The 14th Arbitration Appeal Court supported decision of Vologda OFAS with regard to “VOEK” JSC
“Vologda Regional Energy Company” JSC unlawfully refused to conclude a contract for temporary technological connection
In October 2016 Vologda OFAS found that “Vologda Regional Energy Company” JSC(“VOEK” JSC) had committed an administrative violation under Part 1 Article 9.21 of the Code of the Russian Federation on Administrative Violations and imposed 100,000 RUB administrative fine upon the company.
Vologda OFAS received a petition from “Vologdastroi” Ltd. that “VOEK” JSC had violated the Rules for technological connection of power-receiving devices of consumers of electric power, power-generating facilities as well as power grid facilities, possessed by network organizations and other persons, to electric networks. The Rules are approved by No. 861 Decree of the Government of the Russian Federation of 27.12.2004 (for temporary technological connection).
On 28 June 2016, “Vologdastroi” Ltd. filed an application for temporary connection of energy receiving devices (electrical distribution panels) on a construction site of residential houses under construction.
In response, “VOEK” JSC recommended “Vologdastroi” Ltd. to apply for temporary connection of energy receiving devices only after concluding a contract for permanent power supply. As a result, Vologda OFAS concluded “Vologda Regional Energy Company” JSC unreasonably refused to conclude a contract for temporary technological connection. Thus, “VOEK” JSC committed an administrative violation under Part 1 Article 9.21 of the Code of the Russian Federation on Administrative Violations. The antimonopoly body issued an injunction to fine “VOEK” JSC 100,000 RUB.
The network company disagreed with the decision and injunction of Vologda OFAS and filed a lawsuit heard at Court of First Instance and the Appeal Court.
On 30 May 2017, the 14th Arbitration Appeal Court, after the Court of the First Instance confirmed legitimacy of the position taken by the antimonopoly body.