“Kommunalnie Sistemy” Municipal Unitary Enterprise will resume hot water supply to Krasnaya Gorka and Kostino villages

The Office of the Federal Antimonopoly Service in the Yaroslavl Region (OFAS Russia found that “Kommunalnie Sistemy” Municipal Unitary Enterprise – the only supplier of hot water to Krasnaya Gorka and Kostino villages in Rybinsk District of the Yaroslavl region – violated the antimonopoly law by abusing dominance on the market of heating energy within the boundaries of a connected network (Part 1 Article 10 of the Federal Law “On Protection of Competition”).
The company violated the law by unlawfully terminating hot water supply to the residents of Krasnaya Gorka and Kostino villages and “Pokrovskaya Upravlayuschaya Kompania [Managing Company”] Ltd. providing services to those villages.
The case was initiated upon a collective complaint from residents of Krasnaya Gorka against the actions of “Kommunalnie Sistemy” Municipal Unitary Enterprise under a condition of complete and timely payments by the residents for water supply to “Pokrovskaya Upravlyauschaya Kompania Ltd.
The Commission of Yaroslavl OFAS Russia established that “Kommunalnie Sistemy” Municipal Unitary Enterprise stopped its boiler-house in Krasnaya Gorka due to termination of supply of electric power, caused by a debt of “Pokrovskaya Upravlayuschaya Kompania Ltd. to “Yaroslavskaya Sbytovaya Komapnia [Energy Supplier]” OJSC; gas supply to Kostino was stopped because of a debt to “Yarregiongaz” Ltd.
In its turn, “Kommunalnie Sistemy” Municipal Unitary Enterprise explains the debt to “Yaroslavskaya Sbytovaya Komapnia” OJSC by indebtedness of the managing company for heat supply. We have established that “Pokrovskaya Upravlyauschaya Kompania Ltd. is in debt but it does not exceed six monthly payments for utility consumption, therefore, the supplier did not have the right to limit supplies of heating energy”, commented the Chairman of the Commission.
Having investigated the case, the Commission of Yaroslavl OFAS Russia issued a determination to “Kommunalnie Sistemy” Municipal Unitary Enterprise to resume hot water supply to the villages.
In the near future Yaroslavl OFAS Russia will consider possibility of initiating antimonopoly proceedings against “Kommunalnie Sistemy” Municipal Unitary Enterprise for violating the antimonopoly law. The company can be imposed a “turnover” fine under Article 14.31 of the Code of the Russian Federation on Administrative Violations.