1.2 million RUB fine for failure to execute obligations on technical connection to the grids

Moscow OFAS imposed a fine upon “MOESK” PJSC

“MOESK” PJSC failed to execute its obligations for technological connection of a residential house and unreasonably refused to conclude a contract for technological connection of non-residential premises in Moscow.

The antimonopoly body considered a complaint from a physical person that “MOESK” PJSChad failed to observe its contractual obligations for technological connection of power-receiving devices in a residential house in Moscow, namely – breaching the connection timefrаme.

According to the explanations given by “MOESK” PJSC, the extended period for carrying out the works happened due to the reasons beyond control of the company. “MOESK”, however, did not preliminary agree the course of works with the third persons, therefore, postponing technological connection of the residential house, which means that the monopolist failed to duly execute their obligations.

Simultaneously with this case, Moscow OFAS investigated another case upon a complaint from a physical person that “MOESK” PJSC had refused to conclude a contract for technological connection of a facility in Moscow. At the same time, “MOESK” PJSCfailed to present evidence that would corroborate inability to forward a draft contract to the claimant.

As a result, in both cases Moscow OFAS found that “MOESK” PJSC committed an administrative offence under Part 2 Article 9.21 of the Code of the Russian Federation on Administrative Violations and fined the company 600,000 RUB per each violation.

According to Part 2 Article 9.21 of the Code on Administrative Violations, repeatedly committing administrative violations under Part 1 Article 9.21 of the Code of the Russian Federation on Administrative Violations is punished by an administrative fine upon legal entities: from 600,000 RUB to 1 million RUB.

Part 1 Article 9.21 of the Code of the Russian Federation on Administrative Violations establishes liability to a holder of natural monopoly breaching the rules (the supporting procedure) of non-discriminatory access or the established connection procedure (technological connection) to the major oil pipelines  and (or)  main oil products pipelines, electric power networks, heating networks, gas-distribution networks or district systems of hot and cold water supply and water drainage, or the owner or other legitimate possessor of  a grid facility breaching the rules for non-discriminatory connection to the services of electric power transmission or preventing  the owner or any legitimate possessor of  water-supply and (or) sewage networks for water transportation via their water mains and (or) waste water transportation via their sewage networks is punishable by an administrative fine upon legal entities – from 100,000 RUB to 500,000 RUB.