OREANDA-NEWS. August 16, 2013. The 9th Arbitration Appeal Court upheld the judgment of the Court of First Instance that “Tver Power Supply Company” OJSC and Tver Regional Energy Commission violated the antimonopoly law.

On 14th September 2012, the Federal Antimonopoly Service (OFAS Russia) made a decision on the case against “Tver Power Supply Company” OJSC and Tver Regional Energy Commission. The violators entered in an anticompetitive agreement as a result of which in 2010 - 2011 data given to “Trading System Administrator of the Wholesale Power Market” OJSC on the average number of hours of capacity using were underestimated. Based on those data, the Trading System Administrator determined the average weighted consumer prices for electric power.

The underestimated final average number of hours of capacity using considerably increased the average weighed non-regulated prices for electric power (capacity) for end consumers in the Tver region, which are calculated under a one-part rate.

FAS found that “Tver Power Supply Company” OJSC and Tver Regional Energy Commission violated Article 16 of the Law “On Protection of Competition” because their agreement had resulted in unreasonable changes of prices (tariffs) for electric power. FAS also found that “Tver Power Supply Company” OJSC violated Part 1 Article 10 of the Law “On Protection of Competition” (abusing market dominance) by manipulating prices on the retail market of electric power (capacity).

On 24th January 2013, the Antimonopoly Service fined “Tver Power Supply Company” OJSC over 107 million Rubles.

The company disagreed with the FAS decision and filed a lawsuit. On 25th April 2013 Moscow Arbitration Court confirmed legitimacy of the actions undertaken by the Antimonopoly Service and the 9th Arbitration Appeal Court upheld the judgment.

Reference:

Article 16. Prohibition of competition-restricting agreements or concerted actions of federal executive bodies, the authorities of the constituent territories of the Russian Federation, local self-government bodies, other bodies and organizations exercising the functions of the above bodies as well as state extra-budgetary funds, the Central Bank of the Russian Federation.

Prohibits agreements between federal executive bodies, the authorities of the constituent territories of the Russian Federation, local self-government bodies, other bodies and organizations exercising the functions of the above bodies as well as state extra-budgetary funds, the Central Bank of the Russian Federation or between them and economic entities, or exercising concerted actions by these bodies and organizations if such agreements or such exercising of concerted actions lead or can lead to preventing, restricting, eliminating competition.

Article 10. Prohibition of abusing dominance by economic entities

Prohibits actions (omissions) of economic entities with dominant position that lead or can lead to preventing, restricting, eliminating competition and (or) infringing the interests of other persons.