FAS issued a warning to “Mosvodocanal” JSC

The company is a voiding a contract with “Teplostroi” Ltd. for transporting cold water

FAS investigated “Mosvodocanal” JSC based on a petition from “Teplostroi” Ltd.

The Antimonopoly Service established that “Teplostroi” Ltd. possesses under lease contracts some district cold water supply facilities the equipment used by “Mosvodocanal” JSC to supply cold water to consumers.

“Mosvodocanal” JSC is a provider of last resort for the district cold water supply and drainage in Moscow. In this context it was obligated to conclude water supply and drainage contracts, particularly for cold water supply transportation.

Therefore, the company was obligated to enter into a contract with “Teplostroi” Ltd. for transporting cold water.

Avoiding the contracts by “Mosvodocanal” JSC has signs of violating the Federal Law “On Protection of Competition” (Clause 5 Part 1 Article 10).

FAS issued a warning to “Mosvodocanal” JSC. The company must undertake efforts to conclude the contracts with “Teplostroi” Ltd. within 15 days upon receiving the warning.

Deputy Head of FAS Department for Control over the Housing-and-Utilities Sector pointed out: “Avoiding public contracts in breach of the current law is unacceptable and threatens reliability and the quality of water supply for consumers. Failure to execute the warning issued to “Mosvodocanal” JSC will lead to opening a case upon signs of an antimonopoly violation”.