OREANDA-NEWS. April 07, 2014. The Office of the Federal Antimonopoly Service in the Republic of Dagestan (Dagestan OFAS Russia) fined “Dagestan Power Supply Company” OJSC (“DESK” OJSC) 10 million RUB for violating the Federal Law “On Protection of Competition”.

Earlier “Makhachkala Town Electric Grid” OJSC (“MGES” OJSC) petitioned to the Antimonopoly Service to take measures against “DESK” OJSC.

According to the petition, “DESK” OJSC unreasonably overrated electric power consumed by “MGES” OJSC and also threatened to switch off power supply.

The Office initiated a case against “DESK” OJSC upon signs of violating Clause 10 Part 1 Article 10 of the Federal Law “On Protection of Competition”.

In the course of the investigation, OFAS established that the company violated the pricing procedures, established by normative legal acts, presenting bills for electric power consumed by “MGES” OJSC. Dagestan OFAS Russia also fined “DESK” OJSC 10,312,503 RUB.

“DESK” OJSC challenged the fine at Dagestan Arbitration Court and the 16th Arbitration Appeal Court; however, both Courts confirmed legitimacy of the imposed fine.

“The monopolist not only violated the pricing procedures for electric power industry, established by normative legal acts, but also threatened to switch off power supply, which could have adversely affected bona fide consumers and social facilities in the town. Therefore, the company was held liable justly. “DESK” OJSC has paid the fine in full”, reported the Head of Dagestan OFAS Russia, Kurban Kubasaev.