OREANDA-NEWS. September 01, 2014. The Arbitration Court of the North Caucasus District confirmed legitimacy of the decision issued by the Office of the Federal Antimonopoly Service in the Krasnodar Region (Krasnodar OFAS Russia) with regard to “NESK” OJSC and stated that the provider of last resort does not have the right to switch off electric power to water supply facilities used for water drainage.

Krasnodar OFAS Russia found that “NESK” OJSC abused dominance (in breach of Clause 4 Part 1 Article 10 of the Federal Law “On Protection of Competition”).

The company introduced full restriction of electric power consumption to power consumption facilities of “Slavyansky Town Water and Waste Water Treatment Plant” Municipal Unitary Enterprise used to render water drainage services. The current law sets an absolute ban for restricting the electric power consumption mode below the level of technological and emergency reserved quota for water supply and drainage facilities.

“NESK” OJSC disagreed with the decision of Krasnodar OFAS Russia and appealed it at Krasnodar Regional Arbitration Court, the 15th Arbitration Appeal Court and the Arbitration Court of the North Caucasus District.

Having heard the appeal, the Courts dismissed the claim of “NESK” OJSC and pronounced legitimacy and reasonableness of the decision of Krasnodar OFAS Russia. The electric grid company is also held administratively liable.