FAS PREVENTED DISRUPTION OF THE HEATING SEASON IN VORKUTA

06-09-2018 | 10:42

Prior to the heating season, FAS received complaints from housing-and-utility enterprises about coal suppliers unreasonably increasing fuel prices, imposing contract conditions for fuel supply and refusing to conclude contracts at mutually beneficial conditions

 

Following a complaint from Vorkuta heat supplier, FAS issued a warning to “Vorkutacoal” JSC to conclude contracts with the company for supplying power-plant coal under mutually beneficial conditions, including the payment period for coal supplies, the formula for the base coal price without transportation costs.

 

“Since the outset of regulating tariffs for the services of natural monopolies, FAS takes only economically justified costs of natural monopolies for calculations, and pays careful attention to all tariff elements. Natural monopolies optimize their costs, so any unreasonable changes of tariff elements are unacceptable. Housing-and-utility entities are most sensitive to changing conditions of fuel supplies because the costs affects the tariff for the population, pointed out Head of FAS Department for Control over Fuel-and-Energy Complex and the Chemical Industry, Dmitry Makhonin.

 

On 4 September 2018, “Vorkutacoal” JSC informed FAS on executing the warning issued by the Antimonopoly to stop actions with signs of violating Clause 3 Part 1 Article 10 of the Federal Law “On Protection of Competition”. It ensures uninterrupted coal supplies.

 

FAS watches carefully fuel suppliers for the housing-and-utility sector and warns them that unreasonable changes to the contractual conditions are unacceptable, particularly, changing fuel price, imposing contract conditions for fuel supplies for the needs of the housing-and-utility sector. Such actions are contrary to the Law on competition.

 

Reference:

1. Actions of “Vorkutacoal” JSC have signs of violating Clause 3 Part 1 Article 10 of the Federal Law “On Protection of Competition”.

 

2. Part 1 Article 10 of the Federal Law “On Protection of Competition” prohibits actions (omissions) of an economic entity with the dominant position that result or can lead to preventing, restricting, eliminating competition and (or) infringing the interests of other persons (economic entities) in the filed of entrepreneurial activity or consumers at large, including the following actions (omissions):

 

1) Fixing, maintaining monopolistically high or low goods prices;

 

2) Withdrawing goods from circulation of the results of such withdrawal was increasing the goods price

 

3) Imposing disadvantageous conditions upon counteragents tor irrelevant to the contract subject (requirements, economically or technologically unjustified and (or) not specified directly in the federal laws, normative legal acts of the President of the Russian Federation, normative legal acts of the Government of the Russian Federation, normative legal acts of the authorized federal executive bodies or judicial acts, to transfer financial funds, other property, including property rights, as well as consent to conclude a contract subject to inserting provisions about goods, in which a counteragent is not interested, and other requirements)

 

4) Economically or technologically unjustified reduction or terminating goods production if there is demand for the goods or orders for supplying it are placed and there is a possibility of its cost-effective production, and if such reduction or terminating production is not specified in the  federal laws, normative legal acts of the President of the Russian Federation, normative legal acts of the Government of the Russian Federation, normative legal acts of the authorized federal executive bodies or judicial acts

 

5) Economically or technologically unjustified refusal or avoiding a contact with particular buyers (customers) if there is a possibility of producing or supplying the goods and also if such refusal or avoidance are not specified directly in the federal laws, normative legal acts of the President of the Russian Federation, normative legal acts of the Government of the Russian Federation, normative legal acts of the authorized federal executive bodies or judicial acts

 

6) Economically, technologically or otherwise unjustified fixing different prices (tariffs) fort the same goods, unless otherwise provided by the federal law;

 

8) Creating discriminatory conditions

 

9) Creating obstacles to other economic entities for market entry / exit.

 

3. Part 2 Article 14.31 of the Code on Administrative Violations states that if an economic entity with the dominant market position exercises actions that are recognized as abusing dominance and are prohibited by the antimonopoly law of the Russian Federation, if the result of such actions is or can be preventing, restricting or eliminating competition or exercising actions by a holder of natural monopoly that are recognized as abusing dominance and are prohibited by the antimonopoly law of the Russian Federation, except cases specified in Article 9.21 of the Code, it  is punishable by an administrative fine upon executives from  20,000 to 50,000 RUB, or disqualification for up to three years; upon legal entities – from one hundredths to fifteen hundredths of the proceeds of the violator from selling goods (works, services) on the market where the administrative violation is committed, or the amount of the costs of the violator for acquiring the goods (works, services) on the market where the administrative violation is committed, but no more than one fiftieth of the overall proceeds of the violator from selling all goods (works, services) and no less than 100,000 RUB, and if the proceeds of the violator from selling goods (works, services) on the market where the administrative violation is committed, , or the amount of the costs of the violator for acquiring the goods (works, services) on the market where the administrative violation is committed, exceeds 75 % of the overall proceeds of the violator from selling all goods (works, services) or an administrative violation was committed on the market of  goods (works, services), that are sold under regulation prices (tariffs) in accord with the law of the Russian Federation – from three thousandths to three hundredths of the proceeds of the violator from selling goods (works, services) on the market where the administrative violation is committed, or the costs of the violator for acquiring the goods (works, services) on the market where the administrative violation is committed, but no more than one fiftieth of the overall proceeds of the violator from selling all goods (works, services) and no less than 100,000 RUB.



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