OREANDA-NEWS. May 31, 2008. The Federal Arbitration Court of the Moscow District confirmed the FAS Russia's position that the status of guaranteed provider does not relieve an energy-supplying organization from a responsibility to comply with the legislation on separation off competitive activities and natural monopolies in the power industry, reported the press-centre of FAS Russia.

Article 6 of the Federal Law "On Specificity of the Power Industry in the Period of Transition and on Amendments to Some Legal Acts of the Russian Federation, and on Invalidity of Some Legal Acts of the Russian Federation due to Adoption of the Federal Law "On the Power Industry", forbids combining any natural monopolies (electricity transmission and operational management) with any competitive activities in the power industry (electricity production and purchasing-and-selling).

FAS Russia established that "Samara City Grid" CJSC violated the above requirement by combining purchasing-and-selling and transmitting of electricity. Therefore, the Antimonopoly Service passed a decision on forced reorganization of the company by splitting up or separation.

"Samara City Grid" CJSC appealed against this decision, explaining its actions by the fact that the company had been granted the status of guaranteed provider.

According to the Claimant, it relieved the company from a responsibility to separate competitive activities from natural monopolies.

The Moscow Arbitration Court allowed the claim, by ruling the FAS Russia's decision invalid. However, the 9th Arbitration Appeal Court, having considered the appeal of FAS Russia, revoked the ruling of the Court of First Instance.

The Federal Arbitration Court of the Moscow District also confirmed legality of the FAS Russia's decision on forced reorganization of "Samara City Grid" CJSC.