OREANDA-NEWS. December 02, 2011. The Federal Arbitration Court of Povolzhie region (Kazan) pronounced legitimacy of the turnover fine – 11.6 million Rubles - imposed by the Office of the Federal Antimonopoly Service in the Ulyanovsk region (Ulyanovsk OFAS Russia) upon “Gorodskoi Teploservice” Ulyanovsk Municipal Unitary Enterprise, reported the press-centre of FAS Russia.

On 25th June 2010, Ulyanovsk OFAS Russia, considered petitions filed by “Venets”, “Luch”, “Pulsar”, Vector” and “Severnoye” Homeowners Associations and found that “Gorodskoi Teploservice” Ulyanovsk Municipal Unitary Enterprise violated Part 1 Article 10 of the Federal Law “On Protection of Competition” in the field of hot water supply to the general public.

In February 2010, according to copies of invoices, heat energy spent for heating bathrooms and losses in water risers were separate entries; in other periods losses were included in heating costs.

The Commission of the antimonopoly body “Gorodskoi Teploservice” Ulyanovsk Municipal Unitary Enterprise issued a determination to stop the violation.

The Unitary Enterprise filed a lawsuit challenging OFAS decision and determination. However, Ulyanovsk Regional Arbitration Court, the 11th Arbitration Appeal Court (Samara) and the Federal Arbitration Court of Povolzhie region (Kazan) supported the position of the antimonopoly body.

When “Gorodskoi Teploservice” Ulyanovsk Municipal Unitary Enterprise lost the lawsuits to all Homeowners Associations, it made recalculations.

“Gorodskoi Teploservice” also filed a lawsuit against the determination of Ulyanovsk OFAS Russia to impose a fine in the size of 12.8 million Rubles. Ulyanovsk Regional Arbitration Court examined the case materials and upheld the turnover fine, however, reducing it to 1 % of the income on the market of heat energy supply in 2009 (11.6 million Rubles). The 11th Arbitration Appeal Court (Samara) and the Federal Arbitration Court of Povolzhie region also confirmed legitimacy of the actions undertaken by Ulyanovsk OFAS Russia.

“The actions of “Gorodskoi Teploservice” Ulyanovsk Municipal Unitary Enterprise infringed the interests of the general public because it is unlawful to request payments for heat losses in pipelines. It is very important that the courts supported the position of OFAS and upheld the administrative sanctions. I hope that the administrative sanction will help reduce the incidents of abusing market dominance by economic entities. At the moment, OFAS is considering several similar cases regarding economic entities”, commented the Head of Ulyanovsk OFAS Russia, Mr. Gennady Spirichagov.