OREANDA-NEWS. February 24, 2011. The Commission of the Federal Antimonopoly Service (FAS Russia) found that the Ministry of Economics of the Moscow region, the Fuel-and-Energy Committee of the Moscow region and the Legislature [Council of Deputies] of Odintsovo, Odintsovo Municipal District, of the Moscow region, violated Part 1 Article 15 of the Federal Law “On Protection of Competition”, reported the press-centre of FAS Russia.

The FAS Russia’s Commissions found that the tariff bodies restricted competition by including economically unjustified expenses in the approved tariffs for utility companies operating in Odintsovo, the Moscow region (“Odintsovo Heat Network” OJSC and “Odintsovo Water Services Company” OJSC) for 2009 and 2010.

The case was initiated upon the conclusions of the joint Commission of the Bank of Russia and FAS Russia on the antimonopoly case against the “Savings Bank of Russia” OJSC; “Odinbank” Municipal Commercial Bank” (Ltd.); the “Russian Post” Federal State Unitary Enterprise; “Information-and-Payments Centre” Municipal Unitary Enterprise in Odintsovo, Odintsovo Municipal District, of the Moscow region; the “Housing Authority” Municipal Unitary Enterprise of Odintsovo Town, Odintsovo Municipal District, of the Moscow region; “Odintsovo Heat Network” OJSC; “Transinzhstroi” SEU” OJSC and “Odintsovo Water Services Company” OJSC.

These organisations entered into trilateral written agreements, which restricted competition on the market of payments by physical persons in Odintsovo. The Agreements approved the form of a payment document (bill / notice), based on which the residents of more than 250 apartment blocks in Odintsovo, the Moscow region, could pay for housing-and-utilities services only in the “Savings Bank of Russia” OJSC; “Odinbank” Municipal Commercial Bank” (Ltd.) and the “Russian Post” Federal State Unitary Enterprise.

Investigating the case, the joint Commission of the Bank of Russia and FAS Russia established that the tariffs for utility services of (“Odintsovo Heat Network” OJSC and “Odintsovo Water Services Company” OJSC fully or partially included expenses for the services of the “Savings Bank of Russia” OJSC; “Odinbank” Municipal Commercial Bank” (Ltd.) and the “Russian Post” Federal State Unitary Enterprise (on average 2% of the amount of payment) as well as services of à “Information-and-Payments Centre” Municipal Unitary Enterprise (4% of the amount of payment) related to implementation of the trilateral agreements.

According to the FAS Russia’s Commissions, that investigated cases against the tariff bodies, including in the tariffs the expenses for banking and postal services related to payment acceptance was not justified and created unreasonable advantages for these credit organisations and the “Russian Post” Federal State Unitary Enterprise accepting payments from physical persons in Odintsovo.

Including the expenses of the managing organisation for preparing and mailing of payment documents in the utility tariffs also was unjustified and could result in restricting competition as it gave unreasonable advantages to the managing organization (the “Housing Authority” Municipal Unitary Enterprise) in economic activities for managing apartment blocks.

Investigating the cases, the FAS Russia’s Commissions established that óthe utility tariffs for 2009 and 2010 approved for “Odintsovo Heat Network” OJSC and “Odintsovo Water Services Company” OJSC were no more in effect as the new tariffs were approved for 2011, which did not include economically unjustified expenses due to termination of trilateral agreements.

Therefore, the FAS Russia’s Commissions did not issue determinations to the Ministry of Economics of the Moscow region, the Fuel-and-Energy Committee of the Moscow region and the Legislature of Odintsovo, Odintsovo Municipal District, of the Moscow region, to stop violating the antimonopoly law.

“This violation has several adverse social consequences, first of all, increase of tariffs for housing and public utility services”, said the Chairman of the FAS Russia’s Commissions investigating cases against the tariff bodies, Deputy Head of FAS Russia, Mr. Andrey Kashevarov.

“Also”, pointed out Andrey Kashevarov, “as a result of the tariff bodies violating the antimonopoly law, residents that pay for housing and public utility services through credit organisations, that did not enter into the payment acceptance agrements with utility companies, had to pay “double” commission making such payments: first time as part of the tariffs for utility companies and second time – when making payments for the services in the chosen credit organisation, which did not have an agreement for accepting payments”.

“Following the decisions made by FAS Russia, citizens who paid “double” commissions now can demand damages compensation through civil procedures, concluded Andrey Kashevarov.

The decisions on the cases will be prepared within ten working days after being made and will be placed on the official web-site of FAS Russia.

Reference:

Part 1 Article 15 of the Federal Law “On Protection of Competition”:

Federal executive bodies, executive bodies of the constituents territories of the Russian Federation, local self-government bodies, other bodies or organisations exercising the functions of the above bodies as well as state extra-budgetary funds and the Central Bank of the Russian Federation are prohibited to adopt acts and (or) exercise actions (omissions), which lead or can lead to preventing, restricting or eliminating competition, except when passing such acts and (or) exercising such actions (omissions) is provided for by the federal laws.

Article 1069 of the Civil Code of the Russian Federation:

Damages caused to a citizen or a legal person as a result of unlawful actions (omissions) of the authorities, local self-government bodies or officials of these bodies, particularly, as a result of issuing an act by the authorities or local self-government bodies, which is contrary to the relevant law or other legislative acts, must be compensated. Damages shall be compensated at the expense of the Treasury of the Russian Federation, the treasury of a constituent territory of the Russian Federation or the treasury of a municipality accordingly.