“Yugvodokanal” did not gain additional 667 million RUB
The Appeal Court confirmed legitimacy of FAS orders that did not include this sum in company’s tariffs
In December 2015, the antimonopoly authority considered disagreements in tariff regulation for water supply and drainage services between “Yugvodokanal” Ltd. and Krasnodar Regional Energy Commission (1).
The company asked to add over 667 million RUB in the gross revenue essential for activities of the company’s two branches (2) (the means, using which the company operated).
Having considered a claim of “Yugvodokanal”, FAS found it economically unjustified.
“In its decision the antimonopoly body indicated that “Yugvodokanal” failed to justify economic expediency of including costs in the tariffs. Also the company did not fulfill the measures to improve energy efficiency and reduce losses and unaccountable water spending”, clarified the Head of FAS Department for Control over Regional Tariff Regulation, Yulia Yudina.
“Yugvodokanal” Ltd. considered FAS orders unlawful and infringing its corporate rights and filed a lawsuit. The Court of First Instance and the Appeal Court did not find the grounds to reverse the acts issued by the antimonopoly authority.
“FAS is systematically accumulating judicial practice in the field of tariff regulation. In future it will be yet another element, enabling unified enforcement”, said the Head of FAS Legal Department, Artem Molchanov.
Reference:
- In 2013 “Yugvodokanal” Ltd. filed an application to the Federal Tariff Services, the powers of which were transferred to FAS in 2015 in accord with an order of the President of the Russian Federation.
- “Taman Group WATER Supply System” and “Troitsk Group Water Supply System” Regional Energy Department