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Federal Arbitration Court Confirms Groundlessness of Fine Imposed on Komienergo by Komi OFAS for Cutting Off ‘Dunyasha’

The Federal Arbitration Court of the Volgo-Vyatsky District confirmed that the fine of 17 million rubles imposed on the IDGC of North-West branch – Komienergo in the ‘Dunyasha case’ has no legal basis. The cassation appeal of the antimonopoly body towards the power distribution company has been dismissed.

By November 2009 an individual entrepreneur Vera Nekrasova, who is the owner of the store called ‘Dunyasha’ had accumulated a debt for electricity supply of the shop. In accordance with the electrical power transmission service contract Komienergo cut the shop off the electricity supply on request of the Komi power supply company. As the shop owner ensures the debt was settled but this information never reached the power supply company.

The Komi Office of the Federal Antimonopoly Service of Russia considered that Komienergo has impinged upon the interests of the individual entrepreneur Vera Nekrasova and violated the Articles of the Law ‘Concerning the Protection of Competition’. The antimonopoly service officers imposed on the power distribution company a fine of 17 million rubles for the abuse of dominance in the power transmission market.

In February 2011 the Arbitration Court of the Republic of Komi invalidated the order of the antimonopoly body of imposition of administrative sanctions in the form of a fine on Komienergo. In May of 2011 the second Arbitration Court of Appeal in the city of Kirov did not find any grounds for the fine imposition either. The Federal Arbitration Court of the Volgo-Vyatsky District upheld both decisions.

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