OREANDA-NEWS. October 19, 2011. The 16th Arbitration Appeal Court pronounced legitimacy of the decision of the Office of the Federal Antimonopoly Service in the Republic of Dagestan (Dagestan OFAS Russia) regarding “MRSK North Caucasus” OJSC and “Dagestan Energy Supplier” OJSC (“DESK” OJSC), reported the press-centre of FAS Russia.

Upon an application of “DESK” OJSC, “MRSK North Caucasus” OJSC restricted electricity supply in Kaspiisk regarding “Kaspenergosbyt” Ltd. due to indebtedness for consumed electric power. As a result of restrictions, electric power supply was also cut off for bona fide consumers (subscribers of “Kaspenergosbyt” Ltd.).

The Commission of Dagestan OFAS Russia found that “DESK” OJSC and “MRSK North Caucasus” OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition”.

The companies filed a lawsuit challenging the decision of the antimonopoly body.

However, the Arbitration Court of the Republic of Dagestan and the 16th Arbitration Appeal Court pronounced legitimacy of conclusions made by Dagestan OFAS Russia.

“The Courts of tow instances pronounced legitimacy of reasonableness of our decision, which is especially important and principal for us. Our decisions regarding persons who abuse market dominance are significant to prevent similar violations in the future”, said the Head of Dagestan OFAS Russia, Mr. Kurban Kubasaev.