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Federal Arbitration Court of Moscow district confirmed the legality of acts of IDGC of Centre

6 November 2009

Recall that the Federal Antimonopoly Service took the decision on November 24, 2008 in accordance to which it was recognized that IDGC of Centre, JSC violated paragraph 5 of part 1 of the Article 10 of the Anti-competition Federal Law. In opinion of FAS the Company groundlessly deviated from conclusion of the contract on transmission of electric power to IDGC of Centre (TPSC), whereby it put obstacles for access of TPSC, JSC to the wholesale market of electric power. Following the results of this decision administrative case against the Company was opened and fine in the amount over 32 million roubles was imposed.

IDGC of Centre did not accept the decision made by the antimonopoly service and appealed it in court.

Andrey Gladyshev, Director for legal affairs of IDGC of Centre, JSC, remarked: “In FAS it was thought that we do not give access the sales company to the wholesale market of electric power and output deviating from conclusion of the contract on transmission of electric power. However, in our case pre-contractual dispute took place and parties followed the conditions of contract, which had been concluded earlier and was valid during the dispute. Federal Arbitration Court of Moscow district confirmed that IDGC of Centre did not deviate from conclusion of the contract as well as did not put any obstacles for sales company in access to the wholesale market of electric power”.

On April 6, 2009 Moscow Arbitration Court took the decision in favor of  IDGC of Centre having recognized decisions and regulations of FAS to be invalid. In turn the antimonopoly service did not accept the decision made by the Court of Moscow and filed an appeal, which was examined on July 23, 2009 by the Ninth Arbitration Appeal Court. Appeal was dissatisfied after that FAS directed cassation appeal to the Federal Arbitration Court of Moscow district. On October 29 the cassation court examined appeal and took the decision to uphold the decision of general trial court and decision of Arbitration Appeal Court.

“Thus, the court did not find any antitrust offense in the actions of the Company, having recognized its actions connected with so-called deviation from conclusion of the contract with Tver Power Sales Company to be eligible. Therefore, this decision of the court delivers the company from necessity of paying 32 million roubles as fine for antitrust offense”, ― Andrey Gladyshev emphasized.

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