OREANDA-NEWS. October 15, 2014. The 9th Arbitration Appeal Court confirmed legitimacy and reasonableness the Federal Antimonopoly Service (FAS Russia) with regard to “Kubanenergo” OJSC.

In 2013, the Antimonopoly Service found that “Kubanenergo” OJSC violated the antimonopoly law by failure to execute technological connection of consumers in Sochi (in breach of Part 1 Article 10 of the Federal Law “On Protection of Competition”).

“Kubanenergo” OJSC failed to execute technological connection of over 65 legal and physical persons to electric mains in Sochi within the statutory period.

Complaints of those persons were considered by the Commission for technological Connection to power grid facilities of power-receiving devices of electric power consumers in Sochi resort municipality in the period of organizing the XXII Winter Olympic Games and the XI Winter Paralympic Games in 2014.

The Commission issued recommendations to execute the contracts concluded by 17th July 2012 when the moratorium for technological connecting in the period of organizing the Olympics came into effect. The Commission also stated that violating the current law on technical connection is unacceptable.

In spite of the official statements of the Commissions about those violations, FAS continued receiving complaints that “Kubanenergo” OJSC was infringing the applicants’ rights.

FAS issued a determination to “Kubanenergo” OJSC to stop violating the antimonopoly law.

The company disagreed with FAS decision and filed a lawsuit; the 9th Arbitration Appeal Court, however, supported the decision of the Court of First Instance and pronounced legitimacy of the actions of the Antimonopoly Service.

Reference:

Under Sub-Clause “b” Clause 16 of the Rules for Technological Connection of power-receiving devices of electric power consumers, power generating facilities, as well as power grid facilities owned by network organizations and other persons, to electric networks, approved by No. 861 Decree of the Government of the Russian Federation of 27.12.2004 (further on referred to as the Rules),

The period for exercising technological connection cannot exceed:

15 working days (if an application does not specify a longer period) – for the applicants specified in Clause 13 of the Rules if the distance from the applicants’ power-receiving device to the existing electricity networks is no longer than 300 m;

6 months – for the applicants specified in Clauses 12.1, 14 and 34 of the Rules for technological connection to electric networks up to 20 kW inclusive, if the distance from the existing electric networks of the required voltage class to the boundaries of the applicant’s plot, where the connecting power-receiving devices are located, is not longer than 300 m in cities / towns and townships and no longer than 500 m in the rural areas;

1 year – for the applicants, whose power-receiving devices have the maximum capacity below 670 kW if a shorter period is not provided for by a relevant investment programme or an agreement between the parties;

2 years - for the applicants, whose power-receiving devices have the maximum capacity no less than 670 kW, if other periods (but no longer than 4 years) are not provided for by a relevant investment programme or an agreement between the parties.