OREANDA-NEWS. March 30, 2011. Kemerovo OFAS Russia found that a group of persons comprising: “Vostochnaya Mezhregionalnaya Gazovaya Komapnia” Ltd. and “Kemerovogaz” OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition”, reported the press-centre of FAS Russia.

The group of persons comprising “Vostochnaya Mezhregionalnaya Gazovaya Komapnia” Ltd. and “Kemerovogaz” OJSC controls over 90% of the market for technical maintenance of in-house gas equipment and emergency dispatching services for the population of the Kemerovo region.

The case was initiated upon numerous petitions from residents of the Kemerovo region, supervisory bodies, including the Prosecutor’s Office of the Kemerovo region, in 2010 that actions of the companies providing technical maintenance of in-house gas equipment and emergency dispatching services in the region violated the antimonopoly law. The companies infringed the interests of citizens by including certain provisions in the contracts for technical maintenance of in-house gas equipment and emergency dispatching services and fixing unjustified charges for these services.

Currently charges for technical maintenance of in-house gas equipment and emergency dispatching services are not subject to government regulation and the rates for them are fixed by the companies providing such services, internal documentation based on the principles of fully compensating the incurred costs and reaching the set profit margin.

In view of the level of monopolization of the market for technical maintenance of in-house gas equipment and emergency dispatching services, the goal of the Antimonopoly Service is to control the process so that high prices could not be fixed as a result of an arbitrary decision of an economic entity that renders such services.

“The purpose of such control is to achieve maximum tariff transparency so consumers know precisely what cost items form the price of services on the monopolistic market”, says the Head of Kemerovo OFAS Russia.

The outcome of the case investigation affects the interests of more than 17,000 residents of the Kemerovo region. Kemerovo OFAS Russia analysed the market of technical maintenance of in-house gas equipment and emergency dispatching services and prices for similar services in other regions of the Russian Federation. OFAS also organised a meeting attended by representatives of the Kemerovo Regional Authority, “United Russia” political party, and consumers.

Upon comprehensive investigation of the issue, members of staff of Kemerovo OFAS Russia concluded that “Vostochnaya Mezhregionalnaya Gazovaya Komapnia” Ltd. and “Kemerovogaz” OJSC violated the antimonopoly law by abusing market dominance, which infringed the interests of consumers.

For instance, entering into public contracts for technical maintenance of in-house gas equipment and emergency dispatching services, these companies included conditions for monthly payment for the services although the services in question are provided periodically (once every three months, one a year or once in three years), which deprived consumers of the right, provided for by the Civil Code of the Russian Federation, for payment of services upon the fact of rendering them, specifying the list of completed works and their costs.

Also payment for technical maintenance of in-house gas equipment and emergency dispatching services depended on the volume of consumed gas rather than on actually rendered services (maintenance of gas equipment). Under such method of calculations, the costs of technical maintenance of in-house gas equipment and emergency dispatching services for the owners of private houses using gas heating varied from 2,000 to 6,000 Rubles (not including the cost of gas). Such costs of services confused consumers: why they have to pay different price for services provided to houses with identical gas equipment as when a customer uses more gas the companies offering technical maintenance of in-house gas equipment and emergency dispatching services do not visit such customer more frequently.

At a meeting of the Commission, representatives of “Vostochnaya Mezhregionalnaya Gazovaya Komapnia” Ltd. and “Kemerovogaz” OJSC stated that applying the method of calculating payments for technical maintenance of in-house gas equipment and emergency dispatching services on the basis of the equipment used by consumer would cause sharp increase of the tariffs for this service. The Commission, however, analysed the arguments and calculations submitted by the respondents and concluded that they were not justified.

Therefore, the Commission of Kemerovo OFAS Russia found that “Vostochnaya Mezhregionalnaya Gazovaya Komapnia” Ltd. and “Kemerovogaz” OJSC had violated the antimonopoly law and issued a determination to eliminate the violation.