FAS INITIATED A CASE AGAINST NIZHEGORODELEKTROTRANS

Earlier, the administration of Nizhny Novgorod evaded the execution of the order of the authority by transferring the subordinated enterprise to another form of ownership

In April 2022, FAS Russia recognized the administration of the city of Nizhny Novgorod as violating antimonopoly legislation. The city authorities have established economically unjustified tariffs for the service of providing access to infrastructure in the amount of 399 rubles per month with VAT. These services are provided by municipal enterprises of the city – MP Engineering Networks and MP Nizhegorodelectrotrans. The authority ordered the administration to set economically reasonable tariffs for their services.

The tariffs provided by MP Engineering Networks were reduced to 80 rubles per month.

However, the Nizhny Novgorod administration evaded the execution of the ruling of FAS Russia in full. The second municipal enterprise was transferred to the jurisdiction of the Nizhny Novgorod region with a change of name to the State Enterprise NO Nizhegorodelektrotrans.

Currently, the organization continues to apply the previous tariff size, recognized by the department as unjustified. The company did not provide an economic justification for the size of such a tariff to the authority.

As a result, FAS Russia initiated an antimonopoly case against the State Enterprise NO Nizhegorodelektrotrans*. In case of finding violation, company faces a fine **.

* On grounds of violation of Paragraph 1 of Part 1 of Article 10 of the Law on Protection of Competition

** In accordance with the Article 14.31 of the Administrative Code of the Russian Federation