“LUKOIL-ASTRAKHANENERGO” LTD. VIOLATED THE ANTIMONOPOLY LAW

03-09-2018 | 17:40

The company was avoiding a contract on heat energy transmission

 

In December 2018, FAS received a statement from “Kolos” Astrakhan Municipal Unitary Enterprise that “Lukoil-Astrakhanenergo” Ltd. had refused to conclude a contract for heat energy transmission.

 

Under the Law on heat supply (No.190-FZ) and the Rules for organizing heat supply in the Russian Federation between a heat network and an integrated heating supplier (IHS), in specified cases a contract for heating energy transmission services is mandatory.

 

The Ministry of Energy assigned IHS status to “Lukoil-Astrakhanenergo” Ltd. The company has the dominant market position.

 

Having considered a statement of “Kolos” Astrakhan Municipal Unitary Enterprise, FAS exposed signs of violating the antimonopoly law and issued a warning to “Lukoil-Astrakhanenergo” Ltd. Within 15 days the company had to offer a contract to “Kolos” for heating energy transmission services under the conditions specified in the law. In addition, FAS sent explanations on executing the warning to “Lukoil-Astrakhanenergo” Ltd. and extended the period for executing it.

 

The company failed to execute the warning within the designated period. “Lukoil-Astrakhanenergo” Ltd. filed a lawsuit; however, the Court of First Instance and the Appeal Court confirmed legitimacy of FAS warning.

 

If an economic entity fails to execute the warning of the competition authority, FAS opens an antimonopoly case.

 

FAS initiated antimonopoly proceedings against “Lukoil-Astrakhanenergo” Ltd. in May 2018. On 29 August 2018, FAS Commission found that the company violated the Federal Law “On Protection of Competition” (Clause 5 Part 1 Article 10). Such violations are punishable under Article 14.31 of the Code on Administrative Violations. The size of the fine will be determined later upon the outcome of the administrative case.

 

Deputy Head of FAS Vitaly Korolev commented: “The importance of including a special antimonopoly Article in the Law on heating supply is already corroborated. Last year we undertook a lot of legislative efforts, the results of which was introducing specific control and prompt FAS remedies against unlawful actions of integrated heating suppliers”.



Site Map

News & Events Press Releases Media Releases Image Library About the FAS Russia What We Do General Information Mission, Goals, Values Priority Setting Institutional Memory Stakeholders Engagement Center for Education and Methodics Our History Our Structure Powers of Head and Deputy Heads Our Ratings GCR Using our website International Cooperation Treaties & Agreements International Working Groups Working Group on Research of Competition Issues in the Market of International Telecommunications (Roaming) Meetings Working Group for Studying Competition Problems in the Pharmaceutical Sector Concept Note Meetings OECD Competition Committee OECD meetings 2013 OECD meetings 2014 OECD meetings 2015 OECD meetings 2016 OECD meetings 2017 OECD meetings 2018 FAS Annual Reports OECD-GVH RCC RCC Newsletter ICAP Council on Advertising Headquarters for Joint Investigations UNCTAD 13th session IGE UNCTAD Resolution Russian contributions 14th session IGE UNCTAD Resolution Russian contributions 15th session IGE UNCTAD 16th session IGE UNCTAD 17th session IGE UNCTAD EEU Model Law on Competition ICN BRICS WG (Markets of Social Importance) EU APEC Competition Policy and Law Group Annual meetings Projects ERRA Full Members Organizational Structure Archive Working Group on Investigating Issues on Pricing in the Oil and Oil Product Markets and Methods of their Functioning Meetings Document Library Legislation Reports & Analytics Cases & decisions Contacts Give feedback Contact us Links Authorities Worldwide