Courts Сonfirmed 460.8 mn Rubles Fined upon MOESK
OREANDA-NEWS. February 22, 2012. Moscow Arbitration Court pronounced legitimacy and reasonableness of 460.8 million Rubles fine imposed by the Office of the Federal Antimonopoly Service (Moscow OFAS Russia) upon “Moscow Integrated Electric Grid Company” OJSC (“MOESK” OJSC). The company violated the procedures for processing customers’ applications for technological connection to the electric grid, reported the press-centre of FAS Russia.
On 9th December 201,1 Moscow OFAS held “MOESK” OJSC administratively liable. The fine was calculated based on the company’s income in the year preceding the fact of committing the violation and reached 460,838,230 Rubles. The antimonopoly body imposed the minimum fine under Article 14.31 of the Code of the Russian Federation on Administrative Violation.
However, the grid company thought that the fine was disproportional to the violation and filed a lawsuit. On 15th February 2011 Moscow Arbitration Court took the side of the antimonopoly body.
In 2011 the Commissions of Moscow OFAS repeatedly exposed facts of violating Part 1 Article 10 of the Law “On Protection of Competition” by the grid company. Investigating materials of those cases, OFAS exposed the following violations by “MOESK” OJSC in providing technological connection:
- Failure to meet the deadlines for processing applications for technological connections;
- Imposing disadvantageous contract conditions;
- Incorrectly calculating the fee for technological connection.
All violations resulted in infringing the interests of consumers of the grid organizations, inflicted unreasonably losses upon consumers, including small and medium business.
“The third antimonopoly package gives the grid company a possibility to eliminate violations before initiating cases. It would be sufficient to execute warnings issued by the antimonopoly authority. “MOESK” OJSC ignored the warning sent at the beginning of 2012. The only possibility for the grid company to avoid new sanctions is to adjust the procedures for technological connection in line with the existing legislation. There should be no artificial obstacles for connecting consumers to the network”, commented Deputy Head of Moscow OFAS, Dmitry Tetoushkin.