KEMEROVO OFAS DEFENDED A 1.6 MILLION FINE UPON “MRSK SIBERIA” AT THE CASSATION COURT

The company created a threat to reliable and safe energy supplies to consumers in Anzhero-Sudzhensk

The Arbitration Court of West-Siberia District upheld the decision of Kemerovo OFAS to hold “MRSK Siberia” PJSC administratively liable. In August 2017 OFAS fined the grid company 1,662,692 RUB. The latter attempted to appeal the amount of the fine at Court; however, two Court instances did not accept the arguments of “MRSK” and pronounced legitimacy of the OFAS decision.

The fine was imposed in September 2016 based on a decision of the antimonopoly body upon a statement filed by “Siberian Industrial Network Company”. “MRSK Siberia” PJSC obstructed network repair since it failed to introduce the necessary constraints on electric power consumption in Anzhero-Sudzhensk following instructions from Siberian Office of the Federal Service for Environmental, Technological and Nuclear Supervision (Rostechnadzor). The failure to execute the instructions of Siberian Office of Rostechnadzor created a threat to reliable and safe electric power supply to town consumers.

Head ofKemerovo OFAS Natalia Kujgarskaya commented: “MRSK Siberia” PJSC was held administratively liable for violating the antimonopoly law that could have infringed not only other companies but also the population. Now OFAS has once again confirmed all its conclusions through Courts”.

Reference:

The Rules for complete and (or) partial constraints of electric power consumption were approved by No. 442 Decree of the Government of the Russian Federation of 04.05.2012. Part 1 Article 10 of the Federal Law “On Protection of Competition” prohibits actions (omissions) by an economic entity with the dominant market position, that lead or can lead to preventing, restricting, eliminating competition and (or) infringing the interests of other persons (economic entities) in the field of business or of consumers at large.

Under Part 2 Article 14.31 of the Code of the Russian Federation on Administrative Violations, if an economic entity with the dominant position on the market exercises actions that are recognized as abusing dominance and are prohibited by the antimonopoly law of the Russian Federation <…> is punished by an administrative fine <…> upon legal entities – from one hundredth to fifteen hundredths of the proceeds gained by the violator from selling goods (works, services) on the market where the administrative violation was committed  <…>.