OREANDA-NEWS. May 07, 2013. The 16th Arbitration Appeal Court pronounced legitimacy of the fine imposed by the Office of the Federal Antimonopoly Service in the Republic of Dagestan (Dagestan OFAS Russia) upon “Dagestan Energy Supplier” OJSC [“DESK”OJSC] (over 34 million Rubles).

In 2009, “Kaspenergosbyt” Ltd. complained to Dagestan OFAS Russia regarding actions of “DESK”OJSC. The Commission of Dagestan OFAS Russia established that the monopolist abused market dominance (in breach of Article 10 of the Federal Law “On Protection of Competition”). The company restricted energy supply to “Kaspenergosbyt” Ltd. and consumers in Kaspiisk.

Having investigated the case, the antimonopoly service fined “DESK”OJSC over 34 million Rubles.

“DESK”OJSC disagreed with the decision of Dagestan OFAS Russia and filed a lawsuit, however, the 16th Arbitration Appeal Court supported the position of the antimonopoly body.

“Unlawfully restricting energy supply, “Kaspenergosbyt” Ltd. adversely affected competitive environment. The determination on imposing the fine was legitimate, which was once again confirmed by the Court. I ask energy companies to think about possible large fines before introducing unlawful restrictions of energy supply to consumers”, the Head of Dagestan OFAS Russia, Kurban Kubasaev, commented the Court decision.