“CHELYABENERGOSBYT” PJSC AND “MRSK URALS” OJSC UNLAWFULLY TERMINATED POWER SUPPLY TO A FACILITY OF ‘ENERGOSERVICE” LTD.

The ruling passed by the Arbitration Court of the Chelyabinsk region confirmed legitimacy of the decision made by Chelyabinsk OFAS with regard to “Chelyabenergosbyt” PJSC and “MRSK Urals” OJSC.

In July 2017, the Antimonopoly Service established that the provider of last resort and the network company unlawfully terminated power supply to a facility of “Energoservice” Ltd. in Yuryuzan. The full restrain mode for electric power consumption was put in effect due to indebtedness of “Energoservice” Ltd. to “Chelyabenergosbyt” PJSC for the consumed electric power - 2.4 million RUB.

The Rules for full or partial restrain modes of power consumption do not allow complete switching off of electric power on the facilities for district water supply and (or) sewage in populated localities. Such facilities as the facility of “Energoservice” Ltd. can be a subject of only partial power restrain mode that cannot be lower than the approved emergency reserved quota.

The emergency reserved quota, which is the lowest power consumption required to ensure life and health safety of the population, must be determined and approved by “Chelyabenergosbyt” PJSC with “MRSK Urals” OJSC in advance.

Chelyabinsk OFAS ascertained, however, that the emergency reserved quota for the facility in question had not been determined and there was no Act of coordination of the emergency reserved quota.

In the absence of the approved emergency reserved quota, particle or full restrain of electric power supply breaches the Law on the electric power industry and the Rules of restrain.

Chelyabinsk OFAS found that “Chelyabenergosbyt” PJSC and “MRSK Urals” OJSC abused their dominance and, subsequently, violated the Federal Law “On Potection of Competition”.

“Chelyabenergosbyt” PJSC has the dominant position on the retail market of electric power (capacity) in the Chelyabinsk region in 2016. “MRSK Urals” OJSC as a holder of natural monopoly rendering electric power transmission services also ahs the dominant position on this market.

Chelyabinsk OFAS issued an injunction to “Chelyabenergosbyt” PJSC and “MRSK Urals” OJSC to restore the power supply to the facility of “Energoservice” Ltd. The above entities disagreed with the injunctions of the antimonopoly body and filed a lawsuit.

Administrative cases will be opened against “Chelyabenergosbyt” PJSC and “MRSK Urals” OJSC for breaching the antimonopoly law. Under the Code of the Russian Federation on Administrative Violations, “Chelyabenergosbyt” PJSC can be fined from 300,000 RUB to 1 million RUB, “MRSK Urals” OJSC – from one hundredth to fifteen hundredths of the income gained by the violator from sales of goods (works, services) on the market where the violation occurred.