Sverdlovsk OFAS Russia lawfully found that “MRSK Urals” OJSC and “RSK” OJSC exercised concerted actions providing technological connection

Сентября 21, 2010

The Appeal Court pronounced legitimacy of the decision made by the Office of the Federal Antimonopoly Service in the Sverdlovsk region regarding “Interregional Distribution Network Company of Urals” OJSC (“MRSK Urals” OJSC) and “Regional Network Company” OJSC (“RSK” OJSC).

The case was initiated upon a petition of GSK-50 that “MRSK Urals” OJSC and “RSK” OJSC violated antimonopoly law. In May 2008, GSK-50 requested “RSK” OJSC to provide technological connection of its facilities located at Mechanizatorov-Suvorova St., Kamensk-Uralsky, with maximum capacity of energy-receiving devices - 65 kW.
Under the Rules for Technological Connection, a network organization must prepare and issue technical conditions to the applicant within 15 working days after the date of signing the contract.
In its turn, “RSK” OJSC sent Technical Conditions to GSK-50, according to which ГСК-50 will be provided a power source in “Biryuza” only in October 2008. Under the Technical conditions, technological connection of the applicant’s facilities was possible only if “MRSK Urals” OJSC agreed to increase connected capacity in the networks of “RSK” OJSC. GSK-50 was supposed to pay for technological connection; the payment was calculated based on the tariff set by Sverdlovsk Regional Energy Commission for “MRSK Urals” OJSC.
According to Tatiana Kolotova, the Head of Sverdlovsk OFAS Russia, “RSK” OJSC did not have any legal grounds to initiate the procedures for technological connection of its power supply network facilities to the network of “MRSK Urals” OJSC, and, therefore, transferring the burden of “costs” upon GSK-50. In reality, the contract for technological connection drafted by “MRSK Urals” OJSC was not intended to exercise measures towards technological connection of power supply network facilities of “RSK” OJSC to the network of “MRSK Urals” OJSC.
On 9th September 2009, Sverdlovsk OFAS Russia found that ОАО “MRSK Urals” OJSC and “RSK” OJSC violated Clause 5 Part 1 Article 11 of the Federal Law “On Protection of Competition”.
“MRSK Urals” OJSC и “RSK” OJSC violated the law by exercising concerted actions that resulted in imposing upon GSK-50 disadvantageous conditions for access to power networks of “RSK” OJSC and the services for power transmission – payment for technological connection of power supply network facilities of “RSK” OJSC to the network of the adjacent regional network organization.
The Court of First Instance also ruled that the decision of Sverdlovsk OFAS Russia was legitimate and reasonable.