Arkhangelsk OFAS Russia Fined TGK-2 OJSC 43-mn Fine
OREANDA-NEWS. February 08, 2011. Arkhangelsk OFAS Russia fined “No.2 Regional Generating Company” OJSC (“TGK-2” OJSC) 43,027,398 Rubles, reported the press-centre of FAS Russia.
On 16th November 2010, the Commission of Arkhangelsk OFAS found that “TGK-2” OJSC violated Clause 8 Part 1 Article 10 of the Federal Law “On Protection of Competition” and Clauses 10 and 11 of the Rules for determining and providing conditions for connecting capital construction facilities to engineering networks, approved by the Decree of the Government of the Russian Federation.
“TGK-2” OJSC failed to specify the connection rates and set the technical conditions validity period which did not allow “Severodvinsk” MO” to attract investors for develop the connected plots of land.
“We consider this violating taking place in the heat supply market because issuing technical conditions for network connection is inseparable with the monopolist rendering its services. That’s why the heavy fine calculated as a percentage of the income of the violator of this market. In general this violation is very dangerous to the society because it not only infringes the interests of “Severodvinsk” MO” in urban development but also threatens the long-term plans for development of the whole region and, therefore, causes damages to the whole economy of the Arkhangelsk region”, commented the Head of Arkhangelsk OFAS Russia, Konstantin Alyoshin.
Clause 8 Part 1 Article 10 of the Federal Law “On Protection of Competition” prohibits actions (omissions) of an economic entity with dominant position that have resulted or can result in preventing, restricting or eliminating competition and (or) infringing the interests of other persons, particularly, creating discriminatory conditions.