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.