OREANDA-NEWS. July 06, 2009. The Federal Antimonopoly Service (FAS Russia) heard the case against "Komi Energosbytovaya Kompania [Energy Supplier]" OJSC. The company violated Part 1 Article 10 of the Federal Law "On Protection of Competition" by unreasonably evading signing an energy supply contract with "Evraziiskaya Energiticheskaya Kompania [Energy Supplier]" CJSC.

Investigating the case, FAS Russia established that "Evraziiskaya Energy Supplier" CJSC applied to "Komi Energy Supplier" OJSC for entering into an energy supply contract (a contract for buying-selling (supplying of eclectic power) and in response "Komi Energy Supplier" OJSC sent a letter to the applicant company that concluding the contract would be premature.

"Komi Energy Supplier" OJSC is the provider of last resort in the Komi Republic.

Reference:
Under Clauses 61 and 62 of the Regulations on Retail Electric Energy Markets in the Transitional Period of Reforming the Electric Power Industry, approved by No.530 Decree of the Government of the Russian Federation of 31st August 2006 (further on referred to as the Regulations), a provider of last resort must enter into an energy supply contract (a contract for buying-selling (supplying of eclectic power) with any applied person (further on referred to as the Applicant) regarding the delivery points of the persons whose energy receiving devices are located within the boundaries of the area of its responsibility.

According to the Regulations, a provider of last resort can refuse to enter into an energy supply contract with the Applicant if there is no proper technological connection of the appropriate energy-receiving devices to electric grids and /or if the delivery points for the retail market, for which the Applicant intends to sign the contract, are located outside the area of its responsibility.

There are no other statutory grounds for a provider of last resort refusing to enter into a contract.