Court: Bashkortostan energy supplier breached the Law “On Protection of Competition”
On 9 August 2016, Appeal Court pronounced legitimacy of a decision and determination issued by the Federal Antimonopoly Service (FAS Russia) regarding “Bashkortostan Energy Supplier” Ltd. (“ESKB” Ltd.).
“RUSENEGOSBYT” Ltd. complained to the antimonopoly body that “ESKB” Ltd. imposed additional services for transferring electric power and additional costs of sales services.
FAS issued a warning to “ESKB” Ltd. to stop actions that had elements of violating the antimonopoly law.
The FAS Commission established that “RUSENEGOSBYT” Ltd. and “ESKB” Ltd. had entered into a power supply contract, under which “ESKB” Ltd. sells electric power and provides electric power transfer services for “RUSENEGOSBYT” Ltd. in the interests of end consumers of electric power – “Russian Railways” OJSC.
“RUSENEGOSBYT” Ltd. submitted documents to “ESKB” Ltd. confirming electric connections between power-receiving devices of the end consumer.
At the same time, “ESKB” Ltd. imposed additional volumes of services upon “RUSENEGOSBYT” Ltd. without taking into account inner electric connection between consumer power-receivers.
In November 2014 the antimonopoly authority found that “ESKB” Ltd. violated the Federal Law “On Protection of Competition” (Part 1 Article 10) and issued a warning to eliminate the violations.
At the moment the case is at the appeal stage. On 18 February 2016 Arbitration Court of Moscow District reversed the ruling of lower Courts that had pronounced legitimacy and FAS decision and determination regarding “ESKB” and forwarded the case to the Court of First Instance for reconsideration.
Moscow Arbitration Court the 9th Arbitration Appeal Court reconsidered the case and supported FAS conclusions.