“MRSK North Caucasus” OJSC will pay a fine for cutting off power supply in Makhachkala

Representatives of “MRSK North Caucasus” OJSC intend to challenge the ruling of the Appeal Court so the case will be next considered by a Cassation Court.
In May – July 2009, following a petition of “Dagestan Energy Supplier” OJSC, “MRSK North Caucasus” OJSC limited power supply to “Makhachkala City Networks” OJSC due to the company’s debt for the consumed power.
Such limitations of power supply resulted in cutting power off bona fide customers and the customers for whom it is not allowed to limit power supply below the level of the emergency reserve quota. Schools, day-care centres, and pumping stations were left without electricity, which caused mass disturbance and frustration of the population of Makhachkala.
Dagestan OFAS Russia found that “MRSK North Caucasus” OJSC and “Dagestan Energy Supplier” OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition”.
“In some cases Dagestan OFAS Russia has to go a long and hard way before the violator pays the administrative fine. Inescapable nature of punishment is a very important law principle, enabling to suppress current violations and avoid them in the future”, said the Head of Dagestan OFAS Russia, Kurban Kubasaev.