OREANDA-NEWS. April 01, 2013. The Office of the Federal Antimonopoly Service in the Ulyanovsk Region (Ulyanovsk OFAS Russia) found that “Ulyanovskenergo” OJSC violated the Federal Law “On Protection of Competition”. The contract for electric power supply set an unreasonable requirement for advance payments for electric power by “Iskra-Polis” Partnership of Individual Building Owners.

The Commission of Ulyanovsk OFAS Russia established that a provision of a contract between “Ulyanovskenergo” OJSC and “Iskra-Polis” was in breach of the current housing law and set the payment procedures for consumption of electric power, which deteriorated the situation of the residents of “Iskra” building estate.

“Ulyanovskenergo” OJSC has dominant position and controls over 50% of the markets of buying-and-selling (supplying) electric power within the geographic boundaries of Ulyanovsk. Having investigated the case, OFAS also established that the norms of law valid on the date when the power supply contract was concluded did not obligate “Iskra-Polis” to make advance payments for the consumed electric power.

Having completed the investigation, Ulyanovsk OFAS Russia fined “Ulyanovskenergo” OJSC 475,000 Rubles.

The company disagreed with the decision of the antimonopoly body and filed a lawsuit, but Ulyanovsk Regional Arbitration Court dismissed the company’s claim.

“The company made a tough condition for “Iskra-Polis” as a legal entity– 45 % of the payment must have been made before the 5th day of a month and the remaining 15 % - before the beginning of the next month. It was in breach of the housing and antimonopoly laws, which was confirmed by Ulyanovsk Regional Arbitration Court”, commented Deputy Head of Ulyanovsk OFAS Russia, Konstantin Popov.