Having investigated the case, the Dagestan OFAS Russia requested "DESK" OJSC, "MRSK SK" OJSC" and a branch of "MRSK SK" OJSC - "Dagenergo" to stop antimonopoly violations and issued relevant determinations.

"MRSK SK" OJSC" and a branch of "MRSK SK" OJSC - "Dagenergo" disagreed and with the decision and determination of the antimonopoly body and appealed to the Arbitration Court of the Dagestan Republic.

On 28th November 2008, the Arbitration Court of the Dagestan Republic confirmed validity and relevance of the decision and determination issued by the Dagestan OFAS Russia regarding the companies.