Appeal Collegium of the Supreme Court of the Russian Federation dismissed a claim to invalidate the local grid operator Criteria

On 2 February 2017, the Appeal Collegium of the Supreme Court of the Russian Federation dismissed the claim of “Avangard-Contract” Ltd. to invalidate Clause 1 of the Criteria of local network organizations approved by a Decree of the Government of the Russian Federation¹.

The company argued that the Clause was contrary to the Civil Code of the Russian Federation (Clause 2, Article 1), the Law on the Electric Power Industry (Clause 1 Article 6) and the Federal Law “On Protection of Competition” (Clause 1 Part 1 Article 15). The company also stated that the Criteria for categorizing local grid operators restrict the rights for business activity in the field of electric power transmission services.

The Court ruling emphasized the legitimacy of setting the local grid operator criteria, since the challenged provisions are clear and understandable, do not allow ambiguous interpretation, and conform to the regulatory acts of significant legal efficacy.

“Avangard-Contract” Ltd. approached the Appeal Collegium of the Supreme Court of the Russian Federation that dismissed the claim.

According to Head of FAS Department for Regulating the Electric Power Industry, Dmitry Vasiliev, control over economic entities that render electric power transmission services must be exercised in view of the equipment requirements to enable reliable and uninterrupted power supply to consumers.

“Thus, the Supreme Court of the Russian Federation confirmed the appropriateness of the course determined by the Government of the Russian Federation towards consolidating transmission facilities”, added Deputy Head of FAS Vitaly Korolev.

Reference:

¹ No. 184 Decree of the Government of the Russian Federation (the version of 17.10.2016) "On categorizing owners of power supply network facilities as local grid operators" of 28.02.2015