OREANDA-NEWS. October 28, 2009. If gas suppliers fix additional penalty coefficients for overuse of gas in the contracts for 2008-2012, the Federal Antimonopoly Service (FAS Russia) will treat this as abusing dominant position, reported the press-centre of FAS Russia.

Due to numerous petitions to FAS Russia from gas consumers on imposing upon them unfavourable conditions of long-term gas supply contracts, including additional penalties for gas overconsumption, FAS Russia sent a letter to "Mezhregiongaz" Ltd.

To prevent violating the antimonopoly legislation by gas suppliers, FAS Russia advises Ltd. to adjust the terms of the long-term gas supply contracts between regional gas suppliers and consumers in accordance with the current legislation of the Russian Federation by removing the conditions that introduce additional penalty coefficients for exceeding the monthly volume of gas supplies in a month from standard offers and valid contracts (upon consent of the counteragents) for the whole contract period.

"Mezhregiongaz" Ltd. must report its position on the issue to the Antimonopoly Service by 27th November 2009.

Failure to present the documents or any other information requested by the antimonopoly authority is punishable under Article 19.8 of the Code of the Russian Federation on Administrative Violations.

On 24th August 2009, FAS Russia considered a case initiated upon a petition of "Zavod VMS" CJSC and found that "Mezhregiongaz" Ltd. violated Part 1 Article 10 of the Federal Law "On Protection of Competition".

Investigating the case, FAS Russia established that including additional penalty sanctions in the contract "for exceeding monthly volume of gas for a month of supplies" along with the coefficients specified in Clause 17 of the Rules for gas supply (approved by No. 162 Decree of the Government of the Russian Federation) breached the pricing procedures provided for by the relevant normative legal acts, which is classified as abusing dominant position.

Based on this decision, FAS Russia requested the supplier to send offers to all its counteragents on introducing changes to the gas supply contracts in terms of removing the conditions that fix additional penalty coefficients for exceeding the monthly volume of gas, for the whole period of a gas supply contract.