“Novocherkasskgorgaz” unlawfully refused to install gas service to a residential house

The Federal Arbitration Court of the North-Caucasus District pronounced validity of the decision and determination issued by the Office of the Federal Antimonopoly Service in the Rostov region and confirmed that “Novocherkasskgorgaz” OJSC had abused market dominance.
On 2nd March 2010, the Commission of the Rostov OFAS Russia found that “Novocherkasskgorgaz” OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition” because the company had evaded issuing technical conditions for installation of gas service to a garden cottage of a Novocherkassk resident.
The company explained its refusal by instructions from the interregional Office of Rostechnadzor (the Federal service for Environmental, technological and Nuclear Supervision) in the South Federal District that issuing technical conditions should be suspended due to absence of gas service schemes for towns and villages in the Rostov region. However, according to the Rules for determining and issuing technical conditions for connecting capital structures to engineering networks (No.83 Decree of the Government of the Russian Federation of 13th February 2006), issuing technical conditions does not depend on drafting the gas service schemes. Therefore refusal by “Novocherkasskgorgaz” OJSC infringed the applicant’s interests, which was in breach of the antimonopoly legislation (Part 1 Article 10 of the Federal Law “On Protection of Competition”).
Following its decision, the Rostov OFAS Russia issued a determination to the “Novocherkasskgorgaz” OJSC to stop the antimonopoly violation, which was supported by the Courts of three instances.