Dagestan OFAS Russia defended at six Courts of Law over 15 million Rubles fine imposed upon “DESK” OJSC

“Dagestan Energy Supplier” OJSC (“DESK” OJSC) paid an administrative fine over 15 million Rubles for abusing market dominance on the market for supplying (selling) electric power.

On 24th January 2013, the Federal Arbitration Court of the North Caucasus Region confirmed legitimacy of the fine (15,718,944 Rubles), imposed by the Office of the Federal Antimonopoly Service (FAS Russia) in the Republic of Dagestan (Dagestan OFAS Russia) upon “Dagestan Energy Supplier” OJSC (“DESK” OJSC).

Dagestan OFAS Russia imposed the fine (15,718,944 Rubles) upon “DESK” OJSC for abusing dominance on the market of services for supplying electric power, which created discriminatory conditions and infringed the interests of “Sulaksky HydroCascade” OJSC (“SGEK” OJSC) and its customers, technologically connected to “SGEK” OJSC. In March 2010, “DESK” OJSC unilaterally terminated the contract for transmitting electric power industry through the networks owned by “SGEK” OJSC.

On several occasions “DESK” OJSC attempted to challenge the determination on imposing the fine. However, the Courts of three instances pronounced legitimacy of the administrative fine. Then “DESK” OJSC attempted to decrease the administrative fine to 300,000 Rubles; but Dagestan Administrative Court dismissed the claim of the energy supplier.

The 16th Arbitration Appeal Court and finally the Federal Arbitration Court of the North Caucasus Region considered the appeal lodged by “DESK” OJSC and also confirmed legitimacy of the imposed fine.

“DESK” OJSC has already paid the turnover fine in full. The timely payment allows the energy supplier to avoid paying double administrative fine.

Thus, Dagestan OFAS Russia defended the imposed administrative fine through six judicial proceeding.

“The case outcome is of significant importance not only for the antimonopoly body and relevant electric power engineering facilities in Dagestan, the rights and legitimate interests of which were infringed by the actions of the energy supplier. It also helps avoid repeating similar violations in the future”, pointed out the Head of Dagestan OFAS Russia, Kurban Kubasaev.