OREANDA-NEWS. March 20, 2012. The Office of the Federal Antimonopoly Service (FAS Russia) in the Republic of Sakha (Yakutia) (Yakutia OFAS Russia) found that “Teploenergia” Municipal Unitary Enterprise violated the antimonopoly law by terminating hot water supply to the residents of a micro-district in Yakutsk, reported the press-centre of FAS Russia.

The case was initiated in November 2011 upon a resident’s petition. The Commission of the antimonopoly body established that on 10th May – 31st October 2011 there were no hot water supply to a residential house due to repair works for replacing heat networks and networks for hot and cold water supply in Saisarsky District, in Yakutsk.

However, the argument, put forward by “Teploenergia” that there were no technological possibilities to supply hot water on 10th May - 24th June 2011, was not supported.

Yakutia OFAS Russia found that “Teploenergia” violated Clause 4 Part 1 Article 10 of the Federal Law “On Protection of Competition”. As the violation was eliminated before a decision was made, OFAS did not issue a determination.

“In view of specificity of heat energy as a commodity, it can only be delivered to the buyers through heat networks, the rights for which belong to “Teploenergia”. The company is the only seller for the customers, so it has dominant market position”, explained Deputy Head of Yakutia OFAS Russia, Sergey Firansky.

Reference:

Under Clause 4 Part 1 Article 10 of the Federal Law “On Protection of Competition” economic entities that have dominant position cannot reduce or terminate producing the goods without economic or technological justification, if there is a demand for the goods or orders are placed for its supplies provided there are possibilities to cost-effective production, and if such reduction or production termination is not directly provided for by the federal laws, normative legal acts or judicial acts.