OREANDA-NEWS. December 09, 2008. The Federal Antimonopoly Service (FAS Russia) received a petition from the Dalnevostochnaya Generating Company ("DGC" OJSC) that "SUEK" OJSC and "Yakutigol" Holding Company" OJSC violated the antimonopoly legislation in course of the contract campaign for supplying power-generating coal to the companies of "DGC" OJSC in 2009, reported the press-centre of FAS Russia.

Under the existing contracts for supplies of coal, "SUEK" OJSC and "Yakutigol" Holding Company" OJSC sent letters to "DGC" OJSC, where they informed about increasing from 1st January 2009 the prices for power-generating coal, supplied by the companies, by 35% and 39% accordingly in comparison with the ex-works prices in 2008.

Enquiry to "DGC" OJSC showed that the prices for power-generating coal offered by "SUEK" OJSC and "Yakutigol" Holding Company" OJSC were monopolistically high and did not meet the buyer-seller balance of interests.

The grade of power-generating cola supplied by "SUEK" OJSC and "Yakutigol" Holding Company" OJSC are specified for the equipment installed on the thermal station of "DGC" OJSC: when constructing the thermal station, its main and additional boiler equipment was designed for burning these grades of coal. Consultations with "DGC" OJSC showed that these grades of coal couldn't be substituted with other grades because it would require considerable additional expenses for coal transportation and re-equipment of production facilities and would not generate positive economic effect.

"SUEK" OJSC and "Yakutigol" Holding Company" OJSC have dominant position on the markets of selling coal in the Khabarobsk region (krai), the Primorsky region (krai), the Amur region and the Republic Sakha (Yakutia) - the territory of operation of "DGC" OJSC.

FAS Russia believed that "SUEK" OJSC and "Yakutigol" Holding Company" OJSC violated Part 1 Article 10 of the Federal Law "On Protection of Competition".

FAS Russia initiated a case against "SUEK" OJSC and "Yakutigol" Holding Company" OJSC, the hearing is scheduled on 24th December 2008.